Industrial Bank: Credit Quality and the Allowance
As of 2Q26, from Call Report Schedules RC-N, RI-B and RI-C.
What each ratio is made of, 2Q26
Open a ratio to see the filed lines behind it and what it measures.
Noncurrent loans to total loans 6.56% peer median 0.43%
Noncurrent loans are loans 90 days or more past due that still accrue interest, plus loans on nonaccrual. It is the standard measure of loans that have stopped performing.
| 90 days or more past due, still accruing | $6.3M | 6,330 | RCON1407 |
|---|---|---|---|
| Nonaccrual | $20.9M | 20,908 | RCON1403 |
| Noncurrent loans | $27.2M | 27,238 | RCON1407 + RCON1403 |
| Divided by total loans and leases | $415.1M | 415,131 | RCON2122 |
| Noncurrent loans to total loans | 6.56% | numerator / denominator |
Nonaccrual loans to total loans 5.04% peer median 0.43%
A loan goes on nonaccrual when the bank no longer expects to collect all principal and interest, or it is 90 days past due and not well secured and in collection. The bank stops booking its interest as income.
| Nonaccrual loans | $20.9M | 20,908 | RCON1403 |
|---|---|---|---|
| Divided by total loans and leases | $415.1M | 415,131 | RCON2122 |
| Nonaccrual loans to total loans | 5.04% | numerator / denominator |
Loans 90+ days past due and still accruing to total loans 1.52% peer median 0.00%
Loans 90 days or more past due on which the bank still accrues interest, usually because they are well secured and in the process of collection.
| Loans 90+ days past due, still accruing | $6.3M | 6,330 | RCON1407 |
|---|---|---|---|
| Divided by total loans and leases | $415.1M | 415,131 | RCON2122 |
| Loans 90+ days past due and still accruing to total loans | 1.52% | numerator / denominator |
Loans 30-89 days past due to total loans 1.99% peer median 0.24%
Loans 30 to 89 days late and still accruing. These are the early stage of trouble; a rise here tends to show up in noncurrent loans a quarter or two later.
| Loans 30-89 days past due, still accruing | $8.3M | 8,271 | RCON1406 |
|---|---|---|---|
| Divided by total loans and leases | $415.1M | 415,131 | RCON2122 |
| Loans 30-89 days past due to total loans | 1.99% | numerator / denominator |
Past due and nonaccrual loans to total loans 8.55% peer median 0.98%
Every loan 30 days or more late plus every loan on nonaccrual: the widest measure of loans not paying as agreed.
| 30-89 days past due | $8.3M | 8,271 | RCON1406 |
|---|---|---|---|
| 90 days or more past due, still accruing | $6.3M | 6,330 | RCON1407 |
| Nonaccrual | $20.9M | 20,908 | RCON1403 |
| Past due and nonaccrual loans | $35.5M | 35,509 | RCON1406 + RCON1407 + RCON1403 |
| Divided by total loans and leases | $415.1M | 415,131 | RCON2122 |
| Past due and nonaccrual loans to total loans | 8.55% | numerator / denominator |
Net charge-offs to average loans, annualized 1.50% peer median 0.03%
Net charge-offs are loans written off as uncollectible, less recoveries on loans written off before. This quarter's amount is annualized and divided by the quarter's average loans, so a figure of 1% means losses at a pace of 1% of the book a year.
| Charge-offs, year to date | $2.5M | 2,507 | RIAD4635 |
|---|---|---|---|
| Less: recoveries, year to date | $78K | 78 | RIAD4605 |
| Less: net charge-offs through the prior quarter | $879K | 879 | RIAD4635 - RIAD4605, prior quarter |
| Net charge-offs this quarter | $1.6M | 1,550 | derived |
| Net charge-offs this quarter, times four | $6.2M | 6,200 | derived |
| Divided by average loans for the quarter | $412.2M | 412,205 | RCON3360 |
| Net charge-offs to average loans, annualized | 1.50% | numerator / denominator |
Allowance to total loans 3.12% peer median 1.23%
The allowance for credit losses is the reserve the bank holds for losses it expects over the life of its loans. As a share of loans, it says how much loss the bank has already provided for.
| Allowance for credit losses on loans | $13.0M | 12,958 | RCON3123 |
|---|---|---|---|
| Divided by total loans and leases | $415.1M | 415,131 | RCON2122 |
| Allowance to total loans | 3.12% | numerator / denominator |
Allowance to noncurrent loans 47.57% peer median 179.13%
The allowance divided by noncurrent loans: how many times the reserve covers the loans that have already stopped performing. Above 100% the reserve exceeds them.
| 90 days or more past due, still accruing | $6.3M | 6,330 | RCON1407 |
|---|---|---|---|
| Nonaccrual | $20.9M | 20,908 | RCON1403 |
| Allowance for credit losses on loans | $13.0M | 12,958 | RCON3123 |
| Divided by noncurrent loans | $27.2M | 27,238 | RCON1407 + RCON1403 |
| Allowance to noncurrent loans | 47.57% | numerator / denominator |
The second amount column is thousands of dollars as filed. Every loan ratio divides by total loans and leases, net of unearned income, as filed on Schedule RC-C (2122).
