Asset Quality Score
Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with lots of these types of assets may eventually be forced to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and elevating the chances of a failure in the future.
SPIRIT OF ALASKA fell below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .
SPIRIT OF ALASKA's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.