Wisconsin bankers bullish on future

Northwestern Financial Review, Apr 15-Apr 30, 2005

A lot of Wisconsin bankers are ready to hire new employees and open new branches, according to a survey of economic conditions conducted by the Wisconsin Bankers Association.

Sixty-five percent of responding Wisconsin bankers say they plan to hire new employees in the next 12 months, and 43 percent say they are planning or considering adding a new branch office in 2005.

WBA surveyed its 315 member banks during the last two weeks of February and 116 responded. Kurt Bauer, WBA president and CEO, said the association plans to conduct the statewide economic conditions survey twice a year.

Other survey results:

* 61 percent predict commercial lending will strengthen during 2005;

* 58 percent expect their customers' credit quality to remain unchanged;

* 34 percent expect their customers' credit quality to improve during the year, and 9 percent expect it to deteriorate;

* 15 percent expect mortgage lending to increase this year;

* 21 percent say they expect local farmers to see growth in income in 2005, while 34 percent said they expect farm income to be about the same this year as last year.

* Regarding fraud, 26 percent of respondents see it as a growing problem, 47 percent see it as somewhat of a problem and 27 percent do not see growing incidents of fraud.

The bankers said that the top two obstacles in the next six to 12 months are shrinking interest rate margins and growing regulatory burden.