Banks with the largest loan-modification balances relative to total loans in Q2 2026

Banks where the loan-modification (LMD) balance — workouts of loans to distressed borrowers under the post-CECL modification framework — represents an outsized share of total loans. High LMD concentration signals active workout activity, which can be a leading indicator of credit deterioration when modification balances rise faster than charge-offs resolve them.

Q2 202650 institutions (archived snapshot)

In Q2 2026, 50 institutions held modified loan pools exceeding 2% of total loans. CITY NB OF SAN SABA in TX led with 83.3% of loans modified, totaling $6M, followed by UNITED BANK OF PHILADELPHIA in PA at 19.8% and FIRST NB OF FLETCHER in OK at 10.9%.

Modified Loan Pools

Sorted by LMD % of Loans ↓

Export CSV (Mastermind)

Rank	Institution	Source	State	LMD % of Loans	QoQ
1	CITY NB OF SAN SABA	BANK	TX	83.3%	+83.3
2	UNITED BANK OF PHILADELPHIA	BANK	PA	19.8%	-0.2
3	FIRST NB OF FLETCHER	BANK	OK	10.9%	+10.9
4	FIRST SECURITY BK OF ROUNDUP	BANK	MT	10.6%	-1.0
5	FIRST NB OF FAIRFAX	BANK	MN	8.1%	+8.1
6	FIRST STB OF SWANVILLE	BANK	MN	7.6%	+1.7
7	FARMERS BANK	BANK	CO	7.6%	+5.6
8	SCHERTZ BANK&TRUST	BANK	TX	5.3%	+0.4
9	MAINSTREET BANK	BANK	VA	4.8%	-1.3
10	FIRST CAPITAL BANK	BANK	TX	4.8%	+1.1
40 more institutions match this list. Unlock metric values for every row, column sort, archives, and CSV export with Mastermind. Unlock with Mastermind

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Rank	Institution	Source	State	LMD % of Loans	QoQ	Trend
11	CITIZENS COMMUNITY BANK	BANK	IL	████	████	████
12	FIRST NB OF NOKOMIS	BANK	IL	████	████	████
13	EASTERN SAVINGS BANK FSB	BANK	MD	████	████	████
14	CFG BANK	BANK	MD	████	████	████
15	WALDEN MUTUAL BANK	BANK	NH	████	████	████
16	FIRST STATE BANK OF MALTA	BANK	MT	████	████	████
17	UNITY BANK	BANK	WI	████	████	████
18	VERMONT STATE BANK	BANK	IL	████	████	████
19	CHICKASAW COMMUNITY BANK	BANK	OK	████	████	████
20	FIRST NATIONAL BANK	BANK	NM	████	████	████
21	RARITAN STATE BANK	BANK	IL	████	████	████
22	SUNRISE BANK DAKOTA	BANK	SD	████	████	████
23	HAWAII NATIONAL BANK	BANK	HI	████	████	████
24	FIRST STATE BANK	BANK	OK	████	████	████
25	KENDALL BANK	BANK	KS	████	████	████
26	CITIZENS SAVINGS BANK	BANK	LA	████	████	████
27	SPIRITBANK	BANK	OK	████	████	████
28	SANTANDER BANK N A	BANK	DE	████	████	████
29	MOODY NATIONAL BANK	BANK	TX	████	████	████
30	COLUMBIA SAVINGS&LOAN ASSN	BANK	WI	████	████	████
31	FARMERS STATE BANK	BANK	WA	████	████	████
32	CENTRAL BANK ILLINOIS	BANK	IL	████	████	████
33	FWBANK	BANK	IL	████	████	████
34	COMMERCE BANK	BANK	MN	████	████	████
35	MERCHANTS&FARMERS BANK	BANK	AR	████	████	████
36	WALLIS BANK	BANK	TX	████	████	████
37	FIRST NB OF WINNSBORO	BANK	TX	████	████	████
38	SAINTE MARIE STATE BANK	BANK	IL	████	████	████
39	WASHINGTON FINANCIAL BANK	BANK	PA	████	████	████
40	MAQUOKETA STATE BANK	BANK	IA	████	████	████
41	COMMERCIAL STB OF WAGNER	BANK	SD	████	████	████
42	NORTHERN BANK&TRUST CO	BANK	MA	████	████	████
43	NORTH DALLAS BANK&TRUST CO	BANK	TX	████	████	████
44	SALLIE MAE BANK	BANK	UT	████	████	████
45	BANK OF GRANDIN	BANK	MO	████	████	████
46	CHARTER BANK	BANK	TX	████	████	████
47	SVG BANK OF MENDOCINO COUNTY	BANK	CA	████	████	████
48	FIRST NATIONAL BANK&TRUST CO	BANK	MI	████	████	████
49	INB NATIONAL ASSN	BANK	IL	████	████	████
50	ISRAEL DISCOUNT BANK OF NY	BANK	NY	████	████	████

Methodology

This card ranks banks whose loan-modification (LMD) balance, divided by total loans, is at least 0.02 (2%), and surfaces the top 50 by that share. Field source: FFIEC Call Report Schedule RC-C Part I Memorandum 1.g (the sum of M1.a–M1.f — loans to borrowers experiencing financial difficulty modified under the CECL framework). The denominator is the bank's total loans for the same quarter. TDR-to-LMD transition disclaimer: quarters before 2023-Q4 reported "troubled debt restructurings" (TDRs) under the legacy framework. CECL adoption (FASB ASU 2022-02, effective for fiscal years beginning after Dec 15, 2022 — i.e. 2023-Q4 onward for most filers) replaced the TDR designation with the broader LMD concept. Quarters before 2023-Q4 will show systematically lower balances because the TDR concept covered a narrower population, so quarter-over-quarter comparison across that boundary is not apples-to-apples.

Learn more about LMD Concentration →