Federal Reserve Bulletin

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2005

Figure B. Charge-off rates on loans at hurricane-affected banks, 2000-05. Data plotted as curves. At hurricane-affected banks, the charge-off rate on consumer loans starts at about 1 percent in 2000, generally moves higher to reach about 1.2 percent in early 2002, generally declines to about 0.8 percent in late 2005, then rises to almost 1.4 percent at the end of 2005. The charge-off rate on C&I loans begins in 2000 at just over 0.4 percent, then fluctuates between about 0.8 percent and just less than 0.4 percent through early 2001, then rises to reach about 1 percent in 2001, generally falls to reach about 0.4 percent in mid-2002, then generally falls further to about 0.2 percent by late 2004, then rises to just over 0.4 percent by the end of 2005. The charge-off rate on real estate loans holds at close to zero percent from the beginning of 2000 to early 2001, generally rises to about 0.3 in late 2002, generally falls to close to zero percent in 2003, rises thereafter to hold at about 0.1 percent throughout 2004, then declines to hold at close to zero percent throughout 2005.

Note: The data are quarterly and seasonally adjusted. For definition of net charge-offs, refer to the note for figure 24 of the main text. For definition of "hurricane-affected banks," refer to footnote 2 in this box.  Return to article