The efficiency ratio helps credit unions monitor the relationship between operating revenue and overhead expenses. Generally, it measures how much a credit union spends to earn $1 of revenue.

The average efficiency ratio for all credit unions in the country at the end of the third quarter was 71.54%. That’s 1.92 percentage points below the year-ago average of 73.46%.

With a ratio of 55.4%, Virginia tops the chart in efficiency. Much of this is the result of being home to two of the largest credit unions in the country. Economies of scale play a large part in credit union efficiency — generally speaking, larger institutions have relatively lower costs and larger revenues.