Latest FDIC Data Highlights Strong Performance of Wisconsin Banks
On December 12, 2024, the Federal Deposit Insurance Corporation (FDIC) released numbers showing Wisconsin banks continued to be in a healthy position through the third quarter of 2024. While residential real estate lending dipped slightly over the prior year (-2.34%), farm lending held steady (-0.29%) and commercial lending increased (2.50%). Deposits increased year over year (3.53%), due in part to the high interest rates offered on certificates of deposit (CDs) and money market accounts. The Q3 2024 net interest margin of 3.18% is a slight decrease over the prior year (3.19%) but an increase over the prior quarter (3.14%). Wisconsin banks remain well capitalized.
Notable indicators include:
- Residential real estate loans decreased slightly year over year (-2.34%). Inventory continues to be very limited, and homeowners who refinanced at low interest rates during the pandemic have little incentive to move. Seasonal trends in housing sales played into the decrease from the prior quarter (-11.70%) with spring typically being the most popular time to move in Wisconsin.
- Commercial lending saw modest growth year over year (2.50%) and quarter over quarter (1.19%) as the Fed began easing interest rates in September.
- Farm loans held steady year over year (-0.29%) and increased quarter over quarter (4.68%) as farmers sought to upgrade equipment, make capital improvements, or manage operational costs affected by tighter margins.
- Past-due loans were elevated year over year (19.30%) and quarter over quarter (6.55%) as inflation and the high cost of living impacts borrowers. While banks continue to monitor credit quality, the current level of past-due loans remains above recessionary levels.
Statement on the release of third-quarter 2024 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:
“The latest FDIC report underscores the continued strength and adaptability of Wisconsin banks. While monitoring the effects of inflation, Wisconsin’s banks remain well capitalized and continue to meet the needs of their communities. A decrease in interest rates in September helped commercial borrowers’ lending needs and allowed banks the opportunity to support those customers’ growth and financial goals.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
| 9/30/2024 | 6/30/2024 | QoQ Change | 9/30/2023 | YoY Change | |
| Net loans and leases | $114,405,149 | $112,992,032 | 1.25% | $111,536,377 | 2.57% |
| Total deposits | $125,335,066 | $122,315,576 | 2.47% | $121,056,967 | 3.53% |
| Commercial and industrial loans | $18,396,211 | $18,179,173 | 1.19% | $17,946,778 | 2.50% |
| Residential real estate loans | $30,702,592 | $34,770,361 | -11.70% | $31,436,804 | -2.34% |
| Farm loans | $5,173,857 | $4,942,403 | 4.68% | $5,188,674 | -0.29% |
| Total assets | $158,239,189 | $155,167,083 | 1.98% | $153,647,895 | 2.99% |
| Assets 90+ days past due or in nonaccrual status | $618,665 | $580,617 | 6.55% | $518,570 | 19.30% |
