Asset Quality Score
Bankrate uses this test to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having a large number of these kinds of assets suggests a credit union may have to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, PEOPLESCHOICE scored 32 out of a possible 40 points, coming in below the national average of 38.09 points.
PEOPLESCHOICE's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.