Asset Quality Score
Bankrate uses this test to estimate the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with a large number of these types of assets could eventually be forced to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the chances of a future failure.
QUORUM fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 8 out of a possible 40 points .
QUORUM's ratio of problem assets was 1.00 percent in our test, the same as the national average.