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Press Releases
Wisconsin CU League News Release - 06/13/11

 

Credit unions’ 1st quarter results reflect continued help for millions of Wisconsin citizens


Credit unions’ 1st quarter results reflect continued help for millions of Wisconsin citizens

 


Additional resources


2010 REAL Solutions Scorecard

View PDF of release


View press release archive

 

Media contact

 

Christine Henzig
Director of Communications
(262)549-0200, Ext. 6019
chenzig@theleague.coop


Pewaukee, WI -   Wisconsin credit unions saw continued strong performance during the first quarter of 2011, a reflection of Wisconsin citizens’ reliance on the financial cooperatives during continuing economic challenges.

“Credit unions have fared well because the 2.2 million people of our state who belong to them continue to derive value from owning their financial institution – such as through their continued willingness to make needed loans, offer repayment options to struggling families and charge lower interest and fewer fees on a full range of financial services,” said Brett Thompson, President & CEO of The Wisconsin Credit Union League.

During the first quarter 2011, 220 credit unions saw assets increase to $21.3 billion from $20.7 billion at year end. Net income also rose to $27.8 million from $22.9 million at the same time in 2010. Credit unions’ net worth was also strong at 9.83%, helped by solid lending: members borrowed 84 cents of every dollar on deposit.

“Credit unions continue to help members with budgeting, consolidating debt at lower rates, and providing small loans to help make ends meet. They’re also making the kinds of loans businesses need but the big banks don’t make because they’re not profitable enough,” Thompson said. “So the continued health of credit unions is a sign that Wisconsin consumers and companies are receiving the resources they need to manage their finances.”

Highlights of credit unions’ service without regard for profit – attributable to their member-ownership – is detailed in The League’s REAL Solutions 2010 Scorecard for Wisconsin Credit Unions.

The performance data comes amid efforts by the Wisconsin Bankers Association to slip into the state budget – without input from credit unions or their members – a provision that would ease conversions of member-owned credit unions to commercial banks, permitting the equity shared equally by all members of a credit union to pass into the hands of the few shareholders who own a bank.

“The proposed process is so radical that forty-nine states don’t allow it,” Thompson explained. “Every year, member-owned credit unions return $200 million to consumers via lower rates on loans, higher savings rates and lower and fewer fees. Is a profit-seeking bank going to do that? This is just another covert attempt by banks to rake in even higher profits by eliminating the consumer-friendly competition posed by credit unions.”


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