Asset Quality Score
Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, LCO scored 0 out of a possible 40 points, less than the national average of 38.09 points.
The credit union's ratio of problem assets was 1.00 percent in our test, the same as the national average.