Wisconsin banks increased profits, lending in third quarter

Banking, Finance & M&A

Associated Bank, which recently opened this branch in Waukesha, led the way in profits among Wisconsin banks in the third quarter.
Associated Bank, which recently opened this branch in Waukesha, led the way in profits among Wisconsin banks in the third quarter.
Associated Bank, which recently opened this branch in Waukesha, led the way in profits among Wisconsin banks in the third quarter.

Wisconsin banks reported net income of $297 million in the third quarter, compared to $248 million in the third quarter of 2014, according to the Quarterly Banking Profile released recently by the Federal Deposit Insurance Corp.

There were 246 FDIC-insured institutions reporting in the third quarter, down from 253 institutions reporting in the same period last year.

Combined, Wisconsin’s banks reported $105.2 billion in total assets in the quarter, up from $101.6 billion in total assets in the third quarter of 2014.

Lending was up in the quarter, with loans and leases totaling $74.3 billion, compared with $70.8 billion in the same period a year ago. The net loans and leases-to-assets condition ratio was 69.6, compared with 68.5 in the third quarter of 2014.

Total real estate owned declined significantly year-over-year, from $431 million in the third quarter of 2014 to $289 million in the third quarter of 2015.

Among FDIC-insured Wisconsin banks, Green Bay-based Associated Bank N.A. led the way in third quarter profits, with net income of $60.5 million and total assets of $27.3 billion.

Madison-based John Deere Financial f.s.b. ranked second, with $26.6 million in net income and $2.7 billion in total assets. Madison-based AnchorBank fsb came in third, with $15.9 million in net income and $2.2 billion in total assets.

Milwaukee-based Northwestern Mutual Wealth Management placed fourth, with $7.8 million in net income and $196.6 million in total assets in the third quarter. And Racine-based Johnson Bank ranked fifth, with $6.4 million in net income and $4.1 billion in total assets.

Rose Oswald Poels, president and chief executive officer of the Wisconsin Bankers Association, released the following statement in response to the report: “Wisconsin’s banks continued this year’s strong performance, according to the latest FDIC quarterly numbers. Virtually every category of lending saw growth when compared to the same timeframe in 2014. Overall, lending grew to over $73 billion, a 5.2 percent increase. The key indicators of how banks helped businesses grow and families prosper all showed positive signs during this period.

“Wisconsin’s banks saw success in their support of businesses (commercial lending grew from $12.3 billion to $13 billion over the year; also a 5.2 percent increase). And consumer confidence grew as indicated by a 4.2 percent increase in residential loans from $21.7 billion to $22.6 billion. Noncurrent loans and leases shrank 24.3 percent from $1 billion to $830 million, highlighting that Wisconsin consumers are better able to meet their financial obligations.

“The latest numbers simply highlight the fact that the diversity of Wisconsin’s strong banking industry directly benefits Wisconsin consumers. For over 150 years, Wisconsin banks have been safely helping businesses grow and families prosper, creating thriving communities. Our institutions are healthy, well-capitalized and ready to help grow our economy.

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

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Molly Dill
Molly Dill, former BizTimes Milwaukee managing editor.