First Glance 12L

The 3Q18 issue of First Glance 12L notes continued strong economic conditions and improved bank earnings and capital positions. However, deposit competition intensified, and on-balance sheet liquidity tightened. Surveys by various government and industry groups noted broad but cooling optimism about current conditions and some concern about forward trends.

The 2Q18 issue of First Glance 12L notes year-over-year improvements in earnings and capital ratios amid slower core deposit growth. The pace of employment gains remained comparatively strong, albeit cooler than in 1Q18 and 2Q17. Growing trade tensions could pose risks to employment growth and real estate demand in pockets.

The 1Q18 issue of First Glance 12L notes that wider net interest margins and lower taxes boosted bank earnings year-over-year amid slower loan growth. Job gains remained strong in most states, but housing demand continued to outstrip supply, lifting home prices, crimping affordability, and prompting outmigration in some markets.

The 4Q17 issue of First Glance 12L notes that the Tax Cuts and Jobs Act of 2017 boosted optimism, but also prompted deferred tax asset write-downs and one-time bonuses at many banks. Although job and loan growth remained strong, increasingly tight labor and housing availability may constrain future growth.

The 3Q17 issue of First Glance 12L notes that rising asset yields and sticky deposit pricing helped lift the District’s average return on average assets ratio above 1 percent for the first time since 2007. Job and loan growth outpaced the nation but slowed, and commercial property prices neared a peak.

The 2Q17 issue of First Glance 12L notes stronger bank earnings performance and few credit issues. Of note, District banks’ past due loan volumes increased year-over-year on average for the first time since 2010, yet delinquency ratios continued to edge down due to positive, albeit slower loan growth.

The 1Q17 issue of First Glance 12L notes improved bank financial performance during a period of political and monetary policy uncertainty and decelerating job and loan growth. The report also indicates that commercial real estate markets may be in transition and discusses several “Hot Topics” of interest to supervisors.

The 4Q16 issue of First Glance 12L shows strong, albeit slowing, growth in District jobs and bank loan portfolios. On average, full-year bank earnings improved and loan delinquencies declined. In addition to discussing several “Hot Topics,” the report notes potential headwinds from shifting trade conditions, immigration policies, and interest rates.

The 3Q16 issue of First Glance 12L shows the District’s jobs and bank loan portfolios continued to expand, albeit at a slightly slower pace. Credit conditions remained good and bank profitability improved. Banks face opportunities and challenges because of appreciating real estate values and uncertainties regarding interest rates and trade policy.

The 2Q16 issue of First Glance 12L shows the District’s job growth strengthened real estate markets and boosted bank lending and net interest margins. However, liquidity and capital ratios tightened and commercial real estate loan concentrations expanded because loan growth outpaced increases in total assets, core deposits, and regulatory capital.