WASHINGTON, D.C. -

The latest American Bankers Association’s Consumer Credit Delinquency Bulletin showed auto loan performance in the fourth quarter didn’t stumble much as the two categories analysts track moved only a total of 3 basis points year-over-year.

ABA reported that direct auto loan delinquencies — contracts arranged directly through a commercial bank — fell from 0.72 percent to 0.71 percent, meanwhile indirect auto loan delinquencies — contracts arranged through a third party such as a dealer — rose from 1.51 percent to 1.53 percent.

The bulletin went on to mention delinquencies in closed-end loans and bank cards rose slightly in Q4 but remained near record lows. Analysts contend the broader results paint a positive picture with delinquencies in seven of the 11 individual loan categories falling.

The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, rose 3 basis points to 1.54 percent of all accounts, settling well under the 15-year average of 2.29 percent. 

The ABA report defines a delinquency as a late payment that is 30 days or more overdue.

“Even as incomes rise and the economy improves, consumers continue to take a judicious approach to managing their finances,” ABA chief economist James Chessen said.  “Consumers have regained confidence since the last recession, but they remain careful about taking on additional debt.”

Bank card delinquencies ticked up slightly in the fourth quarter, rising 1 basis point to 2.52 percent of all accounts. They remain well below their 15-year average of 3.75 percent and have varied by only 14 basis points since the fourth quarter of 2012.

“As credit access and consumer spending increase, the overwhelming majority of cardholders continue to pay off or pay down their balances month after month,” Chessen said.  “We expect this trend to continue as consumers remain laser-focused on keeping debt at manageable levels.”

 Delinquencies in two of the three home-related categories — home equity loans and home equity lines of credit — trended downward in the fourth quarter, falling to 3.23 percent and 1.48 percent, respectively.  Delinquencies for property improvement loans increased 11 basis points to 0.93 percent.

“Home equity delinquencies are trending in the right direction as the housing market continues its slow march toward recovery,” Chessen said.  “As household wealth and income rise, consumers are better positioned to meet their financial obligations.”

Chessen insisted that a healthy economy and continued financial discipline among consumers bode well for future delinquency rates.

“The economy is better, incomes are higher and the risk of lending is lower,” he said.  “People have a greater capacity to repay their debts, and we expect delinquencies will continue to fluctuate near these low levels for the foreseeable future.”

 The Q4 composite ratio is made up of the following eight closed-end loans.  ABA explained all figures are seasonally adjusted based upon the number of accounts.

The movements of those eight closed-end loan categories included:

— Personal loan delinquencies fell from 1.51 percent to 1.42 percent.

— Direct auto loan delinquencies fell from 0.72 percent to 0.71 percent.

— Indirect auto loan delinquencies rose from 1.51 percent to 1.53 percent.

— Mobile home delinquencies fell from 3.64 percent to 3.60 percent.

— RV loan delinquencies fell from at 1.03 percent to 0.98 percent.

— Marine loan delinquencies fell from 1.21 percent to 1.17 percent.

— Property improvement loan delinquencies rose from 0.82 percent to 0.93 percent.

— Home equity loan delinquencies fell from 3.24 percent to 3.23 percent.

ABA also tracks three categories of open-end loans. The Q4 data was as follows:

— Bank card delinquencies rose from 2.51 percent to 2.52 percent.

— Home equity lines of credit delinquencies fell from 1.52 percent to 1.48 percent.

— Non-card revolving loan delinquencies rose from 1.68 percent to 1.80 percent.