Key Points
Declining values for offices, apartment complexes or other commercial properties have been a factor weighing on the shares of all banks, but particularly smaller ones..
Regional, community and smaller banks do represent more than a quarter of commercial real estate and multifamily property debt in the U.S., which is more than twice the share for the top 25 biggest banks, according to a recent Moodys analysis..
Based on available data for the banking system, figures recently compiled by S&P Global Market Intelligence from regulatory filings for the first quarter are showing a significant disparity in the percentage of loans marked as either delinquent or nonaccrual, which the bank doesnt expect to pay off in full at maturity..
For CRE loans involving properties that arent owner-occupied and are held by banks with over $100 billion in assets, more than 4.4% were delinquent or in nonaccrual status in the first quarter..
The net charge-off rate at $100 billion-plus asset banks for non-owner-occupied CRE lending exceeded 1.1% in the first quarter, which was about a percentage point or more above smaller categories of banks, according to S&P Global Market Intelligences figuresthough the rate was down more than a quarter point from the previous quarter..
