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Summertime and the credit quality is easy

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity

Summertime and the credit quality is easy

Credit quality continued to improve at U.S. banks and thrifts in the second quarter as total loan delinquency fell to 1.67% as of June 30, down from 1.80% at the end of March and 1.85% in the year-ago quarter. Total delinquent loans and leases decreased by 6.5% during the second quarter to $164.19 billion, driven primarily by a $7.16 billion decline in the one- to four-family loans.

However, there was at least one dark cloud among the industry's credit quality — auto loans. At the end of June, 2.24% of auto loans were past due or in nonaccrual status, a 14-basis-point increase quarter over quarter and a 39-basis-point jump since June 30, 2017.

Net charge-offs remained flat both year over year and quarter over quarter at roughly 0.12% of average loans and leases.

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Commercial banks, savings banks, and savings & loan associations report information on past-due and nonaccrual loans on call report Schedule RC-N, which can be accessed under the Regulatory Financials section of a company's page on the MI website or in the MI Excel-add in tool.