First Glance 12L
These quarterly reports highlight key indicators of 12th District banking conditions.
Posted September 3, 2020
The 2Q20 issue of First Glance 12L notes that Paycheck Protection Program activity swelled bank balance sheets, distorting several financial metrics. Growth and borrower accommodations held delinquency ratios at bay; however, performance will likely deteriorate once stimulus and forbearance efforts fade. In addition to various hot topics, the report spotlights disparities in household financial stress.
Posted July 2, 2020
The 1Q20 issue of First Glance 12L charts the sudden and dramatic toll of the COVID-19 pandemic. Federal stimulus and borrower relief blunted some of the economic and banking damage, but the path of the recovery remains uncertain. The report highlights various hot topics, including the small business credit landscape.
Posted March 2, 2020
The 4Q19 issue of First Glance 12L notes that job and housing markets remained strong, but bank loan growth and earnings slipped. COVID-19 will pose additional headwinds to growth and bank net interest margins in 2020. The report discusses various hot topics, including the forthcoming community bank leverage ratio.
Posted December 6, 2019
The 3Q19 issue of First Glance 12L notes robust labor and housing markets in the District, but slower lending growth and weaker quarterly bank net interest margins. Banks’ on-balance sheet liquidity and capital ratios strengthened, on average. In addition to supervisory hot topics, the report spotlights wildfire-related risks in California.
Posted September 4, 2019
The 2Q19 issue of First Glance 12L notes improved District job growth and first half bank profits. Bank capital ratios also strengthened from mid-2018 levels, but were constrained by parent company share buybacks, the topic of our “Spotlight” feature. Slowing global growth, trade tensions, and yield curve shifts pose headwinds.
Posted May 31, 2019
The 1Q19 issue of First Glance 12L notes decelerating growth in District jobs, home prices, and lending. Quarterly bank profits came under pressure in part because of seasonal effects on asset yields and shifts to costlier funding sources. This quarter’s Spotlight feature discusses the District’s potential economic exposure to rising tariffs.
Posted February 28, 2019
The 4Q18 issue of First Glance 12L notes continued strong bank performance. At the same time, District job growth slowed and sentiment regarding future loan demand, credit performance, and economic conditions weakened. Some housing markets and price tiers showed signs of softening. A new Spotlight feature discusses bank branching trends.
Posted November 30, 2018
The 3Q18 issue of First Glance 12L notes continued strong economic conditions and improved bank earnings and capital positions. However, deposit competition intensified, and on-balance sheet liquidity tightened. Surveys by various government and industry groups noted broad but cooling optimism about current conditions and some concern about forward trends.
Posted August 28, 2018
The 2Q18 issue of First Glance 12L notes year-over-year improvements in earnings and capital ratios amid slower core deposit growth. The pace of employment gains remained comparatively strong, albeit cooler than in 1Q18 and 2Q17. Growing trade tensions could pose risks to employment growth and real estate demand in pockets.
Posted May 31, 2018
The 1Q18 issue of First Glance 12L notes that wider net interest margins and lower taxes boosted bank earnings year-over-year amid slower loan growth. Job gains remained strong in most states, but housing demand continued to outstrip supply, lifting home prices, crimping affordability, and prompting outmigration in some markets.
Posted March 2, 2018
The 4Q17 issue of First Glance 12L notes that the Tax Cuts and Jobs Act of 2017 boosted optimism, but also prompted deferred tax asset write-downs and one-time bonuses at many banks. Although job and loan growth remained strong, increasingly tight labor and housing availability may constrain future growth.
Posted November 22, 2017
The 3Q17 issue of First Glance 12L notes that rising asset yields and sticky deposit pricing helped lift the District’s average return on average assets ratio above 1 percent for the first time since 2007. Job and loan growth outpaced the nation but slowed, and commercial property prices neared a peak.
Posted August 25, 2017
The 2Q17 issue of First Glance 12L notes stronger bank earnings performance and few credit issues. Of note, District banks’ past due loan volumes increased year-over-year on average for the first time since 2010, yet delinquency ratios continued to edge down due to positive, albeit slower loan growth.
Posted May 25, 2017
The 1Q17 issue of First Glance 12L notes improved bank financial performance during a period of political and monetary policy uncertainty and decelerating job and loan growth. The report also indicates that commercial real estate markets may be in transition and discusses several “Hot Topics” of interest to supervisors.
Posted February 27, 2017
The 4Q16 issue of First Glance 12L shows strong, albeit slowing, growth in District jobs and bank loan portfolios. On average, full-year bank earnings improved and loan delinquencies declined. In addition to discussing several “Hot Topics,” the report notes potential headwinds from shifting trade conditions, immigration policies, and interest rates.
