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A Direct Line Blog

Common Themes Among High-Performing Credit Unions

January 9, 2023 11:12 am

by Jeff Rendel, Certified Speaking Professional

Over the past three years, engagements with more than 100 high-performing credit unions revealed several uncommon and common themes. Uncommon? Size, location, field of membership, and charter. No two credit unions were alike, a testament to the localized and unique superpowers of credit unions. In common? Read on.

Defining high-performing credit unions was simple: a high ROA (1% and above) and sound net worth ratio (10% and above) yielded a return on equity (ROE) of 10%. In short, these credit unions had the capacity to grow 10% in assets each year with cash flow and profits from current operations. Membership growth was impressive (about 7%), but member lifetime value (revenue and profits) drove long-lasting success and sustainability.

So, how do they generate such a first-rate ROE? Find out by reading the rest of his article.

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