Asset Quality Score
In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.
Having extensive holdings of these types of assets may eventually require a credit union to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the risk of a future failure.
MEMBERS EXCHANGE scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.
A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.