Assets increase at Wis. credit unions
Credit unions in Wisconsin have overall posted solid results in the first half of 2020, even as the COVID-19 pandemic has taken hold, state regulators said.
The Wisconsin Department of Financial Institutions said in a report that total assets at the state's 118 state-chartered credit unions increased to $46.9 billion, up from $41 billion at the end of 2019.
"The financial indicators for Wisconsin's state-chartered credit unions exhibit sound financial performance through June 30, 2020 despite the challenges associated with the COVID-19 pandemic... ," the state DFI said in a statement.
The ratio of delinquent loans fell to 0.56% from 0.70% at year-end 2019. For the same period a year ago, the delinquency rate was 0.62%.
“Despite these unprecedented times, Wisconsin's state-chartered credit unions continued to perform relatively well during the first two quarters of 2020,” DFI Secretary Kathy Blumenfeld said in a statement.
Net income for the first six months of the year stood at $207.7 million, compared with $208.4 million in the same period a year ago.
Net interest income stood at $778.3 million during the first six months of 2020 compared with the same time a year ago when it was $717.5 million.
The value of loans outstanding increased by $1.1 billion from the end of 2019.
The majority of the loans made by credit unions in the state were for oneto four-family residential properties. Just over 38% of credit union loans fell into this category in the first six months of 2020.
The next largest category was for used vehicle loans at 20.4%.
Savings at state-chartered credit unions also increased by $5.4 billion compared with where they were at year's end 2019, reflecting a trend of Americans saving more money as the pandemic has continued.
While credit unions have experienced relatively strong loan growth, the combination of consumer cautiousness, government stimulus payments and expanded unemployment benefits has also likely contributed to the results, DFI said in the statement.