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Larger Forces Can Shape Wisconsin Economy in 2026

Tom Still

By Tom Still, Past President of the Wisconsin Technology Council

By some national measures, Wisconsin looks like an economist’s version of “Midwest nice.” Its unemployment rate is below the U.S. average, its workforce participation rate generally exceeds the norm, its median wage is higher than in many states and its indebtedness rate is well below average.

In short, Wisconsin people go to work – mostly, for a fair wage – don’t over-borrow, and pay their debts.

That doesn’t mean Wisconsin is immune from larger economic trends, however. With its historic manufacturing and agricultural base, it can be susceptible to influences beyond in-house control. Here are some larger forces that could hit home in 2026:

  • President Trump imposed tariffs on many foreign-made goods in hopes of luring manufacturing back to the United States. That’s helping to bring some factories home but continues to raise many consumer prices. Global retaliation makes it harder to sell some goods and commodities as buyers find other sources. The immigration crackdown has proven overly broad in some industries, such as Wisconsin dairy farms.
  • Large data centers that power artificial intelligence are being planned or built across Wisconsin, creating jobs for many but raising worries for others. Can enough electricity be generated to satisfy AI’s appetite as well as society’s overall power needs? With a balanced approach engaging solar, wind, hydro, battery storage, natural gas and – eventually – a rebirth of nuclear power, the answer is a qualified “yes.” Wisconsin utilities are heavily regulated, so solutions that shift costs or hurt the environment are unlikely to be accepted.
  • Speaking of AI, some opponents portray it as little more than a plaything for techies or a tool for graphics-minded scammers. Wrong. The growth of “physical AI” can make Wisconsin’s core industries such as manufacturing, food production and construction more efficient. That trend will mature in coming years.
  • As “Baby Boomers” age out, are there enough workers in Wisconsin’s Generations X, Y, Z and Alpha to fill the workforce gap? That’s a major question in northern and central Wisconsin, where workforce participation rates are lower. Keeping younger people in Wisconsin is vital, even in an era when online workers can be recruited around the world.
  • It’s not your father’s college degree anymore. Amid reports of recent graduates not landing jobs to fit their education, some college-age students are wondering if they would rather be an electrician or plumber versus an anthropologist or historian. Wisconsin’s excellent technical colleges and trade schools may see an enrollment spike.
  • Private and public research will become everyone’s business. Skepticism over medical science has found a home in Trump’s remodeled White House, with potentially dangerous results. Wisconsin is home to some of the nation’s best public and private research centers, which collectively help to save lives and power the next generation of companies. Whether those companies are startups – or major firms acquired for billions of re-invested dollars – they’re vital to our economy. Let’s hope 2026 reverses the anti-science trend.

Still is the past president of the Wisconsin Technology Council and the former associate editor of the Wisconsin State Journal.

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Mixed Economy will Continue in 2026

Rose Oswald Poels

By Rose Oswald Poels, President and CEO of the Wisconsin Bankers Association

Nationally, this past year was one of slow economic growth brought about in part by policy uncertainty and tariff disruptions. Some sectors fared better than others, while some parts within a sector did better than other segments. There was also a widening gap between the wealthy and the middle and lower classes. I expect this uneven growth to continue into next year both nationally and in Wisconsin.

Wisconsin’s banking sector remained very strong throughout this past year and is well-positioned to help meet the varying financial needs of customers in the coming year. Third-quarter data released by the Federal Deposit Insurance Corporation (FDIC) shows Wisconsin banks remain well-capitalized and profitable. Year-over-year lending increased in all categories (commercial, residential, and farm loans), demonstrating the responsiveness of banks to meet their communities’ needs. Individuals and businesses continue to trust banks as a safe place to keep money, as evidenced by an increase in deposits, both year over year (5.20%) and quarter over quarter (2.06%). Third quarter net interest margin, a key indicator of a bank’s profitability and growth, increased to 3.46%, an increase over both the prior quarter and the prior year.

In 2025, the Fed lowered rates three times beginning in September primarily to counter a weakening labor market and slow job growth. These cuts, of course, made borrowing cheaper and the banking industry saw some increase in mortgage loan volume as a result. In cutting rates over the last several months, the Fed was prioritizing supporting employment over inflation control. While I expect to see more rate cuts by the Fed in 2026, it may only be two as the Fed balances its dual mandate of controlling inflation and supporting employment.

