Commercial Loans Are Up; Delinquencies Are Down

Commercial real estate loans now comprise more than 90% of the total portfolio, but economic shifts could blunt their growth.

© Callahan & Associates |


  • Balances for outstanding commercial loans rose 24.3% year-over-year to reach $141.7 billion in the fourth quarter of 2022, according to FirstLook data from Callahan & Associates. Commercial loans comprised 9.3% of all outstanding loan dollars as of Dec. 31, up from 6.7% five years ago.
  • Total commercial delinquency is projected to drop to 0.33% in the fourth quarter. That’s 10 basis points lower than the fourth quarter of 2021 and 120 basis points lower than five years ago.
  • Real estate-secured loans comprised more than 92% of credit union commercial loans, but rising rates and economic uncertainty are jeopardizing the near-future of commercial real estate. The Mortgage Bankers Association expects total commercial and multi-family mortgage borrowing and lending to decline approximately 5% in 2023 from projected 2022 levels. However, credit unions have been slow to raise their own rates in response to the Federal Reserve’s rate hikes, keeping the industry an attractive option for those seeking commercial loans of any type.
  • It’s worth noting that the large jump recorded in the third quarter of 2018 was the result of the NCUA expanding the classification of reportable commercial loans rather than a massive increase in commercial lending.

How Does Your Commercial Portfolio Compare?/

Use industry data to determine how your credit union performs against others, uncover new areas of opportunity, and support your strategic initiatives. Callahan’s Credit Union Advisors are ready to show you how — are you ready to see how you’re stacking up?
Schedule Your Peer Demo
February 21, 2023

Keep Reading

View all posts in:
More on:
Scroll to Top
Verified by MonsterInsights