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WBA Releases Results of Bank CEO Economic Conditions Survey
In the Wisconsin Bankers Association’s biannual Economic Conditions Survey of Wisconsin bank CEOs, 79% of respondents rated Wisconsin’s current economic health as “excellent” or “good.” This marks a significant increase since December 2020, when only 42% of survey respondents gave “excellent” or “good” ratings. Sixty-four percent of Wisconsin bank CEOs who completed the most recent survey predict that the economy will stay the same in the next six months, while 21% predict it will grow and 15% predict it will weaken.
“Wisconsin bank CEOs are in a unique position to gain insights into the microeconomic activities in their markets given the critical roles they play as lenders, advisors, and community leaders. As such, they often see developments occurring before economic trends are widely identified,” said WBA President and CEO Rose Oswald Poels. “As industries rebound — including tourism, manufacturing, construction, and agriculture — economic stability is taking hold.“
Many bank CEOs highlighted bright spots in their local economies such as low unemployment rates, strong consumer demand, a strong housing market, high commodity prices, growth in health care technology, and increased manufacturing and construction. Among the sources of economic concern for bank CEOs were inflation, new variants and waves of COVID-19, and workforce shortages and supply chain issues preventing businesses from realizing growth.
The end-of-year 2021 survey was conducted December 14–24 with 80 respondents. Sums may not equal 100 percent due to rounding. Below is a breakdown of the survey questions and responses.
Wisconsin Bank CEO Economic Conditions Survey Results
How would you rate the current health of the Wisconsin economy. . . | End-of-Year 2021 | Mid-Year 2021 | End-of-Year 2020 |
Excellent | 6% | 15% | 4% |
Good | 73% | 76% | 38% |
Fair | 20% | 10% | 58% |
Poor | 1% | 0% | 1% |
In the next six months, do you expect the Wisconsin economy to. . . | |||
Grow | 21% | 48% | 45% |
Weaken | 15% | 39% | 14% |
Stay the same | 64% | 13% | 41% |
Rate the current demand in the following loan categories: | |||
Business | |||
Excellent | 9% | 10% | 4% |
Good | 48% | 30% | 29% |
Fair | 39% | 52% | 56% |
Poor | 5% | 8% | 12% |
Commercial Real Estate | |||
Excellent | 11% | 13% | 4% |
Good | 44% | 44% | 30% |
Fair | 41% | 33% | 52% |
Poor | 4% | 10% | 14% |
Residential Real Estate | |||
Excellent | 25% | 40% | 63% |
Good | 48% | 48% | 29% |
Fair | 24% | 12% | 8% |
Poor | 3% | 0% | 0% |
Agricultural | |||
Excellent | 1% | 2% | 0% |
Good | 22% | 34% | 19% |
Fair | 58% | 56% | 59% |
Poor | 18% | 8% | 22% |
In the next six months, do you anticipate the demand for the following loan categories will. . . | |||
Business | |||
Grow | 28% | 43% | 39% |
Weaken | 14% | 7% | 13% |
Stay the same | 59% | 51% | 48% |
Commercial Real Estate | |||
Grow | 24% | 31% | 32% |
Weaken | 21% | 8% | 25% |
Stay the same | 55% | 31% | 43% |
Residential Real Estate | |||
Grow | 11% | 14% | 20% |
Weaken | 56% | 41% | 40% |
Stay the same | 33% | 46% | 39% |
Agricultural | |||
Grow | 15% | 18% | 20% |
Weaken | 14% | 6% | 15% |
Stay the same | 71% | 76% | 65% |
In the next six months, are the businesses in your bank’s market area likely to. . . | |||
Hire employees | 68% | 82% | 30% |
Maintain current staffing levels | 33% | 15% | 62% |
Lay off employees | 0% | 3% | 8% |
In the next six months, is your bank likely to. . . | |||
Hire employees | 55% | 48% | 34% |
Maintain current staffing levels | 43% | 45% | 65% |
Lay off employees | 3% | 6% | 1% |
DFI Deputy Secretary Cheryll Olson-Collins Appointed Top Post
Today, Governor Tony Evers announced Wisconsin Department of Financial Institutions (DFI) Secretary Kathy Blumenfeld will be leaving the agency to lead the Department of Administration (DOA) effective January 17, 2022. Gov. Evers also announced the appointment of current DFI Deputy Secretary Cheryll Olson-Collins to the agency’s top post upon Blumenfeld’s departure.
