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.