Asset Quality Score
This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.
A credit union with lots of these types 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 no longer earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.
On Bankrate's test of asset quality, RAILWAY EMPLOYEES scored 40 out of a possible 40 points, above 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.