Op. Profit to Average Assets

The profit earned from a company's normal core business operations as a percentage of average assets. This value does not include any profit earned from the firm's investments.

Overhead Efficiency Ratio

Total overhead expenses as a percentage of total revenues net of interest expense. This is a common measure for evaluating an institution’s ability to operate efficiently while keeping a handle on overhead expenses like salaries, rent, and other office expenses. A high ratio suggests that the company’s overhead expenses are too high in relation to the amount of revenue they are generating and/or supporting. Conversely, a low ratio means good management of overhead expenses which usually results in a strong Return on Assets as well.

Overhead Expense

Expenses of the institution other than interest expense, such as salaries and benefits of employees, rent and utility expenses, and data processing expenses. A certain amount of “fixed” overhead is required to operate a credit union, so it is important that the institution leverage that overhead to the fullest extent in supporting its revenue-generating activities.

Weiss Ratings