U.S. Commercial Bank Consumer Net Charge-Off Rate
Source:
Federal Reserve Board
·
Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks (Q2 2026)
Market context: Commercial bank consumer losses eased modestly from Q2 2025 highs, but remain structurally above pre-2023 normalization baselines.
Accounting note: Charge-offs represent the value of loans and leases removed from bank balance sheets and charged against loss allowances, net of recoveries.
U.S. Commercial Bank Credit Card Net Charge-Off Rate
Market context: Credit card write-offs cooled 37 basis points year-over-year, yet continue to outpace broader commercial loan write-off velocity.
Accounting note: Reflects revolving consumer card balances across all insured U.S. commercial banks. Excludes nonbank finance company paper.
Household Credit Card Flow into Serious Delinquency (90+ Days)
Market context: While bank write-downs slowed due to balance seasoning and prior roll-offs, transition rates into 90+ day arrears remained flat at elevated levels.
Accounting note: Consumer Credit Panel sample based on anonymized credit reporting data. Captures fresh balance migration into 90+ day default pipelines.
Regional Top-Commercial-Bank Net Charge-Off Ratio
Market context: Diversified prime and regional banks maintain robust aggregate capital ratios despite pockets of consumer credit seasoning.
Accounting note: Audited commercial bank Call Report submissions covering Northeast, Midwest, South, and West lead banking institutions.
Synchrony Financial Net Charge-Off Rate
Market context: Specialized retail store-card credit showed measurable recovery, demonstrating that merchant-partner credit programs experienced credit stabilization.
Accounting note: Private-label and co-branded retail card portfolio. Filing notes significant seasonal variation across holiday and tax-refund quarters.
Bread Financial Net Principal Loss Rate
Market context: Underwriting tightening and credit-mix shifts toward proprietary co-brand programs reduced net principal losses by 90 basis points.
Accounting note: Bread Financial credit card and installment loan receivables. Delinquency rate (30+ days) fell from 5.73% to 5.25%.
OneMain Holdings Net Charge-Off Ratio
Market context: Highlights the divergence between prime bank cards and non-prime installment credit: non-prime loss rates expanded 63 basis points.
Accounting note: Non-prime direct consumer installment and auto finance receivables. Accounts 60 days past due route to centralized collections; 90+ days nonperforming.
Ally Financial Consumer Automotive Net Charge-Off Ratio
Market context: Auto finance losses stabilized alongside steady used-vehicle values, while quarterly retail loan originations rose to $13.3B.
Accounting note: Covers $89.2B in consumer automotive finance receivables and loans. 30+ day retail auto delinquencies totaled $4.42B.
PRA Group Recoveries Collected & Estimated Remaining Collections (ERC)
$560.95M recoveries / $8.90B ERC
+3.8% recoveries / +7.2% ERC
Market context: Management reported robust supply pipelines from card issuers but maintained disciplined bid pricing, lowering quarterly purchases while growing total ERC.
Accounting note: Purchased nonperforming consumer loan receivables. Includes $519.39M core collections and $41.56M insolvency collections. Q2 portfolio purchases totaled $296.6M (-14.4% YoY).
Encore Capital Group Cash Collections & Capital Deployments
$736.86M collected / $443.82M deployed
+12.5% collections / +20.9% purchases
Market context: Demonstrates divergent capital allocation among debt buyers: Encore accelerated purchases by 20.9% citing favorable domestic pricing multiples.
Accounting note: Includes $571.89M U.S. collections (MCM) and $164.30M European collections (Cabot). Total estimated remaining collections stood at $9.2B+.
