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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. Previously, Foti served as a legislative aide for then State Senator Scott Fitzgerald and in various positions navigating the legislative process and public policy. 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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Leaders in Banking Excellence celebration tent photo
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Five Honorees Join WBA Leaders in Banking Excellence

Pictured left to right are: Lee J. Schmalz, John K. Reinke, and Robert J. Just, Jr.

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, September 9 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, established in 2020, now profiles 22 exceptional leaders.

“This year’s Leaders in Banking Excellence are once again deserving of the name,” said Rose Oswald Poels, WBA president and CEO. “These five bankers have not only been influential in their profession but have also been actively involved in their communities throughout their careers.”

The honorees in the Class of 2022 Leaders in Banking Excellence are:

  • Robert J. Just, Jr., Mound City Bank, Platteville;
  • Debra R. Lins, the former Community Business Bank, Sauk City (and others);
  • John K. Reinke, The Stephenson National Bank & Trust, Marinette;
  • Lee J. Schmalz, East Wisconsin Savings Bank, Kaukauna; and
  • the late James B. Wigdale, M&I Bank (now BMO Harris Bank), Milwaukee.

To read the bios of each of the 2022 Leaders in Banking Excellence honorees, please visit the Class of 2022 page.

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Financial Health of Wisconsin Banks Continues Into Q2 of 2022

Following a strong start to 2022, Wisconsin banks rounded out the second quarter of the year with total assets up 1.81% quarter over quarter from March 31, 2022 to June 30, 2022 and total assets up 5.54% year over year from June 30, 2021 to June 30, 2022, according to the latest numbers released by the Federal Deposit Insurance Corporation (FDIC). Total deposits remained stable quarter over quarter (-0.28%) and were up 5.76% year over year. Noncurrent loans and leases continued on a significant downward trend, indicating consumers’ ability to pay down debt amidst inflation concerns.

Notable indicators include:

  • Residential lending increased over 5% year over year and quarter over quarter. Despite the Fed’s interest rate hikes, mortgage rates remain at historically low levels.
  • Commercial lending is back to where it was a year ago after seeing decreases due to supply chain issues and worker shortages. A 7.80% quarter-over-quarter increase in commercial and industrial loans indicates business owners’ renewed focus on growth.
  • Farm loans increased 19.27% quarter over quarter and 4.09% year over year. Farmers who had financed their own expenses in recent years — due to stimulus packages and strong balance sheets — are increasingly looking to borrow with high input costs such as fuel and fertilizer and less favorable outlooks for 2023.
  • Credit quality continues to improve as more borrowers are keeping up to date with their payments. Noncurrent loans and leases decreased 21.33% year over year and 11.04% quarter over quarter.

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

“Wisconsin banks continue to meet the borrowing needs of consumers and business owners alike. Bankers understand the changing economy coming out of the pandemic and are working with their customers who are looking to purchase homes and grow their businesses. During this time of heightened inflation and ongoing global concerns, Wisconsinites can feel confident in their bank as a safe place to deposit their money and a trusted partner in meeting their financial goals.”

FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)

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Ag Lending School Class Photo
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WBA Agricultural Lending School Congratulates 2022 Class

The Wisconsin Bankers Association (WBA) is pleased to announce that 11 bankers have completed the 2022 WBA Agricultural Lending School, which was held August 10–12 at the WBA headquarters in Madison. The WBA Agricultural Lending School’s rigorous curriculum includes case studies, a farm visit, and in-class work and discussions. The individuals who completed this year’s school are:
  • Cassandra Baeten, Ag Portfolio Manager, Bank of Luxemburg
  • Cody Belken, Credit Analyst, Royal Bank, Dickeyville
  • Riley Carson, Ag Loan Officer, Community Bank, Vernon Center
  • Hope Francis, Credit Analyst, Community First Bank, Platteville
  • Chris Greenwood, Branch Manager, Waumandee State Bank, Arcadia
  • Heather Hafften, Ag Loan Officer, Peoples State Bank, Dickeyville
  • Marissa Hanley, Agricultural Credit Analyst, Nicolet National Bank, Seymour
  • Mara Hird, Residential Relationship Manager – AVP, Peoples State Bank, Wauzeka
  • Jamie Horsfall, Agricultural Relationship Manager, Peoples State Bank, Fennimore
  • Rayanne Walker, Agricultural Credit Analyst, Nicolet National Bank, Eau Claire
  • Amy Bloczynski, AVP/Branch Manager, Waumandee State Bank, Black River Falls
Ag Lending School Class Photo

