Second-quarter 2023 data from the Federal Deposit Insurance Corporation (FDIC) show that Wisconsin banks remain on a solid foundation. Banks continue to be responsive to the needs of their customers, and lending increased in all categories (commercial, residential, and farm loans). Deposits also increased slightly as consumers and businesses remained confident in Wisconsin banks as a safe place to keep their money. Net interest margin remains strong at 3.24%, and capital levels are healthy. 

Notable indicators include: 

  • Residential loans continued to grow, both year over year (14.19%) and quarter over quarter (3.26%). With low inventory, homes continue to sell quickly. Despite recent interest rate increases, rates remain relatively low in historical context.
  • Commercial lending increased year over year (6.38%) and has picked up quarter over quarter (3.06%), showing increased confidence of business owners. 
  • Farm loans increased both year over year (8.50%) and quarter over quarter (26.16%). 
  • Credit quality weakened slightly as inflation and rising interest rates have made it more difficult for borrowers to pay back their loans.  
  • Deposits increased slightly over both the year and the quarter as inflation eases and consumers and businesses are able to save more. 

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