“The Wisconsin Bankers Association extends our appreciation to Sec. Blumenfeld for her public service and management of DFI and congratulates her on her appointment to lead the Department of Administration,” said Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association. “Our association and members are grateful to Kathy for her collaboration and engagement with the banking industry, and for her steady leadership during the economic uncertainty created by the COVID-19 pandemic. We wish her the best in her new role.”
“WBA also congratulates Deputy Secretary Olson-Collins on her appointment to serve as DFI Secretary,” said Oswald Poels. “Cheryll has a breadth of experience and has served Wisconsin’s financial institutions well throughout her time at DFI. We look forward to working with Cheryll in this new, and well-deserved, leadership role.”
Public Continues to Place Their Trust in Banks
Banks continue to be a safe place for consumers to keep their money, as evidenced by a 10.42% year-over-year (YoY) climb in deposits from Q3 2020 to Q3 2021. Net loans and leases have seen a slight increase quarter over quarter from Q2 to Q3 of 2021 (0.62%), led largely by an increase in residential loans. A notable downward trend of noncurrent loans and leases (-32.76% Q3 YoY) highlights the financial health of borrowers and their ability to repay their loans. The economy continues to show positive signs of rebound for banks and consumers in the state alike.
Statement on the release of third-quarter 2021 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:
“A slight increase seen quarter over quarter continues a positive, albeit slow upward trend in lending, led primarily by real estate lending. In terms of business lending, trends reflect business owners’ caution with their borrowing needs. While some businesses have fewer borrowing needs due to government stimulus funding and the Paycheck Protection Program, other business owners are more hesitant to borrow due to supply chain issues and worker shortages that are hindering their abilities to grow.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
9/30/2021 | 6/30/2021 | QoQ Change | 9/30/2020 | YoY Change | |
Net loans and leases | 93,094,545 | 92,517,179 | 0.62% | 95,421,724 | -2.44% |
Total deposits | 115,910,175 | 112,163,897 | 3.34% | 104,974,630 | 10.42% |
Commercial and industrial loans | 15,937,802 | 17,112,381 | -6.86% | 20,794,154 | -23.35% |
Residential loans | 22,778,040 | 22,568,675 | 0.93% | 23,396,775 | -2.64% |
Farmland loans | 3,552,841 | 3,544,220 | 0.24% | 3,530,046 | 0.65% |
Farm loans | 4,411,240 | 4,272,003 | 3.26% | 4,786,095 | -7.83% |
Total assets | 141,975,630 | 138,249,203 | 2.70% | 133,465,411 | 6.38% |
Noncurrent loans and leases | 517,173 | 546,518 | -5.37% | 769,135 | -32.76% |
Five individuals were honored by the Wisconsin Bankers Association for their excellence in banking, community service, and civic involvement. A celebration was held on Friday, October 29 at the WBA headquarters in Madison, where a Leaders in Banking Excellence Wall installation displays a tribute to outstanding current and former bankers. The wall was established in 2020, and the five Class of 2021 honorees join the 12 inaugural honorees.
“These leaders have made significant contributions to Wisconsin’s banking industry and to the economic wellbeing of our state,” said Rose Oswald Poels, WBA president and CEO. “Part of what makes them exceptional leaders is that they have inspired others to succeed in their professions and in service to their communities.”
The honorees in the 2021 Leaders in Banking Excellence class are: Jon Bernander, Bank of Wisconsin Dells; Robert Gorsuch, Oak Bank, Fitchburg; Mary L. Staudenmaier, The Stephenson National Bank & Trust (SNBT), Marinette; John Godfrey Thomson, The Bank of New Glarus; and Merlin E. Zitzner, Baraboo State Bank.
Read the bios of each of the 2021 Leaders in Banking Excellence honorees.
