PPP Lending Fuels Commercial Loan Growth in February

Free content from Automated Financial Systems, Inc. -- AFS

Total commercial loan balances expanded in February, reversing the decline seen last month. While much of this growth was fueled by Paycheck Protection Program (PPP) lending, C&I bilateral loan balances outside of this program also increased modestly. As the economy normalizes and business confidence continues to improve, lenders are hopeful that C&I balances will regain much of their lost ground. Average interest rates charged on commercial loans were down in February from the prior month across most segments, a trend that was commensurate with an overall improvement in credit quality.