Banks Prepare for Economic Downturn

We Analyze Banks & Credit Unions ...very carefully

Banks Prepare for Economic Downturn

Coral Gables, Florida, June 22, 2022:  BauerFinancial, Inc., the nation’s premier Bank and Credit Union rating firm, reports that net income at our nation’s banks dropped over 22% from a year ago. This, as banks find the need to bulk up on reserves (again) to cover for expected loan losses in coming months.

“As the Federal Reserve continues its campaign to tighten credit, we have to be ready for several things,” cautions Karen Dorway, president of BauerFinancial, “not the least of which is a rise in  unemployment, which will pair precariously with the increasing rates on loans. ”

According to the Federal Reserve Bank of New York, housing debt increased by $249 billion in the first quarter 2022, student loan debt was up $14 billion during the quarter and auto debt increased by $11 billion. Credit cards were the only household debt category that went down ($15 billion) during the quarter. So far, loan quality looks good on these “household” categories. The percent sliding into “serious delinquency” (90 days or more past due) in the first quarter was down considerably from a year earlier.

However, while the majority of federally-insured banks and credit unions remain solid, at least so far,  Bauer’s Troubled and Problematic Bank Report saw its first increase in number of banks since the third quarter of 2020. Similarly, Bauer’s Troubled and Problematic Credit Union Report now contains more institutions than it has since the third quarter of 2014.

To find out the rating of any federally-insured U.S. bank or credit union, simply visit Look up as many ratings as you like. It really is free. While you’re there, check out our CD rate pages to get the best CD rates in the country and read Bauer’s Blog to get more insights into what’s going on in the banking industry, anytime and from anywhere. Bauer also has reports and data available for a nominal charge—many for immediate download at

It’s Simple. It’s Smart. And it’s Free on our website:

BauerFinancial: providing the public with the knowledge they need to make informed decisions regarding their banking relationships since 1983. No institution has ever paid to be rated, nor can any U.S. chartered federally-insured institution avoid being rated by Bauer.



Members of the press may request a free spreadsheet of all the bank and/or credit union star ratings in their state, along with financial highlights, by emailing

Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial, Inc. BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. BauerFinancial, Inc. is not a financial advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is forbidden.