Safe and Sound

PEOPLESCHOICE

Biddeford, ME
3
Star Rating
Founded in 1963, PEOPLESCHOICE is an NCUA-insured credit union based in Biddeford, ME. Regulatory filings show the credit union having assets of $194.4 million, as of December 31, 2017.

With 52 full-time employees, the credit union currently holds loans and leases worth $156.7 million. Its 18,854 members currently have $171.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PEOPLESCHOICE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is useful. It works as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, PEOPLESCHOICE received a score of 6 out of a possible 30 points, below the national average of 15.65.

PEOPLESCHOICE had a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

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.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, PEOPLESCHOICE scored 12 out of a possible 30, beating out the national average of 10.11.

PEOPLESCHOICE had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's running ahead of its peers in this area.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.