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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% 
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Wisconsin Bankers Association Statement on the State Budget

By WBA President and CEO Rose Oswald Poels

In signing the state budget today, Governor Tony Evers supported a historic tax law change approved by the state Legislature that builds on the state’s success in attracting and investing in Wisconsin businesses. Beginning this year, the new law will promote further economic development by providing banks with an income tax exclusion on income earned from commercial loans for business or agricultural purposes of $5 million or less where the borrower resides, or is located, in the state of Wisconsin. 

Ultimately, this state tax law change directly supports economic growth as Wisconsin banks continue to work with their Main Street small businesses and farmers. The Wisconsin Bankers Association wishes to thank Governor Evers and his Administration, Senate Majority Leader Devin LeMahieu, Speaker Robin Vos, Joint Finance Committee Co-Chairs Sen. Howard Marklein and Rep. Mark Born, and all Joint Finance Committee members, including Rep. Terry Katsma and Sens. Mary Felzkowski and Pat Testin, for their collective leadership in support of Wisconsin’s banking industry.    

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Donna Hoppenjan Leading Wisconsin Bankers Association Board

Donna Hoppenjan

Donna J. Hoppenjan, president and CEO of Mound City Bank, has been elected to serve as the 2023–2024 Board chair of the Wisconsin Bankers Association (WBA).

The Wisconsin Bankers Association is the state’s largest financial industry trade association, representing more than 200 commercial banks and savings institutions, their branches, and over 30,000 employees.

“We are delighted to announce Donna as chair of the WBA Board,” said Rose Oswald Poels, WBA president and CEO. “Her appointment is not only a testament to her individual accomplishments but also a testament to her ability to advance our mission, foster collaboration, and drive innovation in the banking industry. We look forward to working together to make a positive impact on the lives of our customers and communities.”

Hoppenjan has over 46 years of experience at Mound City Bank and is an alumna of the Graduate School of Banking (GSB) at the University of Wisconsin-Madison. Her community involvement includes serving on the Platteville Regional Chamber of Commerce Ambassador Committee, on the board of a local church, and on the board of Southwest Health.

Also serving as officers on the WBA Board are: Chair-Elect Al Araque, SVP, director of consumer, private and small business banking, Johnson Financial Group, Racine; Vice Chair Paul Northway, president and CEO, American National Bank – Fox Cities, Appleton; and Past Chair Dan Peterson, president and CEO, The Stephenson National Bank & Trust, Marinette.

Joining the Board for three-year terms are Kelly Heroux, president and CEO, Peshtigo National Bank; Shay Horton, president and CEO, Cumberland Federal Bank; Anthony Nguyen, Minnesota/Wisconsin/Chicago regional bank director, SVP, Wells Fargo Bank, N.A., Milwaukee; and Bill Sennholz, CEO, Forward Bank, Marshfield.

Those continuing their terms on the Board are: Paul Hoffmann, president, Lake Ridge Bank, Middleton; Jay Mack, president and CEO, Town Bank, N.A., Hartland;  Ryan Kamphuis, president and CEO, Bristol Morgan Bank, Oakfield; Greg Lundberg, president and CEO, Fortifi Bank, Berlin; Tom Mews, president, First National Community Bank, New Richmond; Greg Ogren, president and CEO, Security Bank Shares, Inc., Iron River; Joe Peikert, president and CEO, Wolf River Community Bank, Hortonville; and Dan Ravenscroft, president and CEO, Royal Bank, Elroy.

Board members who completed their terms in 2022–2023 are Jim Chatterton, president and CEO, National Exchange Bank & Trust, Fond du Lac; Jenny Provancher, CEO, The Equitable Bank, S.S.B., Wauwatosa; Terry Rosengarten, president and COO, Unity Bank, Augusta; and Ken Thompson, CEO, Capitol Bank, Madison.

