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Q3 2023 FDIC Numbers Show Continued Strength of Wisconsin Banks

Federal Deposit Insurance Corporation (FDIC) data released today showed Wisconsin banks remained in good health through the third quarter of this year. Year-over-year lending increased in all categories (commercial, residential, and farm loans), demonstrating the responsiveness of banks to meet their customers’ needs. Individuals and businesses continue to trust banks as a safe place to keep their money, as evidenced by a slight increase in deposits, both year over year (0.59%) and quarter over quarter (0.95%). Net interest margin has held steady at 3.19% year over year, and capital levels are healthy. 

Notable indicators include: 

  • Residential loans continued to grow, both year over year (25.19%) and quarter over quarter (15.38%). With low inventory, homes continue to sell quickly. Despite interest rate increases, rates remain relatively low in historical context. 
  • While commercial lending increased year over year (2.36%), it decreased slightly quarter over quarter (-1.61%), showing waning economic confidence of business owners. 
  • Farm loans increased both year over year (10.30%) and quarter over quarter (7.54%) as farmers looked to upgrade equipment, make capital improvements, or expand. 
  • Credit quality weakened as inflation, interest rate hikes, and slowed income growth have made it more difficult for borrowers to pay back their loans.  

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

“The newly released FDIC numbers showed that Wisconsin banks remained on solid footing through the third quarter of 2023. Banks continue to be trusted partners in helping individuals, families, and businesses meet their financial goals. As has been the case for several quarters — inflation, interest rates, and geopolitical issues remain concerns heading into 2024. Banks will continue to position themselves to support their communities through potential economic headwinds.” 

FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands) 

    9/30/2023  6/30/2023  QoQ Change   9/30/2022   YoY Change  
Net loans and leases   $111,535,045  $109,975,599  1.42%  $103,954,503  7.29% 
Total deposits   $121,056,968  $119,920,909  0.95%  $120,347,373  0.59% 
Commercial and industrial loans  $17,946,778  $18,240,073  -1.61%  $17,533,085  2.36% 
Residential loans   $31,432,982  $27,242,091  15.38%  $25,109,047  25.19% 
Farm loans   $5,188,674  $4,824,718  7.54%  $4,704,303  10.30% 
Total assets   $153,648,227  $152,380,455  0.83%  $148,567,421  3.42% 
Assets 90+ Days Past Due or in Nonaccrual Status   $518,570  $434,070  19.47%  $417,336  24.26% 
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St. Marcus Students
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Wisconsin Bankers Foundation Awards Grant to St. Marcus School

The Wisconsin Bankers Foundation, the non-profit arm of the Wisconsin Bankers Association, is pleased to announce a $5,000 grant to St. Marcus School in Milwaukee. The grant will support the St. Marcus community engagement team’s financial education efforts during the 2023–2024 school year, including:

  • Virtual financial literacy classes hosted by St. Marcus and their community partner organizations.
  • In-person “Rising Star” meetings. These dinner meetings spotlight a parent who shares a testimonial about their recent successes with a group of other parents. The group also troubleshoots obstacles that other parents are facing and creates a resource for each other.
  • A recognition and celebration event called “RISE” (Resilient Individuals Seeking Excellence) that brings together school parents, staff, and community members who celebrate the successes of a group of 4–5 parents who are on their way to becoming homeowners, have become homeowners, or are accomplishing their financial goals in other ways.

St. Marcus Students

“The work St. Marcus School’s community engagement team is doing to empower the families of their students aligns wonderfully with our Foundation’s mission to promote financial literacy and capability,” said Rose Oswald Poels, chair and treasurer of the Wisconsin Bankers Foundation. “We are proud to support these initiatives and congratulate the St. Marcus staff and participants on the positive impact they are creating.”

St. Marcus School is one of two recipients of a 2023–2024 Wisconsin Bankers Foundation grant. The Foundation also awarded a $5,000 grant as part of a three-year commitment to Asset Builders to support its statewide Finance and Investment Challenge Bowl for high school students.

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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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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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Madison, WI 53718

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