Bank Loan Growth: Community Banks Continue Strong; Large Banks Slowing.

While loan growth for the top 100 U.S. banks slowed over the last 4 weeks per Federal Reserve H.8 reporting, strong growth continued for the remainder of the banking industry - primarily community banks. This is typical of loan activity late in an economic expansion - large bank loan activity beginning to trail that of community banks.

For community banks, loan growth occurred across all categories except C&I lending and was very strong in consumer and construction lending. For the large banks, loans declined across the board with the exception of consumer lending which was quite strong.

On the deposit front, community banks continued to show solid growth; while large banks actually showed a decline. Large banks utilized greater non-deposit borrowings to fund their balance sheet over the past 4 weeks, while community banks reduced their borrowings as their deposits grew.

For more information on the trends in the banking industry, including the midwest area of Illinois, Indiana, Michigan and Wisconsin, please see BANKING INDUSTRY DASHBOARDS.