Asset Quality Score
Bankrate uses this test to estimate the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having lots of these kinds of assets may eventually require a credit union to use capital to absorb losses, cutting down on 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 interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, TVA ALLEN STEAM PLANT scored 40 out of a possible 40 points, above the national average of 38.09 points.
TVA ALLEN STEAM PLANT's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.