Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
Having extensive holdings of these types of assets could eventually force a credit union to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a future failure.
TENNESSEE MEMBERS 1ST fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .
TENNESSEE MEMBERS 1ST's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.