State-chartered credit unions in Wisconsin delivered growth in assets, loans and members, among other metrics, in 2018.
The Wisconsin Department of Financial Institutions said in a report on Friday that at the end of 2018, total assets at these credit unions climbed to $37 billion, up more than 8 percent from a year earlier.
Loan volumes jumped by about 11 percent, to $30.3 billion. Also, the loan-to-savings ratio moved up to 97.7 percent in 2018 from 94.9 percent in 2017.
Meanwhile, delinquent loans as a percentage of loans edged down from 0.70 percent in 2017 to 0.69 percent in 2018. Credit unions also increased their allowance for loan losses more than 10 percent, to $180.8 million.
Residential property loans secured by first lien again accounted for the largest loan type at Wisconsin state-chartered credit unions, representing 38.7 percent of all loans, up from 36.9 percent in the prior year. Loans for used vehicles were the second largest segment, accounting for 20.9 percent of all loans in 2018. That was up from 20 percent in 2017.
Wisconsin state-chartered credit unions posted earnings of about $401.3 million last year, up more than 7 percent from 2017. In addition, net worth at these credit unions rose by 10.4 percent, to $4.2 billion.
The institutions had a capital adequacy ratio of 11.5 percent, up from 11.3 percent in 2017.
Moreover, at the end of 2018, the number or state-chartered credit unions totaled 125, down from 129 in the previous year. The number of credit union members increased about 5 percent, to roughly 3.1 million.
Meanwhile, return on average assets ratio at these credit unions clocked in at 1.13 percent, down slightly from 1.14 percent in 2017.
Their operating expense ratio amounted to 3.18 percent, up from 3.14 percent in the prior year.
“Wisconsin credit unions saw exceptional growth in 2018 driven by a loan-to-share ratio well in excess of 95 percent,” Brett Thompson, president and CEO of Wisconsin Credit Union League, told Credit Union Journal. “In addition, 2018 was the fourth straight year of double-digit asset growth. Our credit unions are well-managed and have taken advantage of a strong economy and consumers’ desire to do business with community-based financial institutions.””
