WISCONSIN BANKERS ASSOCIATION UPDATE – NOV 2019
Statement on the release of third quarter 2019 FDIC numbers from Rose Oswald Poels, president/CEO of the Wisconsin Bankers Association
- Commercial and industrial loans increased by 2.9%
- Growth in net loans and leases by 3.2%
- Farmland loans grew by 1.1%, showing the banking industry’s support for this important and struggling facet of the Wisconsin economy
“Wisconsin’s economy is holding steady despite stress in certain economic sectors.
There are many positive, strong numbers associated with Wisconsin’s economic numbers as highlighted by the banking industry. Year-over-year comparisons of FDIC third quarter numbers show the largest growth occurred with commercial lending (2.9%). Residential loans have stayed essentially the same since last year.
Overall these continue to be good indicators that Wisconsin’s economy is stable as businesses and families leverage the opportunities offered by bank services to improve their quality of life and services to their customers.
Overall loan quality continues to be very good. Demand for deposits continues to remain fierce as shown by an increase of 43.9% in total interest expense. Margins are holding steady which helps to maintain net income. Loan interest rates seem to be dropping.
Agricultural bankers continue to proactively work with their customers during these challenging times. Farmland loans increased 1.1% while farm loans stayed approximately at the previous quarter’s level. Bankers value the farms, agribusiness, and hardworking people that make up the communities they serve. It’s important for the ag community to have Wisconsin banks to help them through these tough times.
Consumer finances continue to show improvement as highlighted by a 3.5% decrease in noncurrent loans and leases. Another positive indicator is the 2.9% growth in deposits.
Wisconsin banks continue their important role as key drivers of our state’s economy by helping businesses grow and families prosper.”
FDIC Reported WI Numbers*
9/30/2019 9/30/2018 Change
Net loans and leases 86,367,235 83,678,775 3.2%
Total deposits 92,438,088 89,861,365 2.9%
Commercial and industrial loans 14,714,172 14,300,257 2.9%
Residential loans 23,684,360 23,721,652 -.2%
Farmland loans 3,558,906 3,519,795 1.1%
Farm loans 4,921,069 4,936,455 -.3%
Total assets 118,455,433 115,293,557 2.7%
Noncurrent loans and leases 624,425 646,884 -3.5%
* dollar figures in thousands
The Wisconsin Bankers Association is the state’s largest financial industry trade association, representing nearly 235 commercial banks and savings institutions, their nearly 2,300 branch offices and 23,000 employees.