Asset Quality Score
In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with a large number of these kinds of assets could eventually be forced to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, NORTHERN TIER scored 36 out of a possible 40 points, failing to reach the national average of 38.15 points.
A higher-than-average ratio of troubled assets of 9.00 percent in our test was a potential area of concern for the credit union.