Asset Quality Score
In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
A credit union with lots of these kinds of assets could eventually be forced to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.
FIRST CAROLINA PEOPLE'S fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 28 out of a possible 40 points .
Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.