Asset Quality Score
In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
Having lots of these kinds of assets means a credit union may eventually have to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and increasing the risk of a failure in the future.
V.A.C.EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.
A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.