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?
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.
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.