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TREASURY DEPARTMENT MONTHLY LENDING AND INTERMEDIATION SNAPSHOT

Summary Analysis for December 2009

Summary Analysis

Economic Environment

Treasury's thirteenth survey of banks' activities was conducted as economic and financial

conditions continued to improve.  Real GDP jumped 5.7 percent at an annual rate in the fourth

quarter of 2009, accelerating sharply from the third quarter's 2.2 percent pace.  The pickup was

due mainly to a sharp slowdown in the pace of inventory liquidation, but even excluding

inventories real final sales were up a solid 2.2 percent.  Housing starts and home sales both

slowed in December but special factors ‐‐ including poor weather and the expected expiration

of the first‐time homebuyer tax credit (which was recently extended) ‐‐ may have played a role.  

House prices continued to stabilize and mortgage rates remained at low levels, providing

support to sales. Labor market conditions remained weak heading into 2010, but the

employment situation continued to show signs of stabilization.  The unemployment rate fell to

9.7 percent in January from 10.0 percent in December.  Payrolls continued to shrink but job

losses have gotten noticeably smaller, averaging 35,000 over the three months ending in

January compared to 260,000 in the third quarter.  Several measures of financial risk have

returned to pre‐crisis norms, indicating a return to relative stability in some markets. Indicators

of consumer spending early in 2010 (about 70 percent of GDP) are mixed; auto sales fell in

January but consumer confidence edged higher.  Private forecasters expect the economy to

continue to grow in the first quarter, at about a 3 percent annual rate.   

December Survey Results

This Monthly Lending and Intermediation Snapshot includes data from 11 institutions.1

  The 10

institutions that repaid in June 2009 are no longer submitting data.  In subsequent Monthly

Lending and Intermediation Snapshots, institutions that repay will report data for the month of

repayment and then cease reporting.

                                                           

1 CIT did not submit December 2009 data as a result of ongoing bankruptcy proceedings.   
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Annual Results2

The total average outstanding balance of all loans increased 13 percent from December 2008 to

December 2009 and total originations increased 17 percent from December 2008.

Compared to December 2008, the total outstanding mortgage balance increased 29 percent.  

Total mortgage originations increased 81 percent from December 2008 to December 2009.  

Refinancing originations drove the increase, rising 161 percent over the year, while new home

purchases rose 40 percent.  Low interest rates over the past year contributed to the dramatic

increases.  The total outstanding balance of home equity lines of credit (HELOCs) increased 13

percent from December 2008 to December 2009.  Respondents noted however that through

2009 demand for new HELOC lines and loans was below 2008 levels.  Accordingly, HELOC

originations declined 43 percent from December 2008 to December 2009.   Since December

2008, the total outstanding balance of credit card loans decreased 7 percent and total

originations of credit card loans decreased 17 percent.   In other consumer lending products,

the total outstanding balance increased 28 percent from December 2008 to December 2009,

and total originations increased 9 percent.  

Respondents consistently indicated that demand in the commercial sector was muted during

the past year.  The total outstanding balance of commercial and industrial (C&I) loans fell 2

percent from December 2008 to December 2009, while renewals increased 22 percent and new

commitments decreased 34 percent.  The total outstanding balance of commercial real estate

(CRE) loans increased 25 percent from December 2008 to December 2009.  Total renewals of

CRE loans increased 14 percent from December 2008 to December 2009, while new CRE

commitments decreased 24 percent.

Monthly Results

The overall outstanding loan balance (of all respondents) fell 1 percent from November to

December at the 11 institutions that submitted Monthly Lending and Intermediation Snapshots,

while total originations of new loans increased 13 percent from November to December.  In

December, the 11 surveyed institutions originated approximately $178 billion in new loans.  

Total originations of loans by all respondents rose in 7 categories (mortgages, HELOCs, credit

card loans, other consumer lending products, C&I renewals of existing accounts, CRE renewals

of existing accounts and CRE new commitments) and fell in 1 loan category (C&I new

commitments).  

