Fewer Borrowers Are Late. Perry Sentyle (%) Remains Somewhere Between Relieved and Not.

EVERYWHERE (Sept. 29, 2026) — EveryBank's past-due and nonaccrual rate fell 0.09 percentage point in the second quarter to 1.44%, and net charge-offs ran at an annualized 0.57%. On a $3.29 billion loan book, that is about $4.7 million written off for the quarter.

Loan type	Past-due + nonaccrual	Change vs. Q1	Net charge-off rate	Median bank, past-due + nonaccrual
Credit cards	2.81%	−0.27 pt	4.00%	0.75%
1–4 family residential	1.99%	−0.08 pt	0.00%	0.84%
Nonfarm nonresidential CRE	1.51%	−0.14 pt	0.12%	0.34%
Commercial & industrial	1.26%	−0.11 pt	0.60%	0.69%
All loans	1.44%	−0.09 pt	0.57%	1.01%

"Credit improved. I would put my confidence in that statement between sixty and ninety percent, and I would like the ninety struck from the record."

— Perry Sentyle (%), Chief Risk Officer

The improvement was not evenly distributed. At the largest banks, non-owner-occupied commercial real estate problem loans fell for a seventh straight quarter, to 3.08%. That's down from a 4.99% peak in late 2024, and still five times the pre-pandemic 0.59%. At community banks, loans that stopped paying grew faster than the reserves set aside for them. Community banks now hold $1.46 in reserves for every $1 of loans that stopped paying, down from the quarter before. Across the industry it's $1.73. By past-due loans, though, the median bank did better than the Mean: its rate fell 0.12 percentage point, to 1.01%.

"Every category got better. I approved none of the credit cards."

— Faith N. People, Vice President of Credit

EveryBank carries a credit card book because the average of every bank carries one. 668 of 4,239 banks hold any credit card loans at all. For the rest, the credit card line is something that happens to other people.