Asset Quality Score
Bankrate uses this test to determine 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.
Having extensive holdings of these types of assets could eventually force a credit union to use capital to cover losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.
SOUTH SHORE RAILROAD EMP fell below the national average of 38.15 on Bankrate's asset quality test, racking up 8 out of a possible 40 points .
Troubled assets made up 64.00 percent of the credit union's total assets in our test, greater than the national average and something to keep an eye on.