Below is an excerpt from the most recent edition of WisBusiness Tuesday Trends.
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The full product includes several items in each of the rising, mixed and falling categories plus a look at upcoming business events across the state.
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RISING
Banks: Wisconsin banks saw their earnings increase in the first half of 2013 by nearly 29 percent over the same period one year ago, according to the state Department of Financial Institutions. Data from the Federal Deposit Insurance Corp. shows the 194 state-chartered banks had net income of $231.1 million between January and June, compared to $179.8 million over that span in 2012. The FDIC numbers also show improved returns on assets, rising capital levels and a drop in the past-due loan ratio in the second quarter of the year. Moreover, all but eight banks were profitable, compared to 13 unprofitable banks in 2012’s second quarter. DFI Secretary Peter Bildsten also notes increases in farm loans and commercial/industrial loans, which he says bodes well for the state’s economy as a whole.
MIXED
Health care costs: The latest analysis from the federal Centers for Medicare and Medicaid Services finds health care costs in Wisconsin 6 percent higher than the nation as a whole, with spending on health care averaging $7,233 for each Wisconsinite and $6,815 nationwide. The CMS report also showed growth in Wisconsin health care spending slightly higher than the national increase between 1991 and 2009. Meanwhile, debate erupts over the potential impact of federal health care reform on insurance costs. The state Office of the Commissioner of Insurance issues a report suggesting some could face insurance rate increases of up to 125 percent under the insurance exchanges set to take effect next month. OCI offers a series of caveats in its estimate and says a clearer picture will develop after Oct. 1, but proponents of Obamacare denounce the analysis from the Walker administration as flawed. They argue those in the exchanges will be eligible for subsidies that will dramatically lower the costs compared OCI projections. Opponents of the law counter taxpayers will cover those subsidies, arguing the public will be picking up higher costs one way or another.
FALLING
Alice.com: The Middleton online startup files for receivership in Dane County court, effectively going into bankruptcy after taking in more than $18 million from early-stage investors since its founding in 2008. The founders of Alice.com — who sold a previous startup to Microsoft — sought to take in fees for distributing free samples and sell consumer information to manufacturers, who would be able to sell household products directly to customers. As little as two years ago, more than 70 people worked for the company in Wisconsin and Indiana, and $3.6 million was invested into the company by a merger with a Spanish website last spring. Now, in its court filing, it lists $1.4 million in assets and $7.6 million in liabilities.
