MADISON, Wis. (8/13/12)--Wisconsin state-chartered credit unions grew net income by 83% in the first six months of 2012, compared with same period last year, according to data compiled by the Wisconsin Department of Financial Institutions (DFI).
Net income totaled $101.8 million, an increase from $55.6 million in 2011. The rise was fueled in primarily by a 28% increase in "other income" and an 11% drop in provisions for loan loss expense.
"Wisconsin credit unions continue to perform well in terms of revenue growth and improved loan quality," DFI Secretary Peter Bildsten said. "Those trends are having a positive impact on return on assets and net worth. The industry's solid performance should mean good things for the state's economy."
Through June 30, Wisconsin's 194 state-chartered credit unions posted a return on investment (ROA) of 0.90%, up from 0.59% as of Dec. 31. Credit unions' ROA has not topped 0.90% since calendar year 2005, according to the DFI. Net worth remained at 9.83%.
Total assets rose to $23.1 billion, up $1.2 billion compared with year-end 2011. Total savings also grew during the same period, increasing by $1.1 billion to $20.2 billion.
"Key indicators of credit unions' financial performance are definitely headed in the right direction," said Ginger Larson, director of the Office of Credit Unions--the DFI division that oversees state-chartered credit unions. "Especially noteworthy is the fact that the loan delinquency ratio has been showing consistent improvement and is nearing pre-recession levels."