Asset Quality Score
In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a failure in the future.
NORTHERN KENTUCKY EDUCATORS' scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.
The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.