Asset Quality Score
In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a future failure.
VALLEYSTAR scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.
The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.