Income and lending up at state-chartered banks

Freeman Staff

June 1, 2015

MADISON — Both net income and total lending at Wisconsin’s state-chartered banks increased during the first quarter that ended March 31, according to a Monday report from the Federal Deposit Insurance Corp.
Net income grew nearly 20 percent and total lending increased by 7 percent for Wisconsin’s 185 state-chartered banks during the first quarter when compared to the previous year.

Compared to the first quarter of 2014, the banks reported net income growth of $124.5 million, up 19.6 percent from the prior year. In addition, total loans increased to $32.8 billion, up from $30.7 billion and banks improved their capital ratio to 11.92 percent, up from 11.59 percent. Also, the banks reduced their past due loan ratio to 1.94 percent, down from 2.45 percent.

“State-chartered banks had a very strong first quarter,” said Ray Allen, secretary of the Department of Financial Institutions, which oversees state-chartered banks. “The solid growth in lending, coupled with the positive trend in credit quality, are indeed signs that the Wisconsin economy continues to improve.”

According to Monday’s release, more than 97 percent of state-chartered banks were profitable in the first quarter and that 71 percent realized earnings gains compared to 2014.