MADISON, Wis. – New performance data released around Wisconsin’s credit unions show the divide between large and small CUs is as evident at the state level as it is at the national level.
Overall, the Wisconsin Department of Financial Institutions said the state’s 117 state-charters showed strong financial performance as of June 30.
Overall net income was strong at nearly $355 million, 1.38% of average assets, the DFI said.
“However, there is a growing disparity between the net income of credit unions,” the department stated. “The largest peer group of credit unions with assets over $500 million experienced a return on average assets of more than double that of the next peer group of credit unions with assets between $100 - $500 million. Credit unions with assets under $100 million had the lowest return on average assets.”
State charters in Wisconsin saw asset growth of $53.6 billion as of June 30, an increase of over $4 billion since year-end 2020. Over the same period, loans increased $1.4 billion, and shares and deposits rose $3.8 billion, the DFI said.
“This resulted in the loan-to-share ratio dropping from 83.14% at year-end 2020 to 79.46%,” the department reported. “Loan growth improved from the year’s end, but deposit growth continued to be higher due to the COVID-19 pandemic and related effects.”
Other Data Points
In the six months ending on June 30, the DFI also reported:
- Net worth to assets were at 10.32%, which is a strong ratio despite a slight decrease due to continued asset growth
- Loan balances were nearly $36.5 billion with an annualized loan growth rate of 8.27%
- Delinquent loan to total loan ratio was 0.41%, down from the year-end ratio of 0.56%, and at a historically low level
- Provision for loan loss expense was a mere $7 million compared to $82.6 million in June 2020
“The financial ratios are strong, particularly net income, which was fueled by much lower provision for loan loss expense as compared to last June when the pandemic was taking hold,” said DFI Secretary Kathy Blumenfeld. “Credit unions continue to be diligent in monitoring the effects of the pandemic and adjusting operations accordingly while continuing to serve their members.”