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Data released September 5, 2024, by the Federal Deposit Insurance Corporation (FDIC) shows Wisconsin banks remained in a healthy position through the second quarter of 2024. Lending held steady or increased in Q2 2024 over the prior year in all categories (commercial, residential, and farm loans), as banks responded to the borrowing needs of their customers. Deposits increased year over year (2.00%), due in part to the high interest rates offered on certificates of deposit (CDs) and money market accounts. The Q2 2024 net interest margin of 3.15% is a slight decrease over the prior year (3.24%) but an increase over the prior quarter (3.10%). Wisconsin banks remain well capitalized.
Notable indicators include:
- Residential real estate loans were up quarter over quarter (15.21%) and year over year (11.55%). With spring being a popular time to move, homes continue to sell quickly. Borrowers have become accustomed to the current home prices and interest rates. Wisconsin’s housing shortage persists, particularly as many homeowners refinanced into low-interest rate mortgages in prior years and have little appetite to sell.
- Commercial lending held steady quarter over quarter (0.75%) and year over year (-0.33%) as business owners await potential interest rate cuts by the Fed and potential economic changes following the November election before making significant operational changes.
- Farm loans increased quarter over quarter (20.59%) and year over year (2.44%) as farmers entered planting season and sought to upgrade equipment, make capital improvements, or manage operational costs affected by tighter margins.
- Past-due loans were elevated year over year (33.76%) as inflation and the high cost of living impacts borrowers. Past due loans eased, however, quarter over quarter (-5.92%), and the current level of past-due loans remains above recessionary levels.
Statement on the release of second-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 strength and adaptability of Wisconsin banks. Despite economic and geopolitical concerns, banks remain well capitalized and continue to meet the needs of their communities, as evidenced by steady or increased lending across sectors and a steady deposit base. As indicators point toward a likely interest rate cut by the Fed in September, borrowing costs could ease and provide additional opportunities for banks to support their customers’ growth and financial goals.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
| 6/30/2024 | 3/31/2024 | QoQ Change | 6/30/2023 | YoY Change | |
| Net loans and leases | $112,992,876 | $110,786,174 | 1.99% | $109,976,913 | 2.74% |
| Total deposits | $122,315,576 | $122,823,065 | -0.41% | $119,920,909 | 2.00% |
| Commercial and industrial loans | $18,179,173 | $18,044,391 | 0.75% | $18,240,073 | -0.33% |
| Residential real estate loans | $34,770,361 | $30,180,575 | 15.21% | $31,170,659 | 11.55% |
| Farm loans | $4,942,403 | $4,098,653 | 20.59% | $4,824,718 | 2.44% |
| Total assets | $155,167,030 | $153,075,902 | 1.37% | $152,381,917 | 1.83% |
| Assets 90+ days past due or in nonaccrual status | $580,617 | $617,124 | -5.92% | $434,070 | 33.76% |
The Wisconsin Bankers Association (WBA) is pleased to announce that five grants of $10,000 each have been awarded to support housing and housing literacy, economic development/community investment, and financial or cyber literacy in Wisconsin.
“Affordable housing and housing literacy are acute needs for individuals and families in our state and are critical drivers for our economy’s workforce needs,” said Rose Oswald Poels, WBA president and CEO. “We are proud to offer this inaugural grant opportunity, which showcases the partnership of Wisconsin banks and non-profit organizations to strengthen programming that empowers Wisconsinites to become financially capable, promotes homeownership, and builds wealth that can be passed on to future generations.”
The selected projects include:
- Columbia Savings and Loan Association, Milwaukee, Wis.
- Columbia Savings and Loan Association plans to present homeownership workshops and related financial literacy sessions to individuals in their market. In addition, qualified low- and moderate-income borrowers may receive downpayment assistance to substitute or supplement FHLBank Chicago’s Downpayment Plus Program and/or City of Milwaukee grant funding.
- Community First Bank, Boscobel, Wis.
- Community First Bank plans to develop/distribute educational/promotional resources to benefit individuals across its footprint in Southwest and South Central Wisconsin with a focus on current and prospective homeowners in rural areas. Such resources could include video content on topics such as credit repair strategies and steps to homeownership. The bank may also partner with others involved in the home-buying process to offer educational events to help consumers more fully understand the housing market, housing availability, and the steps required to purchase and maintain a home.
