Earnings up 18% at Wisconsin state-chartered credit unions: Report

State-chartered credit unions in Wisconsin closed out 2020 with gains across several key metrics in spite of the pandemic, according to new data from the state’s Department of Financial Institutions.

Earnings at Wisconsin’s 118 state-chartered CUs rose by more than 18% year-over-year to exceed $506 million. Return on average assets also increased slightly, from 1.10% at the end of 2019 to 1.12% at the close of 2020. Lending was up by 7.3% as total loan balances topped $35.1 billion.

Allowance for credit losses rose substantially, jumping by more than 35% from $199 million in 2019 to $269.1 million. Loan-loss allowances rose by about 10% the previous year. The pace of asset growth also doubled in 2020, driven by reduced consumer spending and government stimulus efforts. Total assets at year-end stood at $49.5 billion, an increase of $8.5 billion, compared with a $4.1 billion increase in 2019. Savings grew by $7.8 billion, more than twice the gains of 2019, and the loan-to-savings ratio fell from 95.06% to 83.14%.

Delinquency rates continue to improve, the DFI reported, falling from 0.70% in 2019 to 0.56% in 2020.

The number of state-chartered credit unions in Wisconsin fell from 121 to 118 at the end of 2020.

“Despite these unprecedented times and the COVID-19 pandemic, Wisconsin credit unions continue to serve their members and the communities in which they operate,” DFI Secretary Kathy Blumenfeld said in a press release. “Their financial performance remains strong despite the continued challenges they face and this is attributed to proactive management during the pandemic. While the financial indicators are positive, credit unions must remain diligent, adjust operations and continue to work with their members to meet their financial needs.”

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