Problem loans by loan type, 2Q26
Where the late and nonaccrual loans sit, and what each type has cost so far this year. Dollar columns after the balance are thousands as filed. Rates are over each type's own balance: the past due rate counts every loan 30 days or more late plus nonaccrual, and the loss rate is year-to-date net charge-offs, annualized. The bar is the type's share of all noncurrent loans.
| Loan type | Balance | 30-89 days | 90+ days | Nonaccrual | Noncurrent rate | Past due rate | Net charge-offs YTD | Loss rate | Share of noncurrent |
|---|---|---|---|---|---|---|---|---|---|
| Construction and land development | $64.5M | 1,161 | 0 | 6,753 | 10.47% | 12.27% | 0 | 0.00% | 24.79% |
| Secured by farmland | $0 | 0 | 0 | 0 | NA | NA | 0 | NA | |
| 1-4 family residential | $98.8M | 686 | 0 | 2,965 | 3.00% | 3.69% | (15) | -0.03% | 10.89% |
| Multifamily residential | $39.1M | 3,007 | 361 | 2,269 | 6.73% | 14.44% | 0 | 0.00% | 9.66% |
| Nonfarm nonresidential (commercial real estate) | $162.2M | 3,014 | 5,836 | 7,065 | 7.95% | 9.81% | 2,373 | 2.93% | 47.36% |
| Loans to depository institutions | $0 | 0 | 0 | 0 | NA | NA | NA | NA | |
| Agricultural production | $0 | 0 | 0 | 0 | NA | NA | 0 | NA | |
| Commercial and industrial | $50.2M | 403 | 133 | 1,854 | 3.96% | 4.76% | (14) | -0.06% | 7.29% |
| Credit cards | $0 | 0 | 0 | 0 | NA | NA | 0 | NA | |
| Automobile loans | $0 | 0 | 0 | 0 | NA | NA | 0 | NA | |
| Other consumer loans | $251K | 0 | 0 | 2 | 0.80% | 0.80% | 85 | 67.73% | 0.01% |
| All other loans | $875K | 0 | 0 | 0 | 0.00% | 0.00% | 0 | 0.00% | |
| Lease financing receivables | $511K | 0 | 0 | 0 | 0.00% | 0.00% | 0 | 0.00% | |
| Total loans and leases | $415.1M | 8,271 | 6,330 | 20,908 | 6.56% | 8.55% | 2,429 | 1.17% |
The types add up to the filed totals (RC-C 2122, RC-N 1406, 1407 and 1403, RI-B 4635 and 4605). The loss rate divides by the type's balance at quarter end; the headline net charge-off ratio uses the quarter's average loans instead. Real estate types are loans in domestic offices.
Noncurrent loans by type, 6 quarters ($000)
| Loan type | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 |
|---|---|---|---|---|---|---|
| Construction and land development | 6,753 | 6,752 | 6,751 | 7,441 | 690 | 0 |
| 1-4 family residential | 2,965 | 3,343 | 2,170 | 3,514 | 2,807 | 2,156 |
| Multifamily residential | 2,630 | 3,932 | 2,818 | 2,818 | 134 | 134 |
| Nonfarm nonresidential (commercial real estate) | 12,901 | 11,686 | 11,833 | 7,805 | 11,251 | 8,057 |
| Commercial and industrial | 1,987 | 919 | 1,034 | 758 | 2,120 | 2,426 |
| Other consumer loans | 2 | 2 | 2 | 2 | 3 | 0 |
| All loans | 27,238 | 26,634 | 24,608 | 22,338 | 17,005 | 12,773 |
How the allowance moved, year to date ($000)
The allowance for loans starts from the prior year-end balance, adds recoveries and provisions, and subtracts charge-offs, as filed on Schedule RI-B Part II. This quarter alone the bank provided $1.9M against net charge-offs of $1.6M; year to date, provisions are 113.83% of net charge-offs.
| Line | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | Source |
|---|---|---|---|---|---|---|
| Balance at the end of the prior year, as adjusted | 12,622 | 12,622 | 9,841 | 9,841 | 9,841 | RIADB522 |
| Recoveries | 78 | 54 | 1,370 | 1,340 | 76 | RIAD4605 |
| Less: charge-offs | 2,507 | 933 | 1,967 | 1,740 | 1,198 | RIADC079 |
| Less: write-downs on transfers to held for sale | 0 | 0 | 0 | 0 | 0 | RIAD5523 |
| Provisions for credit losses | 2,765 | 838 | 3,378 | 2,037 | 3,536 | RIAD4230 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | RIADC233 |
| Balance at the end of the period | 12,958 | 12,581 | 12,622 | 11,478 | 12,255 | RIAD3123 |
| Check: the lines add up to the ending balance | Yes | Yes | Yes | Yes | Yes | computed |
| Check: ending balance equals the balance sheet allowance | Yes | Yes | Yes | Yes | Yes | RC 3123 |
The allowance by loan segment
Industrial Bank does not file Schedule RI-C, the split of the allowance by loan segment; smaller banks are not required to. Its total allowance and how it moved are above, and the loan-type table shows where its problem loans sit. We do not estimate a split the bank did not file.
