Commercial real estate loans drive U.S. bank failures in July

TRD New York /
Aug.August 04, 2011 11:39 AM

Commercial real estate exposure was the main driver behind problem
loans for the 13 U.S. banks that failed in July, according to data released
by Trepp today.Three of the failures occurred in Florida with the Landmark Bank of
Florida, the Southshore Community Bank, and the First People’s Bank.

Commercial real estate loans comprised 77 percent of the total $1.03
billion in nonperforming loans at the failed banks. Construction and
land loans made up 47 percent of the total, while commercial mortgages
comprised 31 percent of the total nonperforming pool.

The residential real estate loan category was second with 16 percent
of the total nonperforming balance.

So far there have been 61 bank failures in 2011, making it likely that
there will be around 100 failures by the end of the year, according to
the report. The pace of closures experienced a sharp increase in July,
after low failure counts in June and May, and matched the count in
April, Trepp states. There are still over 250 banks on the Trepp Watch
List that feature high Failure Risk scores, and 37 of those are in
Florida.

Other failures occurred in Arizona, Colorado, Georgia,, Illinois, Indiana and
Virginia. The remainder of the problem loans was comprised
of C&I loans at 6 percent of the total and consumer and other loans at
less than 1 percent of the total. — Miranda Neubauer


Related Articles

arrow_forward_ios
Carmel Partners CEO Ron Zeff (JLL)

Carmel Partners sells Norwalk apartment complex valued at $157M

Carmel Partners sells Norwalk apartment complex valued at $157M
From left: 180 West 81st Street in Upper West Side, 15-30 130th Street in College Point; 5002 13th Avenue in Borough Park (Google Maps)

Manhattan sees first September i-sale with UWS mixed-use building

Manhattan sees first September i-sale with UWS mixed-use building
Knotel CEO Amol Sarva and Sprinklr CEO Ragy Thomas with 29 West 35th Street (Sarva via Sasha Maslov; Getty; Google Maps)

Manhattan landlords sue Knotel, Sprinklr for missing rent

Manhattan landlords sue Knotel, Sprinklr for missing rent
(iStock)

Is winter coming? Real estate stocks dragged down by 4th week of market decline

Is winter coming? Real estate stocks dragged down by 4th week of market decline
From left: Michael Fuchs, Aby Rosen, Brandon Singer and Michael Cody (Getty, iStock)

Aby Rosen, Michael Fuchs back new retail brokerage

Aby Rosen, Michael Fuchs back new retail brokerage
Companies are relying on surveys and other data points to determine who will come back to offices first. (iStock)

How do companies decide who should return to offices first? It’s tricky

How do companies decide who should return to offices first? It’s tricky
UDR President Jeffrey Davis, AvalonBay Timothy Naughton Equity Residential's Sam Zell (LinkedIn; AvalonBay; Getty)

Investors bank on urban real estate comeback

Investors bank on urban real estate comeback
HelloFresh’s NYC HQ (Courtesy of Industry City, HelloFresh by Eric Laignel)

HelloFresh inks Industry City deal for content studio

HelloFresh inks Industry City deal for content studio
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...