Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having a large number of these types of assets suggests a credit union may eventually have to use capital to absorb losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.
PACIFIC COMMUNITY scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.15.
Troubled assets made up 1.00 percent of PACIFIC COMMUNITY's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.