Latest bank closures tied to commercial real estate
Commercial real estate accounted for more than three-fourths of the troubled loans on the books of the most recently failed banks, HousingWire reported.
Citing analytics firm Trepp LLC, HousingWire said six banks with assets totaling $4.8 billion closed on April 15. At the end of 2010, those six banks had a total of $394 million in nonperforming assets. Of those, 77 percent were tied to commercial real estate.
Nonperforming construction and land loans totaled $200 million, and commercial mortgages totaled $104 million. That’s contrasted with $73 million in nonperforming residential loans at the six banks, five of which were located in the Southeast.
There have been 34 closings in the United States so far this year. In 2010, 156 banks closed their doors, according to Federal Deposit Insurance Corp. Chairwoman Sheila Bair.
Trepp analysts expect the rate of failures to increase.
“As reporting of first quarter 2011 results accelerates through the month, regulators will gain added clarity on bank loan portfolio performance and balance sheet health,” Trepp said.