ROA in Washington State Proves to Be Evergreen
Washington credit unions took a hit to capital during the corporate credit union and financial crisis like everyone else, but it hit them harder because they had lower aggregate capital to begin with. Thankfully, the aptly named Evergreen State credit unions also have return on assets that has remained higher than the national average to help rebuild net worth.
“ROA for Washington credit unions was–and always has been–higher than the national average,” said David Bennett, director of public relations for the Northwest Credit Union Association. “However, because of the extremely high priority Washington credit unions place on the return to members, especially in the form of lower rates, higher returns and better service, net worth is lower than average.”
In Vancouver, Wash., iQ Credit Union, with assets of $476 million, serves many of those in education who lost their jobs, and it shows in the credit union’s 0.74% ROA as of June 30.
“There are a lot of things that are bringing about this number,” said iQ President/CEO Roger Michaelis, “including school cutbacks, teacher retirements and budget shortfalls.”