While several metrics pointed to continued improvements in credit quality for the U.S. banking industry during the first quarter, net charge-off levels again rose year over year.
Net charge-offs climbed to $12.06 billion among U.S. banks and thrifts as of March 31, compared to $11.52 billion a year earlier. NCO levels have climbed steadily year over year since the beginning of 2016, but remain well below the peak 2009 levels.
At the same time, the industry reported a linked-quarter drop in NCOs, and net charge-offs as a percentage of average loans fell 5 basis points on a quarterly basis with no material change from the year-ago quarter.
The percentage of delinquent loans fell to 1.80% of total loans as of March 31, a 9-basis-point decrease from the prior quarter. Aggregate delinquent loans and leases decreased by 4.6% during the first quarter to $175.63 billion, driven primarily by a $6.79 billion decline in the one- to four-family sector and a $3.94 billion drop-off in consumer loans.




Did you enjoy this analysis? Click here to set up real-time alerts for data-driven articles on the U.S. financial sector. Click here to access a template containing key performance metrics, credit quality, balance sheets and income statements for banks and credit unions. 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. |

