FDIC releases banking profile report
By MortgageDaily.com staff
12/3/2002

Frenetic mortgage lending during the third quarter helped swell banks' loans and securities portfolios, according to the Federal Deposit Insurance Corporation (FDIC)'s Quarterly Banking Profile of commercial banking performance.

Residential mortgage loans increased by $58.2 billion, or 7.1%. Home equity loans increased by $12.7 billion, or 6.8%. Bank holdings of mortgage-backed securities increased by $33.7 billion, or 5.1%.

Combined, these assets made up 57.3% of the increase in commercial bank assets, which grew by $183 billion, or 2.7%, during the quarter.

Real estate construction and development loans also fared well -- they increased by $7.2 billion, or 3.6%.

Although 50.8% of banks reported increases in their commercial & industrial (C&I) loans, this type of loan remained in decline for the seventh consecutive quarter. C&I loans fell by $17 billion, or 1.8%.

Since the end of 2000, C&I loans have declined by $130.4 billion, or 12.4%, the profile said.

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