Which credit unions are the leaders in efficiency?

 
 

Efficiency ratio reflects how much money a credit union spends to generate $1 of revenue. The ratio is calculated by total non-interest expense minus assessment expense divided by the sum of net interest income after provision for loan losses, fee income, other operating income, and total non-interest income. Lower the efficiency ratio, lesser the amount of a credit union’s income is being spent as its overhead expenses.

According to Callahan & Associates FirstLook data, Workermen’s Circle ($55.2M, Savannah, GA) operated most efficiently as of June 2013 among credit unions over $20 million in assets. Its efficiency ratio stood at 24.08%, 3.53 percentages points lower (therefore better) than the same quarter last year. Southern ($73.1M, Houston, TX) came in second with 29.84% efficiency ratio.

The credit union industry average for efficiency in the second quarter of 2013 was 79.34%, down 27 basis points from the previous year. 

LEADERS IN EFFICIENCY
Data as of June 30, 2013 for Credit Unions Over $20M in Assets
© Callahan & Associates | www.creditunions.com

  Credit Union State Efficiency Ratio
as of June 2013
Efficiency Ratio
as of June 2012
Change in
Percentages Points
Total Assets
1 Workmen's Circle GA 24.08% 27.61% -3.53 $55,160,223
2 Southern TX 29.84% 30.81% -0.97 $73,128,677
3 Merck Employees NJ 31.97% 35.12% -3.15 $1,873,079,890
4 Progressive NY 35.45% 33.41% 2.04 $598,498,213
5 Long Beach Firemens CA 37.43% 45.27% -7.84 $162,695,645
6 Star One A 37.62% 38.32% -0.70 $6,424,047,914
7 California Lithuanian CA 38.04% 45.64% -7.60 $96,586,365
8 McBryde HI 38.43% 47.16% -8.73 $83,406,952
9 First IA 39.15% 66.24% -27.09 $133,158,741
10 Lufthansa Employees NY 39.65% 85.16% -45.51 $100,879,360


Generated by Callahan & Associates' Peer-to-Peer Analytics

 
 

Aug. 26, 2013


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