- Peoples State Bank, Prairie du Chien, Wis.
- Peoples State Bank plans to provide a three-part community education series and one-to-one counseling sessions in partnership with Couleecap, Inc, a community action and United States Department of Housing and Urban Development (HUD) counseling agency.
- Premier Community Bank, Marion, Wis.
- Premier Community Bank plans to host financial education events in English and Spanish — including presentations, videos, and supplemental materials — focusing on housing counseling/homeownership opportunities, fraud prevention, and cyber literacy. This outreach is geared toward elderly, financially challenged, and low- to moderate-income community members.
- Waldo State Bank
- Waldo State Bank will support Consumer Credit Counseling Service (CCCS) — a non-profit organization with HUD-accredited and NFCC-certified (National Foundation for Credit Counseling) counselors — in providing the Open the Door Homeownership (ODHO) program for new homebuyers. The grant funding will drive awareness of the ODHO homebuyer education classes through radio, print media, etc. to underserved and marginalized populations, provide a manual to participants (available in English, Hmong, and Spanish), and offer one-to-one counseling required for most downpayment assistance programs.
The Federal Deposit Insurance Corporation (FDIC) released quarterly data on May 29, 2024, showing Wisconsin banks started 2024 on solid footing. In Q1 2024, lending increased over the prior year in all categories (commercial, residential, and farm loans), demonstrating banks’ responsiveness to their customers’ borrowing needs. High interest rates on certificates of deposit (CDs) and money market accounts contributed to an increase in deposits both quarter over quarter (0.34%) and year over year (3.97%). While net interest margin has decreased slightly from 3.30% to 3.10% year over year, capital levels are healthy.
Notable indicators include:
- While residential real estate loans dropped quarter over quarter (-10.81%), they increased year over year (13.62%). Inventory remains low, particularly as many homeowners refinanced into low-interest rate mortgages in prior years and have little appetite to sell. Homes continue to sell quickly as borrowers have become accustomed to the current home prices and interest rates.
- Commercial lending increased slightly quarter over quarter (1.15%) and year over year (1.94%) as business owners cautiously strive for growth, avoiding significant operational changes.
- Farm loans increased year over year (7.17%) as farmers looked to upgrade equipment, make capital improvements, or expand.
- Past-due loans increased as persistent inflation and high everyday costs stress borrowers; however, the current level of past-due loans remains above recessionary levels.
Statement on the release of first-quarter 2024 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:
“The recently released Q1 2024 data from the FDIC showed the strength and stability of Wisconsin’s banking industry. Individuals, families, and business leaders continue to trust Wisconsin banks as financial partners and safekeepers of their money. Geopolitical issues remain among top economic concerns. In addition, decreases in credit quality indicate economic strain and signal challenges for consumers, businesses, and banks if inflation is not tamed. The Fed is unlikely to ease interest rates until the end of 2024 at the earliest; banks stand prepared to help their customers weather headwinds.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
| 3/31/2024 | 12/31/2023 | QoQ Change | 3/31/2023 | YoY Change | |
| Net loans and leases | $110,786,153 | $109,762,474 | 0.93% | $106,545,353 | 3.98% |
| Total deposits | $122,823,065 | $122,411,348 | 0.34% | $118,136,459 | 3.97% |
| Commercial and industrial loans | $18,044,391 | $17,839,610 | 1.15% | $17,700,465 | 1.94% |
| Residential real estate loans | $30,180,575 | $33,839,049 | -10.81% | $26,562,059 | 13.62% |
| Farm loans | $4,098,653 | $4,031,270 | 1.67% | $3,824,265 | 7.17% |
| Total assets | $153,075,799 | $152,451,578 | 0.41% | $149,718,289 | 2.24% |
| Assets 90+ Days Past Due or in Nonaccrual Status | $617,124 | $542,817 | 13.69% | $406,287 | 51.89% |
Paul C. Katz Selected to Succeed Retiring President and CEO
Paul C. Katz
The Board of Trustees of the Graduate School of Banking at the University of Wisconsin–Madison (GSB) is pleased to announce that Paul C. Katz has been selected as the next GSB/Prochnow Educational Foundation (PEF) president and CEO. Katz succeeds Kirby Davidson, who announced his retirement in October of 2023. Katz will begin as president on June 1, 2024, and assume the role of CEO upon Davidson’s retirement on December 31, 2024.
