Asset Quality Score
Bankrate uses this test 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.
A credit union with large numbers of these kinds of assets could eventually be forced to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a future failure.
PENOBSCOT COUNTY scored below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .
PENOBSCOT COUNTY's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.