1 

TREASURY DEPARTMENT MONTHLY LENDING AND INTERMEDIATION 

SNAPSHOT 

Summary Analysis for April 2009 

Summary Analysis 

Economic Environment

The economy continued to weaken in April and May, although there were increasing signs that 

the pace of decline was easing and some sectors were stabilizing. Job losses in April and May 

averaged about 425,000, after averaging nearly 700,000 in the first quarter. Single-family 

housing starts and home sales have stabilized since January. Consumer optimism moved 

decidedly higher in April and May, and, according to the University of Michigan survey, rose to 

the highest level since September 2008, before the financial crisis intensified. Financial 

pressures eased further in April and May, short-term credit spreads have retreated and 

securitization continued to improve. Despite these signs of improvement, other indicators 

pointed to further worsening; home foreclosures and delinquencies set another record in the first 

quarter, with more than 9 percent of all mortgages at least 30 days delinquent. 

April Survey Results

Overall outstanding loan balances fell 1 percent from March to April at the top 21 participants in 

the Capital Purchase Program (CPP), as many institutions indicated that borrowers paid down 

outstanding debt. Across nearly all categories, total originations of new loans decelerated. The 

21 surveyed institutions reported a decrease in total new lending of 7 percent from March to 

April (about $22 billion). Total lending fell in all but two loan categories. The drivers of 

declines in originations varied by loan category. The major factors cited by lenders that 

contributed to the decreased volume in originations were seasonality and decreased levels of 

demand by borrowers. 

Consumer originations, while lower than last month, were still at elevated levels (roughly $145 

billion in April). Many respondents reported high mortgage application volume in April and 

strong pipelines, which were driven by attractive rates. Home equity lines of credit saw a 

decrease in total originations. Many homeowners are electing to refinance their first lien 

mortgages and not to take on any additional debt via home equity lines of credit. Declining 

home values also contributed to lower home equity demand. Households are facing growing 

pressures from a weakening labor market and further declines in their wealth. In this context, 

outstanding credit card balances held by major banks continued to fall, down 1 percent in April. 

In addition, total used and unused commitments for both credit cards and home equity lines of 

credit were flat in April, in contrast to the decline they had experienced for all previous months 

of this survey. Other consumer lending, primarily comprised of student and auto loans, was the 

only consumer category that experienced an increase in total originations. 

Renewals of existing commercial and industrial (C&I) accounts was the only commercial 

lending category that experienced an increase in total originations. Banks again reported that 

demand in both the commercial real estate (CRE) market and commercial and industrial (C&I) 
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market is well below normal levels. As firms continue to downsize, cut costs, and reduce 

inventories, banks predict that lower demand will persist through the second quarter of 2009. 

• Total originations (by all respondents) decreased by 7 percent from March to April. In 

some categories, seasonal patterns contributed to decreases in originations, while in other 

categories decreased appetite to take on additional debt was a contributing factor. Across 

all institutions, the median change in total originations was a decrease of 8 percent. Of 

the 21 respondents, six experienced increases in total originations from March to April, 

and 15 experienced decreases in total originations.

Total average outstanding balances also decreased from March to April. The total 

average outstanding balances (of all respondents) decreased by 1 percent from March to 

April. The median change in total average outstanding balances was a decrease of 1 

percent. Of the 21 respondents, two reported increases in total outstanding balances from 

March to April (the largest increase was 3 percent), while 19 respondents experienced 

decreases in total outstanding balances (the largest decrease was 6 percent). 

• In general, mortgage lending decreased March to April, though the levels are still high 

and the decreases are coming off of elevated numbers in February and March. Total 

originations increased at five banks and decreased at 13 banks. The median change in 

total originations was a decrease of 7 percent. First mortgage originations fell from 

March to April, but many respondents indicated that demand remained at elevated levels. 

