BIRMINGHAM, Ala. (12/8/11)--An index that ranks the brand strength of all U.S. banks, thrifts, and credit unions indicates this year's credit union rankings reflect more stability in that sector than the commercial bank sector's rankings.
"The stability in the credit union rankings versus 2010 differs sharply from the commercial bank rankings, which saw widespread change from the prior year," said Bancography, a Birmingham, Ala.-based marketing research company in its 2011 Bancography Brand Value Index (BBVI). The index, released Tuesday, notes that 19 of 2010's top-25 large credit unions kept their top-25 status in the 2011 index.
"This performance also contrasts greatly from the 2010 credit union rankings, where only nine institutions repeated their top-25 positions from the previous year," said Bancography. Only two credit unions dropped out of the top 10 in 2011.
For the second consecutive year, Austin (Texas) Telco FCU leads the greater than $1 billion assets category, followed by Landmark CU, New Berlin, Wis., and Local Government FCU, Raleigh, N.C. Two credit unions ranked in the top-10 during 2010--Mountain America FCU, West Jordan, Utah, and University CU, Austin,Texas, dropped out of the top 10 in 2011.
Three credit unions--American Heritage FCU, Philadelphia, Pa.; Caltech Employees FCU, La Canada, Calif.; and Empower FCU, Syracuse, N.Y., moved up from the small credit union tier under $1 billion in assets, and now rank among the top 25 large credit unions in 2011.
Among small credit unions, with assets of $100 million to $1 billion, Complex Community FCU, Odessa,Texas; Freedom CU, Warminster, Pa.; and Gwinett FCU, Lawrenceville, Ga., led the list, with Freedom jumping from its 2010 rank of 28th place. White Sands FCU, Las Cruces, N.M., and America's CU, Lewis McChord, Wash., also returned to the top 25. Navy Army Community FCU, Corpus Christie, Texas, which ranked second in the category in 2010, now ranks ninth in the large credit union category. 2010's first- and third-ranking credit unions, InTouch CU, Plano, Texas, and First Community CU of Houston (Texas), dropped from the top-25 list.
The index ranks financial institution brands by the premium the brand adds to their underlying tangible value. It quantifies the proportion of each institution's long-term value that is attributable to the intangible factors that constitute an institution's brand. These factors include: reputation, service quality, image and market awareness. The brand value index identifies institutions that produce financial results beyond what their capital base, market conditions and competitive environments would predict. The calculations reward institutions that display consistently strong earnings and a reasonable cost of funds, said Bancography.
For the full report with ranking lists of both credit unions and banks, use the links.