Numbers from the Federal Deposit Insurance Corporation show Wisconsin banks remain in good health through the third quarter of this year. Year-over-year lending increased in all categories — commercial, residential, and farm loans.
Farm lending increased quarter over quarter (4.81%), which continued the pace year over year (5.30%) as banks remain a steady resource for their farming customers.
“The third quarter FDIC numbers continue to highlight the strength of Wisconsin banks, which are well positioned to help their customers and communities heading into 2026,” says Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association. “With inflation considerations still top of mind, Wisconsin consumers and business owners can continue to rely on their banks as a source of trusted financial partnership and a safe place to deposit their money.”
Other notable indicators:
Commercial lending fell minimally quarter over quarter (-1.46%) while holding steady year over year (4.93%) as commercial customers continue to navigate tariff and economic uncertainty.
Residential real estate loan volume remained strong year over year (15.05%) despite a slight dip quarter over quarter (-6.63%) with increased volumes in nearly all 1–4 family residential real estate lending.
Assets in nonaccrual status remained nearly the same quarter over quarter (0.28%) and slightly raised year over year (2.34%) as borrowers continue to work with their banks through workouts and other arrangements.
Individuals and businesses continue to trust banks as a safe place to keep money, as evidenced by an increase in deposits, both year over year (5.20%) and quarter over quarter (2.06%). The Q3 net interest margin increased (3.46%) from the prior quarter (3.33%) and the prior year (3.18%). Wisconsin banks remain well capitalized.
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