While worsening C&I NPLs are concerning, it is the acceleration in the deterioration that should be alarming.
After years of moving lower, the past two quarters have seen a marked increase in Commercial & Industrial Nonperforming Loans.
The Fed spends an inordinate amount of time focusing on increasing Lending with the idea that loan growth increases economic activity. Is it possible that it is Interest Income derived from Savings that is more important to economic growth?
Just as the Fed started the Taper large banks began ramping up their U.S. Treasury holdings.
Bank of America, Wells Fargo and JPMorgan Chase control 67.87% of 1-4 Family First Liens NPLs yet only had 32.62% of the charge offs in the quarter.
Nonperforming Loans climbed $5.23 Billion over Q3 - the first increase after 6 straight quarters of declines.
Looking at Bank of Hawaii's Asset mix the past 3 years one gains the impression that BOH would prefer to buy and sell securities rather than lend to consumers and businesses.
Low interest rates cost savers billions and quietly provide a stealth bailout to banks.
There is a lot to like about the 10th largest bank in Texas, but concerns about their Commercial RE portfolio are increasing. Nonperforming loans increased dramatically and early stage delinquencies have risen as well.
Flagstar is the nation's 65th largest bank and without yet another recent capital raise would probably be gone. In truth, there is little Good and a whole lot of Ugly.
Regions Bank looks fairly weak with a negative Net Operating Income figure in 5 of the last 6 quarters. That said, they do have some good things going for them.
Quick Quiz: Of the following 3, which states' banks are in the most trouble? Arizona, Michigan or Washington? Believe it or not - Washington.
This week's "The Good, The Bad & The Ugly" from BankRegData.com reviews Fifth Third Bancorp. The Good is that Nonperforming Loans are coming down, The Ugly is their reliance on Loan Sales to prop up Net Operating Income.
A review of the 1st Quarter 2010 FDIC bank data reveals an ever increasing amount of nonperforming loans for 1-4 Family First Liens. Banks are sitting on $185 Billion in loans that are either 90+ Days Past Due or on Nonaccrual.
Either JPMorgan Chase is honorably managed or incredibly stupid. A review of the top 4 banks use of Nonaccrual on their GNMA loans reveals JPM standing apart in their "strategic" use of Nonaccrual.