Dec. 4, 2006


  • I like the subject matter of the atricle and the first retention ratio of Membrs-Add/Lost. But this credit union is not a good example. They are an investment club with only a 31% loan to share ratio. Are they really serving all of there members?
    Dave Osborn
  • Thanks for the feedback. As to the "investment club" comment - the loan to share ratio is a liquidity measurement. It does not measure the amount of lending to members. Star One has savings per member of $36,000 or about 4 times the peer average; Star One has loan dollars per member of $14,000 or about twice the peer average. The loan to share ratio is low because the savings per member ratio is so very high. It is not low because of poor lending. There are ways to measure credit unions ability to serve members, but the loan to share ratio is not one of them. According to the Callahan Return to Member, Star One is above the 80th percentile in Return to Member.
    Rick Heldebrant