All respondents indicated that low interest rates were sustaining high levels in mortgage 

refinancing and new home purchases. The median percentage change in mortgage 

refinancing was a decrease of 8 percent between March and April. For new home 

purchases, the median percentage change from March to April was a decrease of 5 

percent, although eight banks reported increases in new home purchases and 10 reported 

decreases in new home purchases.1

 

• Home equity lines of credit (HELOCs) decreased in volume, as respondents indicated 

that customers elected to refinance first lien mortgages instead of taking on additional 

debt via home equity loans. The median change in HELOC originations was a decrease 

of 8 percent from March to April. A number of respondents reported that they 

experienced run-offs in HELOCs during April, which contributed to decreases in 

outstanding HELOC balances. Depreciating home values and overall economic 

conditions also contributed to lower levels of HELOC lending in April. 

• Credit card lending balances were flat in April compared to March, as many customers 

focus on paying down debt. The economic slowdown, generally lower levels of 

consumer spending, and a higher savings rate contributed to decreases in outstanding 

credit card lending balances. The median change in new account originations was a 

decrease of 5 percent. 

                                                           

1

 Of the 21 respondents, only 18 are active in the residential mortgage business. 
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• Loan originations for other consumer lending products, including auto, student, and other 

consumer loans, decreased from March to April. The median percentage change in 

consumer loan originations was a decrease of 8 percent. 

• Commercial and Industrial (C&I) balances continued to weaken: the median change in 

average outstanding C&I balances was a decrease of 2 percent. Economic uncertainty 

has caused borrowers to downsize, cut costs, reduce inventories, and delay capital 

expenditures. Lower overall merger and acquisition activity further contributed to the 

decreased demand for C&I credit. Nearly all respondents indicated that, throughout the 

recession, demand in C&I lending has remained well below pre-recession levels. 

Companies continued to focus on preserving liquidity, strengthening their balance sheets, 

and paying down existing debt rather than taking on new debt. Despite these conditions, 

some respondents indicated that the middle market sector showed signs of improvement 

in April. 

The median change in renewal of existing C&I loans, however, was an increase of 5 

percent, and was the only loan category with a positive median change. The increases in 

renewals can be attributed to seasonal factors, as many business clients submit annual 

audit results in April. However the median change in new commitments was a decrease 

of 20 percent, with five banks reporting increases in new commitments and 15 banks 

reporting decreases. These decreases in new commitments can be attributed to an 

increased reliance by C&I customers on capital markets financing in place of traditional 

bank loans after a slight rally in the markets in April. 

• In commercial real estate (CRE), new loan demand remains low due to the lack of new 

construction activity. Real estate developers are reluctant to begin new projects or 

purchase existing projects under current poor economic conditions, which include a rising 

supply of office space, as firms downsize and vacancies rise. Finally, nearly all 

respondents indicated that they are actively reducing their exposure to CRE loans, as 

banks expect CRE loan delinquencies to increase over the coming year. 

Both renewals of existing accounts and new commitments in CRE decreased from March 

to April. The median change in renewals of existing accounts was a decrease of 20 

percent, and the median change in new commitments was a decrease of 10 percent. 

• The April survey collected new memoranda information on small business lending.2

 

Respondents reported that in April 2009, outstanding balances for small business loans 

totaled roughly $267 billion, while small business loan originations totaled roughly $8 

billion. 

• The chart on page 6 (“Growth in Loan Originations, April 2009 vs. March 2009”) 

illustrates the range of changes in lending activity among the 21 institutions. The bar on 

2

 Respondents were only required to submit small business lending information beginning with April 2009. Small 

business loans are already accounted for in either consumer lending, commercial lending, or a combination of both, 

but will be reported separately going forward. 
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the far right, for example, indicates that the median volume of loan originations of all 

types fell by 8 percent in from March to April, originations of all types fell by 13 percent 

for the institution at the 25th percentile, and originations of all types were flat for the 

institution at the 75th percentile. There was considerable variability in lending activity 

across banks, especially within C&I renewals and CRE commitments. 
Name First Mortgage HELOC (Lines and Increases)

US Card 

(Managed): 

