Wisconsin credit unions boost earning amid pandemic
Wisconsin state-chartered credit unions reported higher earnings and a low level of delinquent loans for the first quarter, despite the coronavirus pandemic.
The 119 state-chartered credit unions in the Badger State earned almost $100 million in the first quarter, up about 6% from the same period a year earlier, according to a press release on Wednesday from the Wisconsin Department of Financial Institutions. These credit unions earned $428 million last year.
“Wisconsin credit unions have done an outstanding job serving their members and communities during these unprecedented times,” Kathy Blumenfeld, secretary of the state’s Department of Financial Institutions, said in the press release. “The financial indictors through the first quarter of 2020 for Wisconsin’s state-chartered credit unions are sound with asset and share growth strong, likely due to members trying to save more because of COVID-19. Overall, Wisconsin’s state-chartered credit unions are financially stable with a positive outlook.”
Assets for these institutions increased by about $2 billion, to $43 billion, for the first quarter. However, loan growth slowed, possibly from businesses closing or limiting operations due to the coronavirus, the press release said. Outstanding loans increased by $347 million while the loan-to-savings ratio fell to 91.33%.
The net worth-to-asset ratio totaled 11.12%, down from 11.40% at the end of the fourth quarter. Delinquent loans-to-total loans remained at historically low levels at 0.62%, the press release said.