Wisconsin’s Banks Report Strong Year-End 2020 Financial Performance
MADISON, Wis. – Wisconsin’s 135 state-chartered banks reported strong fiscal performance through year-end 2020, according to data released today by the Wisconsin Department of Financial Institutions (DFI).
In mid-March 2020, Wisconsin state-chartered banks adjusted operations amid the COVID-19 pandemic and continued to provide financial services to their customers and communities despite the continued challenges they faced. At year-end 2020, the financial performance of Wisconsin state-chartered banks remained strong and more than 76% of Wisconsin state-chartered banks realized earnings gains compared to 2019.
Key financial indicators include:
- Total assets as of December 31, 2020, were at $63.8 billion. Assets increased by $7.5 billion, a growth rate of 13.31%.
- Year-end net income increased by 17.19% from $664.7 million in 2019 to $778.9 million in 2020.
- Total interest income decreased by 3.55% in 2020 compared to 2019.
- Total equity capital at year-end was $7.05 billion.
- The return on average assets ratio was 1.34% compared to 1.25% in 2019.
- Net loans increased in 2020 with a total of $43.5 billion compared to $40.8 billion in 2019.
- Capital ratio of 11.06% was a slight decline from 11.86% in 2019.
- Delinquent loans as a percentage of loans decreased to 1.06% in 2020 from 1.33% in 2019. Banks increased their allowance for loan losses to $640 million (1.45%) from $532 million (1.28%) at year-end 2019.
“Despite the uncertainty of the COVID-19 pandemic, Wisconsin state-chartered banks have continued to provide strength and stability to their customers and communities,” said DFI Secretary Kathy Blumenfeld. “Our banks have demonstrated their financial health through strong earnings and positive growth, steady leadership, and sound financial practices. While not immune to the negative economic effects of the pandemic, Wisconsin state-chartered banks have helped their customers face the challenges of 2020 and they must remain diligent in doing so this year, too.”
Additional information regarding Wisconsin state-chartered banks’ year-end 2020 financial performance is available in the Bank Performance Indicator Report as of December 31, 2020.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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