Wisconsin banks saw loan growth, flat deposits and a decline in noncurrent loans and leases during the second quarter, according to FDIC data analyzed by the Wisconsin Bankers Association.
Net loans and leases reached $99.95 billion in the quarter, up 5.8% from the first quarter and 8% from the same time in 2021.
Farm loans led the growth in the quarter, up 19.3% from the first quarter to $4.45 billion, and farmland loans rose 5.7% from the first quarter to $3.8 billion. Commercial and industrial loans also outpaced overall growth with 7.8% growth to $17.15 billion.
The WBA noted growth in farm loans was the result of more farmers borrowing because of high input costs on items like fuel and fertilizer along with a less favorable outlook next year. More farmers had been able to finance their own expenses in recent years because of stimulus packages and strong balance sheets.
Commercial and industrial lending, on the other hand, picked up in the quarter as supply chain issues and worker shortages eased, allowing businesses to renew their focus on growth, the WBA said.
Residential loans were up 5.3% from the first quarter to $23.86 billion. The WBA noted that mortgage interest rates remain at relatively low levels historically, even as the Federal Reserve and other forces have pushed rates higher.
“Wisconsin banks continue to meet the borrowing needs of consumers and business owners alike,” said Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association. “Bankers understand the changing economy coming out of the pandemic and are working with their customers who are looking to purchase homes and grow their businesses.”
With rising interest rates and concerns about a potential recession, one encouraging sign from the quarterly figures was an 11% decrease in the amount of noncurrent loans and leases to $429.9 million.
Deposits also remained relatively steady, down 0.3% from the first quarter to $118.6 billion. The figure represents a 5.8% increase over the same time in 2021.
