Asset Quality Score
In this test, Bankrate tries to determine the impact of problem assets, such as unpaid loans, 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 types of assets may eventually be required to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the risk of a future failure.
FIRST PEOPLES COMMUNITY scored 32 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.09.
The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.