The news was mostly positive for loan quality in the first quarter, with noncurrent loans falling by 5.3%, the 27th time in the last 28 quarters that they've declined. Charge-offs were not quite as good news, however, as they increased year over year for the sixth consecutive quarter. In the first quarter, banks charged off $11.5 billion in loans, a 13.4% increase from the same point in 2016. That said, as a percentage of loans and leases, charge-offs were up only slightly, to 0.5%.
The good with the bad
The number of banks reporting income growth in the first quarter fell to 57.3% from 61% a year earlier, but the number of banks facing losses also fell, dropping to 4.1% from 5.1% in the first quarter of 2016.