Asset Quality Score
Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.
Having large numbers of these kinds of assets may eventually require a credit union to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.
STATE EMPLOYEES CU OF MARYLAND, INC fell below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .
The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.