At the same time, assets in nonaccrual status through the third quarter remained nearly the same quarter over quarter at 0.28%, and slightly raised year over year at 2.34%, as some borrowers faced growing challenges requiring them to work with their banks through workouts and other arrangements. Past due loans of Wisconsin headquartered banks have also increased although remain lower than national levels.

The banking industry is seeing some weakness in certain narrow consumer, business, and ag portfolios generally across the state. These challenges are primarily resulting from a slower GDP growth early in the year, tariff and trade uncertainty and rising cost pressures. With economists having mixed views on whether 2026 will even bring moderate growth nationally, I expect these stressed segments of the economy to remain challenged for some time into the new year. For example, volatility in agriculture due to input costs and commodity-price swings will continue to challenge row crop farmers next year as it has the past few years.

Despite certain segments experiencing challenges, there were several bright spots to the economy this past year and I expect that to continue next year. Businesses in Wisconsin, including manufacturing, generally are doing well as are many agribusinesses and livestock farmers. The housing market is stabilizing as home prices level off while interest rates continue to slowly decrease. For the banking industry, these factors should result in continued solid loan demand across all loan categories and stable deposit levels throughout next year.

Like other businesses, the banking sector is leveraging technology and artificial intelligence to improve internal operations and customer experiences. At the same time, as consumers and businesses continue shifting toward digital payments, banks are investing in these capabilities to deepen customer relationships. While these expenditures impact the bottom line, banks understand that these investments are critical to strengthen their long-term competitiveness.

In conclusion, Wisconsin banks have a strong earnings and capital foundation heading into the new year which will allow them to effectively respond to the evolving needs of the state’s businesses, households and communities.

Oswald Poels is president and CEO of the Wisconsin Bankers Association.

Founded in 1892, the WBA is the state’s largest financial industry trade association, representing 180 commercial banks and savings institutions, their branches, and nearly 30,000 employees.

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Wisconsin Grocers 2026 Outlook: Value, Velocity, and the Next Wave of Consolidation

Mike Semmann

By Mike Semmann, President and CEO of the Wisconsin Grocers Association

The Wisconsin grocery industry could really use a moment of rest. For real. The past year has been a test of endurance, shaped by uncertain supply chain policy, tight margins, shifting consumer sentiment, and some serious competition. Those forces are not fading. Instead, they look like they will continue, although the rate of change is still in question. Success will belong to operators who turn pressure into progress through smarter cost control, sharper differentiation, and new revenue streams.

Food price inflation has cooled from its peak, and holiday staples offered a brief sigh of relief, but households still feel the weight of cumulative increases. Consumer sentiment remains fragile and sensitive to headlines about tariffs and broader economic trends. The flight to value will continue, especially among middle- and lower-income families who build their baskets around promotions, store brands, and clear unit pricing. Retailers who can pivot quickly by adjusting prices, communicating transparently, and managing inventory with precision will be best positioned to ride these swings. The wild card in the consumer space is the battle over marketing dollars, which currently favors the most influential (largest) stores in the market.

The policy machine will add another layer of uncertainty. Every move (or lack thereof) sends ripples through logistics, packaging, and center-store categories. The smart play for 2026 is flexibility: hedge where possible, maintain supplier agility, and prioritize categories that can absorb volatility without eroding loyalty.

Competition remains Wisconsin’s hidden advantage for consumers. The state boasts some of the nation’s lowest weekly grocery expenses, thanks to lower living costs, smaller households, proximity to Midwestern producers, and fierce rivalry for the shopper’s dollar. That rivalry is only intensifying. Expect localized pricing battles, expanded private-label tiers, and assortment strategies, especially in perishables where quality and local sourcing resonate deeply. Wisconsin saw this exact situation during the avian flu when some local egg producers provided relief for consumers.

Brick-and-mortar transformation and growth are returning, but slowly and deliberately. In 2026, expansion will be selective: infill locations in growth corridors, remodels that elevate fresh departments, and back-of-house upgrades to support e-commerce and prepared foods. Capital projects must do more than add square footage. They need to advance differentiation through service counters, local vendor showcases, and frictionless checkout.

