Safe and Sound

MENDO LAKE

Ukiah, CA
4
Star Rating
MENDO LAKE is an NCUA-insured credit union founded in 1959 and currently headquartered in Ukiah, CA. The credit union holds $246.1 million in assets, according to June 30, 2017, regulatory filings.

With 65 full-time employees, the credit union has amassed loans and leases worth $164.9 million. MENDO LAKE's 30,621 members currently have $225.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MENDO LAKE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is essential. When looking at safety and soundness, more capital is preferred.

MENDO LAKE fell below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, receiving a score of 6 out of a possible 30 points.

MENDO LAKE's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

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 a large number of these kinds of assets could eventually be required to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, MENDO LAKE scored 36 out of a possible 40 points, lower than the national average of 38.15 points.

A greater-than-average ratio of problem assets of 11.00 percent in our test was something to keep an eye on for the credit union.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, MENDO LAKE scored 18 out of a possible 30, above the national average of 10.31.

One sign that MENDO LAKE is running ahead of its peers in this area was its earnings ratio of 9.00 percent in our test, higher than the average for all credit unions.

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.