Asset Quality Score
Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.
Having large numbers of these types of assets could eventually require a credit union to use capital to cover losses, diminishing 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 money, pushing down earnings and elevating the chances of a failure in the future.
On Bankrate's asset quality test, WAUKEGAN MUNICIPAL EMPLOYEES scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.
The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.