5-year Trend Shows Gains in Average Share Balance and Loans Granted Per Member

Top rankings for credit unions that provide the best value to members via high savings rates and low borrowing rates show gains in average share balance and loans-granted per member. Eastman Credit Union in Kingsport, TN, Burbank City Employees Federal Credit Union in Burbank, CA, and P.C.M. Employees Credit Union in Green Bay, WI, had the best ROM scores among credit unions in their asset classes, according to newly analyzed year-end data.

 
 

Top rankings for credit unions that provide the best value to members via high savings rates and low borrowing rates show gains in average share balance and loans-granted per member.

Eastman Credit Union in Kingsport, TN, Burbank City Employees Federal Credit Union in Burbank, CA, and P.C.M. Employees Credit Union in Green Bay, WI, had the best ROM scores among credit unions in their asset classes, according to newly analyzed year-end data. Eastman and P.C.M. held their first place rankings from last year while Burbank City Employees moved up from fourth place.

Eastman scored 98.65, the top for credit unions with over $250 million in assets; Burbank City Employees scored 97.55 for those between $100 and $150 million; and P.C.M. scored 99.27, for those between $50 and $100 million. The average credit union scores hover at about 50.

The ROM index was created by Callahan's five years ago to help credit unions measure members' use of the credit union and member value received. The index organizes data from the 5300 Call Reports to provide a way for credit unions to analyze their member service levels in the context of their peer credit unions.

The ROM rankings consider savings, lending and product use and they gauge performance in three main components called Return to the Savers, Return to the Borrowers, and Member Service Usage. Performance in all three areas helps make up each credit union's overall score. These scores measure member usage of loans and savings services as well as how much the credit union gives back to their member via high dividends and low loan rates.

In the five years since ROM measurement began, hefty gains have occurred in all the tracked asset classes for Average Share Balance and Amount of Loans Granted Per Member, he said. The most striking increase came in Amount of Loans Granted Per Member in credit unions with more than $250 million in assets. This amount soared 40.2% over the past five years. Loans granted increased an average of 16% in the other two asset classes.

Average Share Balance rose an average of 23.7% in all asset classes.

Average Share Balance and Amount of Loans Granted Per Member are two of the most fundamental measures of credit unions' effectiveness in building relationships with their members. The figures tracked over the last five years reveal that members today are using their credit union for a larger portion of their savings and that credit unions are fulfilling a greater portion of their members' financing needs.

The leading Return of the Member (ROM) rankings for credit unions are published in the new 2002 Credit Union Financial Yearbooks released Friday (Mar. 15). ROM rankings are updated quarterly in Callahan's Quarterly Research and Data Report.

 

 

 

March 18, 2002


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