Asset Quality Score
Bankrate uses this test to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with large numbers of these kinds of assets may eventually have to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.
On Bankrate's test of asset quality, LORMET COMMUNITY scored 40 out of a possible 40 points, beating the national average of 38.15 points.
The credit union's ratio of troubled assets was 1.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.