WASHINGTON–According to first quarter analysis of Callahan & Associates’ Return of the Member (ROM) scoring system, University of Lake Michigan, Deere Employees Credit Union, River Valley Credit Union, PCM Credit Union, and Credit Union of Vermont have taken the top spots for their respective peer groups.
Deere Employees Credit Union, continues its hold on the top overall score for the fifth consecutive quarter. The credit union was profiled earlier in CUToday.info for its success here.
According to Callahan, ROM attempts to capture all aspects of a member’s relationship with their credit union, and Callahan has altered and re-weighted this member-value metric over the years to reflect the evolution of the credit union industry and the ever-changing 5300 Call Report. The ROM calculation considers three core credit union functions: Return to Savers (savings), Return to Borrowers (lending), and Member Service Usage (product usage).
The peer-leading credit unions included:
- The $4.3-billion Lake Michigan Credit Union, which led the greater than $1 billion in assets peer group with a Return to Savers score of 99.25%, a Return to Borrowers score of 99.60%, and a Member Service Usage score of 90.26%.
- The $781-million Deere Employees Credit Union in Illinois, which led the $500 million to $1-billion peer group with a Return to Savers score of 100%, a Return to Borrowers score of 98.68%, and a Member Service Usage score of 100%.
- The $324-million River Valley Credit Union in Ohio, which led the $250 million to $500 million peer group with a Return to Savers score of 95.32%, a Return to Borrowers score of 95.77%, and a Member Service Usage score of 97.37%.
- The $200-million PCM Credit Union in Wisconsin, which led the $100-million to $250-million peer group with a Return to Savers score of 99.73%, a Return to Borrowers score of 96.98%, and a Member Service Usage score of 99.73%.
- The $39.2-million Credit Union of Vermont, which led the less than $100-millioon peer group with a Return to Savers score of 99.42%, a Return to Borrowers score of 99.71%, and a Member Service Usage score of 99.91%.
Callahan & Associates said it developed ROM in 1996 to provide a comprehensive scoring system of member value that looks beyond the traditional safety and soundness issues covered by NCUA’s CAMEL scores and other regulators’ measures.
“ROM was developed as a way to not only help executives explain variances in financial performance to their boards, but also to offer a holistic solution to the question ‘how do you measure member return?’” said Sam Taft, Callahan director of industry analysis.