Asset Quality Score
In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.
Having lots of these types of assets could eventually force a credit union to use capital to cover losses, reducing 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, diminishing earnings and increasing the chances of a future failure.
On Bankrate's asset quality test, SOMERSET scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.
SOMERSET's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.