2019 Risk Review | 7

Section II: U.S. Economy, 

Financial Markets, and Banking 

Industry Overview

6National Bureau of Economic Research, U.S. Business Cycle Expansions and Contractions.

U.S. Economic Overview

• Economic fundamentals remain favorable, even as growth slows.

• Consumer spending and strong labor market conditions continue to support economic growth.

• Business investment moderated after strong growth in 2018.

• Housing markets continue to slow in 2019 despite lower interest rates.

• Changes to international trade policy offer both upside and downside risks.

The 2019 outlook is for economic growth to continue 

at a slower pace than recent highs. Consensus 

forecasts suggest the pace of economic growth 

will moderate to 2.5 percent in 2019 supported by 

favorable economic fundamentals (Chart 1). The 

expected slowdown in 2019 follows near 3 percent 

growth in 2018, which was helped by tax cuts under 

the Tax Cuts and Jobs Act enacted in late 2017. 

The current economic expansion turned ten years old 

in July 2019 and is the longest expansion on record 

since the 1850s.6

-10

-8

-6

-4

-2

0

2

4

6

8

10

Seasonally Adjusted Annualized Growth Rate, Percent

Chart 1

Real Gross Domestic Product Growth Was Strong

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Sources: Bureau of Economic Analysis, (Haver Analytics), Blue Chip Economic Forecasts

Notes: Dotted lines represent the Blue Chip forecast range as of July 2019. Recessions shaded.
8 | 2019 Risk Review

Consumer spending continues to support economic 

growth. Consumer spending makes up the largest 

portion of U.S. gross domestic product (GDP), 

contributing roughly 70 percent to GDP historically. 

Consumer spending was a bright spot for economic 

growth in 2018, though it slowed in first quarter 

2019. Robust employment growth has supported 

gains in consumer spending during this economic 

expansion. Stronger labor market conditions with 

high employment and wage gains have supported 

overall economic growth and demand for mortgages, 

consumer loans, and lines of credit. Steady hiring 

has pushed the unemployment rate to the lowest 

level in decades (Chart 2). Wage growth picked up 

recently, a further sign of labor market strength. 

Despite the increased cost pressures on businesses, 

higher wages have contributed to growth in consumer 

spending. Broader measures of underemployment, 

including workers who are part-time for economic 

reasons, marginally employed workers, workers in 

jobs below their skill level, and those who have given 

up looking for employment, also have returned to prerecession levels. Labor markets do not show signs of 

overheating, as the recent growth in wages has been 

moderate in spite of demographic issues such as an 

aging workforce and lower labor force participation. 

Household leverage remains modest, as debt levels 

have lagged gains in asset values, suggesting 

consumers in aggregate are not overextending 

their finances and that fundamentals for consumer 

spending are sound. These conditions supported 

consumer sentiment, which helped support consumer 

spending and broader economic activity.

While consumer sentiment and spending remained 

strong, business sentiment and investment moderated 

in 2019. Business investment and confidence 

picked up in 2018 helped by a boost from tax cuts, 

but moderated in 2019 as the tax effects waned 

and businesses faced higher uncertainty around 

the economic outlook. Capital spending growth 

declined and manufacturing conditions weakened 

in 2019, as industrial production slipped in late 

2018 and contracted during the first part of 2019. 

Business sentiment indicators, which affect future 

investment and hiring decisions, also weakened. 

Slower business investment may ultimately weaken 

economic conditions and reduce business demand 

for banking services. 

Inflation softened in 2019 after increasing in 2018. 

Higher inflation in 2018, supported in part by higher oil 

prices, contributed to the Federal Reserve’s decision to 

increase interest rates four times in 2018. Inflationary 

pressures softened by late 2018, with lower oil prices 

reflecting increased shale production, a depressed 

outlook for global demand, and strong global supply. 

0

2

4

6

8

10

12

14

16

18

1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017

Source: Bureau of Labor Statistics (Haver Analytics) 

Note: Recessions shaded. Monthly data through June 2019.

