The Real Deal Miami

Commercial real estate loans lead to five more bank failures in November: Trepp

December 05, 2011 04:34PM

With the failure of five banks last month, 90 banks have now shut down
nationwide this year, according to a report released today by analytics
firm Trepp. The continued struggles have come in large part from
commercial real estate exposure, the main driver behind
problematic loans for last month’s bank failures. Commercial real estate
loans totaled 80.8 percent of the total $160 million in non-performing
loans at the shuttered institutions. Residential real estate also
contributed to the bank shutdowns, with 10.1 percent of the total
non-performing loan balance of banks coming from the residential sector last month. The five banks, although not cited by name, were located
in Georgia, Louisiana, Iowa, Nebraska and Utah. Florida has the
second-highest total of high-risk banks in the country, with 37,
according to Trepp’s Watchlist. The firm said it expected closures to
continue nationwide into 2012 and beyond. — Alexander
Britell