Asset Quality Score
Bankrate uses this test to determine the impact of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.
Having lots of these types of assets means a credit union may eventually have to use capital to cover losses, decreasing its equity buffer. 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 lower earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, PENN EAST scored 36 out of a possible 40 points, falling short of the national average of 38.09 points.
PENN EAST's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of greater financial strength than other credit unions.