Asset Quality Score
Bankrate uses this test to estimate the impact of troubled 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 types of assets may eventually be forced to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.
On Bankrate's asset quality test, PAAC TRANSIT DIVISION scored 40 out of a possible 40 points, beating out the national average of 38.09 points.
Troubled assets made up 0.00 percent of PAAC TRANSIT DIVISION's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.