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Wis. Bank CEOs Weigh In on Economic Outlook

WBA releases results of Bank CEO Economic Conditions Survey 

In the Wisconsin Bankers Association’s biannual Economic Conditions Survey of Wisconsin bank CEOs, nearly three quarters of respondents rated Wisconsin’s current economic health as “excellent” or “good.” These most recent survey results show some easing of inflation and recession concerns; 86% of respondents predict inflation to fall or stay about the same over the next six months, compared to 76% of respondents in the prior survey conducted at the end of 2022. Pessimism is fading as only 48% of respondents predict the economy to worsen over the next six months, compared to 72% of respondents at the close of 2022. 

“Wisconsin bank CEOs have unique knowledge of their local market dynamics, given their economic expertise along with their relationships with businesses, community organizations, families, and individuals in their areas,” said WBA President and CEO Rose Oswald Poels. “With a mild recession predicted for the remainder of the year, bankers continue to serve as trusted partners in helping community members weather challenges and achieve their financial goals.“ 
 
Among the economic bright spots cited by CEOs in the survey were high employment and wages, demand for goods and services, strong industries — summer tourism, construction, agriculture, and manufacturing — and in-migration from the Twin Cities and Chicago. Top economic concerns reported by bank CEOs were inflation and labor — particularly in service-related industries, deposit growth, and compressing interest rate margins. 

 
The mid-year 2023 survey was conducted May 16–31 with 66 respondents. Sums may not equal 100 percent due to rounding. Below is a breakdown of the survey questions and responses.

How would you rate the current health of the Wisconsin economy. . .  Mid-Year 2023 End-of-Year 2022  Mid-Year 2022 
Excellent 5% 6% 7%
Good 68% 69% 64%
Fair 27% 24% 29%
Poor 0% 1% 0%
In the next six months, do you expect the Wisconsin economy to. . . 
Grow 0% 0% 2%
Weaken 48% 72% 63%
Stay the same 52% 28% 36%
Over the next six months, do you expect inflation to. . . 
Rise 14% 24% 50%
Fall 44% 51% 22%
Stay about the same 42% 25% 28%
How likely would you say a recession is in the next six months? 
Very unlikely 0% 0% 4%
Unlikely 5% 3% 16%
Neutral 24% 10% 20%
Likely 56% 62% 45%
Very likely 15% 25% 16%
Rate the current demand in the following categories: 
Business Loans 
Excellent 6% 3% 2%
Good 44% 44% 48%
Fair 48% 46% 48%
Poor 2% 7% 2%
Commercial Real Estate Loans 
Excellent 11% 6% 7%
Good 33% 34% 52%
Fair 50% 53% 36%
Poor 6% 7% 5%
Residential Real Estate Loans 
Excellent 5% 4% 2%
Good 14% 7% 20%
Fair 50% 33% 50%
Poor 31% 55% 29%
Agricultural Loans 
Excellent 0% 3% 2%
Good 41% 23% 37%
Fair 50% 60% 51%
Poor 9% 13% 10%
Deposit 
Excellent 3% 3% 5%
Good 17% 44% 55%
Fair 58% 44% 38%
Poor 23% 9% 2%
In the next six months, do you anticipate the demand for the following categories will. . . 
Business Loans 
Grow 6% 8% 11%
Weaken 50% 56% 48%
Stay the same 44% 35% 41%
Commercial Real Estate Loans 
Grow 9% 1% 13%
Weaken 56% 63% 48%
Stay the same 35% 35% 39%
Residential Real Estate Loans 
Grow 13% 6% 4%
Weaken 25% 54% 63%
Stay the same 62% 41% 34%
Agricultural Loans 
Grow 12% 15% 6%
Weaken 32% 38% 31%
Stay the same 56% 48% 63%
Deposit 
Grow 17% 13% 11%
Weaken 31% 38% 36%
Stay the same 52% 49% 53%
In the next six months, are the businesses in your bank’s market area likely to. . . 
Hire employees 25% 17% 31%
Maintain current staffing levels 69% 71% 61%
Lay off employees 6% 11% 7%
In the next six months, is your bank likely to. . . 
Hire employees 23% 23% 34%
Maintain current staffing levels 74% 73% 63%
Lay off employees 3% 4% 4%
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Q1 2023 FDIC Numbers Show Resiliency of Wisconsin Banks 