Posted November 18, 2016
The 3Q16 issue of First Glance 12L shows the District’s jobs and bank loan portfolios continued to expand, albeit at a slightly slower pace. Credit conditions remained good and bank profitability improved. Banks face opportunities and challenges because of appreciating real estate values and uncertainties regarding interest rates and trade policy.
Posted August 23, 2016
The 2Q16 issue of First Glance 12L shows the District’s job growth strengthened real estate markets and boosted bank lending and net interest margins. However, liquidity and capital ratios tightened and commercial real estate loan concentrations expanded because loan growth outpaced increases in total assets, core deposits, and regulatory capital.
Posted May 24, 2016
The 1Q16 issue of First Glance 12L shows the District’s economic and commercial bank performance remained sound. However, caution increased among equity and debt markets during 1Q16, crimping commercial mortgage securitization activity and venture capital deal volumes. Also, the authors noted that economic and banking statistics in most 12th District states have a history of above-average business cycle volatility.
Posted February 25, 2016
The 4Q15 issue of First Glance 12L shows District jobs expanded and overall bank credit quality improved notwithstanding economic slowing abroad and commodity and equity price volatility. Regardless, 2015 was marked by historic low net charge-off activity and may be tough to beat for credit performance metrics.
Posted November 24, 2015
The 3Q15 issue of First Glance 12L reveals continued healthy levels of bank loan growth within the 12th District, paralleling the improving economy, and ongoing improvements to bank earnings and credit quality.
Posted September 2, 2015
The 2Q15 issue of First Glance 12L details the expansion of jobs, housing permits, and loan portfolios, and tightening of noninterest expenses, helping to lift District bank earnings.
Posted May 27, 2015
The 1Q15 issue of First Glance 12L shows continued improvement in 12th District bank credit quality, yet profitability remained constrained by narrowing net interest margins. Prospectively, a strong dollar and extreme drought pose challenges to borrowers who export goods, rely on foreign visitor activity, or engage in water-intensive industries.
Posted February 24, 2015
The 4Q14 issue shows that bank earnings improved incrementally, but mainly because stronger credit quality fueled lower overhead and provision expense burdens; low interest rates continued to pressure margins.
Posted December 1, 2014
The 3Q14 issue of First Glance 12L shows accelerating bank loan growth in tandem with the expanding economy. Credit quality improved but low interest rates continued to pressure earnings
Posted September 11, 2014
The 2Q14 issue of First Glance 12L shows that conditions in the District continued to improve. Though trends are positive, a return to “normalcy” by pre-crisis standards has not yet materialized.
Posted May 23, 2014
The 1Q14 issue of First Glance 12L shows that many economic and banking metrics within the 12th District continue to get closer to “normal” levels (i.e., long-term non-recession average), but earnings challenges remain.
Posted February 28, 2014
The 4Q13 issue of First Glance 12L shows that many economic and banking metrics within the 12th District are getting close to “normal” levels (i.e., long-term non-recession average), but earnings and other challenges remain.
Posted November 27, 2013
The 3Q13 issue of First Glance 12L details the slow financial recovery being made by District banks. Loan growth has been a bright spot, up to 7% year-over-year on average, and problem loans further declined. However, narrow net interest margins constrained profitability gains.
Posted August 23, 2013
The 2Q13 issue of First Glance 12L suggests that the post-2008 liquidity buildup and deleveraging at District banks are now over. Loan growth is accelerating and problem loans are being worked down. Narrow margins continue to constrain profitability.
Posted May 22, 2013
The First Glance 12L provides a first look at the financial performance of the 12th Federal Reserve District banks each quarter. The 1Q13 report, subtitled “Banking Recovery Continues Despite Margin Pressures”, examines trends and conditions related to banks headquartered in the 12th Federal Reserve District (nine western states).
Posted February 21, 2013
The First Glance 12L provides a first look at the financial performance of the 12th Federal Reserve District banks each quarter. The 4Q12 report, “Solid Improvement, But Further To Go,” examines industry and 12th District trends over extended time periods with a focus on improvements since the financial crisis.
Posted November 21, 2012
The report, subtitled “The Banking Recovery Moved Forward”, tracks the recovery of 12th District banks from recession.
Posted August 20, 2012
The First Glance 12L provides a first look at the financial performance of banks in the West each quarter. The report, subtitled “Banks Recovering – But Still Have a Long Way to Go”, provides updated details on the recovery of District banks from the impact of the Great Recession.
Posted May 21, 2012
The First Glance 12L provides a first look at the financial performance of banks in the West each quarter. The 1Q12 report, subtitled “Banks Making Steady Progress Towards Full Recovery”, describes how banks of all sizes continued to reduce their average noncurrent loan rates with small banks lagging to some extent the improvement of larger banks.
Posted February 21, 2012
The First Glance 12L provides a first look at the financial performance of 12th Federal Reserve District banks each quarter. The latest report is subtitled “Better Than Expected Performance; Will Positive Momentum Continue?”