Asset Quality Score
Bankrate uses this test to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having lots of these types of assets means a credit union may have to use capital to cover losses, decreasing 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, reducing earnings and increasing the chances of a failure in the future.
On Bankrate's test of asset quality, NORWESCO scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.
A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.