Wisconsin Banks Ended 2024 in a Healthy Position According to Latest FDIC Data
Numbers released today by the Federal Deposit Insurance Corporation (FDIC) showed Wisconsin banks rounding out 2024 in a strong position. Residential real estate lending increased over the prior year (15.46%), farm lending held steady (1.83%), and commercial lending increased (3.69%). Deposits increased year over year (5.06%). The Q4 2024 net interest margin of 3.22% is a slight increase over the prior quarter (3.18%) and prior year (3.20%). Wisconsin banks remain well capitalized.
Notable indicators include:
- Residential real estate loans increased substantially quarter over quarter (17.15%) and slightly year over year (15.46%). Inventory continues to be very limited, and homeowners who refinanced at low interest rates during the pandemic have little incentive to move. Buyers have become accustomed to the current interest rate environment and higher home prices. Use of home equity lines of credit are reflected in the increase.
- Commercial lending held steady quarter over quarter (0.55%) and grew moderately year over year (3.69%) as Wisconsin banks continued to meet customer needs.
- Farm loans decreased significantly quarter over quarter (-20.66%) and held steady year over year (1.83%) as farmers struggled with commodity prices, weather, and tight operational costs.
- Assets in nonaccrual status decreased slightly quarter over quarter (-2.17%) and remained elevated year over year (14.81%) as inflation and the high cost of living impact borrowers. While banks continue to monitor credit quality, the current level of past-due loans remains above recessionary levels.
Statement on the release of fourth-quarter 2024 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:
“The fourth-quarter FDIC numbers show the year 2024 ended on a solid note with Wisconsin’s banks in a strong position. Residential real estate loans increased as the state’s housing market saw activity in the last two months of the year despite low inventory. Commercial lending also saw an increase while farm loan demand held steady as farmers work through commodity prices, weather challenges, and high operational costs. Wisconsin’s banks continue to meet the lending and deposit needs of their communities.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
| 12/31/2024 | 9/30/2024 | QoQ Change | 12/31/2023 | YoY Change | |
| Net loans and leases | $114,571,863 | $114,405,149 | 0.15% | $109,762,497 | 4.38% |
| Total deposits | $128,607,041 | $125,335,066 | 2.61% | $122,411,348 | 5.06% |
| Commercial and industrial loans | $18,497,687 | $18,396,211 | 0.55% | $17,839,610 | 3.69% |
| Residential real estate loans | $39,070,601 | $33,352,253 | 17.15% | $33,839,049 | 15.46% |
| Farm loans | $4,104,912 | $5,173,857 | -20.66% | $4,031,270 | 1.83% |
| Total assets | $159,392,728 | $158,237,843 | 0.73% | $152,451,601 | 4.55% |
| Assets in nonaccrual status | $580,044 | $592,938 | -2.17% | $505,240 | 14.81% |
