Asset Quality Score
Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with a large number of these kinds of assets could eventually be forced to use capital to absorb losses, shrinking 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, decreasing earnings and increasing the risk of a failure in the future.
U B C SOUTHERN COUNCIL INDUSTRIA WO finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .
U B C SOUTHERN COUNCIL INDUSTRIA WO's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.