One meausre fo the quality of a loan is the Altman Z score, which for Garden State was 3.04 for 2006 slightly below the 3.20 minimum that Martha's bank uses to differentiate strong firms with little likelihood of bankruptcy in the next two years form those deemed likely to go into default. This will put the bank under increased pressure to reclassify Garden State's loans as "problem loans," to set up a reserve to cover potential losses, and to take whatever steps are necessary to reduce the bank's exposure. Setting up the loss reserve would have a negative effect on the bank's profits and reflect badly on Martha's performance.