Noncurrent Loan Ratio -- Historical Chart
Noncurrent Loans Ratio (FDIC). Gray shaded areas indicate U.S. recessions.
Source: Federal Reserve Bank of St. Louis (FRED), Series QBPLNTLNNCUR. Updated 2026-03-09.
What the Q4 2025 Data Shows
At 0.96%, noncurrent loan ratio in Q4 2025 is below the 10-year average of 1.03% by 0.07pp. The reading has been mixed recently, fluctuating without a clear directional trend over the past 4 quarters.
The noncurrent loan ratio (FRED series QBPLNTLNNCUR) measures the most seriously distressed portion of bank loan portfolios. A loan is classified as noncurrent when it is either 90+ days past due or the bank has placed it on nonaccrual status, meaning it no longer expects to collect full principal and interest.
This is a more severe indicator than the delinquency rate. Delinquency starts at 30 days past due; noncurrent starts at 90 days and includes loans the bank has essentially written off as uncollectable but has not yet charged off. The ratio peaked above 5% during the Great Recession and fell below 1% during the easy-money era of 2020-2021.
Data is reported quarterly through FDIC call reports filed by all insured depository institutions.
What This Metric Measures
This page tracks the percentage of total loans at FDIC-insured institutions that are either 90 or more days past due or placed on nonaccrual status, indicating serious borrower distress. The data comes from the Federal Reserve Bank of St. Louis FRED database, series QBPLNTLNNCUR, updated quarterly.
Historical Context
The all-time peak was 5.47% in Q1 2010 — roughly 5.7x the current level. The all-time trough was 0.70% in Q2 2006. During COVID-19, the reading hit 1.19% (Q4 2020). Year-over-year, the metric has moved -2.0%.
Why It Matters
When noncurrent loans rise at banks, regulators respond by requiring higher capital reserves. Banks fund those reserves by restricting new lending. That is the direct transmission mechanism from credit stress to credit contraction. If you are trying to get a business loan, the noncurrent loan ratio at banks in your market tells you how much headroom they have to make new loans. A rising ratio means less capacity and stricter terms.
What This Means for Business Owners
Understanding where this metric stands relative to historical norms helps business owners make better borrowing decisions. When noncurrent loan ratio is below its 10-year average, it signals changing conditions in the credit markets that affect both cost and availability of financing.
Noncurrent Loan Ratio -- Frequently Asked Questions
The noncurrent loan ratio at FDIC-insured banks is 0.96% as of Q4 2025, per FRED series QBPLNTLNNCUR. This counts loans 90+ days past due and loans on nonaccrual as a percentage of total loans.
Delinquent loans are 30+ days past due. Noncurrent loans are 90+ days past due or placed on nonaccrual. Noncurrent is a more severe classification that triggers higher loss reserves and regulatory scrutiny.
The ratio peaked above 5% in 2009-2010, up from roughly 0.75% in 2006. The spike was driven by residential mortgage defaults, CRE losses, and construction loan failures. Recovery to sub-2% took until 2014.
Banks with high noncurrent ratios must allocate more capital to loss reserves, leaving less capital available for new lending. Regulators may impose lending restrictions, consent orders, or require capital raises. The result is a credit contraction in the bank's market.
Commercial real estate and construction loans typically show the highest noncurrent rates during downturns because they are concentrated, large-dollar, and sensitive to property values. C&I loans and consumer loans tend to have lower noncurrent rates because they are more diversified.
FRED series QBPLNTLNNCUR from FDIC quarterly call report data. All insured depository institutions file these reports. The noncurrent ratio is one of the key metrics in the FDIC's Quarterly Banking Profile.