Asset Quality Score
In this test, Bankrate tries to estimate 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.
Having a large number of these kinds of assets could eventually force a credit union to use capital to cover losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and increasing the chances of a failure in the future.
On Bankrate's test of asset quality, PACIFIC HORIZON scored 40 out of a possible 40 points, above the national average of 38.09 points.
Troubled assets made up 0.00 percent of PACIFIC HORIZON's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.