MADISON, Wisc. (2/10/14)--Wisconsin credit unions are showing signs that they've fully shaken off the 2008 financial collapse by at least one measure.
State-chartered credit unions saw average annual delinquency rates drop in 2013 to 1.10% from 1.36%, according to data published Friday by the Wisconsin Department of Financial Institutions (DFI).
Kim Santos, director of the Office of Credit Unions at the DFI, said that "the delinquent loan ratio is back to pre-Recession benchmark levels" and called it "a very encouraging trend."
Other positive trends revealed by Friday's data release showed that Wisconsin state-chartered increased revenue streams and net worth last year.
Lending and assets grew by 7.2% and 5% to $18.2 billion and $24.5 billion.
Net worth ratio and net income increased to 10.65% and 1.4%. The latter reached $228.8 million, with a 0.96% return on assets.
"Wisconsin credit unions had another solid year in 2013," DFI Secretary Peter Bildsten said. "The fact that credit unions grew their loan portfolios by $1.2 billion is a sign that the demand for consumer and business lending is picking up. That's good for Wisconsin credit unions and the state's economy."
Santos did note, however, that the number of state-chartered credit unions dropped to 171 from 187--something she attributed to mergers and liquidations.
"This is a trend we expect to continue in 2014," she said.
The increase in lending and the drop in the delinquency rate appears to mirror national trends. Last Wednesday, a Credit Union National Association survey showed that credit unions across the country expanded loan balances by 6.8%, while the 60-day delinquency ratio held steady at 1% (News Now Feb. 5).