Over the last four weeks, we have examined different types of loans and how they are performing at our nation’s banks, particularly since all levels of past due loans have been on the rise. While we did discover some weakness…
Commercial Loans (Not) as Bad as They Appear
Despite much negative press to the contrary, most commercial loans are still holding up quite well. The 10 banks with the highest amount outstanding in C&I loans control 45% of the industry’s C&I and are all rated at least 4-Stars…
It’s Not the Water, It’s the Economy
The commercial loan sector is one that continues to make news for all of the wrong reasons. A list of 51 banks is provided in this week’s issue of Jumbo Rate News that are each showing signs of stress in…
The Wheels on the Bus Go Round and …
Six months ago (JRN 39:42) we warned that commercial loans were spooking some banks and noted that, if the Federal Reserve decided to boost the Fed Funds another 75 basis points at its November 2nd meeting, things were going to…
Community Banks Steeped in Commercial Loans
Last week we reported on U.S. banks with robust Commercial & Industrial (C&I) loan growth during calendar 2021. In spite of the winding down of the Paycheck Protection Program (PPP), we found 51 established C&I lenders with at least 35%…
Signs of Life in C&I Lending, Will it Last?
We saw a glimmer of hope in the fourth quarter ’21 data that perhaps a resurgence of commercial and industrial (C&I) loan demand was on its way. Nearly a third of all U.S. banks increased their C&I loan portfolios during…
C&I Lending Down 13% in Spite of PPP
A year ago (JRN 37:40), we took exception with United Bank of Philadelphia because 87% of its loan portfolio was tied to the success of small businesses (56% in Commercial Real Estate (CRE), 26% in Commercial & Industrial (C&I) +…
Lending a Helping Hand, Sometimes Means Lending.
Loan volumes at the nation’s community banks grew over 10% during 2020. And that’s no coincidence. With help from the Government’s Paycheck Protection Plan (PPP) Program, Commercial & Industrial (C&I) Loans accounted for more than two-thirds of that growth. But…
Loans: a Bank’s Best Asset, Until They’re Not
Although business models vary, the optimal loan to deposit ratio (LTD) at a bank is generally considered to be between 80% to 90%. At this level, the bank is lending sufficiently for its size, but not so much that its…