Asset Quality Score
In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.
A credit union with large numbers of these types of assets could eventually be forced to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, PORTSMOUTH VA CITY EMPLOYEES scored 32 out of a possible 40 points, below the national average of 38.15 points.
The credit union's ratio of problem assets was 17.00 percent in our test, greater than the national average and a potential area of concern.