Larger state independent stores and regional players will scoop up fatigued owners and pursue “tuck-ins” that deliver a wider footprint and operational scale. For independents, this is both risk and opportunity. Strong operators can command attractive valuations, while others can double down on niche strengths such as specialty service to defend its market share.

Cost control remains non-negotiable, but 2026 will demand more than trimming expenses. Grocers must turn pilot programs into dependable alternative profit streams. Retail media networks, membership programs, and financial services affiliates/partnerships can no longer be experiments. As a result, differentiation will favor the agile. Winning in 2026 means iterating faster by testing specialized service models, expanding local and regional assortments that celebrate Wisconsin’s food culture, and doubling down on convenience along with time-targeted promotions. Those who learn quickly and operationalize what works will thrive.

Why Public Ownership Fails in Grocery, Just Like It Would in Banking
Some are advocating for publicly-owned grocery stores and say a new ownership model will create opportunities to bolster food insecure areas. History and economics suggest otherwise. Grocery retail is a low-margin, high-complexity business that demands operational excellence, quick decision-making, and efficiency. Public ownership introduces layers of bureaucracy and political influence that slow innovation and dilute accountability. The results are higher costs, weaker customer experience, and ultimately failure. The same logic that applies to banking applies to grocery. In both cases, success depends on speed, expertise, and adaptability. These are qualities that thrive in competitive markets, not government-run enterprises.

The bottom line is that 2026 will not ease margin pressure, but it will reward operators who keep the customer at the center, translate value into differentiated experiences, and build durable revenue streams. In a market where competition is a tailwind for shoppers and consolidation reshapes cost structures, resilience will belong to those who learn faster, execute cleaner, and never lose sight of what matters most: the shopper.

Semmann is president and CEO of the Wisconsin Grocers Association.

The Wisconsin Grocers Association represents over 500 independent grocers, retail chain stores, warehouses and distributors, convenience stores, food brokers, and suppliers in Wisconsin.

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Hospitals See Modest Gains in Latest Fiscal Data, But Cautious on Road Ahead

Kyle O’Brien

By Kyle O’Brien, President and CEO of the Wisconsin Hospital Association

According to the Wisconsin Hospital Association’s most recent fiscal survey, the state’s hospitals and health systems experienced a modest improvement in finances compared to the last two years, reporting a 2.2% average health system operating margin in 2024. This is the first time that the average health system margin has been in the black in the last three years.

While this is good news, it must be viewed with caution. Uncompensated care (charity care and bad debt) increased by nearly 30% between 2023 and 2024; labor and supply costs continue to increase at a rate that outpaces Medicare and commercial insurance rate increases; insurance companies are making it more difficult for providers to get reimbursed for care; and patients are waiting longer to be seen.

Nearly half of patients receiving care in a Wisconsin hospital depend on Medicare for their coverage, while patients covered with commercial insurance now make up less than one-third of the patients hospital see. In other words, more hospital business involves services that reimburse below what it costs to provide that care. Since 2016, Wisconsin hospitals reported a six-point increase in the number of Medicare patients they’ve seen, with a commensurate decrease in commercial pay patients.

What does this all mean? Every one-point shift in payer mix from commercial to Medicare means a roughly $200 million loss in revenue to Wisconsin hospitals, not including physician and provider services. Since 2016, this has resulted in a staggering $1.2 billion reduction in revenue for Wisconsin hospitals, all because patients are retiring onto Medicare and coming off commercial insurance. This is all happening while the input costs for a hospital to deliver care (i.e. salaries, supplies, and pharmaceuticals) keep rising.

While hospital finances have improved overall in 2024, 41 — nearly one-third of all Wisconsin hospitals — operated with a deficit. These hospitals are largely in areas dependent on government payment sources, like Medicare and Medicaid. At the same time, access to care in some communities has suffered, with local hospitals struggling or even closing, as was the case in the Chippewa Valley.

In the last state budget, Governor Evers and legislative leaders from both parties came together to enact a Medicaid rate increase through an enhanced state-directed payment program for hospitals that would align Wisconsin’s program with other states. While the program awaits federal approval, this could provide substantial resources targeted to hospitals serving Medicaid patients and offset at least some of their losses.

Wisconsin’s business community and hospitals need each other. Hospitals need a thriving local economy to provide the commercial patient base necessary to operate a hospital. The non-health care economy needs high quality health care to attract and retain a productive, healthy workforce, and support local businesses.

