Bac 1st qtr results for commercial loans closely agreed with jpm. Their c&i and commercial lease financing portfolio reported a negative 4 bsp charge-off for the 1st quarter 2011 vs. a recent quarterly average of around 45 bsp. Total loans for these categories were about $246 billion. Their cre portfolio reported 242 bsp charge-off for the 1st qtr. vs a recent quarterly average of around 300 bsp. Total loans for this category were $52 billion.
Imo, this is great news for banks and I expect bbt results next week will show significant improvement. Their 4th qtr. 2010 c&i and commercial lease financing portfolio are around $33 billion with gross charge-offs running in the 100 bsp range. Look for a big reduction. Bbt cre charge-offs have been in recent quarters in the 300 bsp range. Look for a moderate reduction.
Bac yields on their commercial loans showed across the board improvements with the 1st qtr. 2011 yield increasing 26 bsp with c&i up 11 bsp, cre up 30 bsp and clf up 130 bsp. Nice - 50% of bbt loans are commercial 2 to 3 times higher than morgan and bac.