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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% |
Wisconsin Bankers Foundation Recognizes Outstanding Financial Education Initiative
Rose Oswald Poels (left) and Jaclyn Rutkowski (right)
The Wisconsin Bankers Foundation (WBF) is pleased to announce that National Exchange Bank & Trust, headquartered in Fond du Lac, Wis., has been selected as the recipient of the 2023 Financial Education Innovation Award. The award was presented to National Exchange Bank & Trust representative Jaclyn Rutkowski during a special luncheon on February 8, 2024, in Wisconsin Dells at the largest banking industry event in the state, the Wisconsin Bankers Association (WBA) Bank Executives Conference.
“Too often, people are reluctant to talk or ask questions about finances,” said Rose Oswald Poels, WBF chair and WBA president and CEO. “Through their ‘It’s OK not to know’ campaign, National Exchange Bank & Trust has shared useful financial resources in a fun, accessible way.”
National Exchange Bank & Trust representatives (left to right) Karri Oelke, Jaclyn Rutkowski, and Nicole Wiese
National Exchange Bank & Trust’s multi-media financial education campaign, titled “It’s OK not to know,” ran across digital and social media channels, including TikTok, Facebook, and Instagram. The campaign was designed to engage community members who may not yet feel confident in their financial literacy. Featured content covered topics such as “pay yourself first,” “zero-based budgeting,” and the difference between an adjustable-rate mortgage (ARM) and a fixed-rate mortgage. The campaign included a diverse range of media, such as short-form videos, images with text, emails, and blog posts. The shareable content also emphasized an overarching theme that banks are judgement-free resources, ready to provide support and guidance.
The WBF Financial Education Innovation Award is a prestigious category of the WBF Excellence in Financial Education Awards. Submissions for the 2023 WBF Excellence in Financial Education Awards encompassed over 700 financial education presentations given by 365 Wisconsin bank employees, reaching approximately 25,500 Wisconsin community members.
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.
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.
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.
