Statement on the release of third quarter 2020 FDIC numbers from Rose Oswald Poels, president/CEO of the Wisconsin Bankers Association
Overall lending increased year over year (10.5%) due to huge growth in commercial loans (41.3%) driven by Paycheck Protection Program (PPP) loans.
Clients continue to seek safety and security by increasing their bank deposits (13.6%).
An increase in noncurrent loans and leases (23.2%) highlights the negative financial effect of COVID-19 on Wisconsin.
“Wisconsin banks continued to offer strength and stability for their clients during the coronavirus crisis according to the latest FDIC quarterly numbers.
Deposits surged by 13.6% compared to a year ago, a direct impact of the Federal Stimulus packages as customers sought the safety and security found in building their savings accounts during uncertain times.
Fueled by PPP loans, commercial loan growth, with a 41.3% increase, drove the overall increase in lending in Wisconsin (10.5%). Almost all other loan categories experienced slight decreases as economic activity softened in the Badger State.
These banking trends are reflective of the slight slowdown in Wisconsin’s overall economy as we navigate the pandemic. Wisconsin’s banking industry continues offering strength and stability for businesses and families to leverage in stabilizing their financial health.
Banks continue to prepare for and work through issues caused by the pandemic as illustrated by the 23.2% increase in noncurrent loans and leases.
While not immune to the negative economic effects of the coronavirus, Wisconsin banks are healthy and continue to stand ready to serve businesses and families during these unprecedented times.”
FDIC Reported Wisconsin Numbers*