Commercial Loan Growth Was Elusive in July

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

Commercial loan growth stalled in July, as line of credit utilization is still well below the pre-pandemic average. Adjusting for PPP loans, total commercial loan balances were up only +0.09% in July when compared to the prior month. There were some positive takeaways this month, with line utilization trending upwards and, in some cases, surpassing pre-pandemic averages for borrowers in the Manufacturing sector. Concerning pricing trends, interest rates charged on new and renewed C&I bilateral loans fell from June to July, as did average Upfront fee levels for new/renewed bilateral loans.