Statement on the release of third quarter 2017 FDIC numbers from Rose Oswald Poels, president/CEO of the Wisconsin Bankers Association
"Wisconsin banks continue their important role as key drivers of our state’s economy with loan growth continuing in the third quarter compared to both the previous quarter and prior year. They are successfully meeting the needs of the Badger State’s families and businesses according to the latest FDIC quarterly numbers. At the same time, Wisconsin’s banks face stiff headwinds in continuing to meet those needs due to a variety of challenges, especially regulatory burden.
The federal numbers show, for the second quarter in a row, lending grew in virtually every category. Wisconsin banks showed an overall lending increase of 5% over last year, growing to over $80 billion in loans. Non-current loans continued to decrease, dropping to $719 million, down 18.6% from last year. Deposits also grew 1.7% to over $87 billion.
Despite the strong numbers from FDIC, there is another side to the story. Wisconsin banks continue to face a variety of obstacles, such as: the rising cost of strong capital levels and funding loans, a prolonged low interest rate environment, and growing challenges to banks’ efficiency due in part to regulatory burden. Compliance, technology, and regulatory burden are also factors in the current rate of merger activity seen in the banking industry. Just 212 banks reported this quarter, compared to 227 a year ago.
Wisconsin banks are helping businesses grow and families prosper despite these challenges. The diversity of Wisconsin’s strong banking industry directly benefits Wisconsin consumers, creating thriving communities. Our institutions are healthy, well-capitalized, and ready to help keep our economy growing.
Regulatory relief and tax reform would greatly assist banks in facing these challenges and allow banks to better serve Wisconsin’s communities."
FDIC Reported WI Numbers*
|Total Loans & Leases||$80,446,396||$76,553,689||+ 5|
|Total Deposits||$87,294,228||$85,771,691||+ 1.7|
|Commercial & Industrial Loans||$13,127,399||$12,681,636||+ 3.5|
|Residential Loans||$23,392,052||$22,439,042||+ 4.2|
|Farm Loans||$4,572,229||$4,125,046||+ 10.8|
|Farmland Loans||$3,384,775||$3,127,728||+ 8.2|
|Total Assets||$111,745,697||$108,583,918||+ 2.9|
|Noncurrent Loans & Leases||$719,249||$883,818||- 18.6|
* $ in 000’s