In our 2024 WHA Community Benefits Report, retired President & CEO of Menasha Corporation and Froedtert ThedaCare board member Jim Kotek said their local hospital and health system is there for, “more than just medical care; they’re an anchor institution that supports other local businesses, from service providers to suppliers, helping to create a stronger, more resilient local economy.”

I couldn’t have said it better myself.

O’Brien is president and CEO of the Wisconsin Hospital Association.

WHA was established in 1920, and later became the Wisconsin Health and Hospital Association in March 1996 in an effort to reflect the ever-changing, broad-based needs of statewide health care providers. In September, 2002, the WHA membership voted to revert back to the original name — the Wisconsin Hospital Association — to focus on the core mission and vision of the Association and its members.

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Headwinds Outpacing Gains in 2025 for Wisconsin Farmers

Bradley Uken

By Bradley Uken, Wisconsin Farm Bureau’s Chief Administrative Officer

Wisconsin farmers have had some wins in 2025 but the broader picture has us falling further behind. Excess grain supplies and lower crop prices, rising input costs, elevated borrowing costs and federal policy changes that will reshape payments, disaster assistance and insurance options are major challenges to profitability and farmers’ peace of mind.

On the national level the One Big Beautiful Bill passed midyear and included the majority of what has historically been included in a farm bill.  While farmers have things to be thankful for at the state-level, such as a farmer-friendly state budget, the marketplace has farmers facing a unique set of pressures.

After a farm bill failed to materialize again last year, passage of the OBBB included some welcomed updates to reference prices and milk and livestock programs. More than 80% of dairy farmers participate annually in the Dairy Margin Coverage program.  Changes in the bill increased eligibility to 6 million pounds of milk, which allows farmers to use their highest production history from 2021 to 2023, and offers a 25% discount for long-term program commitments. This is a win for dairy farmers.

The bill established a biannual cost survey for cheese processors, a long-overdue step toward improving transparency in dairy pricing. This survey is especially important for dairy farmers, as it will help determine the make allowance—the amount deducted from farmers’ milk checks to cover processor costs.

The bill also increased reference prices, with soybeans rising to $10.00 per bushel and corn to $4.10. These price adjustments help farmers better weather volatile markets and high input costs.

Unfortunately, volatility and high input costs are what we continue to see in the farm economy. Increasing input costs, especially fertilizer, drove up the price of growing crops and market access losses internationally combined with ongoing high volumes of existing holdover stocks have kept prices low to the point that it is now expected farmers will lose over $15 billion selling the corn they grew this year. Worse yet, this is part of a growing trend not just for corn but for all major crops which have a combined $54 billion loss over the past three years.

This ongoing trend requires an all-hands-on-deck approach to right the ship. In the short term we need our friends in Washington to provide additional financial support to avoid the accelerated loss of farms in Wisconsin and throughout the country. We’ve just finished harvest season but spring planting is only a few short months away and farmers need to know they have the resources to  plan for next year’s season.

Just as importantly, we need to stabilize our trading relationships and grow new domestic opportunities and commodity markets. Efforts toward growing our available markets for biofuels and bringing new opportunities like sustainable aviation fuel online are already underway.

Wisconsin Farm Bureau will continue to work with policymakers and our agricultural partners to move our state and our country forward. We all need to work to ensure the legacy we pass down is one of strength and opportunity for the next generation to feed our communities.

Uken is chief administrative officer (CAO) of the Wisconsin Farm Bureau Federation.

The Wisconsin Farm Bureau Federation is the largest general farm organization in the state and serves as a voice for farmers. WFBF’s mission is to lead the farm and rural community through legislative representation, education, public relations, and leadership.

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Community Advocate Spotlight: Jeff Standafer, President and CEO of Citizens Bank, Mukwonago

Jeff Standafer

Rose: How did you first get into the banking industry?

Jeff: I’m actually a second-generation banker. I grew up in a small town in the 1970s, and my dad was very involved in the local bank. I saw how connected he was — he knew everyone, was active in the community, went to the country club, rode in parades — and honestly, it just looked like a lot of fun. I also like to joke that I always wanted to be the banker in Monopoly.

When I was in high school, my dad’s bank had a “Junior Board of Directors” program for students. It wasn’t a real board, of course, but it gave us a chance to learn about banking. That experience stuck with me. When I went to college, I decided to major in marketing with the goal of working in banking.