Wisconsin Bankers Association Opposes Assembly Bill 478, Which Would Expand Authorized Activities and Powers of Credit Unions
At today’s hearing of the Assembly Committee on Financial Institutions, the Wisconsin Bankers Association and member bankers from around the state expressed opposition to Assembly Bill 478, which would provide credit unions with even more tools to grow beyond the intention of their original chartered mission much to the detriment of Wisconsin’s taxpaying banks and citizens.
In the early history of the existence of credit unions, they were either employer-based or focused on serving well-defined neighborhoods to serve consumers of modest means, which is the rationale for their income tax-exempt status. It is not difficult today for almost anyone to become eligible for membership in one of Wisconsin’s growth-oriented $1 billion and larger credit unions. In the past eight years, Wisconsin has seen the acquisition of five tax-paying community banks to large credit unions, which translates to a direct loss of tax revenue for the State of Wisconsin.
“Continuing to require that credit unions only do business with members is inherent in the public policy rationale behind which the tax exemption is given,” testified WBA President and CEO Rose Oswald Poels. “Making a substantive change to this foundational public policy principle as proposed in AB 478 should then also call into question, as other states have, the state tax exemption.”
“In Wisconsin, there are 13 credit unions that are over $1 billion in asset size that compete daily with banks like mine across the state. The services offered are no different than those offered by banks, and yet the credit unions enjoy a significant advantage in their income tax-exempt status,” testified Capitol Bank President and CEO and WBA Board Chair Ken Thompson. “Capitol Bank regularly experiences competition from growth-oriented credit unions operating in our market. . . Competition is normally healthy and good for consumers when all parties involved operate on a level playing field. However, that is not the case with the credit union industry.”
Joining WBA on a letter respectfully opposing Assembly Bill 478 as drafted are 87 banks from around the state. The letter explains that taxpayers can no longer afford to continue subsidizing the credit union industry; the goal is to have these large, aggressive credit unions return to their original mission or become subject to the same regulatory, supervisory, and tax requirements as banks.
Recognition highlights company’s top performance in utilizing Cvent’s event marketing and management platform to deliver impactful event experiences and drive positive business results
The Wisconsin Bankers Association (WBA) received top honors this week at the 2021 Cvent Excellence Awards. Winners were announced during a live in-person ceremony in Las Vegas at CAESARS FORUM as part of Cvent CONNECT, Cvent’s annual customer conference. The event was also broadcast to a global virtual audience of meetings, events, and hospitality professionals. WBA won first place in the category of ROI Rockstar, highlighting its effective use of Cvent technology to drive revenue growth and maintain business momentum using creative tactics during challenging times. Nominees in this category are realizing measurable ROI, whether for virtual, hybrid, or in-person events, and are setting and exceeding goals, automating event communications, and maximizing attendance and engagement.
“The Cvent Excellence Awards have always been about celebrating our customers, and it’s an honor to share the global Cvent CONNECT stage with them to recognize their successes,” said Cvent CMO Patrick Smith. “These award-winning organizations, event professionals, and marketers have embraced technology as a critical part of their roles and will help pave the way to a future where we believe events are more engaging and more impactful than ever before.”
“Our team at WBA takes a lot of pride in creating an outstanding event experience from beginning to end for our members,” said WBA President and CEO Rose Oswald Poels. “We are honored to be recognized by Cvent for our use of technology in the conferences, trainings, and events we host.”
The awards program, hosted by meetings, events, and hospitality technology provider Cvent, is now in its ninth year and recognizes industry leaders from a diverse set of organizations who use Cvent technology in new and inspiring ways to deliver best-in-class in-person, virtual, and hybrid events. Winners were selected from hundreds of submissions and embody the best in their respective industries.
By, Cassie Krause
WBA Releases Results of Bank CEO Economic Conditions Survey
MADISON, Wis. – In the Wisconsin Bankers Association's biannual Economic Conditions Survey of Wisconsin bank CEOs, 76 percent of respondents rated the current economy at "good," followed by 15 percent at "excellent" and 10 percent at "fair." This marks a positive change from the end of 2020 when the survey was last conducted and 58 percent of respondents rated the economy at "fair," followed by 38 percent at "good," 3 percent at "excellent," and 1 percent at "poor."
