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C&I loans continued to rise as credit quality improved in Q2

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C&I loans continued to rise as credit quality improved in Q2

Aggregate commercial and industrial loans at U.S. banks and thrifts hit $2.077 trillion at the end of the second quarter, a 1.2% increase from the previous quarter and a 4.8% increase from the year-ago period.

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Credit quality improved slightly during the period as well. Delinquent C&I loans accounted for 1.09% of total C&I loans as of June 30, down from 1.14% at the end of March and 1.35% in the year-ago quarter.

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Bank of America Corp., the nation's largest C&I bank lender, reported $274.09 billion in C&I loans at the end of the second quarter, a 1.3% increase quarter over quarter and a 5.2% increase year over year. Approximately, 0.75% of Bank of America's C&I loans were delinquent or in nonaccrual status as of June 30, higher than 0.69% in the previous quarter but down from 0.85% in the year-ago quarter.

Alongside that growth, competition for these loans is getting more intense, a Bank of America executive said in July. During the bank's second-quarter earnings call, CFO Paul Donofrio said the company is seeing "aggressive terms and structure" for commercial loans.

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S&P Global compiles C&I data based on loans reported in call reports and in Form Y-9. Click here to see the aggregated data for commercial banks, here for savings banks, and here for savings and loan associations.