Credit Risk Benchmarks 2Q19

Credit quality for commercial loans remained strong in 2Q19, with nonaccrual and criticized loan levels remaining below historical averages. However, weaknesses were noted in the Agriculture and Manufacturing industries, which may be reflective of broader economic and trade-related headwinds. In terms of commercial real estate (CRE), after a prolonged period of improvement the percentage of loans on nonaccrual increased for the second successive quarter. The spike in CRE nonaccruals through the first six months of the year can be primarily attributed to the residential real estate (1-4 family) segment.