Slide 17 of 25
Notes:
This chart puts the current credit cycle in perspective
You can see that NPAs have been migrating upwards over the past few years and you have probably read a great deal about this
But you can see here that we are not at the levels of NPA to total loans that we experienced in the mid 90s, much less during the last recession in 90-91.
And we have learned our lessons from the last big credit crisis
- You’ve just seen that our reserve levels are higher
- Our overall portfolio is far more diversified today
- We hold smaller positions in our syndicated deals
- We are actively managing down exposure we are concerned about (e.g. our troubled loan sale last Dec)
- and our underwriting standards are tighter today
All of these things combine to help offset the effects of the current economic downturn on our loan portfolio
