Overall Assessment
Traffic-light indicators compare each metric to its 10-year average. Green means close to or below average. Yellow means notably above. Red means significantly elevated.
Charge-Off Rates by Loan Type - Q4 2025
| Metric | Current | Prior Period | Year Ago | Change |
|---|---|---|---|---|
| All Loans | 0.58% | 0.62% | 0.65% | 0.04pp ↓ |
| Business Loans | 0.55% | 0.57% | 0.51% | 0.02pp ↓ |
| Credit Cards | 4.11% | 4.18% | 4.58% | 0.07pp ↓ |
| Real Estate (All) | 0.08% | 0.10% | 0.12% | 0.02pp ↓ |
Source: Federal Reserve FRED. All data as of latest available period.
What This Dashboard Shows
This dashboard shows charge-off rates for every major loan category at U.S. commercial banks. While delinquency rates show stress building, charge-off rates show actual losses hitting bank earnings. The two often move in parallel but with a 1-3 quarter lag.
Credit card charge-offs consistently run the highest because they are unsecured. Real estate charge-offs tend to be lowest in normal times because properties provide collateral, but they can spike dramatically during property market collapses.
Each mini-chart shows the recent trend, and the comparison table provides exact readings for the current and prior periods.
Why a Combined View Matters
Charge-offs are where the rubber meets the road for bank profitability. A bank can tolerate rising delinquencies if most loans eventually cure, but charge-offs are permanent losses. This dashboard shows which loan categories are generating the most real losses and whether the trend is improving or deteriorating.
How to Read This Data
Each mini-chart shows the historical trend for one metric. The comparison table provides exact current values, prior-period values, year-ago levels, and the most recent period-over-period change. Look for metrics where the current value significantly exceeds the prior period and year-ago readings — those are the areas of emerging risk or opportunity. The traffic-light indicators above flag which metrics deviate most from their 10-year norms.
Total Loan Charge-Off Rate - Frequently Asked Questions
Credit cards consistently have the highest charge-off rate because they are unsecured. Business loan and real estate charge-offs are lower in normal times but can spike during recessions when collateral values decline.
The all-loans charge-off rate (CORALACBS) is 0.58% as of Q4 2025. This is a weighted composite that reflects the loss experience across every loan category at all commercial banks.
Charge-offs reduce net income directly through provision expense. Under CECL accounting, banks provision for expected losses at origination, but actual charge-offs draw down those reserves. If reserves prove insufficient, the bank takes an additional earnings hit.
Compare the direction arrows in the dashboard above. Credit conditions in Q4 2025 show whether losses are broadening across categories or concentrated in specific segments.
All charge-off series are published quarterly by the Federal Reserve Board of Governors, typically with a 2-month lag after the quarter ends.
All series are free from FRED (fred.stlouisfed.org). Series IDs: CORALACBS (all loans), CORBLACBS (business), CORCREXFACBS (CRE), CORCCACBS (cards), CORCACBS (consumer), CORSREACBS (real estate).