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Net charge-offs rise again year over year for US banking industry

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.

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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.