12 quarters against the peer median
| Quarter | Noncurrent | 30-89 days | Net charge-offs | Allowance / loans | Allowance / noncurrent | Peer median noncurrent | Peer median net charge-offs | Peer median allowance / loans |
|---|---|---|---|---|---|---|---|---|
| 2Q26 | 6.56% | 1.99% | 1.50% | 3.12% | 47.57% | 0.43% | 0.03% | 1.23% |
| 1Q26 | 6.36% | 1.54% | 0.82% | 3.00% | 47.24% | 0.39% | 0.02% | 1.22% |
| 4Q25 | 5.97% | 3.45% | 0.20% | 3.06% | 51.29% | 0.53% | 0.11% | 1.16% |
| 3Q25 | 5.35% | 2.79% | -0.70% | 2.75% | 51.38% | 0.46% | 0.01% | 1.12% |
| 2Q25 | 4.08% | 5.18% | 0.21% | 2.94% | 72.07% | 0.46% | 0.02% | 1.13% |
| 1Q25 | 3.15% | 4.13% | 0.94% | 2.81% | 89.42% | 0.26% | 0.00% | 1.16% |
| 4Q24 | 3.56% | 2.56% | -1.12% | 2.42% | 67.89% | 0.24% | 0.04% | 1.17% |
| 3Q24 | 2.52% | 1.04% | 0.08% | 2.26% | 89.57% | 0.38% | 0.01% | 1.20% |
| 2Q24 | 3.34% | 1.63% | 0.00% | 2.28% | 68.49% | 0.25% | 0.01% | 1.16% |
| 1Q24 | 4.18% | 0.78% | 1.36% | 2.26% | 54.15% | 0.23% | 0.00% | 1.13% |
| 4Q23 | 4.81% | 2.36% | 0.03% | 2.31% | 48.14% | 0.13% | 0.02% | 1.13% |
| 3Q23 | 4.51% | 2.49% | -0.03% | 2.24% | 49.62% | 0.13% | 0.01% | 1.10% |
The peer median is the median of the same peers shown below, quarter by quarter, for up to 12 quarters; the workbook carries it for all eight ratios. NA means the figure was not filed for that quarter. Quarters before 1Q25 come from the served quarterly summary, which carries the same filed totals; their dollar detail is not shown.
Against similar banks, 2Q26
| Bank | Assets | Noncurrent | Nonaccrual | 30-89 days | Net charge-offs | Allowance / loans | Allowance / noncurrent |
|---|---|---|---|---|---|---|---|
| Industrial Bank (this bank) | 6.56% | 5.04% | 1.99% | 1.50% | 3.12% | 47.57% | |
| American Bank, N.A. | $773.8M | 0.28% | 0.28% | 3.30% | 1.20% | 1.35% | 476.21% |
| Cfsbank | $773.4M | 0.24% | 0.24% | 0.01% | 0.00% | 0.46% | 192.58% |
| Highland Bank | $775.9M | 2.51% | 2.41% | 0.61% | 1.46% | 2.53% | 100.87% |
| Home State BANK/N.A. | $776.0M | 0.07% | 0.07% | 0.31% | -0.01% | 1.23% | 1651.94% |
| Citizens Bank of West Virginia, Inc. | $772.5M | 0.58% | 0.58% | 0.67% | 0.08% | 1.03% | 179.13% |
| First Central State Bank | $772.4M | 0.21% | 0.21% | 0.16% | -0.02% | 1.27% | 603.16% |
| Wilmington Trust, N.A. | $772.1M | 6.86% | 6.86% | 2.05% | -0.10% | 1.50% | 21.89% |
| Westbury Bank | $771.9M | 0.00% | 0.00% | 0.00% | 0.06% | 1.08% | NA |
| Harford Bank | $776.6M | 0.91% | 0.91% | 0.04% | 0.00% | 1.23% | 135.56% |
| People's Bank of Commerce | $776.7M | 0.90% | 0.90% | 0.10% | 0.42% | 1.08% | 119.00% |
| Peer 25th percentile | 0.22% | 0.22% | 0.06% | -0.01% | 1.08% | 119.00% | |
| Peer median | 0.43% | 0.43% | 0.24% | 0.03% | 1.23% | 179.13% | |
| Peer 75th percentile | 0.91% | 0.91% | 0.65% | 0.33% | 1.33% | 476.21% | |
| This bank's percentile | 90 | 90 | 80 | 100 | 100 | 11 |
Peer ratios use the same filed lines and formulas as this bank. The percentile is the share of peers with a lower value: for problem loans and losses lower is stronger, for the allowance ratios higher is. Similar banks are the nearest banks by size in the same asset tier.
Source: FFIEC Call Report Schedules RC, RC-C Part I, RC-K, RC-N, RI-B Parts I and II and RI-C Part II, as filed. Charge-offs, recoveries and provisions are reported year to date; the quarter's own amounts are the difference from the prior quarter. The same figures are in the API at /api/v1/banks/536527/credit-quality/ and in the Excel workbook. Next: the asset quality tab, the peer group page, or the full profile.