Asset Quality Score
In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.
NORTHWESTERN scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.
Troubled assets made up 0.00 percent of NORTHWESTERN's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.