Asset Quality Score
In this test, Bankrate tries to determine the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with large numbers of these types of assets may eventually be forced to use capital to cover losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, reducing earnings and elevating the chances of a failure in the future.
TWIN STATES finished below the national average of 38.09 on Bankrate's asset quality test, racking up 20 out of a possible 40 points .
A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.