Asset Quality Score
In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.
Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.
FIRST COMMUNITY scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.
Troubled assets made up 0.00 percent of FIRST COMMUNITY's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.