Academic journal article ABA Banking Journal

High-Performance Mutuals Tell All

Academic journal article ABA Banking Journal

High-Performance Mutuals Tell All

Article excerpt

Three of the top 20 mutual savings institutions as measured by return on assets were represented on a panel at ABA's Annual Convention last month. One of the three--$2.7 billion-assets Maspeth Federal Savings & Loan, Maspeth, N.Y.--has been in the top 20 for each of the last five years.

Maspeth's numbers certainly got people's attention. Among them: ROA 1.40%; core deposits 50%; efficiency ratio 28%.

Not surprisingly, that 28% efficiency ratio prompted questions from the audience. Maspeth CEO Kenneth Rudzewick said that not only is his total head count lean--170 full-time, 100 part time employees--but many of his people stay a tong time, so he doesn't have to replace them often, especially top people. Also: employees contribute 12% to the thrift's health care plan, and the institution has no borrowed money. Maspeth's loan yield is 6.11%, which it achieves by being careful on appraisals and allowing a maximum loan to value (on commercial loans) of 65% plus a personal guarantee, said Rudzewick.

Eastern Bank, at $6.7 billion in assets, is the largest independent bank in Massachusetts. …

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