First-quarter 2023 data from the Federal Deposit Insurance Corporation (FDIC) show that Wisconsin banks remained on solid footing even as two out-of-state institutions failed during the period. While deposits decreased slightly at Wisconsin banks, borrowers overall continued to keep up to date on their loan payments. Residential, commercial, and farm loans all increased year over year. Importantly, net interest margin remains strong at 3.30% and capital levels are healthy.

Notable indicators include:

  • Residential loans continued to grow, both year over year (16.47%) and quarter over quarter (1.92%). 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 (11.27%) but slowed in the last couple of quarters as business owners held off on borrowing due to concerns of recession in 2023.
  • Farm loans increased both year over year (2.58%) and quarter over quarter (2.06%).
  • Borrowers continue to pay down their debt, and noncurrent loans decreased year over year (-15.98%) and quarter over quarter (-1.26%).
  • Deposits decreased slightly year over year (-0.70%) and quarter over quarter (-1.56%) as consumers and businesses felt the pressure of inflation on their savings or left traditional banks in search of higher yields elsewhere.

Statement on the release of first-quarter 2023 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association: 

“Wisconsin banks overall fared very well during the first quarter of 2023 despite the strain on the banking system caused by inflation and rising market interest rates. Banks in our state — and the U.S. banking system overall — have the capital and liquidity to continue to meet the needs of consumers and businesses. This goes to show that Wisconsinites can continue to have confidence that their money is safe in a Wisconsin bank. With respect to the ongoing economic challenges and geopolitical concerns, Wisconsin banks are well-positioned to weather the mild economic downturn that is expected in the remainder of 2023.”

FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)

03/31/2023 12/31/2022 QoQ Change 03/31/2022 YoY Change
Net loans and leases $106,540,141 $105,370,783 1.11%  $94,488,857  12.75%
Total deposits  $118,136,508 $120,013,420 -1.56%  $118,967,927  -0.70%
Commercial and industrial loans  $17,700,465 $17,804,684 -0.59%  $15,907,329  11.27%
Residential loans  $26,381,632 $25,884,618 1.92%  $22,650,405  16.47%
Farm loans  $3,824,265 $3,746,971 2.06%  $3,728,094  2.58%
Total assets $149,723,596 $149,560,399 0.11% $143,313,990  4.47%
Assets 90+ Days Past Due or in Nonaccrual Status  $406,287 $411,481 -1.26%  $483,579  -15.98%
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Wisconsin Banks Celebrate Power of Community Week

The Wisconsin Bankers Association (WBA) will celebrate its sixth annual Power of Community Week April 17–22, 2023. Bank employees are engaged in their communities throughout the year, and this special week highlights the collective impact of Wisconsin’s banking industry. The WBA Power of Community Week highlights the relationships banks have with local residents, business owners, farmers, and community leaders. The WBA Power of Community Week coincides with Financial Literacy and Capability Month, Community Banking Month, and Volunteer Month.

Community service projects will be taking place around the state this week, ranging from park cleanups, housing builds, and Earth Day activities to food pantry collections, shred days at the bank, and more. WBA Power of Community also leads up to Teach Children to Save Day, April 27, 2023, which aims to build good financial habits among some of our youngest community members.

Bankers are thrilled to be back in person in K–12 classrooms on and around Teach Children to Save Day. The Wisconsin Bankers Foundation (WBF) — which has a mission to promote financial literacy and capability —. has provided lesson plans and 2,800 copies of the book Curious George Saves His Pennies as part of its “Reading Raises Interest” kit program.

“From helping families and small business owners achieve their financial goals to volunteering in community projects to donating to important local causes, Wisconsin banks are pillars in their communities,” said Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association. “Bankers are very dedicated to being active members of the communities they call home.”