Now, all these years later, I’m proud that both of my sons also work in banking — and one of them even works here at our bank as a mortgage loan originator. It’s been fun to see that next generation carry it forward.

Q: What’s your favorite aspect of your role at the bank?

For me, it’s all about community connection. Banking comes full circle — you help someone buy their first home or start a business, and years later, you’re working with their kids. That kind of long-term relationship is what community banking is all about.

I also really enjoy that, as President and CEO, I get to be involved in every area of the bank. This gives me a great view of how everything fits together — from lending and operations to marketing and technology. It’s rewarding to know that I can help guide where we’re headed over the next 10 years. We have a great group of employees, and I look forward to what we’re able to achieve together as a team.

Q: What do you wish more people understood about the banking industry?

I wish more people realized how many different types of careers exist in banking. We have people in IT, accounting, compliance, operations, marketing, sales, you name it — all of them are “bankers.” It takes so many different skills to run a bank, but most students never hear about that as a career path.

I like to say that most of us are “accidental bankers.” We didn’t necessarily plan to go into banking, but once we got here, we found it was a great fit. I’d love to see more high schools and guidance counselors talk about banking as a career option because there’s something for almost everyone in this field.

Q: Where do you think the industry’s greatest challenges will be in the next three to five years?

Two big ones come to mind: artificial intelligence and cybersecurity.

AI has incredible potential to help banks become more efficient and serve customers better, but we also have to be careful and thoughtful about how we use it. And on the other side, cybersecurity and fraud are huge challenges right now. Check fraud is actually increasing, and digital scams have become so sophisticated that criminals can spoof our websites or phone numbers and make it look like they’re the bank. Protecting our customers from that is something I think about constantly.

Q: Tell us a bit about your current role and one of your most rewarding experiences.

As President and CEO, I oversee all areas of the bank and work closely with our board and leadership team on strategy. But the part that sticks with me the most is seeing the long-term impact of relationships we’ve built through community banking.

One example that really stands out: Years ago, I was coaching youth baseball, and one of the player’s dads came up to me and asked who he should talk to about a business loan. I told him, “That would be me.” We ended up helping him buy a business using SBA 7(a) and 504 programs, which allowed him to keep local jobs and even add a few.

A few years later, we helped him buy another company in his industry to expand, and then during COVID, we were able to support him again with PPP loans. Today, his company is thriving, and he’s even become one of our bank’s shareholders. To me, that’s what community banking is all about — being part of someone’s journey from the very beginning, helping them grow, and earning their trust over time.

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AML Trends: A Community Bank Perspective

Kris Mertins

Community banks are in an ongoing battle against money laundering and keeping up with complex regulations. This fight against money laundering is crucial for the integrity of the financial system and the communities served. Despite potentially having fewer resources than larger banks, community banks face the same regulatory demands, in addition to everevolving criminal threats. This article discusses current trends and how community banks can navigate them.

Embracing Smart Technology
Community banks, unlike their larger counterparts, often need a more practical and cost-effective approach to technology adoption.

• Automation is Key: Automating repetitive, time-consuming tasks is essential. Streamlining processes, such as initial customer due diligence and daily transaction monitoring, allows the team to focus on suspicious activities. Cloud-based RegTech solutions offer a scalable and affordable way to achieve this.

• Integration and Data Quality: Optimizing Anti-Money Laundering (AML) processes often relies on the quality and accessibility of data. Ensuring different systems communicate and that data quality is maintained is essential to create a more unified view of customer activity and enhance the effectiveness of your AML programs. Smaller-scale Artificial Intelligence (AI) and machine learning (ML) implementations can be impactful. Tools that detect transaction data anomalies can reduce the number of false positives, allowing AML officers to focus on high-risk cases.

Keeping Up With The Rules
Community banks, despite their smaller size, are as equally hyper-regulated as larger institutions, including the expectations of robust BSA/AML programs.

• Risk-Based Approach: A risk-based approach is essential. Instead of treating every transaction and customer the same, it is necessary to assess the risks associated with different customers and services. This allows for the strategic and efficient allocation of resources, focusing efforts where they matter most.

• Staying Ahead of The Curve: Criminals are constantly finding and exploiting new technologies, including cryptocurrencies and digital assets and real-time payment systems. Keeping the team updated on emerging threats and regulatory changes is an ongoing process.

