For more information, contact: Eric Skrum, Wisconsin Bankers Association, 608/441-1216, eskrum@wisbank.com
Banks slowly improving compared to a year ago
(MADISON) – Wisconsin banks continue to show consist progress, albeit gradual, compared to a year ago according to the Federal Deposit Insurance Corporation’s latest quarterly numbers. The progress banks made in the first quarter of 2011 was sustained in the second quarter in the critical areas of loan loss allowances, noncurrent loans and leases, as well as loan-to deposit ratios. Six out of seven banks were profitable in the second quarter of 2011 compared to four out of five a year ago.
“These numbers are important because they show that as fewer borrowers are having difficulty making timely loan payments, banks aren’t forced to set aside as much money in reserves,” explained Rose Oswald Poels, president/CEO of the Wisconsin Bankers Association. “Instead, bankers are now in a stronger position to use those funds to assist their customers and reinvest in Wisconsin’s communities.”
Wisconsin banks saw an increase in their Tier 1 risk-based capital ratio from 11.70% to 12.81% over the year as well as a similar increase in their total risk-based capital ratio. The FDIC numbers show a net income of $51 million compared to a loss of $120 million one year ago.
“While these are modest improvements, they are still indicative of banks making great progress in working through the challenges of the past few years. This continued, gradual recovery is good for Wisconsin as a stronger banking industry is critical for economic growth and job creation,” explained Oswald Poels.
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The Wisconsin Bankers Association is the state’s largest financial industry trade association, representing 300 commercial banks and savings institutions, their nearly 2,300 branch offices and 28,000 employees.
