Asset Quality
Commercial & Industrial Loans
Also known as C&I Loans
Commercial and industrial (C&I) loans are credit extended to businesses for working capital, equipment, and operations — as opposed to real estate. They are a core commercial-banking product and a sensitive barometer of economic conditions.
Formula
Schedule RC-C reports C&I loans as a distinct category from real estate, consumer, and agricultural lending. They are typically floating-rate and shorter-term, so they reprice quickly and are closely tied to business borrowers' health.
Why it matters
C&I lending is the heart of relationship commercial banking and brings operating-deposit relationships with it. Because businesses borrow and repay with the cycle, C&I balances and their loss rates are an early read on economic momentum.
How to interpret
Read C&I loans as a share of the book and against net charge-offs. Rapid C&I growth can mean strong demand or loosening underwriting; rising C&I charge-offs are often the first credit signal when the economy turns.
Thresholds
| Range | Label | Interpretation |
|---|---|---|
| Diversified, seasoned | Strong | Granular C&I book with stable loss history. |
| Typical | Adequate | C&I share in line with a commercial-bank peer group. |
| Rapid growth | Watch | Fast growth warrants underwriting scrutiny. |
| Rising losses | Concern | Climbing C&I charge-offs signal credit deterioration. |
Worked example
Frequently asked
What is the difference between C&I and commercial real estate loans?
C&I loans finance a business's operations and are repaid from business cash flow. Commercial real estate loans are secured by and repaid from income-producing or owner-occupied property. They carry different risks and are reported separately.
Why are C&I loans seen as economically sensitive?
They are usually shorter-term, floating-rate, and tied to business activity, so balances and losses move with the economic cycle — making C&I trends a useful early indicator.
Sources
- FFIEC Call Report Schedule RC-C (Loans and Lease Financing Receivables)
See C&I Loans across 4,335 US banks
BankRegReports ranks every FDIC-insured institution by C&I Loans, refreshed quarterly within 48 hours of FFIEC release.