Vermont Business Magazine - 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 take the top spots for their respective peer groups; with Deere Employees holding the top overall score for the fifth consecutive quarter.
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).
- Lake Michigan ($4.3B, MI) led the greater than $1 billion in assets peer group with a Return to Savers score of 99.25 percent, a Return to Borrowers score of 99.60 percent, and a Member Service Usage score of 90.26 percent.
- Deere Employees Credit Union ($781.3M, IL) led the $500M to $1B peer group with a Return to Savers score of 100 percent, a Return to Borrowers score of 98.68 percent, and a Member Service Usage score of 100 percent. Deere Employees also led the industry with the highest ROM score across all peer groups.
- River Valley ($324.8M, OH) led the $250M to $500M peer group with a Return to Savers score of 95.32 percent, a Return to Borrowers score of 95.77 percent, and a Member Service Usage score of 97.37 percent.
- PCM ($200.5M, WI) led the $100M to $250M peer group with a Return to Savers score of 99.73 percent, a Return to Borrowers score of 96.98 percent, and a Member Service Usage score of 99.73 percent.
- Credit Union of Vermont ($39.2M, VT) led the less than $100M peer group with a Return to Savers score of 99.42 percent, a Return to Borrowers score of 99.71 percent, and a Member Service Usage score of 99.91 percent.
Developed by Callahan & Associates in 1996, ROM provides 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.
ROM can be calculated quarterly in Callahan’s Peer-to-Peer software and is typically calculated with standard asset-based peer groups.
About Callahan & Associates
Callahan & Associates is dedicated to helping the credit union industry thrive. Our team of experts provides leading research, analytics, networking and consulting solutions. More than 4,000 credit unions and industry suppliers rely on us for the latest data, actionable insights, and benchmarking tools to develop their unique competitive advantages and achieve their strategic goals. Our 30-year history has enabled us to build an unparalleled knowledge transfer consortium which connects the industry’s best minds. To learn how you can join Callahan’s network, please visit www.callahan.com.