Civilian Unemployment Rate, Percent

Unemployment Rate

Unemployed + 

Marginally Attached + 

Part-Time for Economic Reasons 

Chart 2

The Unemployment Rate Is at Its Lowest Level in Decades
2019 Risk Review | 9

Inflation expectations based on consumer surveys 

suggest consumers do not expect prices to increase 

significantly in the near term.7 

Housing markets continue to slow in 2019. Home 

price growth slowed in many major markets as high 

prices reduced affordability, and home sales are 

down from year-earlier levels despite lower mortgage 

rates. However, housing market fundamentals 

remain positive. Higher employment and rising wages 

supported housing demand. Lack of housing supply, 

due to increased costs of materials, limits on available 

land for new construction, and shortages of skilled 

construction workers, continue to weigh on sales. The 

2017 tax legislation, which changed state and local tax 

exemption limits and the home mortgage deduction, 

reduced certain tax benefits for some homeowners. 

While the overall effects are hard to predict, areas 

with higher housing costs or property taxes could see 

decreased demand and a slowdown in price increases, 

or outright price declines. Housing supply is expected 

to remain tight and prices are expected to continue to 

rise but at a slowing pace in most areas. 

7Surveys on inflation expectations include the Survey of Professional Forecasters, conducted by the Federal Reserve Bank of Philadelphia; the University of 

Michigan Surveys of Consumers; and the Survey of Consumer Expectations, conducted by the Federal Reserve Bank of New York.

8Federal Reserve Board of Governors, Monetary Policy Report, Box 1, “The Persistent Slowdown in Global Trade and Manufacturing,” July 2019.

Changes in long-standing U.S. trade policy in 2018 

and early 2019 dampened trade activity. Steel and 

aluminum tariffs were implemented in March 2018, 

and several rounds of tariffs were imposed on Chinese 

goods during the year. These tariffs contributed to 

a slight decline in U.S. exports in the second half 

of 2018 and a small estimated effect on inflation 

and economic growth. In 2019, trade developments 

weakened business sentiment and manufacturing 

conditions.8 Another round of tariffs that were 

imposed on China in May 2019 could further impact 

the economy, particularly in states that are most 

dependent on trade (Map 1). The U.S. also announced 

a trade agreement with Canada and Mexico to replace 

the North America Free Trade Agreement (NAFTA). The 

United States-Mexico-Canada Agreement (USMCA), if 

approved, may affect output, exports, and employment, 

particularly for the auto industry in the South and 

Midwest. The effects will vary by industry but should 

have a positive effect overall on the economy. The 

USMCA could especially benefit states along the 

U.S.-Mexico border. However, specific provisions 

regarding rules of origin and wage labor content may 

result in a decline in specific trade flows in other 

regions and industries.

Map 1

A Large Share of State GDP Is Dependent on Trade

6.2

14.9

15.9

23.5

18.8

8.9

16.6

34.9

32.5

4.9

32.5

21.2

16.4

17.7

8.7

18.4

13.0

13.8

6.3

26.2

21.0

10.1

18.6

15.2

13.0

25.0

11.1

15.1

38.8

10.4

11.4

11.0

42.1

41.4

14.3

25.8 27.6

14.2

13.2

5.6

23.7

13.3

18.1

2.5

13.6

5.9 20.9

12.9 14.0

21.5

12.3 Less Than 10 Percent

10 Percent up to 20 Percent 

20 Percent up to 30 Percent

More Than 30 Percent

Sources: U.S. Bureau of Economic Analysis, U.S. International Trade Administration, FDIC staff analysis 

Total trade as share of state GDP 2018
10 | 2019 Risk Review

A substantial amount of cross-border activity and 

investment occurs between the United States, 

Mexico, and Canada, particularly related to 

manufacturing. The USMCA may augment the 

existing tariff-free, export-oriented manufacturing 

program, an important part of U.S. corporate 

strategy to achieve competitively priced goods in 

the world marketplace. Increased uncertainty about 

either tariffs or trade agreements may have larger 

long-term effects as consumers and businesses

delay purchases and investment decisions. 

Vulnerabilities persist for industries and regions with 

high trade exposure. Sectors such as agriculture, 

computers and electronic products, and transportation 

equipment have significant volumes of imports 

and exports with China, the European Union (EU), 

Canada, and Mexico, jurisdictions that could become 

the target of additional tariffs. Tariffs have disrupted 

supply chains, which has increased production costs 

in certain industries and regions, and may result in 

adverse regional economic effects.