                                                           

2 Year over year changes will be calculated only for the 10 CPP recipients that filed both December 2008 and

December 2009 data.  Year over year increases may in part be reflective of acquisition activity (namely Bank of

America’s acquisition of Merrill Lynch, PNC Financial Services Group’s acquisition of National City Corporation and

Wells Fargo & Company’s acquisition of Wachovia Corporation) as data are not merger adjusted.
3

New home purchases were flat in December while refinancing originations rose in December.  

Seasonality contributed to the decline in new home purchases despite favorable rates.  HELOCs

saw an increase in total originations, though institutions indicated that demand remains below

2008 levels.  Outstanding credit card balances held by the surveyed institutions were flat in

December.  Originations of other consumer loans increased in December with the onset of

student loan disbursements for the new semester.  Banks reported that demand in the

commercial sector remain well below normal levels.  Despite low demand, C&I renewals rose in

December, as did CRE renewals and new commitments.  Small business loan originations also

increased in December.

• The total average outstanding balance of all loans fell 1 percent from November to

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

1 percent.  Total originations of all loans increased 13 percent from November to

December.   Across all institutions, the median change in total originations was an

increase of 16 percent.  

• The total outstanding mortgage balance of all respondents was flat.  Total mortgage

originations by all respondents increased by 7 percent, driven by increases in refinancing

originations.  The median change in total mortgage originations was an increase of 2

percent.  Refinancing mortgage originations rose 12 percent from November to

December.  New home purchase originations were flat from November to December.  

Seasonality contributed to the decline in new home purchases as December is typically a

slow time for homebuyers.  Favorable rates, however, boosted refinancing originations.

• The total outstanding balance of HELOCs fell by 1 percent from November to December.  

Total HELOC originations rose 3 percent in December.  The median change in

originations was an increase of 14 percent from November to December.  Respondents

noted that the pool of qualified HELOC borrowers has declined as home values have

depreciated and that demand remained below 2008 levels.   

• The total credit card outstanding balance of all respondents was flat in December.  Total

credit card originations by all respondents increased by 22 percent in December, though

the median change in credit card originations was a decrease of 9 percent.   

• The total outstanding balance of other consumer lending products fell 1 percent in

December.  Total other consumer loan originations increased by 27 percent from

November to December.  The median percentage change in other consumer loan

originations was a decrease of 34 percent.   

• The total outstanding balance of C&I loans fell 2 percent in December; the median

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

uncertainty has caused businesses 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,
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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, building cash reserves and paying down existing debt rather than

taking on new debt.    

Total renewals of existing C&I accounts increased 22 percent in December, and the

median change in renewals was an increase of 16 percent.  Total new C&I commitments

decreased 16 percent in December, and the median change in new commitments was

an increase of 16 percent.   Respondents noted that some of the improvements seen

were in the following sectors:  leasing, institutional bank, middle market, not‐for‐profit

organizations, public institutions, and business banking.  Additionally, signs of

improvement have been seen in M&A activity.

• Demand for new CRE loans 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 surplus of office space as firms

downsize and vacancies rise.  Many respondents noted that their focus in the CRE sector

has been on renewing and restructuring existing loans as opposed to making new

commitments.  The outstanding balance of CRE loans of all respondents fell 1 percent in

December, and the median change in outstanding balances was a decrease of 1 percent.    

Total renewals of existing CRE accounts increased 57 percent from November to

December.  The median change in CRE renewals from November to December was an

increase of 56 percent.  Seasonality contributed to the increase, as year‐end is an active

time for renewals.  Total new CRE commitments increased 157 percent from November

to December, and the median change in new commitments was an increase of 75

percent.    

• In December, total small business outstanding balances3 fell 1 percent, and the median

change in small business outstanding balances was a decrease of 1 percent.  Total small

business originations increased by 21 percent.  The median change in small business

originations was an increase of 17 percent.  

• The chart on page 6 (“Change in Loan Originations, December 2009 vs. November

2009”) illustrates the range of changes in loan originations among the 11 institutions.  

