Q2 2023 FDIC Numbers Show Wisconsin Banks in Good Health
Second-quarter 2023 data from the Federal Deposit Insurance Corporation (FDIC) show that Wisconsin banks remain on a solid foundation. Banks continue to be responsive to the needs of their customers, and lending increased in all categories (commercial, residential, and farm loans). Deposits also increased slightly as consumers and businesses remained confident in Wisconsin banks as a safe place to keep their money. Net interest margin remains strong at 3.24%, and capital levels are healthy.
Notable indicators include:
- Residential loans continued to grow, both year over year (14.19%) and quarter over quarter (3.26%). With low inventory, homes continue to sell quickly. Despite recent interest rate increases, rates remain relatively low in historical context.
- Commercial lending increased year over year (6.38%) and has picked up quarter over quarter (3.06%), showing increased confidence of business owners.
- Farm loans increased both year over year (8.50%) and quarter over quarter (26.16%).
- Credit quality weakened slightly as inflation and rising interest rates have made it more difficult for borrowers to pay back their loans.
- Deposits increased slightly over both the year and the quarter as inflation eases and consumers and businesses are able to save more.
Statement on the release of second-quarter 2023 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:
“In the second quarter of 2023, Wisconsin banks showed continued strength and profitability. Banks continue to meet the borrowing needs of individuals, families, and businesses. Deposits have held steady, and delinquencies remain low. While inflation, interest rates, and geopolitical issues remain concerns for the remainder of 2023, banks are prepared for future risks and are poised to support their communities through possible economic challenges.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
| 6/30/2023 | 3/31/2023 | QoQ Change | 6/30/2022 | YoY Change | |
| Net loans and leases | $109,974,664 | $106,543,106 | 3.22% | $99,946,680 | 10.03% |
| Total deposits | $119,920,910 | $118,136,508 | 1.51% | $118,628,924 | 1.09% |
| Commercial and industrial loans | $18,241,734 | $17,700,465 | 3.06% | $17,147,615 | 6.38% |
| Residential loans | $27,242,091 | $26,381,632 | 3.26% | $23,857,546 | 14.19% |
| Farm loans | $4,824,718 | $3,824,265 | 26.16% | $4,446,588 | 8.50% |
| Total assets | $152,378,582 | $149,715,078 | 1.78% | $145,897,591 | 4.44% |
| Assets 90+ Days Past Due or in Nonaccrual Status | $433,555 | $406,287 | 6.71% | $430,201 | 0.78% |
