SHREWSBURY, N.J. — Return on Assets isn't what it used to be in credit union land.
The heady days of over a 1% ROA are gone. In fact the industry ROA now averages out at about 0.83%. ROA has gone down every year since 2002 when it came in at 1.07%.
The smaller the credit union the worse ROA is. Credit unions under $10 million net .60% ROA, while credit unions over $500 million net .84%. The following chart shows those credit unions with strong non-interest often have strong ROA. However this is not always the case. Take State Employees CU of N.C. for example which has over $62 million in non-interest income but just .35% ROA.
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