New Commercial Lending Surges in December, SOFR Adoption Continues to Expand

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

2021 ended with a significant rise in commercial loan balances, far above the level of increase typically realized in December. The higher than expected level of loan growth was supported by a strengthening economy, which thus far has weathered the pandemic’s resurgence in the form of the Omicron variant. December marked another milestone in LIBOR cessation, leading to a substantial rise in the percentage of new and renewed commercial loans tied to SOFR and other floating-rate alternatives.