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Data released September 5, 2024, by the Federal Deposit Insurance Corporation (FDIC) shows Wisconsin banks remained in a healthy position through the second quarter of 2024. Lending held steady or increased in Q2 2024 over the prior year in all categories (commercial, residential, and farm loans), as banks responded to the borrowing needs of their customers. Deposits increased year over year (2.00%), due in part to the high interest rates offered on certificates of deposit (CDs) and money market accounts. The Q2 2024 net interest margin of 3.15% is a slight decrease over the prior year (3.24%) but an increase over the prior quarter (3.10%). Wisconsin banks remain well capitalized.
Notable indicators include:
- Residential real estate loans were up quarter over quarter (15.21%) and year over year (11.55%). With spring being a popular time to move, homes continue to sell quickly. Borrowers have become accustomed to the current home prices and interest rates. Wisconsin’s housing shortage persists, particularly as many homeowners refinanced into low-interest rate mortgages in prior years and have little appetite to sell.
- Commercial lending held steady quarter over quarter (0.75%) and year over year (-0.33%) as business owners await potential interest rate cuts by the Fed and potential economic changes following the November election before making significant operational changes.
- Farm loans increased quarter over quarter (20.59%) and year over year (2.44%) as farmers entered planting season and sought to upgrade equipment, make capital improvements, or manage operational costs affected by tighter margins.
- Past-due loans were elevated year over year (33.76%) as inflation and the high cost of living impacts borrowers. Past due loans eased, however, quarter over quarter (-5.92%), and the current level of past-due loans remains above recessionary levels.
Statement on the release of second-quarter 2024 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:
“The latest FDIC report underscores the strength and adaptability of Wisconsin banks. Despite economic and geopolitical concerns, banks remain well capitalized and continue to meet the needs of their communities, as evidenced by steady or increased lending across sectors and a steady deposit base. As indicators point toward a likely interest rate cut by the Fed in September, borrowing costs could ease and provide additional opportunities for banks to support their customers’ growth and financial goals.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
| 6/30/2024 | 3/31/2024 | QoQ Change | 6/30/2023 | YoY Change | |
| Net loans and leases | $112,992,876 | $110,786,174 | 1.99% | $109,976,913 | 2.74% |
| Total deposits | $122,315,576 | $122,823,065 | -0.41% | $119,920,909 | 2.00% |
| Commercial and industrial loans | $18,179,173 | $18,044,391 | 0.75% | $18,240,073 | -0.33% |
| Residential real estate loans | $34,770,361 | $30,180,575 | 15.21% | $31,170,659 | 11.55% |
| Farm loans | $4,942,403 | $4,098,653 | 20.59% | $4,824,718 | 2.44% |
| Total assets | $155,167,030 | $153,075,902 | 1.37% | $152,381,917 | 1.83% |
| Assets 90+ days past due or in nonaccrual status | $580,617 | $617,124 | -5.92% | $434,070 | 33.76% |
The Wisconsin Bankers Association (WBA) is pleased to announce that five grants of $10,000 each have been awarded to support housing and housing literacy, economic development/community investment, and financial or cyber literacy in Wisconsin.
“Affordable housing and housing literacy are acute needs for individuals and families in our state and are critical drivers for our economy’s workforce needs,” said Rose Oswald Poels, WBA president and CEO. “We are proud to offer this inaugural grant opportunity, which showcases the partnership of Wisconsin banks and non-profit organizations to strengthen programming that empowers Wisconsinites to become financially capable, promotes homeownership, and builds wealth that can be passed on to future generations.”
The selected projects include:
- Columbia Savings and Loan Association, Milwaukee, Wis.
- Columbia Savings and Loan Association plans to present homeownership workshops and related financial literacy sessions to individuals in their market. In addition, qualified low- and moderate-income borrowers may receive downpayment assistance to substitute or supplement FHLBank Chicago’s Downpayment Plus Program and/or City of Milwaukee grant funding.
- Community First Bank, Boscobel, Wis.
- Community First Bank plans to develop/distribute educational/promotional resources to benefit individuals across its footprint in Southwest and South Central Wisconsin with a focus on current and prospective homeowners in rural areas. Such resources could include video content on topics such as credit repair strategies and steps to homeownership. The bank may also partner with others involved in the home-buying process to offer educational events to help consumers more fully understand the housing market, housing availability, and the steps required to purchase and maintain a home.
- Peoples State Bank, Prairie du Chien, Wis.
- Peoples State Bank plans to provide a three-part community education series and one-to-one counseling sessions in partnership with Couleecap, Inc, a community action and United States Department of Housing and Urban Development (HUD) counseling agency.
- Premier Community Bank, Marion, Wis.
- Premier Community Bank plans to host financial education events in English and Spanish — including presentations, videos, and supplemental materials — focusing on housing counseling/homeownership opportunities, fraud prevention, and cyber literacy. This outreach is geared toward elderly, financially challenged, and low- to moderate-income community members.
- Waldo State Bank
- Waldo State Bank will support Consumer Credit Counseling Service (CCCS) — a non-profit organization with HUD-accredited and NFCC-certified (National Foundation for Credit Counseling) counselors — in providing the Open the Door Homeownership (ODHO) program for new homebuyers. The grant funding will drive awareness of the ODHO homebuyer education classes through radio, print media, etc. to underserved and marginalized populations, provide a manual to participants (available in English, Hmong, and Spanish), and offer one-to-one counseling required for most downpayment assistance programs.
