Asset Quality Score
This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.
Having lots of these types of assets suggests a credit union could eventually have to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.
On Bankrate's asset quality test, TOWN OF PALM BEACH scored 32 out of a possible 40 points, falling short of the national average of 38.09 points.
Troubled assets made up 0.00 percent of TOWN OF PALM BEACH's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.