To learn more about the Power of Community Week (April 17–22, 2023) and to see a map of the volunteer activities of banks, visit www.wisbank.com/BanksPowerWI and follow the hashtag #BanksPowerWI on social media.

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Wisconsin Bankers Association Statement on the Failure of Silicon Valley Bank  

By Wisconsin Bankers Association President and CEO Rose Oswald Poels

The public can rest assured that the banking system overall and Wisconsin banks are safe, sound, and resilient. Wisconsin banks do not operate in the manner that caused the failure of Silicon Valley Bank in Santa Clara, California and Signature Bank in New York, New York. The customer base of Wisconsin banks is much more diversified and the overall balance sheet management of Wisconsin banks is significantly different. Regulators acted swiftly and decisively, which protected customers of the failed banks and prevented further pain across the banking system. As recent data from the Federal Deposit Insurance Corporation show, Wisconsin banks are well capitalized and remain on solid footing. Consumers can remain at ease knowing that their money is safe in an FDIC-insured bank in Wisconsin.

For further information on FDIC deposit insurance coverage, please refer to FDIC’s Understanding Deposit Insurance resource, Deposit Insurance FAQs, and SVB FAQs.

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Two UW Students Awarded Agricultural Banking Scholarships

Pictured (left to right) are: Jeff Gruetzmacher, senior vice president and director, Royal Bank; Shania Sake, branch manager, Royal Bank; Cassandra Krause, executive director, Wisconsin Bankers Foundation; Elle Horn, 2022 Agricultural Banking Scholarship recipient; and Dan Ravenscroft, president and CEO, Royal Bank.

The Wisconsin Bankers Foundation, the non-profit arm of the Wisconsin Bankers Association, has awarded UW-Platteville freshman Elle Horn and UW-River Falls junior Colby Von Haden with the 2022 Agricultural Banking Scholarship. The scholarship is awarded annually to two students who are pursuing a career in agricultural finance and who demonstrate in their application a strong understanding of the importance of financial literacy.

Horn is a declared agribusiness major and is currently employed as a teller at Royal Bank in LaValle, Wis. Growing up on her family’s beef and dairy farm, Horn developed a passion for volunteering and educating those in her community on agricultural topics. She now enjoys regularly being involved with Block & Bridle, Future Farmers of America (FFA), and 4-H.

Pictured (left to right) are: Dr. Brenda Boetel, professor and department chair, University of Wisconsin – River Falls; Dr. Dean Olson, associate dean and professor, University of Wisconsin – River Falls; Cathy Asher, ag relationship manager, Security Financial Bank; Colby Von Haden, 2022 Agricultural Banking Scholarship recipient; Cassandra Krause, executive director, Wisconsin Bankers Foundation; Isaac Christenson, ag loan officer/credit analyst, Pillar Bank; and Michael DeLong, vice president – commercial/ag loan officer, Pillar Bank.

Von Haden is a declared agricultural business major expected to graduate in December 2023. He currently serves as the president of UWRF’s Beef Management Team as well as vice president of its Block and Bridle Club. Additionally, Von Haden is an active member of the university’s CAFES Student Advisory Council, Alpha Gamma Rho – Alpha Psi, and the Monroe County Jr. Fair Board. Previously, Von Haden worked as a business analyst intern at Bank First, Tomah.

“The commitment both Elle and Colby demonstrate to the agricultural industry and serving their communities is a fundamental aspect of the Wisconsin Bankers Foundation’s Agricultural Banking Scholarship,” said Foundation Chair Rose Oswald Poels. “I am pleased that we are able to honor Elle and Colby for their achievements with this scholarship and wish them much success in their future agribusiness careers.”

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FDIC Numbers Show Positive 2022 Year-End Position of Wisconsin Banks

Wisconsin banks finished 2022 in a strong financial position. Fourth-quarter data from the Federal Deposit Insurance Corporation (FDIC) show consumers paying down debt and putting money into savings at the bank. The housing market remained active as home prices cooled slightly, the agricultural industry had a favorable year, and businesses continued to grow throughout 2022. While the economy is experiencing ongoing inflationary pressure and geopolitical concern, Wisconsin banks remain well capitalized and serve as trusted partners to help their customers achieve their financial goals. 

