Key ratios are relatively unimportant in isolation. Board members should monitor trends (e.g., ratio this month compared to same month last year) & compare your ratios to peer averages or another type of benchmark (i.e., ratio compared to other credit unions with similar characteristics).
The following 8 key ratios will give you a very good picture of your credit union’s performance.

Net Economic Value

Capital/Assets Ratio

Return on Assets (ROA)

Loan to Share Ratio

Net Expense to Assets Ratio

Delinquency Ratio

Loan Charge-off Ratio

Checking Accounts to Members Ratio

This blog entry you have just read was written by Edward Lis who is a former senior executive of three different credit unions. If you enjoyed this article I encourage you to learn more about Edward by visiting or by calling 518-420-2108.

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