Asset Quality Score
Bankrate uses this test to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to absorb losses, diminishing 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 money, decreasing earnings and increasing the chances of a failure in the future.
MERHO scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.
Troubled assets made up 0.00 percent of MERHO's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.