Wisconsin’s Credit Unions Report Solid Year-End 2020 Financial Performance
MADISON, Wis. – Wisconsin’s 118 state-chartered credit unions, three federal credit unions, and a corporate credit union reported strong fiscal performance through year-end 2020, according to data released today by the Wisconsin Department of Financial Institutions (DFI).
In mid-March 2020, Wisconsin credit unions adjusted operations amid the COVID-19 pandemic and continued to provide financial services to their members and communities they serve. Despite an influx of shares and deposits during the year, the financial performance of state-chartered credit unions remains strong.
Key financial indicators include:
- Total assets as of December 31, 2020 were $49.5 billion. Assets increased by $8.5 billion, a growth rate of 20.59%.
- Net worth increased by $494.4 million, an increase of 10.57%. Total net worth at year-end was $5.2 billion, a capital adequacy ratio of 10.45%.
- Loans increased over $2.4 billion in 2020 to a total of $35.1 billion.
- Savings grew with an increase of $7.8 billion, and the loan to savings ratio decreased from 95.06% to 83.14% in 2020.
- Credit unions reported earnings of over $506 million and the return on average assets ratio was 1.12% compared to 1.10% in 2019.
- Delinquent loans as a percentage of loans decreased to 0.56% in 2020 from 0.70% in 2019. Credit unions increased their allowance for loan losses to $269.1 million from $199.0 million at year-end 2019.
“Despite these unprecedented times and the COVID-19 pandemic, Wisconsin credit unions continue to serve their members and the communities in which they operate,” said DFI Secretary Kathy Blumenfeld. “Their financial performance remains strong despite the continued challenges they face and this is attributed to proactive management during the pandemic. While the financial indicators are positive, credit unions must remain diligent, adjust operations, and continue to work with their members to meet their financial needs.”
Additional information regarding credit union consolidations and liquidations, historical data on Wisconsin state-chartered credit unions, the December 31, 2020 Statement of Financial Condition and Statement of Income for Corporate Central Credit Union, and a listing of all Wisconsin credit unions at year-end 2020 are included in the 2020 Year-End Credit Union Bulletin.