Wisconsin’s State-Chartered Credit Unions Post Strong Third Quarter Performance

DFI Press Release, Plus Additional Input from MMCCU

MADISON, Wis. – Wisconsin’s 122 state-chartered credit unions continue to have strong financial performance through the first three quarters of 2019, according to data released November 14, 2019 by the Wisconsin Department of Financial Institutions (DFI).

Credit union total assets increased to $40.2 billion, up from $37.0 billion as of year-end 2018, with assets growing at more than 10% compared to 7.25% at the same time last year. Loans outstanding grew by $1.7 billion since year-end 2018 and savings grew by $2.7 billion resulting in a loan to savings ratio of 94.87%.

In the nine months ending on September 30, 2019:
• Net worth to assets ratio remained strong at 11.40%, up slightly compared to 11.29% at the end of September 2018;
• Delinquent loan to total loan ratio was at 0.64%, in line with recent quarters and remains at historical low levels; and
• All growth ratios were strong with net income over $327 million resulting in a return on average assets ratio of 1.13%.

“The financial indicators for Wisconsin’s state-chartered credit unions exhibit sound financial performance through the first three quarters of 2019,” DFI Secretary Kathy Blumenfeld said. “Their continued performance can be attributed to meeting members’ needs and strong fiscal management.”

To learn more, read the 2019 Third Quarter Credit Union Bulletin here.

Locally, Marshfield Medical Center Credit Union (MMCCU) has seen similar positive outcomes this fiscal year.

“We have reported good results through the first three quarters of 2019 as we continue to meet the financial demands of our members,” said David Murphy, VP of Finance and Risk. “We continue to execute sound financial practices and are pleased with the performance of the credit union through September 2019.”

“While we are glad to see the industry in Wisconsin is doing well, we do not try to emulate other credit unions’ results. We prefer to focus on our own membership which is a unique profile versus the tabulation of all credit unions in the state,” added Carol Adler, President. “We are closed-charter, meaning we are not open to a geographic community (cities and counties) but to a particular occupation. In our case it is the health care community – and we are the largest health care credit union in Wisconsin. Our numbers through the nine months ending September 30 are good. We are operating ahead of budget forecasts and returning better rates to our members.”

Murphy attributes credit unions’ success to their operation strategy, which is designed under the premise of people helping people.

“This means we strive to offer competitive rates on deposit accounts, like savings, money market accounts, or certificates, or on loan products, like car loans and mortgage loans,” he said. “As an industry, we continue to offer products and services that benefit individuals across the wealth spectrum, and we aim to reinvest our profits into our communities.  As a not-for-profit financial cooperative, our profits are not passed on to shareholders or owners of the financial institution who have no vested interest in the operations, but rather, we return our profits back to the member-owner in the form of lower rates, lower fees, and competitive deposit yields.”