Investing in Your People
The strength of an AML program lies in the people.

• A Culture of Compliance: A strong compliance culture, supported from the top down, is critical. Regular, targeted training for all staff, especially frontline employees. They are the first line of defense and empowering them to recognize and report suspicious activity is crucial.

• Skill Development: AML is a specialized field. Ongoing training and development should be provided, particularly in areas like data analytics and financial crime investigation. This enhances the team’s expertise and ensures they have the skills to handle complex challenges.

• Considering Outsourced AML Support and Reviews: Outsourcing certain AML functions or reviews to specialized providers, like ShareFI, can make sense with limited internal resources. This provides the expertise and independent perspective that allows the core team to focus on banking priorities.

Our Commitment
Community banks are dedicated to protecting customers and the community from financial crime. By strategically leveraging technology, adapting to the evolving regulatory landscape, and investing in the team, a strong and effective AML program can be built. It’s a continuous journey. Let ShareFI help.

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Partnering for Progress: How CDFIs and Banks Strengthen Wisconsin Communities

Elizabeth Fenton

Elizabeth Fenton

By Elizabeth Fenton, WBA Communication Coordinator 

Wisconsin banks help families buy homes, small businesses open their doors, and communities prosper. Traditional financing, however, is not within reach for some borrowers — which is where Community Development Financial Institutions (CDFIs) save the day. These lenders often work side by side with banks to fill gaps in access and expand capital to neighborhoods that are under-resourced.

CDFIs have entered the national spotlight in recent months amid reports of significant staffing reduction within the U.S. Treasury’s CDFI Fund — the very program that supports these critical community lenders. This conversation is a palpable threat for bankers and CDFI leaders in Wisconsin. Cuts in technical assistance or delays in federal awards could ripple through local economies where every penny of flexible financing counts. As a result, CDFIs are turning to new partnerships and funding models in order to keep economic opportunity within reach for all Wisconsinites.

CDFIs in Wisconsin
CDFIs take many forms — banks, credit unions, loan funds, venture capital funds — but they share a common objective: expanding economic access. In order to be certified by the U.S. Treasury’s CDFI Fund, an organization must serve a target market, demonstrate that community development is its primary purpose, and pair financing with technical assistance. The Fund supports its members through competitive grants, capacity-building programs, and the CDFI Bond Guarantee Program. Wisconsin is home to 20 certified CDFIs that support affordable housing, small business startups, community buildings, and financial literacy initiatives. These programs serve as indispensable partners in bolstering self-sustaining local economies — especially in under-resourced neighborhoods and rural communities. CDFIs across Wisconsin have funneled billions of dollars into the state through loans, grants, and federal awards. Forward Community Investment in Madison has deployed more than $287 million toward projects like community health centers and affordable housing. The Wisconsin Native Loan Fund based in Lac du Flambeau helps families build stability and generational wealth through housing and small-business loans within tribal communities. Impact Seven, headquartered in Rice Lake, offers flexible financing for housing and community facilities across Wisconsin.

WBA sat down with Kathryn Dunn, president and chief visionary officer of the Wisconsin Women’s Business Initiative Corporation (WWBIC) — a statewide economic development organization and a WBA associate member. The organization was founded in 1987 and has provided more than $140 million in small business loans. This capital has helped thousands of entrepreneurs — many of them women, veterans, and people of color — start their businesses.

“WWBIC is a statewide economic development organization that provides small-business training and access to capital for start-up and early-stage businesses,” Dunn explained. “We partner with a number of banks across the state. The key to our successful partnerships is valuing what each partner brings to the work.” This very spirit of collaboration is pervasive across Wisconsin CDFIs. These investments help individuals build credit, increase available jobs, and set the stage for long-term community stability.

Why Banks Partner With CDFIs
For community banks, CDFIs can be trusted allies in reaching a customer base who might otherwise be overlooked. CDFIs specialize in serving under-resourced borrowers and often take on smaller or high-risk loans that traditional banks cannot carry alone. Partnerships between community banks and CDFIs can take different forms:

  • Referrals and co-lending: Banks can refer clients who aren’t yet ready for conventional financing or share risk through loan participations.
  • Investments and deposits: Banks may strengthen a CDFI’s lending capacity by providing capital through deposits, equity-equivalent investments, or targeted grants.
  • CRA credit: Many CDFI-related activities qualify for Community Reinvestment Act (CRA) consideration, helping banks meet regulatory goals while directly supporting community development.

