Asset Quality Score
Bankrate uses this test to determine the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.
Having a large number of these types of assets suggests a credit union may have to use capital to absorb losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.
On Bankrate's asset quality test, PENSACOLA L & N scored 40 out of a possible 40 points, beating the national average of 38.09 points.
PENSACOLA L & N's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.