The trade effects have weighed most on the 

transportation and agricultural sectors, as these 

sectors have been subject to China’s tariffs. In 2017, 

transportation equipment accounted for 23 percent 

of total U.S. exports to China, and agricultural 

products accounted for 12 percent. Transportation 

equipment exports facing tariffs fell 8 percent in 

third quarter 2018. Soybean production is heavily 

concentrated in the Midwest, with Illinois and Iowa 

production accounting for more than $11 billion, 

or just over 28 percent, of all domestic soybean 

production in 2018. Prices of soybeans fell more 

than 10 percent in 2018 after the enactment of 

Chinese soybean tariffs in the summer. For many U.S. 

soybean farmers, prices were below production costs 

in 2018.9

9United States Department of Agriculture. Soybean Costs and Returns data.

The slowdown in U.S. economic growth in 2019 is 

expected to be small compared with other major 

economies. Global economic growth has slowed in 

2019, led by weaker growth in China and Europe. 

Trade uncertainty weighs on the global economic 

outlook. China’s economic slowdown that began in 

2018 reflects tighter credit conditions and reduced 

investment. Political risks in Europe, including the 

as-yet uncertain terms of the United Kingdom leaving 

the EU (Brexit), could have broad-ranging effects on 

the global economy and banking system. While the 

direct impact of Brexit on the U.S. economy and 

banking sector may be limited, adverse financial 

market reactions to the terms of Brexit may pose 

indirect risks to U.S. markets and institutions. Central 

banks have responded to weaker economic conditions 

as global monetary policy remains accommodative 

overall. Both the Bank of England and the European 

Central Bank have eased plans announced in 2018 

to tighten monetary policy, causing interest rates to 

decline globally. These global factors are contributing 

to slower global growth and may reduce U.S. 

economic activity.
2019 Risk Review | 11

Financial Markets

• The U.S. Treasury yield curve flattened in 2018, signaling the possibility of a weakening economy. 

• Volatility returned to financial markets in 2018 following several years of steady performance.

• Stocks and bonds reversed course in the fourth quarter and performed poorly on the year.

• Bank stocks were more volatile than the broader stock market in 2018.

The U.S. Treasury yield curve flattened significantly 

in 2018. The Federal Open Market Committee raised 

the target range for the federal funds rate four times 

in 2018, increasing the upper end of the target range 

from 1.5 percent at year-end 2017 to 2.5 percent 

at year-end 2018. The three-month U.S. Treasury 

bill yield followed closely, rising from 1.4 percent in 

January 2018 to 2.4 percent in January 2019. At the 

two-year and ten-year maturity points, U.S. Treasury 

yields rose 59 basis points and 29 basis points, 

respectively, in 2018. These moves compressed the 

spread between the two-year and ten-year yields from 

51 basis points at the start of 2018 to just 21 basis 

points at year-end (Chart 3). The spread between 

the ten-year and two-year yields is of particular 

interest because an inversion, or negative value, 

is considered a potential indicator of a recession. 

Historically, a recession occurs six months to two 

years after the curve inverts. Further, banks are 

adversely affected by a flatter yield curve because 

they typically make longer-term loans while accepting 

shorter-term deposits. 

Despite the flattening yield curve, bank average net 

interest margins (NIMs) rose in 2018. Banks were able 

to increase total interest income in 2018 by more 

than enough to offset the increase in funding costs, 

causing NIMs to expand. The average NIM for the 

industry was 3.5 percent in fourth quarter 2018, up 

17 basis points from a year earlier. Deposit betas, 

which measure the percentage change in the federal 

funds rate that banks pass on to depositors, trended 

higher for most of 2018. According to some analysts, 

early signs point to continued increases in deposit 

costs in 2019 and, in a reversal from 2018, a decline 

in bank NIMs. Some banks have experienced a decline 

in asset yields as the yield curve has flattened, putting 

downward pressure on NIMs.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2015 2016 2017 2018 2019

