For more information, contact:
Amber Hartl, Wisconsin Bankers Association, 608/441-1237, ahartl@wisbank.com
Stability, gains in a tough economy both characteristics of state banks
(MADISON) – According to fourth-quarter data released today by the FDIC for all FDIC-insured financial institutions, Wisconsin banks continue to outpace national averages in several critical areas.
Wisconsin banks average a capital ratio of 10.3 percent, topping the national average of 9.17 percent. Nationally, capital ratios continue to climb, reaching levels not seen since prior to 2005. A core capital ratio indicates the industry’s buffer against loan losses.
FDIC data also shows Wisconsin has a higher percentage of profitable institutions than the national average, indicating a strong financial sector in the state’s economy. Net income also shows gains in profitability for Wisconsin banks with a 27.8 percent increase from the third quarter of 2011. 87 percent of Wisconsin banks are currently profitable.
“We see clear signs that the industry stability is continuing,” said Rose Oswald Poels, president/CEO of the Wisconsin Bankers Association. “Improved capital ratios and consistent net interest margins show us that Wisconsin’s banks remain dependable.”
Wisconsin banks maintain a stable 86.3 percent loan to deposit ratio, as well. That ratio is more than 10 percent better than the national average of 73.3 percent. Wisconsin’s banks are lending more than institutions in other states, according to the WBA. Total noncurrent loans to total loan ratios are also down .87 percent from the fourth quarter of 2010.
“Banks have taken a conservative approach to noncurrent loans by expanding loan loss allowances,” says Oswald Poels. “Overall, the continued efforts of bankers in Wisconsin and nationwide have effectively stabilized industry.”
