Nonperforming loans (NPL): Nonperforming loans are loans that have stopped performing: 90 days or more past due and still accruing interest, plus loans the bank has placed on nonaccrual.
How it is calculated
Loans and leases 90 days or more past due and still accruing, plus loans and leases on nonaccrual, from Schedule RC-N, divided by total loans and leases.
Formula
NPL ratio = (loans 90+ days past due and accruing + nonaccrual loans) / total loans and leases
What banks reported in Q2 2026
Across every bank that filed for Q2 2026, the median nonperforming loans to total loans was 0.47%, with the middle half between 0.12% and 1.17%. The right comparison is almost always the row for the bank’s own size rather than the industry line.
| Bank size (total assets) | Bottom quartile | Median | Top quartile |
|---|---|---|---|
| Under $100M | 0.00% | 0.46% | 1.68% |
| $100M - $300M | 0.05% | 0.38% | 1.19% |
| $300M - $1B | 0.13% | 0.43% | 1.09% |
| $1B - $3B | 0.19% | 0.48% | 1.10% |
| $3B - $10B | 0.30% | 0.60% | 1.05% |
| $10B - $100B | 0.46% | 0.66% | 0.96% |
| Over $100B | 0.61% | 0.85% | 1.11% |
Source: BankingLens, computed from FFIEC call reports for the quarter ending June 30, 2026. Quartiles are calculated across the full population of filing banks in each size band, not sampled. Non-insured non-deposit trust companies are left out of every statistic: they take no deposits and make no loans, so a margin or a funding cost computed for them has no meaning.
How to read it
The median bank carries well under 1%, and the distribution is lopsided: a quarter of banks report almost nothing while the top quartile carries several times the median. Credit problems arrive late and in lumps, so the direction across four quarters says far more than the level in any one of them.
The common mistake. Comparing the ratio across banks with different loan mixes. Consumer and construction books run nonaccrual at rates a municipal or residential book never sees, so the peer group matters more here than on almost any other metric.
Go deeper
- What is a normal nonperforming loan ratio?
- The Texas ratio explained
- BankingLens pricing and what a subscription adds: percentile rank against the bank’s own FFIEC peer group, fourteen quarters of trend, and the flags an examiner reaches for first.
See also. Nonaccrual, Charge-off, Allowance for credit losses, Texas ratio.
Every figure on this page is computed from FFIEC call reports for the quarter ending June 30, 2026 and is not modeled, estimated or sampled. This page is generated by _tools/seo/build_glossary.mjs and carries no figure that was typed in. See our methodology and disclaimer. Definitions are general guidance, not regulatory or investment advice.