By Laura Alix
Deposits at U.S. commercial banks declined during the month of October, while loans and leases increased, according to a recent report from SNL Financial.
Nationwide, deposits fell 7.1 percent on an annual basis, although deposits grew 5.7 percent annualized during the third quarter this year, the firm said, citing a Federal Reserve statistical report. Average deposits declined $60.8 billion or 0.59 percent during October to $10.272 trillion, from $10.333 trillion in September.
Meanwhile, loans and leases averaged $7.819 trillion in October, representing an increase of $33.6 billion, or 5.18 percent annualized, from $7.785 trillion in September, SNL Financial said.
At large commercial banks, defined as the top 25 domestically chartered commercial banks by assets, loans grew by $9.2 billion to $4.434 trillion during the month of October, representing a 2.5 percent increase on an annualized basis. Average loans and leases at small commercial banks, those not included in the top 25, posted an $11 billion increase to $2.613 trillion, or 5.07 percent annualized.
Consumer lending increased by an annualized 4.34 percent annualized in October, averaging $1.192 trillion in October compared with $1.188 trillion in September. Credit cards and other revolving plans increased by an annualized 4.13 percent during the month, while other consumer loans rose by an annualized 4.57 percent.
Consumer loans grew by an annualized 8.17 percent for small, domestically chartered banks, while large banks posted an increase of an annualized 3.10 percent in their consumer lending portfolios.
Real estate loans increased 0.33 percent on an annualized basis in October. Closed-end residential loans declined, while revolving home equity loans and commercial real estate loans rose during the month. Small domestically chartered banks recorded a decline of an annualized 1.58 percent to $531.3 billion in their closed-end residential loans portfolio during October, while large commercial banks closed the month with an annualized 7.9 percent decline to $1.042 trillion in their closed-end residential loan portfolio.
Unrealized gains increased in October, SNL Financial said, with commercial banks reporting $17 billion in gains, up from $8.6 billion in gains during September. Unrealized gains at small commercial banks compressed during the month, with the group posting $1 billion in gains, compared to the $1.30 billion reported in September. Unrealized gains at large commercial banks rose to $16.4 billion in October, compared with $8.7 billion in September.
