Numbers released Wednesday by the Federal Deposit Insurance Corp. (FDIC) showed a steady start to 2025 by Wisconsin banks, the Wisconsin Bankers Association (WBA) reports.
Deposits increased 5.63% year over year. The net interest margin for the first quarter of 2025 increased to 3.33% from the prior quarter’s 3.22% and the prior year’s 3.1%, so Wisconsin banks remain well capitalized.
Notable indicators include:
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Farm lending increased quarter over quarter (8.78%), which extended the pace year over year (8.95%);
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Commercial lending slowed in growth slightly quarter over quarter (2.43%) from the year over year (5%) increase as commercial customers adjust to impacts of global economic challenges;
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Residential real estate loans increased year over year (8.67%) yet decreased quarter over quarter (-16.05%) as inventory remains limited and the marketplace competitive from non-traditional lenders; and
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Assets in nonaccrual status increased both quarter over quarter (8.74%) and year over year (2.2%) as ongoing inflation and the high cost of living impact borrowers.
