Credit Card Delinquencies Run 6.4% at Small Banks and 2.9% Across All of Them

Credit card delinquency rates continue trending lower for large banks (2.58% in Q2), but are rising for smaller community banks (6.49% in Q2). The divergence reflects that large banks can absorb credit losses through diverse revenue streams, while smaller banks face greater pressure as their customers struggle with economic hardship. This trend could impact bank stock performance as delinquencies signal consumer financial stress and require higher provisions for credit losses.