Asset Quality Score
In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, shrinking its equity buffer. 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, resulting in diminished earnings and potentially more risk of a failure in the future.
MELROSE scored 0 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.
The credit union's ratio of troubled assets was 13.00 percent in our test, above the national average and a potential area of concern.