Wisconsin banks show resiliency in Q1 

According to a recent press release, first-quarter 2023 data from the Federal Deposit Insurance Corp. (FDIC) show that Wisconsin banks remained on solid footing even as two out-of-state institutions failed during the period.

While deposits decreased slightly at Wisconsin banks, borrowers overall continued to keep up to date on their loan payments. Residential, commercial, and farm loans all increased year over year. Importantly, net interest margin remains strong at 3.30% and capital levels are healthy.

Notable indicators include:

  • Residential loans continued to grow, both year over year (16.47%) and quarter over quarter (1.92%). With low inventory, homes continue to sell quickly. Despite recent interest rate increases, rates remain relatively low in historical context.
  • Commercial lending increased year over year (11.27%) but slowed in the last couple of quarters as business owners held off on borrowing due to concerns of recession in 2023. 
  • Farm loans increased both year over year (2.58%) and quarter over quarter (2.06%).
  • Borrowers continue to pay down their debt, and noncurrent loans decreased year over year (-15.98%) and quarter over quarter (-1.26%).
  • Deposits decreased slightly year over year (-0.70%) and quarter over quarter (-1.56%) as consumers and businesses felt the pressure of inflation on their savings or left traditional banks in search of higher yields elsewhere.