Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having lots of these types of assets means a credit union could have to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.
FIRST CHOICE COMMUNITY scored 36 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.15.
The credit union's ratio of troubled assets was 8.00 percent in our test, above the national average and something to keep an eye on.