WWBIC leans into this partnership model with a quippy mantra: “Don’t Say No, Say WWBIC.” The program urges banks to refer clients to WWBIC instead of turning them down completely.

“Banks are our greatest referral source and we truly value that partnership,” Dunn noted. “We also invite our bank partners to serve as speakers at our classes, particularly around financial literacy, business planning, and understanding financials.”

Beyond financing, CDFIs provide coaching and technical assistance that help borrowers build credit and experience. Many CDFI customers eventually graduate to traditional bank financing — a trajectory that mutually benefits the borrower and the bank. “Our goal is to help businesses get to a point where they can access traditional bank financing and services,” Dunn said. CDFIs and banks mutually complement each other: Banks gain future customers while CDFIs fulfill their mission of expanding access to opportunity.

Challenges Ahead
CDFIs face ongoing challenges: limited access to capital, reliance on federal funding, and the logistical complexity of serving rural and low-income markets. Many CDFIs often operate with lean staffing and must juggle compliance.

The possibility of dwindling federal support has only intensified these pressures. Earlier this year, national reports suggested that staff reductions within the U.S. Treasury Department could weaken the CDFI Fund’s ability to administer grants and technical help.

CDFIs in Wisconsin continue to evolve in the wake of uncertainty. Many are exploring new partnerships with banks and philanthropic investors to diversify their funding sources. Banks, in turn, are discovering that strong CDFI relationships allow them to participate in the development of their own communities without shouldering all of the risk.

These important collaborations finance daycare centers, grocery co-ops, first-time entrepreneurs, and affordable housing initiatives — investments that make neighborhoods livable and local economies self-sustaining.

What Lies Ahead
Partnerships between banks and CDFIs benefit both the community and the banking industry. More families and small businesses gain access to capital, in turn making the local economies and banks that serve them stronger.

The CRA already encourages banks to invest in low- and moderate-income communities, but working with a CDFI often magnifies the output. A loan participation with a CDFI can transform a high-risk undertaking into a manageable one by combining the CDFI’s local connections with the bank’s balance sheet.

CDFIs also introduce valuable community outreach opportunities to banks. Many invite bankers to teach courses or serve on advisory boards. WWBIC and other organizations frequently invite bankers as guest speakers for classes on business planning and financial literacy, which gives bank employees a chance to strengthen community trust.

The health of the CDFI ecosystem depends on both federal support and on the strength of its partnerships, especially with local banks. The mutual respect between banks and CDFIs, as Dunn describes, lies in “valuing what each partner brings to this work.” At a moment when national headlines raise questions about the future of federal support, Wisconsin’s banking community offers a reassuring counterexample: collaboration between organizations drives success.

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The Lifelong Journey of Leadership: Insights on Professional Growth, Staff Development, and Cultivating the Next Generation of Banking Leaders

Paul NorthwayBy Paul Northway, president and CEO of American National Bank Fox Cities and the 2025-2026 WBA Chair

I’ve had the opportunity to work with an executive coach and can honestly say that it has been life-changing. Throughout the journey, I have received feedback that has allowed me to grow and become a more consistent leader. I have learned the value of being vulnerable, which has helped me develop authentic relationships. A coach can help you identify your blind spots so that you can be more reflective about what you are saying and doing, ensuring they are aligned. Leadership is a journey; it isn’t something you achieve — it’s something you practice every day, even on the days you fall short.

My Own Journey
I was fortunate to work for banks that supported my growth. I had the opportunity to obtain my MBA and complete the Graduate School of Banking, and I also took advantage of attending WBA schools such as Commercial Lending. I wanted to keep learning and had mentors who supported me through that journey. Today, I strive to lead with a spirit of servant leadership — focusing on helping others grow, supporting their goals, and empowering them to become the best version of themselves.

A Commitment to Continuous Growth
Our industry’s constant and fast-paced evolution means we must stay on top of new regulations, advancing technology, and changing customer needs. I realized early in my career that you need to read a lot to keep up with the constant change in our industry. Regulatory change requires an understanding of how rulemaking and laws impact how we do business, particularly how we can lessen the burden on our clients. WBA’s Government Relations and Legal teams help members sort through and understand changing regulations.

