Total committed credit lines increased slightly in Q3/15 while credit line utilization dropped, according to the Commercial Finance Association (CFA), which released its latest Quarterly Asset-Based Lending Index. This data reflects steady market conditions, mixed with some expectation of lower future economic activity.

“I would characterize the quarter as steady,” said Robert Trojan, chief executive officer of the CFA. “There are minor changes to the various components. Commitments tend to grow the further we get away from the recession.”

According to the CFA’s ABL Index for Q3/2015, total ABL loan commitments in Q3/2015 were 7% over their levels during the same quarter in 2014. New credit commitments in Q3/2015 were 11.3% below the previous quarter and 7.8% below the same quarter in 2014. Credit line utilization as of September 30, 2015, was 42.5%. This was in line with the previous quarter and the same quarter in 2014.

In terms of portfolio performance, lenders’ non-accruing loans in Q3/2015 were above the previous quarter as a percentage of total asset-based loans outstanding, but still near historic lows. However, 33% of lenders reported a decrease in non-accruals in Q3/2015 compared to the prior quarter. In Q2/2015, 25% had reported a decrease. With respect to gross write-offs, 71% of lenders reported either a decrease or the same level of write-offs in Q3/2015 versus 92% in Q2/2015. Gross write-offs as a percentage of total asset-based loans outstanding continued to be at a very low level in Q3/2015.

CFA’s Quarterly Asset-Based Lending Index was conducted by R.S. Carmichael, an independent market research firm. CFA has tracked asset-based lending activity and published the Quarterly Asset-Based Lending Index since March 2008 to provide insight on national commercial lending activity.