Although credit unions’ overall return on assets (ROA) rebounded to 68 basis points (bp) at year-end 2011 (up from 18 bp in 2009 and 50 bp in 2010), this measure remains below historical averages, according to CUNA’s economics and statistics department.
But some credit unions are bucking this trend. Case in point: Baton Rouge (La.) Telco Federal Credit Union, which reported a robust ROA of 146 bp in 2011 due to a strict focus on expense control, says Darryl Long, CEO of the $221 million asset institution.
He cites several ways the credit union keeps expenses in check:
“You can’t improve,” Long says, “if you don’t keep score.”