Katz comes to GSB following 25 years in banking industry leadership roles. He most recently served as managing director & head of bank relations at Promontory MortgagePath in Danbury, Conn. Prior to that, he was EVP of the State Association Alliance with the American Bankers Association in Washington, D.C. where he collaborated with 51 state bankers associations to improve the competitive position of the nation’s banks. In both roles, he established himself as a strategic thinker with a proven track record for growing existing business. He earned his bachelor’s degree with honors in political science from Mount Saint Mary’s University in Emmitsburg, Md. and is a graduate of the Executive Leadership Program — Leadership for Extraordinary Performance — at the University of Virginia Darden Graduate School of Business.
“I have the highest respect for GSB and its students, alumni, faculty, and staff,” said Katz. “I am honored to be entrusted to lead the organization and look forward to building on its longstanding tradition of educating professionals and creating leaders.”
A national search, managed by The QTI Group of Madison, yielded applications from more than 300 candidates for the position. It was important to the Board of Trustees that the search committee include various perspectives and backgrounds. For this reason, the eight-member committee consisted of state association executives, banker alumni, and faculty. The seven-month process included surveys and input from key constituent groups including Trustees, bankers, faculty, and staff.
“The Board of Trustees is very thankful for the thorough effort the search committee put into this important leadership position,” said Randy Hultgren, president and CEO of the Illinois Bankers Association and chair of the GSB Board of Trustees. “Paul will be an outstanding leader and intuitive thinker, who will help shape the School and its various in-person and online educational programs for years to come.”
Current GSB/PEF President and CEO Davidson said, “GSB has always been recognized as the best and most progressive graduate banking school in the country. I am confident that under Paul’s leadership this tradition will continue. We are on the cusp of some major enhancements and additional offerings that, with Paul’s background, will serve the School well in the years to come.”
More information on the Graduate School of Banking at the University of Wisconsin–Madison can be found at gsb.org.
Numbers released today by the Federal Deposit Insurance Corporation (FDIC) showed Wisconsin banks remained in a healthy position through the final quarter of 2023. Banks continued to meet the borrowing needs of their customers, as evidenced by year-over-year lending increases in all categories (commercial, residential, and farm loans). Deposits were up both quarter over quarter (1.12%) and year over year (2.00%), demonstrating public trust in Wisconsin banks as safe places to keep money. While net interest margin has decreased slightly from 3.27% to 3.20% year over year, capital levels are healthy.
Notable indicators include:
- Residential loans grew quarter over quarter (7.64%) and year over year (5.62%). With low inventory, homes continue to sell quickly. The Fed did not raise interest rates in the last quarter of 2023, and rates remain good in historical context.
- Commercial lending increased only slightly year over year (0.20%) and decreased slightly quarter over quarter (-0.60%) as business owners continue to monitor economic trends and interest rates.
- Farm loans increased year over year (10.30%) as farmers looked to upgrade equipment, make capital improvements, or expand. The decrease in farm loans quarter over quarter (-22.31%) reflects seasonal demand fluctuation.
- Past-due loans increased as inflation, the lag effect of interest rate hikes earlier in 2023, and slowed income growth presented challenges to borrowers in paying back their loans. Banks anticipated and were prepared for an increase in net charge-offs (loans that are unlikely to be repaid).
