MADISON, Wis. (11/9/12)--Wisconsin credit unions increased net income by 96% in the first three quarters of 2012, compared with the same period in 2011, according to data compiled by the Wisconsin Department of Financial Institutions (DFI).
Net income totaled $164.7 million, up from $84 million in 2011. The rise in net income was fueled in large part by a 26% improvement in "other income" that includes things such as income from mortgage-lending activities.
"Wisconsin credit unions have returned to pre-recession levels of strength," DFI Secretary Peter Bildsten said. "Continued strong growth in net income is having a positive impact on return on assets (ROA) and net worth."
Through Sept. 30, Wisconsin's 188 state-chartered credit unions:
- Posted ROA of 0.98%, up from 0.59% in 2011 and the highest since 2005;
- Grew net worth to 10.09%, the best since 2008; and
- Increased total assets by 5.5% to $23.1 billion, due in part to loan growth of 2.9%.
Bildsten noted that the number of state-chartered credit unions declined to 188 from 194 in the third quarter as "industry consolidation and merger activity continues."
"Credit unions' loan quality continues to show steady improvement," said Ginger Larson, director of the Office of Credit Unions--the DFI division that oversees state-chartered credit unions. "The provision for loan losses is down nearly 16% through the third quarter. In addition, the ratio of delinquent loans is 1.50% and trending down."
Use the resource link below to read the News Now
story on CUNA economist's analysis of September's monthly sample of credit union data.