Asset Quality Score
This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.
Having a large number of these types of assets suggests a credit union may have to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, UNIFIED PEOPLE'S scored 40 out of a possible 40 points, better than the national average of 38.15 points.
Troubled assets made up 2.00 percent of UNIFIED PEOPLE'S's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.