Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.
Having lots of these kinds of assets suggests a credit union may have to use capital to cover losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and increasing the chances of a failure in the future.
FIRST FINANCIAL scored 12 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.
The credit union's ratio of problem assets was 1.00 percent in our test, the same as the national average.