Notable indicators include: 

  • Residential loans continued to grow, both quarter over quarter (3.09%) and year over year (13.71%). 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 (11.09%) but slowed toward the end of the year as business owners held off on borrowing due to concerns of recession in 2023. 
  • Farm loans decreased 20% quarter over quarter yet remain up 8.12% year over year. While farmland values remain strong, sharp interest rate increases have resulted in the softening of some farm loan demand. An increase in farm income toward the end of 2022 also led to an increase in loan repayments. 
  • Credit quality continued to be strong as borrowers kept up to date on their payments. Loans and leases 90 or more days past due decreased 19.74% year over year and decreased 1.40% quarter over quarter. 
  • Deposits continued to grow, albeit at a slower pace as inflation limited the amount consumers were able to put into savings. 

Statement on the release of fourth-quarter 2022 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:  

“The fourth-quarter FDIC numbers show Wisconsin’s banking industry in a solid position. While inflation persists in driving up expenses for households and businesses, the overall picture shows that more borrowers are keeping current on their loans and consumers are putting money into savings at their bank.”

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Lundberg and guests
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Berlin, Wis. Banker Honored as Banker of the Year

Fortifi Bank President and CEO Greg Lundberg

Greg Lundberg

The Wisconsin Bankers Association (WBA) is pleased to announce the 2022 Banker of the Year award winner: Gregory J. Lundberg, president and CEO of Fortifi Bank, headquartered in Berlin, Wis.  

Lundberg has over 30 years of banking experience, and Fortifi Bank, formerly 1st National, has been in business for more than 140 years. The bank has a mission of “Growin’ Wisconsin” — one person, one business, and one relationship at a time. 

“It is a joy to recognize Greg as the 2022 Banker of the Year,” said Rose Oswald Poels, WBA president and CEO. “In addition to his values-driven leadership of Fortifi Bank, he extends his service to his community and to the banking industry.” 

Lundberg has given over 200 hours of community service in the last 12 months. He eagerly shows up for many community events and takes part in community discussions and initiatives. He prides himself on being a “working board member” and is deeply committed to the success of The Boys & Girls Club of the Tri-County Area and Green Lake’s Town Square Community Center, for which he serves as a board member and is active on additional subcommittees, including finance, facilities management, and business development.  

Lundberg joined Fortifi Bank in 2010 after having gained experience at Citizens Bank, Johnson Bank, and Associated Bank. He currently serves on the WBA Board of Directors and has been an active member of WBA through the Building Our Leaders of Tomorrow (BOLT) Section and the Advocacy Officer Program. He earned his bachelor’s degree in finance from the University of Wisconsin-Whitewater and his MBA degree in finance from the University of Wisconsin-Madison.  

Since assuming the role of president and CEO of Fortifi Bank in 2019, Lundberg has had a tremendous impact on the overall financial performance of the bank and has led multiple efforts to improve efficiency and, ultimately, profitability. Lundberg was instrumental in raising $10 million of additional capital for the bank in late 2021, which has propelled the balance sheet growth experienced at Fortifi Bank over the last 18–24 months. The bank’s total assets increased from $509 million at the end of 2020 to $607 million as of November 30, 2022. 

Lundberg and Oswald Poels with plaque

Greg Lundberg and Rose Oswald Poels

The Wisconsin Bankers Association’s Banker of the Year award is presented to one Wisconsin banker each year. The recipient must be a Wisconsin bank CEO or president who has demonstrated outstanding service to their bank, to the continued vitality of their community, and to the banking profession. The Banker of the Year award began in 1986, and Lundberg is the 37th banker honored with this distinction. Lundberg was honored at WBA’s Bank Executives Conference in Wisconsin Dells, the largest banking event in Wisconsin, on February 9, 2023. 

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