Newly delinquent loans at Wisconsin banks have increased — a rare occurrence since the Great Recession — but the total amount of tardy loans remains relatively small and isn’t cause for alarm, the industry’s state leader said.
Records from the Federal Deposit Insurance Corp. show that during the 12 months ending June 30, total Wisconsin bank loans that were 30 to 89 days past due jumped 17 percent, to $297.5 million from $253.7 million at the same time in 2017.
Rose Oswald Poels, president and chief executive officer of the Wisconsin Bankers Association, said the increase doesn’t indicate a problem is on the way.
She noted that the total of 30-to-89-day past due loans was higher at the end of the first quarter than it was in the second quarter this year, even though it's up in the latest 12-month span overall. Oswald Poels also stressed how much lower the total amount of new tardy loans is now compared with the total from the Great Recession period.
“It’s a fraction of where we peaked 10 years ago,” she said. “It’s a night-and-day difference from then.”
The amount of past due loans increased nationally, too, but by a smaller percentage than in Wisconsin, at 1.6%, according to the FDIC.
Read more in the Milwaukee Journal Sentinel.