Asset Quality Score
Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having a large number of these kinds of assets could eventually require a credit union to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.
On Bankrate's asset quality test, THE WEST TENNESSEE scored 36 out of a possible 40 points, less than the national average of 38.09 points.
Troubled assets made up 0.00 percent of THE WEST TENNESSEE's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.