MADISON, Wis. (8/13/13)--Wisconsin's state-chartered credit unions increased net income by 9% in the six months ending June 30, compared with the previous year, according to data released Wednesday by the Wisconsin Department of Financial Institutions (DFI).
"Wisconsin credit unions once again demonstrated that the way to grow earnings is through good loan quality and prudent expense management," DFI Secretary Peter Bildsten said.
Net income was $110.3 million, up from $101.2 million in the first half of 2012, said the Wisconsin DFI.
Compared with the six months ending June 30, 2012, Wisconsin's 179 state-chartered credit unions:
- Grew assets by 5.1% to $24.3 billion;
- Improved net worth to 10.28%, up from 9.83%;
- Lowered the delinquent loan ratio to 1.26% from 1.55%; and
- Reduced operating expense ratio to 3.33% of assets from 3.44%.
Credit unions' deposit growth of 5% outpaced loan growth of 3.3% in the first two quarters, Bildsten said.
"Figuring out how to put excess deposits to work in a low-interest rate environment continues to be a challenge for the industry," he added.
Merger activity in the past year was strong for several reasons, with the number of state-chartered credit unions declining to 179, compared with 194 as of June 30, 2012, said Kim Santos, director of the state's Office of Credit Unions.
"Some of our smaller credit unions are struggling with loan growth, loan quality and expense control," Santos explained.