Wisconsin banks outperformed their out-state counterparts in several statistical areas, and reported a $532 million increase in net income in 2011, according to data released by the Federal Deposit Insurance Corp.
FDIC financial data indicates that Wisconsin has a higher percentage of profitable institutions – 87% currently are profitable – than the national average, and that state banks are more profitable than they were in the third quarter of 2011. They not only reported an increase in net income of for the year, they saw net income grow by 27.8% from the third quarter to the fourth quarter.
In addition, the average capital ratio of Wisconsin banks is 10.3% percent, which tops even a steadily improving national average of 9.17%. A capital ratio indicates the industry’s buffer against loan losses.
“We see clear signs that the industry stability is continuing,” said Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association, in a press release.
Another sign of health is that Wisconsin banks maintain an 86.3% loan-to-deposit ratio, which is more than 10% higher than the national average of 73.3%, according to the WBA.
Banks in Wisconsin and nationwide are facing IRS audits related to the bad debt they are trying to shed from their books – ironically, at the insistence of federal bank regulators. Some contend this has lead to another period of tight credit