Initial Line 

Amount

Other Consumer 

Lending

C & I: Renewal of 

Existing Accounts

C & I: New 

Commitments

CRE: Renewal of 

Existing Accounts

CRE: New 

Commitments Small Business1 

American Express N/A N/A $629 N/A N/A N/A N/A N/A N/A 

Bank of America $32,702 $1,347 $1,394 $2,155 $18,523 $8,796 $2,030 $1,183 $1,17

BB&T $2,784 $70 $200 $354 $463 $1,460 $1,059 $247 $1,19

Bank of New York Mellon $64 $17 N/A $9 $93 $41 $30 $61 N/

Capital One $152 $26 $488 $522 $352 $366 $80 $79 $12

CIT N/A N/A N/A $0 $2,705 $629 $0 $0 $1

Citigroup $8,882 $190 $6,536 $1,009 $532 $2,326 $116 $12 $10

Comerica $33 $18 $19 $39 $1,997 $307 $360 $79 $26

Fifth Third $2,255 $130 $211 $307 $1,953 $573 $617 $155 $44

Goldman Sachs $40 $0 $0 $28 $608 $288 $0 $0 $

JPMorgan Chase $13,139 $214 $3,592 $2,670 $18,112 $11,591 $568 $432 $69KeyCorp $157 $137 $0 $21 $1,009 $829 $587 $66 $4

Marshall & Ilsley $416 $68 $7 $89 $261 $142 $181 $62 $2Morgan Stanley $25 $0 N/A $464 $250 $766 $0 $0 $Northern Trust $82 $102 N/A $86 $573 $509 $37 $56 $2PNC $2,222 $503 $140 $213 $3,022 $1,906 $458 $179 $37Regions $925 $117 N/A $82 $1,712 $699 $1,541 $392 $62

State Street N/A N/A N/A N/A $1,205 $170 $32 $0 N/A 

SunTrust $5,002 $143 $11 $312 $1,557 $1,017 $332 $202 $6

U.S. Bancorp $5,335 $560 $900 $838 $4,488 $1,981 $1,259 $444 $49

Wells Fargo $40,009 $666 $1,126 $1,859 $10,116 $7,678 $2,284 $1,380 $1,92

Total (All Institutions) $114,224 $4,308 $15,253 $11,056 $69,531 $42,072 $11,571 $5,029 $Change in Total (All Institutions) 3 -3% -9% -7% 2% 6% -29% -20% -23% n/

First MortgagesHELOCUS Card (Managed)C & ICRESmall Business

N/A 

Commercial real estateDenotes recipient is not active in this category Loans to small businesses

1 These loans are already accounted for in either consumer lending, commercial lending, or a combination of both.2 Total Originations does not include Small Business Originations.3 Percentage changes are calculated versus March 2009 figures.

Loan Originations, April 2009

($ Millions)

Loan Category Key

NOTE: Reliance on internal reporting means that aggregation by loan category varies for each reporting bank. Because of the differences in loan category definitions, comparisons of origination levels across firms may be imperfect. 

US credit cards (managed)Loans secured by first liens on residential real estateHome equity lines of creditCommercial and industrial 

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6 

First Mortgage HELOC (Lines and Increases)

US Card

(Managed):

Initial Line

Amount

Other

Consumer

Lending

C& I: Renewal

of Existing

Accounts

C& I: New

Commitments

CRE: Renewal

of Existing

Accounts

CRE

Comm

75th Percentile 0% 3% 8% 17% 30% ‐4% ‐4% 225th Percentile ‐16% ‐15% ‐15% ‐14% ‐11% ‐35% ‐32% ‐3

Median ‐7% ‐8% ‐5% ‐8% 5% ‐20% ‐20% ‐1

Total (Across All Institutions) ‐3% ‐9% ‐7% 2% 6% ‐29% ‐20% ‐2

‐50%‐40%‐30%‐20%‐10%

0%

10%20%30%40%

Growth in Loan Originations

April 2009 vs. March 2009