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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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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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Tyler Foti
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Wisconsin Bankers Association Welcomes Tyler Foti as Director- Government Relations

Tyler Foti

Tyler Foti

The Wisconsin Bankers Association is pleased to announce the hire of Tyler Foti as the Association’s director – government relations. Foti will report to Lorenzo Cruz, vice president – government relations. Previously, Foti served as a legislative aide for then State Senator Scott Fitzgerald and in various positions navigating the legislative process and public policy, most recently at Michael Best Strategies. Sitting currently as Waukesha County Board Supervisor and serving on the Finance Committee, Foti enjoys collaborating with local leaders and providing solutions that produce immediate impact. He looks forward to working with state government officials and their staff on behalf of Wisconsin’s banking industry.

“We are very glad to have Tyler on board at WBA,” said Rose Oswald Poels, WBA president and CEO. “His talent and experience will help drive our mission to advocate for a healthy economic environment for Wisconsin communities.”

Outside of work, Foti enjoys sports and cooking — a unique combination that led him to Food Network’s “NFL Tailgate Takedown.” In this evening’s series finale, Foti and his teammate don their Packer jerseys and face off against tailgaters representing the Buffalo Bills. The winning duo — which will be announced tonight at 8 p.m. — takes home the “Yum-bardi Trophy.”

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Bank CEO Economic Forecast: Cloudy with a Chance of Recession

WBA Releases Results of Bank CEO Economic Conditions Survey

In the Wisconsin Bankers Association’s biannual Economic Conditions Survey of Wisconsin bank CEOs, three quarters of respondents rated Wisconsin’s current economic health as “excellent” or “good.” This continues a trend from the mid-year 2022 survey, when 71% of survey respondents gave “excellent” or “good” ratings. None of the Wisconsin bank CEOs who completed the most recent survey foresee major economic improvement in the first half of 2023 — 28% predict that the economy will stay the same and 72% predict it will weaken in the next six months.

“Because they are in tune with the financial circumstances of businesses and families in their areas, bank CEOs are experts who can apply a lot of context to their economic perspective,” said WBA President and CEO Rose Oswald Poels. “With the likelihood of a recession in the coming year looming, banks are standing ready to help their customers and communities through.“ 

 
Among the economic bright spots cited by CEOs in the survey were high employment, continued spending by consumers, the housing market, and business growth — particularly in manufacturing, agriculture, and service/tourism. Top economic concerns reported by bank CEOs were inflation, the likelihood of recession, rising interest rates/slowed loan growth/reduced ability of borrowers to repay loans, business staffing, cybersecurity/fraud, and inability to access childcare.

The end-of-year 2022 survey was conducted November 15–30 with 71 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 2022  Mid-Year 2022  End-of-Year 2021 
Excellent  6%  7%  6% 
Good  69%  64%  73% 
Fair  24%  29%  20% 
Poor  1%  0%  1% 
        
In the next six months, do you expect the Wisconsin economy to…       
Grow  0%  2%  21% 
Weaken  72%  63%  15% 
Stay the same  28%  36%  64% 
        
Over the next six months, do you expect inflation to…       
Rise  24%  50%  – 
Fall  51%  22%  – 
Stay about the same  25%  28%  – 
       
How likely would you say a recession is in the next six months?       
Very unlikely  0%  4%  – 
Unlikely  3%  16%  – 
Neutral  10%  20%  – 
Likely  62%  45%  – 
Very likely  25%  16%  – 
       
Rate the current demand in the following categories:       
Business Loans       
Excellent  3%  2%  9% 
Good  44%  48%  48% 
Fair  46%  48%  39% 
Poor  7%  2%  5% 
        
Commercial Real Estate Loans       
Excellent  6%  7%  11% 
Good  34%  52%  44% 
Fair  53%  36%  41% 
Poor  7%  5%  4% 
        
Residential Real Estate Loans       
Excellent  4%  2%  25% 
Good  7%  20%  48% 
Fair  33%  50%  24% 
Poor  55%  29%  3% 
        
Agricultural Loans       
Excellent  3%  2%  1% 
Good  23%  37%  22% 
Fair  60%  51%  58% 
Poor  13%  10%  18% 
        
Deposit       
Excellent  3%  5%  – 
Good  44%  55%  – 
Fair  44%  38%  – 
Poor  9%  2%  – 
       
In the next six months, do you anticipate the demand for the following categories will…       
Business Loans       
Grow  8%  11%  28% 
Weaken  56%  48%  14% 
Stay the same  35%  41%  59% 
        
Commercial Real Estate Loans       
Grow  1%  13%  24% 
Weaken  63%  48%  21% 
Stay the same  35%  39%  55% 
        
Residential Real Estate Loans       
Grow  6%  4%  11% 
Weaken  54%  63%  56% 
Stay the same  41%  34%  33% 
        
Agricultural Loans       
Grow  15%  6%  15% 
Weaken  38%  31%  14% 
Stay the same  48%  63%  71% 
        
