Asset Quality Score
Bankrate uses this test to estimate the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with large numbers of these types of assets may eventually be required to use capital to absorb losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.
On Bankrate's asset quality test, PENNSYLVANIA STATE EMPLOYEES scored 40 out of a possible 40 points, better than the national average of 38.15 points.
Troubled assets made up 4.00 percent of PENNSYLVANIA STATE EMPLOYEES's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.