10-Year Treasury

2-Year Treasury

3-Month Treasury

Effective Federal Funds Rate

Chart 3

The Gap Between Yields on Treasuries of Varying Maturities Narrowed in 2018 

Source: Federal Reserve Bank of St. Louis

Yield, Percent 
12 | 2019 Risk Review

Corporate bonds performed poorly in the 2018 rising 

rate environment. Corporate bonds and bond funds 

lost value in 2018, as rising interest rates caused 

bond prices to fall. Other factors contributing to 

declining asset prices in 2018 were concerns about 

slowing economic growth, ongoing trade negotiations, 

increased tariffs, and higher oil prices. High-yield and 

investment-grade debt issuances were both down in 

2018 compared with the previous year.10 In late 

2018, market conditions deteriorated and the primary 

market for debt issuance softened considerably. The 

high-yield bond market did not have a new issuance 

for 41 days at the end of 2018, the longest such 

period since 1995. Investment-grade bond issuance 

also stalled in December, declining more than 90 

percent from previous months. The corporate bond 

market recovered in early 2019, and issuances 

returned to normal levels.11 Prices for major corporate 

bond indices are positive for the year.

Measures of secondary market liquidity were generally 

positive in 2018. Corporate bond trading volumes 

continued on an upward trend, and bid-ask spreads 

remained tight. However, the growth of BBB-rated 

bonds is a concern. These bonds, which are rated 

just above speculative grade status, accounted for 

49 percent of all investment-grade bonds in 2018, 

up from 33 percent in 2008. Market liquidity issues 

could occur if a significant portion of BBB-rated bonds 

are downgraded to speculative grade within a short 

period and mutual funds, insurance companies, and 

other investors with investment mandates are forced 

to sell a large volume of those bonds quickly.

10Securities Industry and Financial Markets Association research and data.

11Ibid.

12Standard & Poor’s Leveraged Commentary and Data (LCD).

13 Securities Industry and Financial Markets Association research and data.

The leveraged loan market received increased scrutiny 

in 2018. The U.S. leveraged loan market surpassed 

$1.3 trillion in 2018, making it larger than the highyield corporate bond market. Leveraged loans are 

usually arranged by a syndicate of banks and made 

to companies that are heavily indebted or have 

weak credit ratings. Leveraged loans typically are 

floating rate loans and generally are extended to 

fund leveraged buyouts, stock buybacks, or dividend 

payments. While the leveraged loan market has 

experienced a period of sustained growth since 2010, 

growth has accelerated over the past two years as the 

demand for adjustable-rate products has increased. 

Non-bank investors hold most institutional U.S. 

leveraged loans, with U.S. banks holding only about 

7 percent of institutional leveraged loans issued in 

the first half of 2019.12 In the United States, more 

than half of all leveraged loans are purchased and 

packaged into collateralized loan obligations (CLOs), 

which are sold to investors, including U.S. banks. 

The volume of CLOs outstanding at the end of 2018 

reached an all-time high of $616 billion.13 Strong 

demand from CLOs and yield-seeking investors has 

allowed issuers to ease underwriting standards 

and documentation requirements. Loans with weak 

covenants are sometimes referred to as “covenantlite” or “cov-lite.” Banks could be indirectly exposed 

to risks in leveraged loans through their holdings 

of CLOs as well as their loans to nonbank financial 

institutions. Banks also face exposure to leveraged 

loan borrowers through revolving credit lines.
2019 Risk Review | 13

In 2018, the stock market posted its first annual 

decline across all three major indices since the end 

of the financial crisis. The Dow Jones Industrial 

Average (DJIA), Standard and Poor’s (S&P) 500, and 

National Association of Securities Dealers Automated 

Quotations (NASDAQ) index declined 5.6 percent, 6.2 

percent, and 3.9 percent, respectively. Asset prices 

appreciated with historically low volatility in 2017, 

but 2018 brought increased volatility to financial 

markets. In early February 2018, the Chicago Board 

Options Exchange Volatility Index (VIX), one measure 

of market volatility, spiked more than 20 points, or 

117 percent, in a single day to a level not seen since 

August 2015.14 That same day, the DJIA dropped 

by a record 1,175 points. Analysts believe that the 

building popularity of “short volatility” bets, which 

use futures or options tied to the value of the VIX, 

has exacerbated volatility swings. In 2018, the VIX 

averaged 16.6, close to the historic median but higher 

than the 2017 average of 11.1 (Chart 4). Cross-asset 

correlations, which measure the tendency for prices 

of dissimilar assets to move together, trended higher 

in 2018, particularly when volatility was high. The 

S&P 500 experienced two corrections in 2018 when 

the index fell more than 10 percent from the previous 

high. Equity indexes rebounded in early 2019, 

approaching and in some cases setting record highs 

in April, as the Federal Reserve signaled a stabilization 

in interest rates. 

