Numbers released on Tuesday by the Federal Deposit Insurance Corp. (FDIC) showed Wisconsin banks rounding out 2024 in a strong position, the Wisconsin Bankers Association reports.
Residential real estate loans increased substantially quarter over quarter (17.15%) and slightly year over year (15.46%). Inventory continues to be very limited, and homeowners who refinanced at low interest rates during the pandemic have little incentive to move. Buyers have become accustomed to the current interest rate environment and higher home prices. Use of home equity lines of credit are reflected in the increase.
Commercial lending held steady quarter over quarter (0.55%) and grew moderately year over year (3.69%) as Wisconsin banks continued to meet customer needs.
Farm loans decreased significantly quarter over quarter (-20.66%) and held steady year over year (1.83%) as farmers struggled with commodity prices, weather, and tight operational costs.
Assets in nonaccrual status decreased slightly quarter over quarter (-2.17%) and remained elevated year over year (14.81%) as inflation and the high cost of living impact borrowers. While banks continue to monitor credit quality, the current level of past-due loans remains above recessionary levels.
