Profits rise for Wisconsin banks as lending grows, troubled loans decrease

Profits rose 10.5% for Wisconsin-based banks in the first three quarters of the year, as lending grew and troubled loans decreased.

A report Tuesday by the Federal Deposit Insurance Corp. showed that altogether, the 212 banks based in Wisconsin had net income of $891 million, up from $806 million in the first three-fourths of 2016.

Total loans and leases on the books increased 5% to $81.5 billion for state banks, from about $77.6 billion through September last year.

The level of noncurrent loans and leases dropped below 1% — to 0.88% — from 1.14% at the same time last year.

"The federal numbers show, for the second quarter in a row, lending grew in virtually every category," Rose Oswald Poels, president and chief executive of the Wisconsin Bankers Association, said in a statement Tuesday.

She noted that while noncurrent loans continued to decrease, deposits also grew 1.7% to more than $87 billion.

Nationally, bank earnings were $139.6 billion through first nine months of 2017, an increase of about 9% from same span in 2016. Lending rose 3.5%.

In Wisconsin, the largest bank headquartered in the state — Green Bay's Associated Bank — also posted the highest net income among non-specialty banks, with earnings of $194.2 million through September. Other net income leaders this year: Racine's Johnson Bank, $26.4 million; Green Bay's Nicolet National Bank, $23.9 million; WaterStone Bank, of Wauwatosa, $22.8 million; and Fond du Lac's National Exchange Bank and Trust, $19.5 million.

Wisconsin banks with the lowest earnings through September: Home Savings Bank, Madison, a loss of $85,000; Columbia Savings & Loan Association, Milwaukee, a loss of $44,000; Mitchell Bank, Milwaukee, profit of $1,000; First National Bank in Tigerton, profit of $50,000; and The Equitable Bank, Wauwatosa, profit of $53,000.