WASHINGTON-Determining how a credit union stands relative to its peers in terms of returning value to its members is a complex issue. Callahan & Associates, Washington, has attempted to do just that with its Return of the Member (ROM) ranking system.
Callahan's developed the system to measure the value members receive from their CUs. There are three components to ROM that reflect the central credit union functions of lending, savings and product usage. Return to Savers is weighted at 40%, Return to Borrowers is weighted at 35%, and Member Service usage is at 25%. The data used in the ranking is culled from the 5300 Call Reports.
Return to Savers measures how well a CU is providing deposit services to its members, measuring the average dividends paid, average share balance, the number of share accounts per member and the three-year share growth of the credit union. The Return to Borrowers index rewards CUs that offer lower rates on loans and also considers the historical growth in lending and the variety of products on offer. Member Service Usage measures how efficiently a credit union provides and promotes services to its members.
On this page are the ROM rankings for the fourth quarter of 2008. Credit Union Journal is featuring the high-performers in the ROM ranking as part of its "Leader Board" series, which examines why and how the credit union's management has been able to drive the CU's success.
