Nonperforming loans increase during 2000

Nonperforming loans in the U.S. banking industry increased 26.6 percent during 2000, reports Weiss Ratings, Inc. of Palm Beach Gardens, Fla. The increase compares to a 2.9 percent increase in 1999. At year-end 2000, nonperforming loans reached $48.8 billion, up $10.2 billion from the $38.6 billion level recorded at year-end 1999. More than 60 percent of the nation's 9,907 banks and thrifts experienced an increase. Nonperforming commercial loans accounted for the majority of the industry's increase in problem loans, increasing 59.7 percent, or $6.2 billion in 2000, from $10.5 billion at year-end 1999 to $16.7 billion at year-end 2000.