Fueled by a 64 basis point jump in 90-day delinquency, late payments on residential loans rose at U.S. financial institutions. Late payments also increased on commercial mortgages. Earnings, however, improved.
Residential loan delinquency of at least 30 days, including nonaccrual loans, was 10.10 percent as of the fourth-quarter 2009, based on bank data from the Federal Deposit Insurance Corporation. Late payments climbed nearly 100 basis points from the third quarter’s 9.12 percent and have ballooned from 6.91 percent in the fourth-quarter 2008.
Mortgage delinquency bottomed out at 1.35 percent in the second-quarter 2005.
Looking at just delinquency of between 30 and 89 days, the rate edged up to 2.70 percent from the third quarter’s 2.68 percent. But nonaccrual loans jumped to 3.92 percent from 3.61 percent and 90-plus delinquency soared to 3.47 percent from 2.83 percent.
One- to four-unit residential assets held by FDIC-insured banks ended last year at $1.917 trillion, lower than $1.928 trillion three months earlier and $2.045 trillion one year earlier.
On home-equity lines-of-credit, total delinquency edged up to 3.15 percent from 3.12 percent the prior quarter and 3.17 percent the prior year. HELOC delinquency of between 30 and 89 days fell to 1.32 percent from 1.35 percent, while the 90-plus rate was unchanged at 0.45 percent. But nonaccruals rose to 1.38 percent from 1.32 percent.
HELOC holdings fell to $0.661 trillion from $0.667 trillion at the end of the third quarter and $0.668 trillion at the end of 2008.
Total multifamily delinquency climbed to 5.64 percent from 4.73 percent the previous quarter and 2.89 percent the previous year. Multifamily loans outstanding climbed to $211 billion from $216 billion three months earlier.
Commercial mortgages outstanding climbed to $1.091 trillion from the third quarter’s $1.090 trillion. Total delinquency rose to 5.06 percent from 4.62 percent. A year prior, the rate was just 2.70 percent.
Net income at federally insured financial institutions was $0.9 billion during the latest quarter, improving from a $37.8 billion loss a year earlier.
Full-year earnings improved to $12.5 billion from $4.6 billion in 2008.
The number of institutions reporting data was 8,012, lower than 8,099 three months prior and 8,305 one year prior. The fourth-quarter total included 6,839 commercial banks and 1,173 savings institutions. The FDIC said 767 of the institutions have an asset concentration in mortgages.
The report indicated that 31 new charters during all of 2009 were more than offset by 179 institutions that were absorbed by mergers and 140 failed institutions.
Headcount at U.S. banks finished last year at 2,063,101, lower than 2,069,470 at the end of September. Headcount was down significantly from 2,151,758 at the end of 2008.
