With our recent "Bank Balance Sheet Weekly Dashboard" out, we continue to see community bank lending momentum. Over the past 4 weeks and 3 months, community bank loan growth has been 1.1% and 2.2%, respectively. For the same periods, large commercial banks experienced loan growth of 0.1% and 0.3%.
Our data is sourced from the Federal Reserve's H.8 Assets and Liabilities of Commercial Banks in the United States via the FRB St. Louis FRED economic data service. We compile and present in our comparative reporting as shown below. (Link to PDF).
Community bank loan growth distributed across all categories with strong growth in multifamily real estate, single family residential real estate mortgages, consumer loans and other loans & leases. Data continues to reflect the importance of community banks and the role that they play in the U.S., regional and local economies.
Large banks (top 100 in total assets, or approximately $14 billion and larger) experienced strong growth in commercial and industrial lending, but flat or down in all other categories.
It is noteworthy that large banks increased holdings of agency MBS and U.S. treasury and agency bonds significantly over the past 3 months. These assets have lower risk weightings under bank capital regulations and also qualify as liquid assets for the Liquidity Coverage Ratio computations required by bank regulatory agencies for large banks.
On the funding side, deposit growth was solid at both large banks and community banks. And both groups experienced declines in their borrowings (FHLBank advances and other borrowings).