Statement on the release of fourth-quarter 2023 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:
“The year 2023 ended on a positive note with banks in a solid position. Residential loans are picking up, while many business owners are tending more toward a ‘wait-and-see’ approach on borrowing. Bankers, consumers, and business owners alike are hopeful that the Federal Reserve will lower interest rates in 2024. Inflation, the potential for a recession, and geopolitical issues remain top concerns for the year ahead. Wisconsin banks continuously evaluate economic conditions and stand ready to serve their customers and communities as trusted financial partners.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
| 12/31/2023 | 9/30/2023 | QoQ Change | 12/31/2022 | YoY Change | |
| Net loans and leases | $109,763,200 | $111,536,925 | -1.59% | $105,370,783 | 4.17% |
| Total deposits | $122,411,348 | $121,056,967 | 1.12% | $120,013,372 | 2.00% |
| Commercial and industrial loans | $17,839,610 | $17,946,778 | -0.60% | $17,804,684 | 0.20% |
| Residential real estate loans | $33,839,052 | $31,436,804 | 7.64% | $32,038,691 | 5.62% |
| Farm loans | $4,031,270 | $5,188,674 | -22.31% | $3,746,971 | 7.59% |
| Total assets | $152,451,299 | $153,646,118 | -0.78% | $149,546,185 | 1.94% |
| Assets 90+ Days Past Due or in Nonaccrual Status | $542,817 | $518,570 | 4.68% | $411,481 | 31.92% |
The Wisconsin Bankers Foundation, the non-profit arm of the Wisconsin Bankers Association, has awarded Chad Achenbach and Taylor Lindsay with the 2023 Agricultural Banking Scholarship. Demonstrating the Foundation’s commitment to cultivating the next generation of agricultural bankers in Wisconsin, the Agricultural Banking Scholarship is offered annually in the fall. Two $1,500 scholarships are awarded to students attending an accredited public or private, non-profit college, university, or technical college who demonstrate in their application a strong understanding of the importance of financial literacy and are actively pursuing a career in agricultural finance.
Pictured (left to right) are: Cassandra Krause, executive director, Wisconsin Bankers Foundation; Chad Achenbach, 2023 WBF Agricultural Banking Scholarship recipient; and Cody Kirschbaum, vice president – ag relationship manager, Peoples State Bank.
Chad Achenbach is a declared double major in agribusiness and animal science expected to graduate from UW–Platteville in May 2025. Active throughout the agricultural community, Achenbach grew up on a hobby farm in Eastman, Wis. and was involved with 4-H and FFA through high school. In 2020, Achenbach became an inaugural member of Wisconsin Department of Agriculture, Trade and Consumer Protection’s (DATCP) Wisconsin Agriculture Youth Council, where he gained insight on state agricultural policy development and tools available to support Wisconsin farmers. At UW–Platteville, Achenbach is involved in Alpha Gamma Rho (Beta Gamma chapter), Block & Bridle, and the Pioneer Dairy Club. He also serves as an ambassador for the UW–Platteville School of Agriculture. During the summer of 2023, Achenbach interned at Peoples State Bank in Prairie du Chien, Wis. as an ag loan officer.
Pictured (left to right) are: Michael DeLong, vice president – commercial/agriculture loan officer, Pillar Bank; Cassandra Krause, executive director, Wisconsin Bankers Foundation; Jenny Jereczek, director of agriculture banking & market president – Durand, Security Financial Bank; Taylor Lindsay, 2023 WBF Agricultural Banking Scholarship recipient; Dr. Brenda Boetel, professor and Agricultural Economics department chair, University of Wisconsin – River Falls; and Tony Betley, vice president – senior agricultural banking officer, Nicolet National Bank.
Taylor Lindsay is a declared agricultural business major and animal science minor expected to graduate from UW–River Falls in May 2025. Growing up on her family’s beef farm in Boyd, Wis., Lindsay has been around agriculture her entire life. Involved in 4-H and FFA throughout high school, Lindsay is pursuing an agribusiness career to not only remain active in the agricultural industry but also to help make a difference in her community. At UW–River Falls, Lindsay is a member of the Agricultural Business and Marketing Society, Agribusiness Leadership Team, Block and Bridle, Collegiate Farm Bureau, and Collegiate Livestock Judging Team. During the summer of 2023, Lindsay interned as an agriculture credit analyst at Nicolet National Bank in Eau Claire, Wis.
“In awarding the Agricultural Banking Scholarship to two deserving individuals, the Foundation aims to support and encourage the growth of talent in the agricultural finance sector,” said Foundation Chair Rose Oswald Poels. “I am pleased to recognize Chad and Taylor for their achievements and outstanding commitment to Wisconsin’s agricultural industry and wish them the very best in their future agribusiness careers.”
To learn more about the Wisconsin Bankers Foundation and its current scholarship opportunities, please visit wisbankfoundation.org.
