September 20, 2010


Comments

 
 
 
  • You may need to rethink your leaderboard. At first glance, I thought "Wow! 10%+ average membership growth!?!", but look at the numbers. The average assets per member for some of these credit unions is laughable. Member growth just for the sake of member growth is meaningless, and 10 of the 20 credit unions are significantly lower than the national average assets/ member of $9,984 and are probably riddled with useless, dormant, inactive accounts that bring them nothing.
    John
     
     
     
  • Yes, some of these credit unions have lower than average assets per member. I would be wary of calling that, in itself, laughable. Understanding a credit union's field of membership and/or geographic location and/or their business model (primarily auto? mortgage? cc?) is more important to attacking one particular ratio that doesn't conform. Keep digging -- all but 2 of these credit unions also have above average 5 year CAGR of loans as well--with 14 of them well in to double digits. All but 2 have positive ROA (before NCUSIF expense, 3 after) and as a group average 1.06 -- significantly higher than the industry average of 0.62. (Source: Peer to Peer)
    Alix Patterson
     
     
     
 
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