Asset Quality Score
Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.
A credit union with lots of these kinds of assets could eventually be required to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, SECURITY FIRST scored 36 out of a possible 40 points, less than the national average of 38.09 points.
A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.