(Left to right) Cody Belken, Jamie Horsfall , Cassandra Baeten, Rayanne Walker, Brad Guse, Mara Hird, Hope Francis, Chris Greenwood, Amy Bloczynski, Marissa Hanley, Kevin Bernhardt, Riley Carson, and Heather Hafften

“I am happy to congratulate the bankers who recently completed the WBA Agricultural Lending School,” said WBA President and CEO Rose Oswald Poels. “Agriculture is integral to Wisconsin’s economy, and having highly professional ag lenders who understand the needs of our farmers is key.”
Through the program — led by faculty Bradley Guse, senior vice president, agribusiness banking at BMO Harris Bank, NA, Marshfield, and Dr. Kevin Bernhardt, professor and UW-Extension farm management specialist, UW-Platteville — participants built their knowledge and skills around current trends in agriculture, borrower/lender relationships, farm business financial modeling, and best practices in lending. WBA’s educational programming keeps Wisconsin bankers at the forefront of their profession, so that they are able to offer the highest quality service to the customers and communities they serve.
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Triangle Background

WBA and WBF Announce Promotions and New Hire

The Wisconsin Bankers Association (WBA) is pleased to announce the promotion of Scott Birrenkott to director – legal; promotion of Cassandra Krause to executive director of the Wisconsin Bankers Foundation (WBF); and hire of Nick Loppnow as director of Associate Membership and business development.

“I’m very happy to congratulate Scott, Cassie, and Nick on their achievements,” said Rose Oswald Poels, WBA president and CEO. “Their skill sets combined with their passion for what they do will help them carry out the work of our Association and nonprofit Foundation.”

Scott Birrenkott

Scott Birrenkott

Birrenkott joined WBA in June of 2015 as assistant director – legal and over the past seven years has provided WBA members with current information on the banking industry’s constantly changing regulatory, legislative, and judicial requirements. As director – legal, Birrenkott will continue to collaborate with the WBA Government Relations team on advocacy efforts, speak at WBA education programs, and act as senior writer for the WBA Compliance Journal. Birrenkott earned his undergraduate degree at the University of Wisconsin-La Crosse and his Juris Doctor degree at Marquette University.

Cassandra Krause

Cassandra Krause

Krause has been selected by the WBF Board of Directors to serve as the Foundation’s executive director. WBF is the nonprofit arm of WBA whose mission is to promote financial literacy and capability through education, grants, scholarships, and research. She will continue her role as WBA communications manager, which she began in March of 2021. Krause came to WBA from the Wisconsin Association of Independent Colleges and Universities. She has a background in international business and development. Krause holds a bachelor’s degree from the University of Wisconsin-Madison and a master’s degree from the Goethe University in Frankfurt, Germany.

Nick Loppnow

Nick Loppnow

Loppnow began his career at a financial institution, followed by over eight years with WBA, most recently in the position of director – Associate Member and education services. He then went on to work for a financial institution training development company before returning to WBA as director – Associate Membership and business development. In his new role, Loppnow will manage the Associate Membership program (vendor program), coordinate event exhibit halls and sponsorship offerings, and meet with WBA Bank Members. Loppnow earned his Bachelor of Business Administration (BBA) degree at the University of Wisconsin-Stevens Point.