"Wisconsin bank CEOs are in a unique position to provide insight on the economy because they see the day-to-day happenings with their customers and put that knowledge together with data and industry expertise," said WBA President and CEO Rose Oswald Poels. "It is very encouraging to see the economy improving as people begin to resume their spending on products and leisure activities in ways they were unable or hesitant to do six months or a year ago."
Many bank CEOs linked favorable economic conditions to pent-up demand for goods and services as COVID-19 restrictions lift, with government stimulus money, low unemployment, low interest rates, and savings built up from staying home bolstering consumer confidence. Commonly cited sources of economic concern, on the other hand, were workforce shortages, supply chain issues, and uncertainty surrounding COVID-19.
Wisconsin's economy will continue to grow over the next six months, predict 48 percent of respondents, while 39 percent predict it will stay the same and 13 percent predict it will weaken.
The survey was conducted the last two weeks of July with 62 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. . . |
|
Excellent |
15% |
Good |
76% |
Fair |
10% |
Poor |
0% |
|
|
In the next six months, do you expect the Wisconsin economy to. . . |
|
Grow |
48% |
Weaken |
39% |
Stay the same |
13% |
|
|
Rate the current demand in the following categories: |
|
Business loans |
|
Excellent |
10% |
Good |
30% |
Fair |
52% |
Poor |
8% |
|
|
Commercial real estate |
|
Excellent |
13% |
Good |
44% |
Fair |
33% |
Poor |
10% |
|
|
Residential real estate |
|
Excellent |
40% |
Good |
48% |
Fair |
12% |
Poor |
0% |
|
|
Agricultural |
|
Excellent |
2% |
Good |
34% |
Fair |
56% |
Poor |
8% |
|
|
In the next six months, do you anticipate the demand for the following loan categories will. . . |
|
Business loans |
|
Grow |
43% |
Weaken |
7% |
Stay the same |
51% |
|
|
Commercial real estate |
|
Grow |
31% |
Weaken |
8% |
Stay the same |
31% |
|
|
Residential real estate |
|
Grow |
14% |
Weaken |
41% |
Stay the same |
46% |
|
|
Agricultural |
|
Grow |
18% |
Weaken |
6% |
Stay the same |
76% |
|
|
In the next six months, are the businesses in your bank’s market area likely to. . . |
|
Hire employees |
82% |
Maintain current staffing levels |
15% |
Lay off employees |
3% |
|
|
In the next six months, is your bank likely to. . . |
|
Hire employees |
48% |
Maintain current staffing levels |
45% |
Lay off employees |
6% |
|
|
In general, how would you say the pandemic has affected your business customers? |
|
Very positively |
10% |
Positively |
34% |
No impact |
16% |
Negatively |
39% |
Very negatively |
2% |
|
|
In general, how would you say the pandemic has affected your retail customers? |
|
Very positively |
3% |
Positively |
37% |
No impact |
17% |
Negatively |
41% |
Very negatively |
2% |
|
|
By, Cassie Krause
Twelve individuals are being honored by the Wisconsin Bankers Association for their excellence in banking, community service, and civic involvement. A celebration for this inaugural class was held on June 4 at the WBA headquarters in Madison, where a newly-built Leaders in Banking Excellence Wall installation displays a tribute to the selected current and former bankers. The event had been postponed from the fall of 2020 due to the pandemic.
“These leaders have helped shape Wisconsin’s banking industry into what it is today,” said Rose Oswald Poels, WBA president and CEO. “They exemplify the values of our association: highest ethics, professionalism, and enthusiastic service to our industry and to our state. It is my privilege to host an honor wall of this type at our WBA headquarters in Madison.”
The honorees in the 2020 Leaders in Banking Excellence are: Paul C. Adamski, The Pineries Bank, Stevens Point; James K. Caldwell, First Citizens State Bank, Whitewater; the late James S. Dolister, Capitol Bank, Madison; the Eager Family, the former Union Bank & Trust Company, Evansville; Thomas F. Farrell, Peoples State Bank, Prairie du Chien; the late John F. (Jack) Kundert, the former Bank One, Monroe; E. David Locke, the former McFarland State Bank; Richard (Dick) Pamperin, Premier Community Bank, Marion; Steven R. Schowalter, Port Washington State Bank; Frederick F. Schwertfeger, Horicon Bank; Jerry Smith, First Business Bank, Madison; and the late Thomas M. Tubbs, Bank of Sun Prairie.
