Wisconsin’s 199 state-chartered credit unions reported $49.4 million in net income, according to data from the state Department of Financial Institutions. Total assets also rose 4.4 percent to $22.8 billion for the quarter.
The credit unions’ return on average assets ratio rose to 0.88 percent from 0.59 percent and the net worth ratio dropped from 9.96 percent to 9.73 percent.
The quarter’s return on assets ratio is the highest it has been since 2005, returning to pre-recession levels.
“The overall health of Wisconsin credit unions appears to be quite strong,” said Peter Bildsten, DFI secretary. “Their solid performance in the first quarter is good for Wisconsin consumers and
the state’s economy.”
The Wisconsin Bankers Association argues that since credit unions don’t pay state or federal incomes, tax payers are subsidizing the nonprofit institutions.
"Credit union income and assets continue to rise, signifying a growing divide between mission-driven credit unions and profit-driven credit unions," said Rose Oswald Poels, president and CEO of the WBA. "Several Wisconsin credit unions have abandoned their congressionally mandated mission to serve those of modest means and are instead focusing on growth and profits, which affects the numbers for the entire industry."