MADISON, Wis. (8/24/12)--Mortgage refinances and reduced delinquencies drove positive results for nine of Wisconsin's 10 largest credit unions in the first half of 2012.
At Wisconsin's largest credit union, Landmark CU, New Berlin, net income increased 87% compared with the first six months of the year, said the Milwaukee Journal Sentinel (Aug. 23). Total loans grew by almost $250 million. Landmark also reported growth in noninterest income as a result of mortgage refinancing.
In addition to taking advantage of lower rates, homeowners are refinancing their mortgages at reduced terms of 10, 15 and 20 years, Ron Kase, Landmark CU CEO told the newspaper.
Royal CU, Eau Claire, reported the biggest percentage increase in earnings, with a 1,743% jum to $6.7 million from $366,530 in the first half of the year. That growth was driven in large part by an increase in mortgage refinances, said Royal CEO Rudy Pereira.
The credit union generated income from selling fixed-rate mortgages to Fannie Mae and Freddie Mac, Pereira told the Journal Sentinel.
Wisconsin credit unions grew net income by 83% in the first six months of 2012 compared with same period last year, according the Wisconsin Department of Financial Institutions (DFI). Net income totaled $101.8 million, up from $55.6 million in 2011. The increase was fueled in large part by a 28% increase in "other income" and an 11% decrease in provisions for loan-loss expense, according to DFI.