Asset Quality Score
Bankrate uses this test to determine the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.
A credit union with large numbers of these types of assets may eventually be required to use capital to absorb losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.
WASHINGTON EDUCATIONAL ASSOC scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.
The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.