The core earnings ratio is an attempt to provide the true measure of a credit union's earnings by eliminating external factors (such as the NCUSIF Stabilization Expense). Core earnings is calculated by taking a credit union's total income and removing interest expenses and operating expenses. This information is then annualized, and that value is divided by the average assets to complete the ratio. By comparing this metric to a credit union's traditional ROA, you will get a better sense of the credit union's earnings through operations.