Q4 Report: The Top 5 Most Healthy Credit Unions

Top 5

As we did in Q3, we’re shining a light on the five credit unions at the top of our most recent Credit Union Industry HealthScore metric. We thought you’d be surprised last quarter given the smaller size of one of the leaders, but wait till you see the fourth quarter list! Read on for details.

Defining Health

Before we delve into the Top 5, let us explain how we define credit union health. To determine the ranking, we utilized our Credit Union Industry HealthScore, a composite financial performance score reflecting credit union financial health. The HealthScore system calculates overall credit union health by scoring/grading credit union performance across eleven different key ratios: Net Worth, ROAA, Operating Expense, Efficiency, Charge-Off, Delinquency, Loans, Deposits, Loan-to-Share, Asset Growth, and Membership Growth. Grading is based on a five-point scale, with 0 reflecting poor health and 5 reflecting exceptional health. Glatt Consulting publishes the score quarterly and we use it to track, report on, and respond to industry-wide trends affecting credit unions. The overarching score allows us to quickly define credit unions with very balanced, strong, financial performance, and the component scores help us to identify contributing factors driving that performance.

The Top 5

Here are the five healthiest credit unions as of Q4 2014:

Top Five Healthiest Credit Unions
Name Location Assets HealthScore
Industry Average 2.512
Redwood California $2.5B 4.636
Kemba Financial Ohio $902M 4.636
Consumers Cooperative Nebraska $24M 4.545
Sandia Area New Mexico $516M 4.545
Community First Wisconsin $2.1B 4.545

This month we plan to do a little digging to learn more about how these credit unions have reached such lofty heights – especially Consumers Cooperative. A $24M credit union with performance at that level surely has a story to tell.

We will share whatever comments we receive from the leaders of these credit unions right here on glattconsulting.com. In the meantime, use the links in the table above to check these credit unions out for yourself.  And for your reference, each credit union’s component scores are included in the table below. Impressive!

Score Comparisons
Credit Union NW RA EX EF DQ CO LN DE LS AG MG
(Industry) 3.436 1.890 2.857 0.951 2.948 3.313 2.978 3.755 2.539 1.900 1.067
Redwood 5.000 5.000 4.000 5.000 5.000 5.000 5.000 5.000 5.000 4.000 3.000
Kemba Financial 5.000 5.000 4.000 4.000 5.000 4.000 5.000 5.000 5.000 4.000 5.000
Consumers Cooperative 4.000 5.000 4.000 5.000 5.000 3.000 5.000 5.000 5.000 5.000 4.000
Sandia Area 4.000 5.000 4.000 5.000 5.000 5.000 5.000 4.000 4.000 5.000 4.000
Community First 5.000 5.000 5.000 5.000 5.000 4.000 4.000 5.000 5.000 3.000 4.000

Table Key:

  • NW: Net Worth performance score
  • RA: Return on Average Assets performance score
  • EX: Operating Expense performance score
  • EF: Efficiency performance score
  • DQ: Delinquency performance score
  • CO: Charge-Off performance score
  • LN: Loan Relationships performance score
  • DE: Deposit Relationships performance score
  • LS: Loan-to-Share performance score
  • AG: Asset Growth performance score
  • MG: Membership Growth performance score

By the way, here is an interesting fact about the score distribution…. There are only 225 credit unions that score 4 or greater, which is roughly 3.5% of all credit unions. If your credit union scores more than 4 consider yourself among the elite!

Interested in your own credit union’s HealthScore? We offer custom reports for a nominal charge. Order your report today

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