In the banking industry’s version of Happy Unbirthday, the performance of construction-and-industry loans has actually improved, rather than deteriorate. In fact, the improvement is startling.

According to new data released by the Federal Deposit Insurance Corp., the rate of noncurrent C&I loans fell 12.2% last quarter compared to the previous three-month period and 10.2% year-over-year. The FDIC says it was the first time in four years that C&I credit performance improved.

Overall, C&I outstandings fell 2.7% last quarter at US banks to $1.89 trillion.

On the other hand, credit card performance last quarter deteriorated significantly. Quarter-over-quarter noncurrent card assets increased 51.9% — most among all asset classes – while YOY noncurrents jumped 126.5%. Ouch. That’s on $717 billion of outstandings, by the way.

While it is dangerous to make any conclusions in banking these days, the conventional wisdom would say that business credits appear to be performing better than expected, while consumer credits are turning in the opposite performance.

I would rather focus on the positive: net interest margin jumped markedly to a seven-year high of 3.83% from 3.53% in fourth quarter of 2009 and 3.41% in the first quarter of that year. That should cushion the blow for some credit card lenders. Oh wait, the CARD Act – nevermind.