14The VIX is sometimes referred to as Wall Street’s “fear gauge” because it tends to rise when equity prices fall.

Bank stock prices, which are sensitive to interest rate 

and economic conditions, fluctuated more sharply 

than the broader market throughout 2018. The Keefe, 

Bruyette, and Woods (KBW) Bank Index, a benchmark 

index for the banking sector that includes 24 banking 

stocks, fell 19.6 percent in 2018, outpacing the decline 

in the broader market despite the industry’s solid 

earnings. The prospect of future interest rate increases 

and the potential for further flattening or inversion of 

the yield curve may have contributed to the banking 

sector’s underperformance in 2018. The price of credit 

protection for banks increased in the first and fourth 

quarters of 2018, reflecting elevated market volatility 

and eroding financial market liquidity. Bank stocks have 

continued to lag the broader market in 2019.

0

5

10

15

20

25

30

35

40

45

2015 2016 2017 2018 2019

Chart 4

Volatility Returned to Financial Markets in 2018

Source: Yahoo! Finance

Notes: Daily data through March 2019. VIX is the Chicago Board Options Exchange Volatility Index,

a measure of nancial market volatility.

VIX, Index Value

Increased Volatility
14 | 2019 Risk Review

Banking Industry Overview

15The Tax Cuts and Jobs Act led to large increases in income tax expenses in fourth quarter 2017 because of one-time write-downs of deferred tax assets. The 

subsequent lower income taxes realized in 2018, coupled with the above-average tax expense in 2017, contributed to the growth and record levels of bank 

profits in 2018. See FIL-6-2018, New Tax Law: Accounting and Reporting Implications, https://www.fdic.gov/news/news/financial/2018/fil18006.html.

• Net income for FDIC-insured institutions reached a record level in 2018.

• The industry continues to experience positive year-over-year loan growth.

• Loan performance indicators remain strong.

• Banks hold higher levels of higher-quality capital than in recent years.

The banking industry continues to report strong 

financial performance. As of first quarter 2019, the 

5,362 FDIC-insured institutions benefited from greater 

net income, strong asset quality indicators, and 

additional capital formation (Chart 5). The number of 

problem banks is at the lowest level in more than ten 

years, and no banks failed in 2018.

Net income at FDIC-insured institutions rose 44 

percent from 2017 to $236.7 billion in 2018. The 

record profits in 2018 were primarily due to higher 

net operating revenue and a lower effective tax rate 

following passage of the Tax Cuts and Jobs Act in 

December 2017. The FDIC estimates that absent tax 

reform effects, 2018 net income would have been 14 

percent higher than in 2017. In first quarter 2019, 

bank profits rose $4.9 billion (8.7 percent) compared 

with first quarter 2018, owing to higher net interest 

income, gains in securities portfolios, and lower 

noninterest expense. The share of unprofitable banks 

fell to 3.9 percent from 4.1 percent a year earlier on 

higher earnings industry-wide.15

A combination of loan growth and widening NIMs 

continued to drive increases in net interest income 

among banks. Interest rate hikes so far have 

benefitted most of the industry, as assets have 

repriced faster than liabilities including deposits. This 

has been especially true for large banks, which hold 

a higher share of short-term assets on their balance 

sheets. However, interest rate increases have put 

upward pressure on rates paid by banks to depositors. 

As a result, banks are seeing a shift in their liability 

mix away from noninterest-bearing balances and 

toward interest-bearing balances. In first quarter 

2019, the increase in average cost of funds exceeded 

the increase in average asset yields, resulting in a 

decline in NIM for the industry (Chart 6). In addition to 

60.7

-20

-10

0

10

20

30

40

50

60

70

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Securities and Other Gains/Losses, Net

Net Operating Income

Chart 5

FDIC-Insured Institutions Earned Record Prots in 2018

Quarterly Net Income, Billions of Dollars

Source: FDIC

Note: Quarterly data through rst quarter 2019.
2019 Risk Review | 15

the rise in funding costs, asset yields have declined at 

some banks as the yield curve has flattened, putting 

further downward pressure on NIMs. The decline in 

NIMs in first quarter 2019 is also partly attributable to 

seasonal factors, as NIMs typically decline from fourth 

quarter to first quarter. 

