April 18, 2005


Comments

 
 
 
  • You are correct about these credit unions being unusual. However, while we recognize these are unusual credit unions and will have unusual financials to boot, we want to exhibit the top performers to start the brainstorming process about how other credit unions can change their business plans and ideologies to become top performers in comparison to the industry average. If we only published the industry's averages, it might not stimulate alternative thoughts on changing current behaviors. Tom Geggel, Callahan & Associates
    Anonymous
     
     
     
  • The problem with this type of list is that these are unusual credit unions. I think if you would show this same data for the top 100 credit unions you would see a completely different picture. A net interest margin of 4.47 is unusually high and operating expense ratios of .76% a very low. The issues for many of us credit unions in the norm is that our spreads are barely covering operating expenses. Auto lending is starting to feel a lot like being in the airline business. Everyone is cutting their prices, often below cost to hold on to or increase volumes. The credit card business has largely been ceded to the mono-lines. Business lending is catching on but only for a few credit unions. For many credit unions most of 2004's lending success came from real estate lending. The question is will real estate lending bring on interest rate risk problems if rates rise?
    Anonymous
     
     
     
  • I agree with the discussion that they are the exception. The community based credit unions have a totally different set of costs that single seg credit unions do not have to deal with. Also, one year's worth of data is also misleading. How many of these ROA leaders would be on the same list as a list using a 5 year time period?
    Anonymous