Asset Quality Score
In this test, Bankrate tries to determine the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having large numbers of these kinds of assets means a credit union could eventually have to use capital to absorb losses, diminishing its cushion of equity. 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 future failure.
FEDMONT scored 36 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.15.
The credit union's ratio of troubled assets was 8.00 percent in our test, higher than the national average and something to keep an eye on.