Safe and Sound

MENDO LAKE

Ukiah, CA
4
Star Rating
MENDO LAKE is an NCUA-insured credit union started in 1959 and currently headquartered in Santa Rosa, CA. Regulatory filings show the credit union having assets of $474.2 million, as of December 31, 2017.

Members have $324.2 million on deposit tended by 130 full-time employees. With that footprint, the credit union currently holds loans and leases worth $324.2 million. MENDO LAKE's 52,045 members currently have $423.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MENDO LAKE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is crucial. It works as a cushion against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, MENDO LAKE received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

MENDO LAKE's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

Having lots of these types of assets could eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. 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 depressed earnings and potentially more risk of a failure in the future.

MENDO LAKE scored below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

MENDO LAKE's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

MENDO LAKE scored 14 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

MENDO LAKE had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of its peers in this area.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.