Delinquencies in bank cards (credit cards provided by banks) fell 5 basis points (bps) to 2.69% of all accounts, staying significantly below their 15-year average of 3.66%. However, delinquencies in closed-end loans (like auto and boat loans) rose.
According to the American Bankers Association (ABA) among the 11 individual loan categories, delinquencies rose in all eight closed-end categories, but fell in all three open-end categories compared to the previous quarter.
The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, rose 10 bps to 1.51% of all accounts – remaining well below the 15-year average of 2.19%.
Delinquencies in indirect auto loans (those arranged through a third party such as an auto dealer) rose 13 bps to 1.75% of all accounts, remaining below their 15-year average of 2.22%. Delinquencies in direct auto loans (those arranged directly through a bank) rose 7 bps to 0.94% of all accounts, remaining well under their 15-year average of 1.63%.
Delinquencies fell in one home-related category and rose modestly in the other two. Home equity line of credit delinquencies fell 10 bps to 1.06% of all accounts and are now below their 15-year average of 1.15%. Home equity loan delinquencies edged up 2 bps to 2.61% of all accounts, holding under their 15-year average of 2.85%. Property improvement loan delinquencies rose 4 bps to 0.98% of all accounts.
The fourth quarter 2016 composite ratio is made up of the following eight closed-end loans. All figures are seasonally adjusted based upon the number of accounts.
Composite Ratio rose from 1.41% to 1.51%
Home equity loan delinquencies rose from 2.59% to 2.61%.
Direct auto loan delinquencies rose from 0.87% to 0.94%.
Indirect auto loan delinquencies rose from 1.62% to 1.75%.
Marine loan delinquencies rose from 0.97% to 0.99%.
Mobile home delinquencies rose from 3.11% to 4.07%.
Personal loan delinquencies rose from 1.46% to 1.56%.
Property improvement loan delinquencies rose from 0.94% to 0.98%.
RV loan delinquencies rose from 0.96% to 1.03%.
Home equity lines of credit delinquencies fell from 1.16% to 1.06%.
Bank card delinquencies fell from 2.74% to 2.69%.
Non-card revolving loan delinquencies fell from 1.61% to 1.57%.