Federal Deposit Insurance Corporation (FDIC) data released today showed Wisconsin banks remained in good health through the third quarter of this year. Year-over-year lending increased in all categories (commercial, residential, and farm loans), demonstrating the responsiveness of banks to meet their customers’ needs. Individuals and businesses continue to trust banks as a safe place to keep their money, as evidenced by a slight increase in deposits, both year over year (0.59%) and quarter over quarter (0.95%). Net interest margin has held steady at 3.19% year over year, and capital levels are healthy.
Notable indicators include:
- Residential loans continued to grow, both year over year (25.19%) and quarter over quarter (15.38%). With low inventory, homes continue to sell quickly. Despite interest rate increases, rates remain relatively low in historical context.
- While commercial lending increased year over year (2.36%), it decreased slightly quarter over quarter (-1.61%), showing waning economic confidence of business owners.
- Farm loans increased both year over year (10.30%) and quarter over quarter (7.54%) as farmers looked to upgrade equipment, make capital improvements, or expand.
- Credit quality weakened as inflation, interest rate hikes, and slowed income growth have made it more difficult for borrowers to pay back their loans.
Statement on the release of third-quarter 2023 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:
“The newly released FDIC numbers showed that Wisconsin banks remained on solid footing through the third quarter of 2023. Banks continue to be trusted partners in helping individuals, families, and businesses meet their financial goals. As has been the case for several quarters — inflation, interest rates, and geopolitical issues remain concerns heading into 2024. Banks will continue to position themselves to support their communities through potential economic headwinds.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
|9/30/2023||6/30/2023||QoQ Change||9/30/2022||YoY Change|
|Net loans and leases||$111,535,045||$109,975,599||1.42%||$103,954,503||7.29%|
|Commercial and industrial loans||$17,946,778||$18,240,073||-1.61%||$17,533,085||2.36%|
|Assets 90+ Days Past Due or in Nonaccrual Status||$518,570||$434,070||19.47%||$417,336||24.26%|