The bar on the far right, for example, indicates that the median change of loan

originations of all types was an increase of 16 percent in from November to December;

originations of all types rose by 11 percent for the institution at the 25th percentile, and

originations of all types rose by 28 percent for the institution at the 75th percentile.  As

in past months, there was considerable variability in lending activity across in the

commercial sector (C&I and CRE).

3 Small business loan data were first reported in April 2009 data and are not included in the year over year analysis.
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 Busin

Bank ofAmerica $29,937 $803 $1,307 $1,886 $19,535 $6,569 $4,201 $390 $1

CIT ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ 

Citigroup $3,908 $106 $8,482 $978 $1,583 $702 $282 $294 

Comerica $36 $10 $23 $41 $2,251 $416 $350 $31 

Fifth Third $1,831 $102 $121 $352 $2,407 $1,919 $1,226 $196 

Hartford $0 $0 N/A $0 $0 $0 $1 $0 

KeyCorp $150 $57 $0 $66 $1,269 $530 $880 $88 

Marshall & Ilsley $198 $57 $6 $59 $161 $146 $64 $71 

PNC $686 $283 $119 $463 $5,580 $2,709 $888 $426 

Regions $644 $94 N/A $91 $1,249 $1,123 $1,916 $300 

SunTrust $2,724 $110 $721 $485 $1,427 $1,184 $341 $215 

Wells Fargo $33,306 $484 $1,034 $2,089 $8,638 $6,311 $3,586 $2,829 $2

Total (All Institutions) $73,420 $2,105 $11,813 $6,510 $44,100 $21,609 $13,735 $4,840 $5

Monthly change in Total 4 7% 3% 22% 27% 22% ‐16% 57% 157% 

Annual change in Total 5 81% ‐43% ‐17% 9% 22% ‐34% 14% ‐24% 

First MortgagesHELOCUS Card (Managed)

C & I

CRESmall Business

N/ANOTE: Reliance on internal reporting means that aggregation by loan category varies for each

reporting bank. Because ofthe 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 estate

Home equity lines of creditCommercial and industrial

Commercial real estateDenotes recipient is not active in this category

Loans to small businesses

2 These loans are already accounted for in either consumer lending, commercial lending, or a combination of both.3 Total Originations does not include the "Small BusinessOriginations" column.4 Monthly percentage changes are calculated versus November 2009 figures.5 Annual percentage changes are calculated versusDecember 2008 figures. Annual changes will exclude data from Hartford Financial ServicesGroup astheir data begin in June 2009.

Loan Originations, December 2009

Current Monthly Lending and Intermediation Snapshot Filers1

($ Millions)

Loan Category Key

1 CIT did not file December 2009 as a result of ongoing bankruptcy proceedings. All calculated changes exclude CIT data.
First

Mortgage

HELOC (Lines

and

Increases)

US Card

(Managed):

Initial Line

Amount

Other

Consumer

Lending

C & I:

Renewal of

Existing

Accounts

C & I: New

Commitmen

ts

CRE:

Renewal of

Existing

Accounts

CRE: New

Commitmen

ts

Sm

Bus

Origi

75th Percentile 8% 23% 24% 57% 44% 38% 97% 164% 225th Percentile ‐4% ‐6% ‐5% 16% ‐7% ‐20% 35% 31% 1

Median 2% 14% 9% 34% 16% 16% 56% 75% 1

Total (Across All Institutions) 7% 3% 22% 27% 22% ‐16% 57% 157% 2

‐50%

0%

50%

100%150%200%

Change in Loan Originations

Current Monthly Lending and Intermediation Snapshot Filers1

December 2009 vs. November 2009

1 CIT did not file December 2009 as a result of ongoing bankruptcy proceedings. All calculated changes exclude CIT data.
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December 2008 December 2009 Change