The Federal Deposit Insurance Corporation (FDIC) released quarterly data on May 29, 2024, showing Wisconsin banks started 2024 on solid footing. In Q1 2024, lending increased over the prior year in all categories (commercial, residential, and farm loans), demonstrating banks’ responsiveness to their customers’ borrowing needs. High interest rates on certificates of deposit (CDs) and money market accounts contributed to an increase in deposits both quarter over quarter (0.34%) and year over year (3.97%). While net interest margin has decreased slightly from 3.30% to 3.10% year over year, capital levels are healthy.
Notable indicators include:
- While residential real estate loans dropped quarter over quarter (-10.81%), they increased year over year (13.62%). Inventory remains low, particularly as many homeowners refinanced into low-interest rate mortgages in prior years and have little appetite to sell. Homes continue to sell quickly as borrowers have become accustomed to the current home prices and interest rates.
- Commercial lending increased slightly quarter over quarter (1.15%) and year over year (1.94%) as business owners cautiously strive for growth, avoiding significant operational changes.
- Farm loans increased year over year (7.17%) as farmers looked to upgrade equipment, make capital improvements, or expand.
- Past-due loans increased as persistent inflation and high everyday costs stress borrowers; however, the current level of past-due loans remains above recessionary levels.
Statement on the release of first-quarter 2024 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:
“The recently released Q1 2024 data from the FDIC showed the strength and stability of Wisconsin’s banking industry. Individuals, families, and business leaders continue to trust Wisconsin banks as financial partners and safekeepers of their money. Geopolitical issues remain among top economic concerns. In addition, decreases in credit quality indicate economic strain and signal challenges for consumers, businesses, and banks if inflation is not tamed. The Fed is unlikely to ease interest rates until the end of 2024 at the earliest; banks stand prepared to help their customers weather headwinds.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
| 3/31/2024 | 12/31/2023 | QoQ Change | 3/31/2023 | YoY Change | |
| Net loans and leases | $110,786,153 | $109,762,474 | 0.93% | $106,545,353 | 3.98% |
| Total deposits | $122,823,065 | $122,411,348 | 0.34% | $118,136,459 | 3.97% |
| Commercial and industrial loans | $18,044,391 | $17,839,610 | 1.15% | $17,700,465 | 1.94% |
| Residential real estate loans | $30,180,575 | $33,839,049 | -10.81% | $26,562,059 | 13.62% |
| Farm loans | $4,098,653 | $4,031,270 | 1.67% | $3,824,265 | 7.17% |
| Total assets | $153,075,799 | $152,451,578 | 0.41% | $149,718,289 | 2.24% |
| Assets 90+ Days Past Due or in Nonaccrual Status | $617,124 | $542,817 | 13.69% | $406,287 | 51.89% |
Numbers released today by the Federal Deposit Insurance Corporation (FDIC) showed Wisconsin banks remained in a healthy position through the final quarter of 2023. Banks continued to meet the borrowing needs of their customers, as evidenced by year-over-year lending increases in all categories (commercial, residential, and farm loans). Deposits were up both quarter over quarter (1.12%) and year over year (2.00%), demonstrating public trust in Wisconsin banks as safe places to keep money. While net interest margin has decreased slightly from 3.27% to 3.20% year over year, capital levels are healthy.
Notable indicators include:
- Residential loans grew quarter over quarter (7.64%) and year over year (5.62%). With low inventory, homes continue to sell quickly. The Fed did not raise interest rates in the last quarter of 2023, and rates remain good in historical context.
- Commercial lending increased only slightly year over year (0.20%) and decreased slightly quarter over quarter (-0.60%) as business owners continue to monitor economic trends and interest rates.
- Farm loans increased year over year (10.30%) as farmers looked to upgrade equipment, make capital improvements, or expand. The decrease in farm loans quarter over quarter (-22.31%) reflects seasonal demand fluctuation.
- Past-due loans increased as inflation, the lag effect of interest rate hikes earlier in 2023, and slowed income growth presented challenges to borrowers in paying back their loans. Banks anticipated and were prepared for an increase in net charge-offs (loans that are unlikely to be repaid).
Statement on the release of fourth-quarter 2023 Federal Deposit Insurance Corporation (FDIC) numbers from Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association:
“The year 2023 ended on a positive note with banks in a solid position. Residential loans are picking up, while many business owners are tending more toward a ‘wait-and-see’ approach on borrowing. Bankers, consumers, and business owners alike are hopeful that the Federal Reserve will lower interest rates in 2024. Inflation, the potential for a recession, and geopolitical issues remain top concerns for the year ahead. Wisconsin banks continuously evaluate economic conditions and stand ready to serve their customers and communities as trusted financial partners.”
FDIC-Reported Wisconsin Numbers (Dollar Figures in Thousands)
| 12/31/2023 | 9/30/2023 | QoQ Change | 12/31/2022 | YoY Change | |
| Net loans and leases | $109,763,200 | $111,536,925 | -1.59% | $105,370,783 | 4.17% |
| Total deposits | $122,411,348 | $121,056,967 | 1.12% | $120,013,372 | 2.00% |
| Commercial and industrial loans | $17,839,610 | $17,946,778 | -0.60% | $17,804,684 | 0.20% |
| Residential real estate loans | $33,839,052 | $31,436,804 | 7.64% | $32,038,691 | 5.62% |
| Farm loans | $4,031,270 | $5,188,674 | -22.31% | $3,746,971 | 7.59% |
| Total assets | $152,451,299 | $153,646,118 | -0.78% | $149,546,185 | 1.94% |
| Assets 90+ Days Past Due or in Nonaccrual Status | $542,817 | $518,570 | 4.68% | $411,481 | 31.92% |
