Virtually everywhere we turn, fears of a recession are being expressed, but you couldn’t tell a downturn is on the horizon from the way Wisconsin banks started 2022. According to data provided by the Federal Deposit Insurance Corp. (FDIC), state banks saw their total assets increase by 5.04% year over year from March 31, 2021 to March 31, 2022. And despite concerns about rising inflation, total deposits were up 7.08% for the same period, and the financial health of consumers was illustrated by a 20.88% year-over-year decrease in noncurrent loans and leases.
One notable downward trend is that commercial lending decreased 14.42% year over year, as supply chain issues and worker shortages continued to limit business growth and cause hesitancy among business owners to borrow money.
Among other data:
- Residential lending slowed only slightly as the housing market remained a hot seller’s market.
- Credit quality continues to improve as more borrowers are staying up to date with their payments. Noncurrent loans and leases decreased 20.88% year over year and 5.69% quarter over quarter.
Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association, says Wisconsin’s banking industry stands poised to meet the banking needs of Wisconsinites as government pandemic relief funding phases out. “Bankers will be keeping a close eye on global supply chain and geopolitical issues as well as the Fed’s rising interest rates going into the rest of the year,” she adds.
