Credit quality

The Wisconsin company expects outstanding loans to decreased from current levels, particularly due to paydowns tied to commercial real estate loans.

The Federal Reserve System is trying to be proactive in these and other high-profile areas, offering educational materials and coaching to bank execs and directors, according to supervision officials at the St. Louis and Richmond Fed banks.

A paper released by the agency’s Center for Financial Research says aspects of someone’s digital footprint — including whether they use Apple or Android — help predict likelihood of default.

“Who’s to know when the economy may turn?” the head of the Alabama bank said in describing its weak business-loan growth as the byproduct of cautious pricing and underwriting.

Delinquencies have held steady for a year, and observers are optimistic about upcoming third-quarter data. But the long-term question is whether solid underwriting can overcome higher vehicle prices and consumer debt burdens.

The number of consumers being pursued by debt-collection agencies fell dramatically in the past year, but it's as much technicality as achievement, and bankers need to keep that in mind when reviewing the credit scores of millions of Americans.

Good credit analysts are in short supply, says David Nicholson, a senior VP of commercial lending at a community bank. But fair warning for job seekers: Only dogged questioners who can think critically need apply, because vetting business borrowers is as much art as science.

The onset of artificial intelligence and machine learning could serve as the safety net some companies need, providing a different and more thorough twist on traditional underwriting and credit checks.

The Stamford, Conn., issuer of store credit cards has two potential options after the retail giant chose to partner with Capital One. But the decision over which path to take is out of its hands.