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
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.