Credit unions earn high marks in ratings; UW Credit Union regains fifth star - FINANCIAL-24
Madison-area credit unions are nearly all in tip-top financial shape, according to the grades they have earned from an independent bank research company.
Seventeen of 22 credit unions operating locally received five-star, or “superior,” rankings from Bauer Financial, while the other five were listed as four-star, or “excellent,” based on Dec. 31, 2017, financial data submitted to the National Credit Union Administration.
In fact, statewide, only seven of the 132 Wisconsin-based credit unions with assets big enough to be rated by Bauer earned less than four or five stars.
State-chartered credit unions across Wisconsin had “a very solid year” in 2017, Lon Roberts, the secretary of the Wisconsin Department of Financial Institutions, said in a report earlier this year. Their assets rose more than 9 percent for the second year in a row, according to DFI. As of Dec. 31, Wisconsin credit union assets — such as loans and investments — totaled $31.5 billion, up $2.6 billion from last year.
Earnings were $329.2 million, up 16.9 percent over the previous year. Loans increased more than $2 billion to a combined $24.2 billion; meanwhile, the percentage of delinquent loans was 0.75 percent, down from 0.81 percent in 2015.
The only local credit union whose rating changed was University of Wisconsin Credit Union, now with five stars, up from four stars nine months ago, and three stars as of Dec. 31, 2014.
UW Credit Union’s grades had suffered because the institution was a victim of a scam involving securities that were part of the U.S. Department of Agriculture’s guaranteed loan program. Nikesh Patel, the former CEO of Florida-based First Farmers Financial, pleaded guilty in December in U.S. District Court in Chicago to heading a $179 million “Ponzi-like scheme” by selling loans that he claimed were backed by the USDA.
He told the court he used the money to live a life of luxury, including expensive cars and jewelry, according to the Law360 news service. UW Credit Union held $53 million in loans through a fund obtained from First Farmers by Pennant Management, a now-closed Milwaukee investment adviser.
The Madison credit union had anticipated a $35 million loss; that has declined to about $29 million, CEO Paul Kundert said.
Patel could be sentenced to up to 100 years in prison plus restitution.
Seventeen of 22 credit unions operating locally received five-star, or “superior,” rankings from Bauer Financial, while the other five were listed as four-star, or “excellent,” based on Dec. 31, 2017, financial data submitted to the National Credit Union Administration.
In fact, statewide, only seven of the 132 Wisconsin-based credit unions with assets big enough to be rated by Bauer earned less than four or five stars.State-chartered credit unions across Wisconsin had “a very solid year” in 2017, Lon Roberts, the secretary of the Wisconsin Department of Financial Institutions, said in a report earlier this year. Their assets rose more than 9 percent for the second year in a row, according to DFI. As of Dec. 31, Wisconsin credit union assets — such as loans and investments — totaled $31.5 billion, up $2.6 billion from last year.
Earnings were $329.2 million, up 16.9 percent over the previous year. Loans increased more than $2 billion to a combined $24.2 billion; meanwhile, the percentage of delinquent loans was 0.75 percent, down from 0.81 percent in 2015.
The only local credit union whose rating changed was University of Wisconsin Credit Union, now with five stars, up from four stars nine months ago, and three stars as of Dec. 31, 2014.
UW Credit Union’s grades had suffered because the institution was a victim of a scam involving securities that were part of the U.S. Department of Agriculture’s guaranteed loan program. Nikesh Patel, the former CEO of Florida-based First Farmers Financial, pleaded guilty in December in U.S. District Court in Chicago to heading a $179 million “Ponzi-like scheme” by selling loans that he claimed were backed by the USDA.
He told the court he used the money to live a life of luxury, including expensive cars and jewelry, according to the Law360 news service. UW Credit Union held $53 million in loans through a fund obtained from First Farmers by Pennant Management, a now-closed Milwaukee investment adviser.
The Madison credit union had anticipated a $35 million loss; that has declined to about $29 million, CEO Paul Kundert said.
Patel could be sentenced to up to 100 years in prison plus restitution.
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