To learn more about each of the 2020 Leaders in Banking Excellence honorees, please visit www.wisbank.com/excellence2020/.
###
About the Wisconsin Bankers Association
Founded in 1892, WBA is the state’s largest financial industry trade association, representing more than 200 commercial banks and savings institutions, their branches, and over 21,000 employees. The Association represents banks of all sizes in Wisconsin, and nearly 98 percent of banks in the state are WBA members.
By, Cassie Krause
Automatic Saving Initiative Promotes Saving Through the Workplace to Improve Financial Well-Being
MADISON, Wis. – Today the Wisconsin Bankers Association (WBA) joined the Wisconsin Department of Financial Institutions (DFI) to announce a broad coalition of Wisconsin organizations have launched a statewide Wisconsin Saves Automatic Saving Initiative to encourage millions of Wisconsinites to establish emergency savings accounts through automated saving.
This effort is led by DFI Secretary Kathy Blumenfeld, Wisconsin State Treasurer Sarah Godlewski, Wisconsin Bankers Association (WBA) President and CEO Rose Oswald Poels, Wisconsin Women’s Business Initiative Corporation (WWBIC) President Wendy Baumann, and America Saves, the leading national campaign in promoting savings.
“Our organization is excited to help launch Wisconsin Saves because the initiative aligns with the efforts bankers engage in each and every day to help customers achieve their financial goals,” said WBA President and CEO Oswald Poels. “Establishing an automatic savings program from an individual’s paycheck into a bank account creates a strong foundation upon which individuals can build to achieve financial health.”
“Many Wisconsinites experienced economic hardship as a result of the COVID-19 pandemic,” said DFI Secretary Blumenfeld. “Our goal with Wisconsin Saves is to make sure more residents are financially prepared for those small and large emergencies that we all know will happen from time to time.”
Recognizing that many individuals were not fully prepared for the lasting economic impacts of the COVID-19 pandemic, Wisconsin Saves focuses on the role of employers in promoting the importance of saving for emergencies to their employees.
The campaign encourages small- and medium-sized employers to promote to their employees the ease and benefits of saving automatically for emergencies through split deposit.
“Working with employers we know we can have a positive impact on the financial lives of Wisconsin residents,” said State Treasurer Godlewski. “Helping employees save in the short-term enables them to build a more secure tomorrow and create a more productive workforce.”
Employers in all industries and locations in the state can sign up at AutoSave.WisconsinSaves.org to join this coalition. Participating employers will receive free resources to support their communication efforts and be included in statewide recognition.
“The workplace is one of the best places to spread messages about financial well-being because employees trust information provided to them by their employers about financial matters,” said WWBIC President Baumann. “That’s why we are enlisting the support of employers from all over Wisconsin. We believe they play a critical role in improving the financial lives of our residents.”
By involving employers in Wisconsin Saves, the number of Wisconsinites with emergency savings will increase and more people will be able to manage financial hardships, whether it be a minor setback or a shock of pandemic proportions.
“America Saves understands that saving is a journey and that getting started can be difficult,” said George Barany, Director of America Saves. “Saving even a small amount of money, $5 or $10 every paycheck, is helpful, and using split deposit is a simple and effective way to save. That’s why we so strongly encourage its use.”
Wisconsin Saves provides employers who sign up for the program with easy-to-use tools to help educate employees about split deposit and the importance of starting to build savings today. Employers can learn more and sign up to participate in Wisconsin Saves at AutoSave.WisconsinSaves.org.
“It is free and easy for all Wisconsin employers to sign up right away," said WBA President and CEO Oswald Poels. "Wisconsin Saves is a great opportunity to make a positive impact on the financial well-being of people around the state."
For more information and resources on Wisconsin’s financial literacy and capability initiatives, contact DFI’s Office of Financial Literacy at www.wdfi.org.
By, Cassie Krause