Asset Quality Score
In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having large numbers of these kinds of assets suggests a credit union could eventually have to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and elevating the risk of a failure in the future.
CALIFORNIA COMMUNITY exceeded the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .
Troubled assets made up 1.00 percent of the credit union's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.