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Wisconsin Bank CEOs Weigh in on Inflation and Possibility 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, 71% of respondents rated Wisconsin’s current economic health as “excellent” or “good.” This marks a decline from the mid-year 2021 survey, when 91% of survey respondents gave “excellent” or “good” ratings. Nearly all (over 98%) of the Wisconsin bank CEOs who completed the most recent survey predict that the economy will stay the same or weaken in the next six months. 

“Wisconsin bank CEOs have a unique vantage point in that they are both financial experts and highly involved individuals in their local communities,” said WBA President and CEO Rose Oswald Poels. “While the economy remains relatively stable, bankers are keeping a close eye on important indicators and stand ready to support their customers through possible economic challenges over the coming months.“ 

Among the economic bright spots cited by bank CEOs in the survey were strong tourism, construction, manufacturing, and agricultural industries. Survey results indicate that the hiring market and real estate market are cooling down. Top economic concerns reported by bank CEOs were inflation, cost of living/childcare/education, rising interest rates, oil and gas prices, staffing shortages, and the war in Ukraine.

The mid–year 2022 survey was conducted May 24–June 10 with 56 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. . .  Mid-Year 2022  End-of-Year 2021  Mid-Year 2021 
Excellent  7%  6%  15% 
Good  64%  73%  76% 
Fair  29%  20%  10% 
Poor  0%  1%  0% 
         
In the next six months, do you expect the Wisconsin economy to. . .        
Grow  2%  21%  48% 
Weaken  63%  15%  39% 
Stay the same  36%  64%  13% 
         
Over the next six months, do you expect inflation to. . .       
Rise  50%  –  – 
Fall  22%  –  – 
Stay about the same  28%  –  – 
       
How likely would you say a recession is in the next six months?       
Very unlikely  4%  –  – 
Unlikely  16%  –  – 
Neutral  20%  –  – 
Likely  45%  –  – 
Very likely  16%  –  – 
       
Rate the current demand in the following categories:        
Business Loans        
Excellent  2%  9%  10% 
Good  48%  48%  30% 
Fair  48%  39%  52% 
Poor  2%  5%  8% 
         
Commercial Real Estate Loans        
Excellent  7%  11%  13% 
Good  52%  44%  44% 
Fair  36%  41%  33% 
Poor  5%  4%  10% 
         
Residential Real Estate Loans        
Excellent  2%  25%  40% 
Good  20%  48%  48% 
Fair  50%  24%  12% 
Poor  29%  3%  0% 
         
Agricultural Loans        
Excellent  2%  1%  2% 
Good  37%  22%  34% 
Fair  51%  58%  56% 
Poor  10%  18%  8% 
         
Deposit       
Excellent  5%  –  – 
Good  55%  –  – 
Fair  38%  –  – 
Poor  2%  –  – 
       
In the next six months, do you anticipate the demand for the following categories will. . .        
Business Loans        
Grow  11%  28%  43% 
Weaken  48%  14%  7% 
Stay the same  41%  59%  51% 
         
Commercial Real Estate Loans        
Grow  13%  24%  31% 
Weaken  48%  21%  8% 
Stay the same  39%  55%  31% 
         
Residential Real Estate Loans        
Grow  4%  11%  14% 
Weaken  63%  56%  41% 
Stay the same  34%  33%  46% 
         
Agricultural Loans        
Grow  6%  15%  18% 
Weaken  31%  14%  6% 
Stay the same  63%  71%  76% 
         
Deposit       
Grow  11%  –  – 
Weaken  36%  –  – 
Stay the same  53%  –  – 
       
In the next six months, are the businesses in your bank’s market area likely to. . .        
Hire employees  31%  68%  82% 
Maintain current staffing levels  61%  33%  15% 
Lay off employees  7%  0%  3% 
         
In the next six months, is your bank likely to. . .        
Hire employees  34%  55%  48% 
Maintain current staffing levels  63%  43%  45% 
Lay off employees  4%  3%  6% 
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questions@wisbank.com

608-441-1200

4721 S Biltmore Ln.
Madison, WI 53718

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