Second-quarter 2023 data from the Federal Deposit Insurance Corp. show that Wisconsin banks remain on a solid foundation.
Banks continue to be responsive to the needs of their customers, and lending increased in all categories — commercial, residential, and farm loans. Deposits also increased slightly as consumers and businesses remained confident in Wisconsin banks as a safe place to keep their money. Net interest margin remains strong at 3.24%, and capital levels are healthy.
Notable indicators include:
- Residential loans continued to grow, both year over year (14.19%) and quarter over quarter (3.26%). 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 (6.38%) and has picked up quarter over quarter (3.06%), showing increased confidence of business owners.
- Farm loans increased both year over year (8.50%) and quarter over quarter (26.16%).
- Credit quality weakened slightly as inflation and rising interest rates have made it more difficult for borrowers to pay back their loans.
- Deposits increased slightly over both the year and the quarter as inflation eases and consumers and businesses are able to save more.
Additional data is available online.
