Asset Quality Score
This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.
Having lots of these kinds of assets may eventually force a credit union to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, COMMUNITY FIRST scored 40 out of a possible 40 points, above the national average of 38.15 points.
COMMUNITY FIRST's ratio of problem assets was 4.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.