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.
A credit union with lots of these kinds of assets could eventually have to use capital to cover losses, decreasing 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 diminished earnings and potentially more risk of a failure in the future.
UNIVERSITY & STATE EMPLOYEES exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .
A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.