Asset Quality Score
In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with a large number of these kinds of assets could eventually be required to use capital to cover losses, diminishing 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, resulting in diminished earnings and potentially more risk of a failure in the future.
On Bankrate's asset quality test, PEOPLES ENERGY scored 40 out of a possible 40 points, above the national average of 38.09 points.
A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.