Many U.S. banks increased their exposure to the healthcare industry in the third quarter amid continued strong loan growth, despite a weakened macroeconomic outlook.

S&P Global Market Intelligence collected 18 healthcare and related disclosures among 15 banks with outstanding exposure of greater than $300 million. Among the 18 disclosures, only eight declined quarter over quarter.

QOQ increases

Associated Banc-Corp logged the largest sequential increase in healthcare-related exposure among companies in the analysis. The Green Bay, Wis.-based company's healthcare and social assistance portfolio within its commercial and business lending segment had a balance of $422 million at the end of the third quarter, up 24.9% sequentially.

As of Sept. 30, Associated Banc-Corp already surpassed its core commercial loan growth target for 2022, President and CEO Andrew Harmening said on the company's third-quarter earnings call.

While BOK Financial Corp.'s commercial and industrial loan growth was relatively flat quarter over quarter, its commercial healthcare loans were up 3.5% sequentially. That growth was driven by the company's senior housing and hospital acute care sectors, Regional Banking Executive Marc Maun said on the company's third-quarter earnings call.

Wells Fargo & Co. reported the second-largest exposure to the healthcare industry among banks in the analysis with a commercial and industrial healthcare and pharmaceuticals outstanding loan balance of $14.47 billion, up 3.8% quarter over quarter.

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QOQ declines

Miami Lakes, Fla.-based BankUnited Inc. reported the largest quarter-over-quarter decline as it shed 16.1% of its commercial and industrial healthcare and social assistance loan balance.

New York-based Metropolitan Bank Holding Corp.'s healthcare loans slipped 2.0% to $1.34 billion. Such loans made up 29.0% of the bank's gross loans, the largest percentage in the analysis.

Although the balance declined, healthcare is one of the asset classes that Metropolitan Bank favors, President and CEO Mark DeFazio said on the company's third-quarter earnings call. "That continues to serve us well," DeFazio said.

Bank of America Corp. recorded the largest outstanding exposure among the banks in the analysis, with $32.69 billion in the healthcare equipment and services category, though the balance declined slightly from the linked quarter.