Emerging technology is another trend that requires leaders to focus on what makes sense for their employees and clients while avoiding the temptation to chase shiny objects. Artificial intelligence, for example, is rapidly transforming how we analyze data, detect fraud, and enhance customer service — but it also demands thoughtful consideration around security, ethics, and implementation. The recent WBA Bank Technology & Security Summit helped members gain insight into these important topics and how to apply them responsibly within their institutions.

Developing & Retaining Talent
We have a responsibility to sponsor the growth of our staff by helping them develop the skills needed to navigate the complexity of a career in banking. When leaders focus on helping employees achieve their personal and professional goals, I’ve witnessed transformation — staff become more engaged, relationships strengthen, and commitment to the team deepens. People want to work for companies that provide stretch assignments and opportunities to lead, grow, and learn from mistakes. Potential is only realized when there is a commitment to growth, and the outcome is a stronger bank that continues to meet the needs of clients and the community.

I’ve always loved the quote: “What happens if we invest in developing our people and they leave us?’’ A good CEO will respond, “What happens if we don’t, and they stay?’’ This philosophy is especially critical now. Our industry is at a pivotal point, with younger talent entering our banks who need the experience, education, and confidence to become our future leaders.

WBA’s commitment to education helps meet this need. Whether it’s a webinar with actionable tips for frontline employees, a multi-day school focused on a particular area of banking, or a conference with multiple learning tracks and networking opportunities, WBA is constantly refining its professional development offerings. Visit wisbank.com/education to learn more.

Final Thoughts
Our industry is highly technical, and we naturally focus on developing those hard skills. But it’s equally critical that we help people grow their soft skills — the ones that help them understand themselves and those around them. Leaders are developed, not born. That’s why I’m excited about the emerging leaders program our bank recently launched, where five up-and-coming leaders are focusing on emotional intelligence, communication, adaptability, and teamwork. As I watch members of our team grow into their potential, I’m reminded that the best investment any bank can make isn’t in technology or infrastructure — it’s in people. Leadership is not a destination, but a lifelong journey, and the future of our industry depends on how many of us are willing to walk that path alongside the next generation.

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Wisconsin Bank Leaders: Strengthen Connections, Share Insights, and Stay Ahead

Daryll Lund

Daryll Lund

By Daryll J. Lund, WBA executive vice president and chief of staff

In an environment where industry shifts and regulatory changes arrive rapidly, it’s more important than ever for banking leaders to have a trusted circle of peers to turn to. The Wisconsin Bankers Association (WBA) is proud to offer this opportunity through its CEOnly/CFOnly Networks, designed exclusively for CEOs and CFOs of Wisconsin-chartered banks.

Membership provides direct access to colleagues across the state who understand the challenges — and opportunities — unique to leading a bank. Through the confidential email Q&A service, members receive timely, candid input from peers on the very issues they’re navigating. In addition, three in-person meetings each year provide time and space to build stronger relationships, exchange best practices, and hear from guest speakers, all in a collaborative setting. Breakfast and lunch are also included.

Over the past year, members exchanged more than 55 questions, offering practical insights and new approaches that helped banks anticipate and respond to emerging issues. Many leaders find that participation not only informs their decision-making but also strengthens their long-term planning. With annual membership priced at $350 (or $600 for both the CEO and CFO from the same bank), the networks continue to provide a cost-effective and highly valuable resource.

As the 2026 calendar year quickly approaches, now is the time to renew or begin your membership in the CEOnly/CFOnly Networks. By engaging in this community, Wisconsin’s CEOs and CFOs ensure they remain connected, informed, and better positioned for future success. Network members often share that the unique insights they gather through the Q&A service are incredibly valuable and that being able to quickly pose a question to a group of respected peers is well worth the membership fee.

If you would like to learn more or join the network, please contact me at dlund@wisbank.com or visit wisbank.com/ceonly.

Save the Dates!

Three CEOnly/CFOnly Network-excusive events will take place on:

  • March 20, 2026 | Wausau
  • June 12, 2026 | Wisconsin Dells
  • October 16, 2026 | Madison
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questions@wisbank.com

608-441-1200

4721 S Biltmore Ln.
Madison, WI 53718

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