MADISON, Wisconsin – Wisconsin’s 118 state chartered credit unions continue to post strong financial performance in the first quarter of 2021, according to data released today by the Wisconsin Department of Financial Institutions (DFI).
Total assets of credit unions have grown by over $ 3 billion since the end of 2020 and stand at nearly $ 53 billion through March 31, 2021. Growth in assets and stocks remains high, the ratios being 26.35% and 29.88% respectively. Deposits surged during the pandemic, and this, combined with a low interest rate environment, continues to weigh on the net interest margin. Loan growth was 5.12%, with outstanding loans increasing by $ 450 million and the loan-to-savings ratio fell to 78.35%.
During the three months ending March 31, 2021:
- The net worth to assets ratio remained solid at 10.14%, down slightly from 10.45% at the end of December 2020;
- The ratio of delinquent loans to total loans fell to 0.42% and default and deduction rates fell from pre-pandemic levels when the ratios were 0.62% and 0.30 % respectively in March 2020; and
- Net income was nearly $ 166 million, compared to $ 100 million in March 2020. The return on average assets ratio was 1.30% and increased, in part, due to a sharp decline in loan loss provisions.
“Financial metrics through Q1 2021 for Wisconsin state chartered credit unions are strong, with strong growth in assets and share as members try to save more due to the shadow persistent COVID-19 pandemic, ”said DFI Secretary Kathy Blumenfeld. . “Overall, Wisconsin state chartered credit unions are financially stable with a positive outlook; however, although the financial indicators are positive, credit unions should continue to work with their members to meet their financial needs.
To find out more, read DFI’s First Quarter 2021 Bulletin.