Most of Wisconsin’s banks are profitable, industry group says
The number of distressed banks in the United States rose to 552 at the end of September, its highest level since the savings and loan crisis 16 years ago, according to a report released by the Federal Deposit Insurance Corp. last week.
The FDIC said the number of troubled banks rose from 416 at the end of June and 305 at the end of March. This is the largest number of banks on the FDIC’s "problem list" since 1993.
Despite the national troubles, most Wisconsin banks made a profit, total deposits grew and lending again outpaced the national average, said Kurt Bauer, president and CEO of the Wisconsin Bankers Association (WBA).
“These numbers clearly reflect the stressed financial conditions of bank customers throughout the state,” he said. “Consolidated bank performance numbers are a snapshot of bank activity between July and September 2009. They are not necessarily a prediction of the future. Nevertheless, bank performance numbers typically lag other economic trends, which means banks could see challenging earnings in the 4th quarter and into 2010.”
The FDIC has closed 124 banks across the United States so far. The only Wisconsin bank to be closed was Racine-based Bank of Elmwood. The Wisconsin Department of Financial Institutions ordered the Bank of Elmwood to close in October and asked the FDIC to act as receiver, leading Oak Creek-based Tri City National Bank to purchase all of Bank of Elmwood’s deposits and most of its assets.
