Asset Quality Score
In this test, Bankrate tries to determine the effect 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 extensive holdings of these kinds of assets may eventually be forced to use capital to absorb losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and increasing the risk of a future failure.
On Bankrate's test of asset quality, FIRST SERVICE scored 40 out of a possible 40 points, better than the national average of 38.09 points.
Troubled assets made up 0.00 percent of FIRST SERVICE's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.