The first chart illustrates the 1-year percentage change of KBW Bank Indexes compared to the S&P 500.
The KBW Bank Index, which represents national money center banks and leading regional institutions, was at 45.43% on 1/31/25, above the S&P 500 at 26.05%, while the KBW Regional Banking Index, which represents the performance of the broad and diverse U.S. regional banking industry, was at 24.60%.
The Trend in Bank Deposits
Total Bank deposits at Small Chartered Banks have outpaced the number of deposits at Large Chartered Banks since 3/23/22. The chart below illustrates the share of deposits held at Small and Large Chartered banks, expressed as a percentage change, for the period 1/1/20 – 1/15/25).
As of 1/15/25, total deposits at Small Chartered Banks were at 45.8%, above Large Chartered banks at 32.1%.
Delinquency Rates Trend Higher for Commercial Banks
The delinquency rate on consumer loans held at commercial banks climbed higher at Q3 2024 to 2.72% from 2.60% in Q2 2024.
Small Banks (assets less than $1.3 billion) had a higher delinquency rate than Large Banks, at 2.95% in Q3 2024, up from Q2 2024 at 2.78%.
Large Banks (assets of $100 billion or more) had a delinquency rate of 2.70% in Q3 2024, up from 2.58% in Q2 2024.
Breaking Down Consumer Credit
Utilizing data from the Fed’s G.19 Consumer Credit Report (which excludes mortgage debt), Total Consumer Credit decreased at a seasonally adjusted annual rate of 1.8% in November 2024.
Total consumer credit was $5,102.4 billion in November 2024, down month-over-month from $5,109.9 billion in October 2024.
For perspective, consumer credit has trended higher post-pandemic. Pre-pandemic, in 2019, total consumer credit was $4,192.2 billion.
Revolving Credit Balances, which consist of both credit cards and home equity lines of credit, declined at annual rate of 12.0% at $1,359.3 billion in November 2024.
Revolving Credit Balances have trended higher over the past few years from $974.6 billion in 2020 to $1,318.8 billion in 2023.
Non-Revolving forms of Consumer Credit, which includes automobile, student and personal loans, increased at an annual rate of 2.0% in November 2024 at $3,743.1 billion. This category has also continued to trend higher compared to a pre-pandemic balance of $3,100.2 in 2019.
