Financial Health of Wisconsin Banks Continues Into Q2 of 2022

Following a strong start to 2022, Wisconsin banks rounded out the second quarter of the year with total assets up 1.81% quarter over quarter from March 31, 2022 to June 30, 2022 and total assets up 5.54% year over year from June 30, 2021 to June 30, 2022, according to the latest numbers released by the Federal Deposit Insurance Corporation (FDIC). Total deposits remained stable quarter over quarter (-0.28%) and were up 5.76% year over year. Noncurrent loans and leases continued on a significant downward trend, indicating consumers’ ability to pay down debt amidst inflation concerns.

Notable indicators include:

• Residential lending increased over 5% year over year and quarter over quarter. Despite the Fed’s interest rate hikes, mortgage rates remain at historically low levels.
• Commercial lending is back to where it was a year ago after seeing decreases due to supply chain issues and worker shortages. A 7.80% quarter-over-quarter increase in commercial and industrial loans indicates business owners’ renewed focus on growth.
• Farm loans increased 19.27% quarter over quarter and 4.09% year over year. Farmers who had financed their own expenses in recent years — due to stimulus packages and strong balance sheets — are increasingly looking to borrow with high input costs such as fuel and fertilizer and less favorable outlooks for 2023.
• Credit quality continues to improve as more borrowers are keeping up to date with their payments. Noncurrent loans and leases decreased 21.33% year over year and 11.04% quarter over quarter.

Statement on the release of second-quarter 2022 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association: 

“Wisconsin banks continue to meet the borrowing needs of consumers and business owners alike. Bankers understand the changing economy coming out of the pandemic and are working with their customers who are looking to purchase homes and grow their businesses. During this time of heightened inflation and ongoing global concerns, Wisconsinites can feel confident in their bank as a safe place to deposit their money and a trusted partner in meeting their financial goals.”

FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)