Wisconsin Bankers Association: One in four banks hiring in 2012

For more information, contact Eric Skrum,
608/441-1216, eskrum@wisbank.com

Bank CEO survey indicates lending, hiring and economic trends

(MADISON, WI) One out of every four of the banks which responded to the latest Wisconsin Bankers Association (WBA) Bank CEO Economic Conditions Survey indicated plans for hiring new staff members in 2012. Data from the 144 bank executives who completed the survey also reflect a slow, yet steady progress in the health of the banking industry and Wisconsin’s economy.

“Bankers offer a unique perspective on the economy given their role in their communities,” said Rose Oswald Poels, WBA president/CEO. “The fact that banks are poised for growth indicates that the industry is stabilizing and that both the economy and the banks in Wisconsin are getting stronger.”

“Although regulatory challenges and burdens continue to have an effect on the growth for banks and the communities they serve,” she added.

“Despite a slower demand for loans and increasing regulatory pressure, Wisconsin’s banks will continue to improve in 2012, slowing moving towards pre-downturn levels,” explained Oswald Poels.

Employment

From an employment perspective, Wisconsin’s bank executives are optimistic. Within the industry, 25 percent of the responding bank CEOs reported they are likely to hire new employees in the next six months. Reporting on the businesses in their markets, 83 percent of respondents were confident employee numbers will not change and 15 percent say businesses plan to hire.

Lending

According to 97 percent of the bankers, the current demand for business loans, a key indicator of economic health, is either “fair” (45 percent) or “poor” (52 percent). While these numbers are on par with last year’s results, 99 percent of executives expect business loan demand to hold steady (69 percent) or grow (30 percent) over the next six months. These results indicate that while the state’s economy isn’t great, it is slowly moving forward.

Another indicator that the economy has turned a corner is the 66 percent of bankers who say demand for residential real estate loans is either “fair” (44 percent) or “good” (22 percent). 71 percent expect demand to plateau and 18 percent expect to see a rise in demand over the next six months.

In addition, bank executives report the number of customer bankruptcy filings (both residential and business) have decreased (15 percent) or remained the same (59 percent) since July 2011. Residential real estate foreclosures have also improved slightly, with 68 percent of respondents reporting a decrease (21 percent) or unchanged numbers (47 percent).

Wisconsin’s Economy

According to survey results, most Wisconsin bank executives believe the state’s economy has hit the bottom of the recession and that improvement is coming, albeit slowly. 86 percent of the 144 executives who completed the survey said that the state’s economy has hit the bottom of the economic slowdown, up from 76 percent in January 2011. While 34 percent expect growth, 63 percent predict the economy will remain stagnant over the next six months. However, 77 percent of respondents rated current economic conditions as “fair” and 14 percent as “good” compared to much lower numbers in January 2011, where 92 percent rated the economy as “fair” or “poor”.

Note: WBA will host the 2012 Wisconsin Economic Forecast Luncheon on Jan. 17 from noon to 2 p.m. at the Monona Terrace & Convention Center, Madison. The program will feature economists Scott Anderson, Ph. D., director and senior economist with Wells Fargo and Chad Moutray, Ph. D., chief economist with the National Association of Manufacturers. Visit http://www.wisbank.com/EconomicForecast for more information or contact WBA’s Eric Skrum for a media pass.

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The Wisconsin Bankers Association is the state’s largest financial industry trade association, representing nearly 300 commercial banks and savings institutions, their nearly 2,300 branch offices and 29,000 employees.