Wisconsin state-chartered bank profits fall 12%

Wisconsin’s state-chartered banks reported total profits fell 12 percent in the first quarter, breaking a long-running growth streak.

Net income at the 165 state-chartered banks totaled $128.9 million in the first quarter, down from $146.4 million in the first quarter of 2016.

The Wisconsin Department of Financial Institutions, which oversees state-chartered banks, attributed the decline to six institutions having been sold to national or out-of-state banks over the past year. The acquired banks took with them more than $2 billion in assets.

Among the local state-chartered banks acquired over the past year were Pewaukee-based Foundations Bank, which was purchased by Rosemont, Illinois-based Wintrust Financial Corp. for $25.1 million; West Allis-based Layton State Bank parent Layton Park Financial Group Inc., which was acquired by Brookfield-based North Shore Bank; Brookfield-based Ridgestone Bank, which was purchased by Chicago-based Byline Bancorp Inc.; and Fond du Lac-based American Bank, which was merged with National Exchange Bank & Trust by its parent company. Baylake Bank in Sturgeon Bay and Mid America Bank in Janesville also were acquired over the past year.

Wisconsin’s state-chartered banks reported their capital ratio, which measures financial strength, dipped to 11.6 percent, down from 11.9 percent in the year-ago quarter.

But lending continued to rise, with net loans of $35.8 billion in the quarter, up from $34.9 billion in the same period a year ago.

Total assets also increased, up half a percent to $50.1 billion.

“Overall, the Wisconsin banking industry is in great shape,” said Jay Risch, secretary of the DFI. “When you include national and state charters, key metrics are trending in the right direction. That’s good news for Wisconsin businesses and consumers who count on their community banks to offer the products and services they need to be successful.”

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Wisconsin’s state-chartered banks reported total profits fell 12 percent in the first quarter, breaking a long-running growth streak.

Net income at the 165 state-chartered banks totaled $128.9 million in the first quarter, down from $146.4 million in the first quarter of 2016.

The Wisconsin Department of Financial Institutions, which oversees state-chartered banks, attributed the decline to six institutions having been sold to national or out-of-state banks over the past year. The acquired banks took with them more than $2 billion in assets.

Among the local state-chartered banks acquired over the past year were Pewaukee-based Foundations Bank, which was purchased by Rosemont, Illinois-based Wintrust Financial Corp. for $25.1 million; West Allis-based Layton State Bank parent Layton Park Financial Group Inc., which was acquired by Brookfield-based North Shore Bank; Brookfield-based Ridgestone Bank, which was purchased by Chicago-based Byline Bancorp Inc.; and Fond du Lac-based American Bank, which was merged with National Exchange Bank & Trust by its parent company. Baylake Bank in Sturgeon Bay and Mid America Bank in Janesville also were acquired over the past year.

Wisconsin’s state-chartered banks reported their capital ratio, which measures financial strength, dipped to 11.6 percent, down from 11.9 percent in the year-ago quarter.

But lending continued to rise, with net loans of $35.8 billion in the quarter, up from $34.9 billion in the same period a year ago.

Total assets also increased, up half a percent to $50.1 billion.

“Overall, the Wisconsin banking industry is in great shape,” said Jay Risch, secretary of the DFI. “When you include national and state charters, key metrics are trending in the right direction. That’s good news for Wisconsin businesses and consumers who count on their community banks to offer the products and services they need to be successful.”

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