Numbers released Thursday by the Federal Deposit Insurance Corp. (FDIC) showed Wisconsin banks remained in a healthy position through the final quarter of 2023. Banks continued to meet the borrowing needs of their customers, as evidenced by year-over-year lending increases in all categories (commercial, residential, and farm loans). Deposits were up both quarter over quarter (1.12%) and year over year (2%). While net interest margin has decreased slightly from 3.27% to 3.20% year over year, capital levels are healthy.
Notable indicators include:
- Residential loans grew quarter over quarter (7.64%) and year over year (5.62%);
- Commercial lending increased only slightly year over year (0.20%) and decreased slightly quarter over quarter (-0.60%);
- Farm loans increased year over year (10.30%) and decreased quarter over quarter (-22.31%), reflecting seasonal demand fluctuation; and
- Past-due loans increased as inflation, the lag effect of interest rate hikes earlier in 2023, and slowed income growth presented challenges to borrowers in paying back their loans.
