Wisconsin credit unions grew net income by 83 percent in the first six months of 2012, compared with the same period last year, according to data compiled by the Wisconsin Department of Financial Institutions (DFI).
The state’s credit unions’ net income totaled $101.8 million, up from $55.6 million in 2011. The increase was fueled in large part by a 28-percent increase in “other income” and an 11 percent decrease in provisions for loan loss expense.
“Wisconsin credit unions continue to perform well in terms of revenue growth and improved loan quality,” DFI Secretary Peter Bildsten said. “Those trends are having a positive impact on ROA and net worth. The industry’s solid performance should mean good things for the state’s economy.”
Through June 30, Wisconsin’s 194 state-chartered credit unions posted a return on investment (ROA) of 0.90 percent, up from 0.59 percent as of Dec. 31, 2011. Credit unions’ ROA has not topped 0.90 percent since calendar year 2005. Net worth remained solid at 9.83 percent.
Total assets increased to $23.1 billion, up $1.2 billion compared with year-end 2011.
“Key indicators of credit unions’ financial performance are definitely headed in the right direction,” said Ginger Larson, director of the Office of Credit Unions, the DFI division that oversees state-chartered credit unions. “Especially noteworthy is the fact that the loan delinquency ratio has been showing consistent improvement and is nearing pre-recession levels.”