Profits were up 9% in the first half of 2017 for banks headquartered in Wisconsin, as lending rose and delinquent loans decreased.
A report by the Federal Deposit Insurance Corp. Tuesday shows the 215 banks based in the state posted a total of $565 million in net income in the January-through-June period. That compared with net income of $518 million in the first half of 2016.
Total loans and leases amounted to almost $80.3 billion, or 4.5% more than about $76.8 billion in the same span a year earlier.
Noncurrent loans and leases dropped to 0.93% of total loans and leases. That compared with 1.15% in the first six months of 2016.
The Wisconsin Bankers Association noted that lending increased in almost every category of loans, while deposits also grew 3.4%.
"The Wisconsin banking industry’s strength, stability and service are demonstrated by the positive numbers reported by the FDIC," Rose Oswald Poels, president and chief executive of the bankers organization, said in a statement. "As the state has seen positive economic growth and an historically large workforce, we’ve seen increased loan activity and improved asset quality."
Nationally, net income increased 11.6% among the country's 5,787 banks, to $92.1 billion from $82.6 billion in the first half of last year, the FDIC reported.
“Banks are a reflection of the economy. Strong capital, earnings and asset quality put America’s banks in an excellent position to support the ongoing expansion of our economy, which we expect to continue into 2018," James Chessen, chief economist of the American Bankers Association, said in a statement Tuesday.
Among Wisconsin banks, the state's largest — Green Bay-based Associated — posted the highest net income in the first half of the year, at $122.8 million.
Others with top net income among non-specialty banks: Johnson Bank, Racine, $17.7 million; WaterStone Bank, Wauwatosa, $15.4 million; Nicolet National Bank, Green Bay, $14.9 million; and National Exchange Bank & Trust, of Fond du Lac, $12.7 million.
Only four Wisconsin banks lost money in the period: The Equitable Bank, Wauwatosa, $183,000; Markesan State Bank, $87,000; Home Savings Bank, Madison, $41,000; and Mitchell Bank, Milwaukee, $9,000.
Glendale-based Guaranty Bank failed in May and was taken over by First-Citizens Bank & Trust Company, of Raleigh, N.C. Guaranty protested the U.S. Office of the Comptroller of the Currency's decision to shut down the bank, contending Guaranty was improving and on the verge of a recapitalization that would have boosted its financial strength.
This article was originally published by the Milwaukee Journal Sentinel.