Asset Quality Score
In this test, Bankrate tries to determine the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.
Having lots of these kinds of assets means a credit union could have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a future failure.
On Bankrate's asset quality test, MERCY 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 4.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.