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Wisconsin’s state-chartered banks report strong mid-year performance

Wisconsin’s 132 state-chartered banks continue to exhibit strong financial performance through June 30, 2022, according to data released today by the Wisconsin Department of Financial Institutions (DFI).

At the end of the second quarter, total assets for Wisconsin’s state-chartered banks were at $67.9 billion, an increase of $961.7 million and a growth rate of 1.44% from June 2021.

The net interest margin declined slightly to 3.22%, from 3.37% in June 2021, due primarily to the excess liquidity from the extension of the COVID-19 pandemic’s Paycheck Protection Program loans.

In the twelve months ending on June 30, 2022:

  • The capital ratio remained satisfactory at 9.72% despite a decline from 10.92% in June 2021;
  • The past due ratio improved to 0.63% from 0.85% in June 2021;
  • Net operating income decreased to $395.3 million compared to $463.8 million in June 2021;
  • The return on average assets ratio showed a slight decline to 1.16% from 1.44% in June 2021;
  • Net loans were at $45.7 billion, up $1.7 billion, a 3.82% increase from June 2021; and
  • Bank liquidity remained strong but was impacted by the increase in the loans to assets ratio at 67.29% compared to 65.74% in June 2021.

“Wisconsin’s state-chartered banks continue to demonstrate sound financial practices as we transition from the effects of the pandemic, including the rising interest rate environment,” said DFI Secretary-designee Cheryll Olson-Collins. “Overall, the second-quarter financial indicators for Wisconsin’s state-chartered banks remain strong and show our banks are financially stable with a positive outlook.”

To learn more, read the DFI’s Bank Performance Indicator Report as of June 30, 2022.