The efficiency ratio helps credit unions monitor the relationship between operating revenue and overhead expenses. Generally, it measures how much a credit union spends to earn $1 of revenue.

The average efficiency ratio for all credit unions in the country at the end of the third quarter was 71.54%. That’s 1.92 percentage points below the year-ago average of 73.46%.

With a ratio of 55.4%, Virginia tops the chart in efficiency. Much of this is the result of being home to two of the largest credit unions in the country. Economies of scale play a large part in credit union efficiency generally speaking, larger institutions have relatively lower costs and larger revenues. ContentMiddleAd

Further south, North Carolina credit unions posted the largest improvement in efficiency year-over-year. Cooperatives in the Tar Heel state collectively reported an increase in revenue of 15.1%. Operating expenses rose at a slower rate, 7.3%, resulting in an efficiency ratio improvement of more than 6 percentage points.

Check out the interactive map below to examine the efficiency ratio and average credit union asset size for every state.

Catch Up On 3Q 2017 Trendwatch

This must-attend quarterly event for credit union leaders covers performance trends, industry success stories, and areas of opportunity. Attendees will find insight they won’t find anywhere else weeks before the official NCUA data release.