Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
Having extensive holdings of these types of assets suggests a credit union may have to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and increasing the risk of a failure in the future.
TROY AREA SCHOOL EMP. fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .
Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.