HOW TO HARNESS
CHARGE-OFF INTEL
See charge-off ratios from multiple perspectives.
Our Charge-off Intel Dashboard has revolutionized how risk assessment can be accessed for charge-off numbers, dollars, and ratios.
The interconnected dropdown filters, quick find buttons, and interactive charts gives you the power to find multi-faceted charge-off data in seconds.
This dashboard allows you to take a wider view of risk by showing how an industry’s charge-off data compares to other industries in its Industry Group, Subsector and Sector.
Get a deeper view of risk by seeing not only the national industry charge-off data but how the ratios change when you filter for state, county, loan amount tier, or any other filter, in any combination.
A - See charge-off data based on any combination of these filters.
B - Filter for Industry Group, Subsector or Sector to see the industry compared to other industries.
C - Filter for NAICS six -digit code or industry name.
D - Select “Franchise Only” to change results to see only franchise charge-off data by industry.
E - Click which type of charge-off data you want to see.
F - Instantly jump to different 10-year time periods.
G - Charge-off data shown for all NAICS six-digit industries based upon the filters selected.
H - Charge-off data shown for all franchise brands based upon the filters selected.
WIDER VIEW OF RISK
Use the dropdown filter for NAICS Code and start typing the code number or the description name, either will auto-populate the selection options. Click the industry you want charge off info on and select apply.
After you select the industry click on the Industry Group or Subsector filter the industry belongs to. By doing this you see all of the industries together within that Subsector or Industry Group. In this example you can see full-service restaurants are now being shown next to other NAICS six-digit industries under the Food Services and Drinking Places Subsector.
The filters are interconnected so after you select the Subsector, you have to de-select the Naics Code or Industry filter and make sure they are set to “All”.
DEEPER VIEW OF RISK
How much can charge-off ratios change when you account for loan amount and state?
When using different filters, the charge-off ratios can widely vary.
Get a deeper view of risk by seeing not only the national industry charge-off data but how the ratios change when you filter for state, county, loan amount tier, or any other filter, in any combination.
Of course, you can filter to the point of not having enough data to return helpful charge-off data. The key filters to consider is loan amount tier, state, and franchise brand if the loan is a franchised business.
Let’s consider a “Commercial Bakery” loan for $250,000 in project state Indiana.
During the 10-year period ending 2021, Commercial Bakeries (NAICS code 311812) national charge-off ratio of dollars charged off is 1.15%.
However, for loans under $350,000, that same ratio more than doubles to 3.06%.
By adjusting the filters for Commercial Bakery loans under $350,000 only in project state Indiana, the ratio more than doubles again to 7.82%.
Another example could be Limited-Services Restaurants (NAICS code 722513).
The national charge-off ratio for percentage of loans charged off is 4.28% for the 10-year period ending 2020.
The ratio changes up to 5.48% when only loans up to $150,000 are filtered.
The ratio changes down to 1.15% when only loans over $1 million are filtered.
The ratio loans up to $150,000 in Project State IL is 6.98% (way above national average), but Project State WA is only 2.13% (way below national average).
Know more.
guess less.
Additional info about utilizing the Intel Charge-off Dashboards can be found in our User Guide.