Asset Quality Score
In this test, Bankrate tries to determine the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.
Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.
UNIVERSAL COOP fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 24 out of a possible 40 points .
A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.