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Earnings at Wisconsin's banks rose almost 26% last year as lending increased and delinquent loans were reduced, a report released Tuesday shows.

Only eight of 243 banks based in the state lost money in 2015, according to the Federal Deposit Insurance Corp.

Altogether, Wisconsin banks had net income of nearly $1.2 billion, up 25.6% from $930 million in 2014.

Total loans and leases amounted to $74.9 billion at the end of 2015, a 5.9% increase from $70.7 billion a year earlier.

Noncurrent loans and leases shrank to only 1.11% of total loans, down from 1.43% in 2014.

Rose Oswald Poels, president and chief executive of the Wisconsin Bankers Association, noted that both commercial lending and residential loans increased in the fourth quarter.

Almost 75% of Wisconsin banks had higher earnings last year than in 2014.

"The latest numbers simply highlight the fact that the diversity of Wisconsin's strong banking industry directly benefits Wisconsin consumers," Oswald Poels said.

Percentage-wise, Wisconsin-based banks outperformed banks nationally in net income growth. The FDIC said net income for the nearly 6,200 banks in the in the U.S. was $163.7 billion, or 7.5% higher than in 2014.

FDIC Chairman Martin J. Gruenberg said Tuesday the banking industry improved in the fourth quarter.

"Revenue and income were up from the previous year, overall asset quality continued to improve, loan balances increased, and there were fewer banks on the problem list," Gruenberg said. "However, banks are operating in a challenging environment. Revenue growth continues to be held back by narrow interest margins. Many institutions are reaching for yield, given the competition for borrowers and low interest rates."

He added: "There are signs of growing credit risk, particularly among loans related to energy and agriculture."

The biggest nonspecialty bank based in Wisconsin, Green Bay's Associated Bank, posted the largest net income for the year, at $221.1 million. The bank with the largest loss was North Milwaukee State Bank, at $2.1 million.