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.
A credit union with a large number of these kinds of assets could eventually be required to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.
On Bankrate's asset quality test, FIRST CHOICE scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.
The credit union's ratio of troubled assets was 4.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.