First Mortgage $576.8 $745.5 29.3%

HELOC $379.8 $427.3 12.5%

US Card (Managed) $337.2 $312.3 ‐7.4%

Other Consumer Lending $230.3 $295.7 28.4%

C & I $615.0 $604.8 ‐1.7%

CRE $298.4 $373.9 25.3%

Small Business1 N/A $169.4 ‐‐‐

Total Outstanding Loan Balances $2,437.4 $2,759.5 13.2%

Total Outstanding Loan Balances

Current Monthly Lending and Intermediation Snapshot Filers

December 2008 vs. December 2009

$ Billions

December 2008 December 2009 Change

First Mortgage $40.6 $73.4 80.8%

HELOC (Lines and Increases) $3.7 $2.1 ‐43.4%

US Card (Managed): Initial Line Amount $14.2 $11.8 ‐16.7%

Other Consumer Lending $6.0 $6.5 9.0%

C & I: Renewal of Existing Accounts $36.2 $44.1 21.9%

C & I: New Commitments $32.8 $21.6 ‐34.1%

CRE: Renewal of Existing Accounts $12.1 $13.7 13.9%

CRE: New Commitments $6.4 $4.8 ‐23.9%

Small Business1 N/A $5.7 ‐‐‐

Total Originations $151.9 $178.1 17.3%

First Mortgages

HELOC

US Card (Managed)

C & I

CRE

Small Business

Total Loan Originations

Current Monthly Lending and Intermediation Snapshot Filers

December 2008 vs. December 2009

$ Billions

Loans to small businesses

Loan Category Key

Loans secured by first liens on residential real estate

Home equity lines of credit

US credit cards (managed)

Commercial and industrial

Commercial real estate

Notes:

All totals exclude data from Hartford Financial Services(asthey began reporting in June 2009) and CIT (asthey

did not submit December 2009 data due to ongoing bankruptcy proceedings).

Reliance on internal reporting meansthat aggregation by loan category variesfor each reporting bank.  

Because ofthe differencesin loan category definitions, comparisons offigures acrossfirmsmay be imperfect.  

1 These loans are already accounted for in either consumer lending, commercial lending, or a combination of
$1,536

$1,781

$923

$979

$2,459

$2,759

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$ Billions

Average Outstanding Loan Balance

Current Monthly Lending and Intermediation Snapshot Filers

October 2008 ‐ December 2009

Total Consumer Loans Total Commercial Loans Total Loans

Total consumer loans are defined asfirstmortgages, home equitylines of credit, credit card loans, and other consumer loans.  Total commercial loans are defined as commercial & industrial loans and

commercialreal estate loans.  Total loans are defined asthe sum oftotal consumer loans andtotal commercial loans.  All totals exclude datafrom Hartford Financial Services, which beganreporting in June

2009.  All totals alsoexclude data fromCIT asthey did notsubmitDecember2009 data due to ongoing bankruptcy proceedings.

Data are not merger adjusted.  Large increases  from December2008to January 2009may in partbe reflective of acquisitions(Bank ofAmerica's acquisition of Merrill Lynch, PNC Financial ServicesGroup's

acquisition ofNational City Corporation,andWells Fargo &Company's acquisition of Wachovia Corporation).  

$71

$94

$95

$84

$165

$178

$0

$50

$100

$150

$200

$250

$ Billions

Total Originations

Current Monthly Lending and Intermediation Snapshot Filers

October 2008 ‐ December 2009

Total Consumer Loans Total Commercial Loans Total Loans

Total consumer loans are defined asfirstmortgages, home equitylines of credit, credit card loans, and other consumer loans.  Total commercial loans are defined as commercial & industrial loans and

commercialreal estate loans.  Total loans are defined asthe sum oftotal consumer loans andtotal commercial loans.  All totals exclude datafrom Hartford Financial Services, which beganreporting in June

2009.  All totals alsoexclude data fromCIT asthey did notsubmitDecember2009 data due to ongoing bankruptcy proceedings.

Data are not merger adjusted.  Large increases  from December2008to January 2009may in partbe reflective of acquisitions(Bank ofAmerica's acquisition of Merrill Lynch, PNC Financial ServicesGroup's

acquisition ofNational City Corporation,andWells Fargo &Company's acquisition of Wachovia Corporation).  

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