Asset Quality Score
Bankrate uses this test to determine the impact of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with lots of these types of assets could eventually be forced to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, pushing down earnings and elevating the chances of a future failure.
On Bankrate's asset quality test, LANCASTER RED ROSE scored 36 out of a possible 40 points, less than the national average of 38.09 points.
Troubled assets made up 0.00 percent of LANCASTER RED ROSE's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.