Noncurrent loan ratio eases as bank capital measures diverge
A limited group of insured banks under $100B in assets recorded a lower quarterly noncurrent-loan ratio and balance-sheet growth as regulatory capital ratios edged down.
The asset-weighted noncurrent-loan ratio fell 2.4 basis points to 1.12% in the second quarter of 2026 for a limited group of active FDIC-insured banks with assets under $100B. The ratio remained 0.1 basis points above its year-earlier level. Loan totals and net charge-off ratios were unavailable, limiting the assessment of lending and credit losses.
Assets for the group reached $3801.0B at June 30, up 2.0% from the previous quarter, while deposits rose 1.9% to $3071.1B. Throughout these comparisons, changes measure the same banks with observations for each metric at both dates; annual aggregate comparisons cover fewer banks. The changes do not establish organic flows, and the financial effects of mergers, acquisitions and reporting changes remain unresolved.
Regulatory capital ratios edged down during the quarter. The asset-weighted Tier 1 leverage ratio declined 0.3 basis points to 10.02%, and the asset-weighted total risk-based capital ratio fell 1.0 basis point to 15.56%. The latter was down 20.4 basis points from a year earlier. For the narrower group with available equity observations, aggregate equity divided by aggregate assets reached 11.59%, up 0.6 basis points quarterly and 11.9 basis points annually.
Two banks with large deposit increases also participated in mergers during the quarter. Official FDIC history records Sunflower Bank, National Association as acquirer and survivor in a merger with First Foundation Bank effective April 1, 2026, and OceanFirst Bank, National Association as acquirer and survivor in a merger with Flushing Bank effective June 2, 2026. The events provide context, but their contributions to the financial changes are unquantified. Sunflower Bank, National Association reported $13.5B in deposits, up 88.4% quarterly, while its Tier 1 leverage ratio fell 242.9 basis points to 10.27%. OceanFirst Bank, National Association reported $18.0B in deposits, up 59.6% quarterly, while its Tier 1 leverage ratio rose 381.9 basis points to 12.62%.