The banking sector tends to be among the first to spot signs of shifting economic winds, and as 2018 drew to a close, many players in the industry started to feel a breeze. While by no means a conclusive predicator of a downturn, our special Banking and Finance Quarterly report this issue looks at the rise in nonperforming loans — often dubbed troubled assets — at some prominent local banks. The trend suggests there could be defaults ahead, but with memories of the Great Recession still fresh, banks are cautious, setting aside capital to offset any sudden uptick in charge-offs. The report examines an industry going through a fascinating period, and it’s one we hope you find sheds some light on the current market.

In this report:

RISE IN RISK? Some local banks see troubled assets grow as interest rates tick up, economy softens