Wisconsin banks had less profitable year

Wisconsin’s banks reported combined net income of $937 million in 2014, down from $1 billion in 2013, according to the new Quarterly Banking Profile released by the Federal Deposit Insurance Corp.

There were 250 FDIC-insured institutions reporting in the fourth quarter, compared with 260 institutions in the same period last year. There are 22,318 people employed by Wisconsin’s banks.

The state’s banks had total assets of $102.6 billion at the end of 2014, up from $99.2 billion at the close of 2013. Deposits totaled $81.5 billion in the fourth quarter, up from $79.3 billion in the fourth quarter of 2013.

Quarterly lending was up, with $70.7 billion in total loans and leases, compared with $67.2 billion in the fourth quarter of 2013.
The net loans and leases to assets ratio in the fourth quarter was 67.7 percent, up from 66.5 percent in the fourth quarter of 2013.

Green Bay-based Associated Bank N.A. led Wisconsin banks in 2014, with $201.2 million in net income. It remains Wisconsin’s largest bank, with $26.7 billion in total assets.

Madison-based John Deere Financial f.s.b. ranked second, with net income of $88.9 million. John Deere has total assets of $1.8 billion.

Racine-based Johnson Bank came in third, with $26.7 million in net income in 2014. It has total assets of $3.9 billion.

Milwaukee-based Northwestern Mutual Wealth Management ranked fourth, with $24.2 million in net income and total assets of $198.6 million, and Fond Du Lac-based National Exchange Bank and Trust rounded out the top five, with net income of $20.9 million on the year and total assets of $1.4 billion.

“Wisconsin’s diverse banking industry enhanced its support of the state’s businesses and consumers as lending grew to over $70 billion in the past year, according to numbers from the latest FDIC quarterly report. Consumers continue to trust Wisconsin banks to safeguard their funds as deposits also expanded to over $81 billion in the same timeframe,” said Rose Oswald Poels, president and chief executive officer of the Wisconsin Bankers Association.

“Wisconsin’s banks have proven to be uniquely positioned and able to help businesses grow (commercial lending increased to $12.6 billion over the year) and families prosper (noncurrent loans and leases dropped for the 21st consecutive quarter).

“As a driver of economic growth, Wisconsin’s banks stand ready to help keep Wisconsin moving forward despite a challenging interest rate environment, increased regulatory burden and operational costs all of which affect profitability.”

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