Deposit       
Grow  13%  11%  – 
Weaken  38%  36%  – 
Stay the same  49%  53%  – 
       
In the next six months, are the businesses in your bank’s market area likely to…       
Hire employees  17%  31%  68% 
Maintain current staffing levels  71%  61%  33% 
Lay off employees  11%  7%  0% 
        
In the next six months, is your bank likely to…       
Hire employees  23%  34%  55% 
Maintain current staffing levels  73%  63%  43% 
Lay off employees  4%  4%  3% 
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Wisconsin Banks Remained Strong in Q3 2022 Despite Uncertain Economic Outlook

Wisconsin banks continue to be in a strong position to meet the credit needs of their customers as we close out 2022. At the same time, despite inflationary pressures, the latest numbers released by the Federal Deposit Insurance Corporation (FDIC) show that consumers continue to exhibit strong balance sheets as loan defaults remain at historic lows. With interest rates rising, banks’ profitability has increased to a net interest margin of 3.19% in the third quarter of 2022. All categories of lending have seen increases quarter over quarter and year over year. Consumers look to banks as trusted places to keep their money, resulting in deposit balances holding strong.

Notable indicators include: 

  • Residential loan demand continued to grow at a steady pace (up 5.25% quarter over quarter and 10.23% year over year) despite rising interest rates, due in part to home prices coming down. 
  • Commercial lending saw ongoing strong demand year over year (up 10.04%) although the third quarter, while still positive (up 2.25%), was at a slower pace than the prior quarter as business owners held off on borrowing due to midterm election uncertainty and recession concerns. 
  • Farm loans increased 5.80% quarter over quarter and 6.79% year over year. Farmers who had financed their own expenses in recent years — due to stimulus packages and strong balance sheets — are now more likely to borrow because of high input costs such as fuel and fertilizer and less favorable outlooks for 2023. 
  • Credit quality continues to be strong as more borrowers are keeping on top of their payments. Loans and leases 90 or more days past due decreased 19.36% year over year and 2.99% quarter over quarter. 
  • The pace of deposit growth has slowed as consumers are tapping into their savings to offset higher prices due to inflation. 

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

“The third quarter FDIC numbers continue to highlight the strength of Wisconsin’s banks, which are well positioned to help their customers and communities heading into 2023. With recessionary concerns still top of mind, Wisconsin consumers and business owners can continue to rely on their banks as a source of trusted financial partnership and a safe place to deposit their money.” 

FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)    

   09/30/2022  06/30/2022  QoQ Change  09/30/2021  YoY Change 
Net loans and leases  103,954,503 

 

 

 99,947,135 

 

 4.01%  93,090,387   11.67% 
Total deposits  120,347,373  118,628,924  1.45%  115,910,175  3.83% 
Commercial and industrial loans  17,533,302 

 

 

 17,147,491 

 

 2.25%  15,933,410   10.04% 
Residential loans  25,109,047  23,857,524  5.25%  22,778,040 

 

 10.23% 
Farm loans  4,704,303  4,446,562 

 

 5.80%  4,405,366 

 

 6.79% 
Total assets  148,580,986 

 

 

 145,910,527  1.83%  141,975,630    4.65% 
Assets in Nonaccrual Status  417,336  430,201 

 

 -2.99%  517,525    -19.36% 
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Statement on Acquisition of Taxpaying Wisconsin Bank by Out-of-State Credit Union

By Wisconsin Bankers Association President and CEO Rose Oswald Poels 

Yesterday, a deal was announced that Wings Financial Credit Union, Minnesota’s largest credit union, will acquire Wisconsin-based Settlers Bank. According to the release, the transaction, which requires approval by state and federal regulators, is expected to close in the first quarter of 2023. At that time, Settlers Bank locations will be re-branded as Settlers Best Credit Union, a division of Wings Financial Credit Union.

Credit unions are continuing their aggressive behavior in Wisconsin using taxpayer dollars to purchase profitable, tax-paying banks. For the seventh time in the state of Wisconsin, a Wisconsin bank is being acquired by a credit union. Settlers Bank, located in Windsor, just outside of Madison, is selling to Wings Financial Credit Union, which has over $8 billion in assets. This is yet another profitable, business-focused bank located in an affluent part of the state, being purchased by a credit union taking more tax revenue off the state and federal tax rolls. If this acquisition closes, Wings Financial Credit Union will be the largest credit union doing business in Wisconsin. Recently, the deal announced earlier this year of Summit Credit Union buying Commerce State Bank, headquartered in West Bend, closed, costing the state over $1 million in annual tax revenue.

Wisconsin is quickly becoming a target for these acquisitions because existing laws in Iowa and Minnesota prevent such acquisitions. Much of this election season has been focused on social and fiscal responsibility. It is time for large credit unions (Wisconsin has 14 with assets over $1 billion each) to start supporting government social services by paying state and federal income taxes.

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questions@wisbank.com

608-441-1200

4721 S Biltmore Ln.
Madison, WI 53718

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