MADISON, Wis. (2/21/13)--Wisconsin state-chartered credit unions reported an average return on assets of 1.0% in 2012, the highest since 2003, the Wisconsin Department of Financial Institutions (DFI) reported Friday.
Earnings increased more than 81% over 2011 to $225.7 million.
The results were driven by a strong lending market and improved delinquency rates, said Brett Thompson, president/CEO of the Wisconsin Credit Union League. Wisconsin credit unions' loan ratio of 1.36% was the lowest since 2007.
"Credit unions have picked up their lending, and when you see an increase in the loans you are making and a reduction in loan losses, you create greater income, and that's exactly what you are seeing here," Thompson said. "A big part of that is in the mortgage area. With rates being low, credit unions are doing more mortgage loans, some of which they are selling to the secondary market."
In the 12 months ending Dec. 31, Wisconsin's 187 state-chartered credit unions:
- Achieved a net worth ratio of 10.25%, the highest since 2008;
- Grew assets by 6.6% to $23.4 billion; and
- Reduced provisions for loan losses by 21.5%.
A full report on the 2012 performance of Wisconsin credit unions will be available on the DFI website later this month.