Wisconsin’s state-chartered banks and credit unions both saw their combined net income increase double-digits in 2020, according to data from the state Department of Financial Institutions.
The state’s 135 state-chartered banks reported net income of $778.9 million last year, an increase of 17.2% from 2019. The 118 state-chartered credit unions increased net income by 18.1% to $506.1 million.
“Our banks have demonstrated their financial health through strong earnings and positive growth, steady leadership, and sound financial practices,” DFI secretary Kathy Blumenfeld said in a press release announcing banking results Monday. “While not immune to the negative economic effects of the pandemic, Wisconsin state-chartered banks have helped their customers face the challenges of 2020 and they must remain diligent in doing so this year, too.”
She struck a similar tone in mid-February when announcing the credit union results.
“Their financial performance remains strong despite the continued challenges they face and this is attributed to proactive management during the pandemic,” Blumenfeld said of credit unions. “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.”
State-chartered banks ended 2020 with total assets of $63.8 billion, a growth rate of 13.3% and an increase of $7.5 billion from 2019. The banks had a return on average assets ratio of 1.34%, up from 1.25% in 2019.
State credit unions grew their total assets at a 20.6% rate to $49.5 billion, a jump of $8.5 bill. The return on average assets increased from 1.1% to 1.12%.
Banks saw delinquent loans as a percentage of total loans drop from 1.33% to 1.06%. At the same time, banks increased their allowance for loan losses from $532 million or 1.28% to $640 million or 1.45%.
Likewise, credit unions saw delinquent loans decrease from 0.7% to 0.56% but their allowance for loan losses increased from $199 million to $269.1 million.