Asset Quality Score
This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.
Having a large number of these types of assets suggests a credit union could eventually have to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, SCOTT scored 36 out of a possible 40 points, falling short of the national average of 38.09 points.
Troubled assets made up 0.00 percent of SCOTT's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.