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 extensive holdings of these kinds of assets may eventually have to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.
PEPCO scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.
Troubled assets made up 0.00 percent of PEPCO's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.