Bank-owned lease finance receivables grew 4.29% on a matched-institution basis from December 31, 2023 to March 31, 2026, per FDIC call report Schedule RC-C data covering 4,244 institutions present in both periods. The headline growth number is the least interesting finding in the dataset. The credit quality picture is more consequential.
Early delinquency improved. The 30-89 days past due rate on the matched lease portfolio fell from 0.758% to 0.567%, a 19.2 basis point improvement. The 90-plus days past due rate fell from 0.037% to 0.022%, a 1.5 basis point improvement. Both early-stage delinquency buckets moved in the right direction.
The back of the curve moved in the opposite direction. Nonperforming leases rose from 0.453% to 0.615% of the matched portfolio, a 16.1 basis point deterioration. Nonaccrual balances rose from 0.416% to 0.593%, a 17.6 basis point deterioration. In dollar terms, nonperforming leases on the matched set rose from $345.8 million to $488.7 million, a 41.3% increase.
Charge-off and net charge-off ratios are approximately flat across the matched period, at 0.129% and 0.090% respectively. That flatness is consistent with the divergence hypothesis but does not prove it: stress may be migrating into longer-stranded nonperforming buckets without yet flushing through to recognized loss. Whether that represents tighter front-end servicing, longer time in nonperforming status before resolution, or loss recognition policy lag cannot be determined from the call report data alone.
Three institutions appear on multiple stress lists simultaneously. BMO Bank in Chicago appears on the shrinker list at number three with a 35.7% contraction, on the single-quarter charge-off list at number nine, and on the NPL dollar uptick list at number five with a $46.6 million increase. First Guaranty Bank in Hammond, Louisiana appears on the shrinker list at number eight with a 75.1% contraction and on the cumulative charge-off list at number two with 62.3% of its current lease balance charged off across the six reported quarters. Flagstar Bank in Hicksville, New York is the largest shrinker in the dataset at negative 47.5% and appears on the NPL dollar uptick list at number three with a $16.8 million increase.
The pattern across all three is rapid book contraction co-occurring with elevated cumulative charge-off and rising nonperforming balances. That combination is the signature of a portfolio in active runoff with credit issues being recognized rather than rolled.
A note on Midland States Bank, which appears prominently in the raw data with a 90.7% lease book contraction and the highest cumulative charge-off ratio in the dataset at 78.86%. Midland States sold its equipment finance portfolio in 2024 as a deliberate strategic exit from the business. The call report figures reflect that transaction, not credit deterioration. Including Midland States in a stress analysis without that context would misrepresent what the data shows. The sale is publicly documented and the institution is not in the industry.
One critical caveat applies to every Q1 2026 figure in this analysis. Eighty-three institutions present in the Q4 2025 filing are absent from the Q1 2026 source file. The missing institutions include Bank of America, JPMorgan Chase, Wells Fargo, Citibank, Truist, BNY Mellon, State Street, Morgan Stanley, Northern Trust, HSBC, Comerica, East West, Cadence, Synovus, and MidWestOne. Collectively they held $43.4 billion in lease finance receivables at Q4 2025, representing 35.4% of the industry total. Every Q1 2026 figure in this report excludes those institutions. The Q1 2026 industry picture is incomplete, and any publication reporting Q1 2026 bank lease data as a complete picture is working from a partial dataset. The full Q1 2026 read requires those filings to land before any directional call on 2026 trends can be made.