Asset Quality Score
In this test, Bankrate tries to determine the effect of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.
Having large numbers of these kinds of assets means a credit union could have to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the chances of a future failure.
T E A scored 32 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.
A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.