Banks’ noninterest income declined year-over-year 

in first quarter 2019, primarily because of lower 

servicing fee income and other noninterest income. 

Slightly more than half the industry (52.6 percent) 

recorded year-over-year decreases in noninterest 

income, as recent market volatility caused declines 

in securitization income. These declines had the 

most pronounced impact on larger institutions 

that are more active in securitization. Noninterest 

expenses decreased for banks in first quarter 2019 

from the year-earlier quarter, as increases in salaries 

and employee benefits were more than offset by 

declines in other noninterest expenses. 

Loan growth continued at rates below those reported 

in recent years. Loan balances increased from a year 

earlier in all major categories in first quarter 2019.16

The strongest growth rates were in the commercial 

and industrial (C&I), commercial real estate (CRE), 

and consumer loan categories. The growth rate of 

loans secured by real estate, while positive, has 

16Major loan categories include commercial and industrial loans, residential mortgage loans, consumer loans, and nonfarm nonresidential loans. Consumer 

loans include credit card, automobile loans, and all other consumer loans.

been gradually slowing since 2016. The acquisition, 

development, and construction (ADC) loan category 

has slowed most within the broader CRE portfolio. 

ADC loan balances for the industry increased only 

2.8 percent year-over-year in first quarter 2019 after 

increasing 12.1 percent in first quarter 2017 and 

15.7 percent in first quarter 2016. Aggregate loan 

growth in first quarter 2019 was slightly negative 

(down 0.05 percent) compared with fourth quarter 

2018 because of seasonal declines in consumer 

loans, specifically credit card loans. Credit card 

balances declined $43.5 billion (4.8 percent) in 

first quarter 2019 as nearly 14 percent of banks 

decreased their credit card holdings. All other major 

loan categories reported quarterly increases. 

3.00

3.25

3.50

3.75

4.00

4.25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Community Banks

Industry

Chart 6

Community Banks Continue to Record Higher Net Interest Margins

Than the Industry 

Source: FDIC

Note: Quarterly data through rst quarter 2019.

Net Interest Margin, Percent
16 | 2019 Risk Review

Community banks reported a merger-adjusted 6.6 

percent annual increase in loan and lease balances 

in first quarter 2019, exceeding the growth rate 

of noncommunity banks by nearly 3 percentage 

points. Community banks reported a higher yearover-year growth rate than noncommunity banks in 

almost all loan categories. The largest increases for 

community banks were in ADC, multifamily, nonfarm 

nonresidential, and C&I loan portfolios. Compared 

to community banks, noncommunity banks reported 

a larger percentage increase in credit card loans. 

Loans and leases represented 56.1 percent of the 

banking industry’s total assets as of first quarter 

2019 and have remained a relatively stable share the 

past several years. Securities represented 21 percent 

of bank assets, a majority of which (60 percent) are 

mortgage-backed securities. 

The current economic expansion continues to support 

loan performance across the banking industry. 

Noncurrent loan balances in first quarter 2019 were 

below 1 percent and are at an 11-year low primarily 

because of improving performance for residential 

mortgages (Chart 7). However, first quarter 2019 also 

saw an increase in C&I noncurrent loans, which 

17Agriculture loan volume, delinquency, and charge-off data are seasonal, and therefore historical comparisons are best made on a same-period basis.

increased the C&I noncurrent rate by 14 basis points 

to 0.82 percent. The dollar amount of noncurrent 

farm loans continues to rise as the agriculture 

industry struggles amid low commodity prices. While 

low overall, the noncurrent rate for farm loans at 

community banks (1.28 percent) is at the highest 

first-quarter rate since 2011.17 Net charge-offs remain 

low and stable. 

Banks hold higher levels and higher-quality capital 

than during the financial crisis, owing to post-crisis 

regulatory capital requirements. This capital provides 

the banking industry resiliency to sustain potential 

future losses. 

0

1

2

3

4

5

6

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Noncurrent Rate

Quarterly Net Charge-Off Rate

Chart 7

Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

Remain Low

Percent

Source: FDIC