RMA/AFS Commercial Credit Quality Bulletin February 2021

Nonaccrual C&I loans fell for the second straight month and now represent 0.9% of total outstanding balances as of the end of January 2021, down from the 1.03% for November 2020 month end. After increasing in seven out of eight months between April and November of 2020, Nonaccruals appear to have peaked, at least for now. Short-term (30–59 day) delinquencies for January were up substantially, climbing from 0.3% at year-end 2020 to 0.6%. Delinquency measures continue to fluctuate wildly (from a high of 1.3% to a low of 0.3%) as the combined effects of industry payment deferral programs and ample government stimulus have so far provided a successful bridge to consumers and businesses.