“Noncurrent Loan Rate Rises to Record Level
The amount of loans and leases that were noncurrent (90 days or more past due or in nonaccrual status)increased for a 13th consecutive quarter, and the percentage of total loans and leases that were noncurrent reached a new record.
Institutions Continue to Add to Reserves
The industry’s reserves for loan losses increased by $16.8 billion (8.6 percent) during the second quarter, as loss provisions of $66.9 billion exceeded net charge-offs of $48.9 billion. The ratio of reserves to total loans and leases set another new record, rising from 2.51 percent to 2.77 percent. However, the pace of reserve building fell short of the rise in noncurrent loans, and the industry’s ratio of reserves to noncurrent loans fell from 66.8 percent to 63.5 percent, the lowest level since the third quarter of 1991.”
There were several good charts o’ doom on this link, so if you’re interested, please click through.
