The total volume of distressed real estate impacting US banks increased approximately 1.7% from Q4 2010 to Q1 2011 according to data compiled from the FFIEC repository by distressedpro.com (BankProspector).
Numbers shows that the nation’s banks added just under 5.5% to their commercial REO balances from Q4 2010 to Q1 2011.
Both owner occupied and non-owner occupied late and non performing loans increased modestly at 2.19% and 1.7% respectively however the largest percentage increase, by far, was in 30-89 day late non owner occupied commercial property which saw a jump of 16%. This increase could point to continued trouble in the commercial real estate market and is a sign that more owners are going into default. Also the total number of banks reporting an increase in the same rose by a count of 156 to a total of 2,461 banks with newly defaulted commercial non-owner occupied property.
Today 3,504 banks are reporting commercial REO for a total $10.1 billion. Meanwhile late and non performing CRE loan totals top $54 billion which could point to more downward pressure on prices and more opportunity for investors and distressed property service providers.
This data is supplied by BankProspector 2.0 a hosted, online, software application designed to accelerate the process of prospecting banks directly for distressed real estate assets. This data is deemed accurate but not guaranteed. All data sourced directly through the FFIEC’s CDR and compiled and analyzed by BankProspector. Current data set does not include banks regulated by the Office of Thrift Supervision.
Download this Free Commercial REO Report. Includes a list of the banks with the top 20 commercial REO balances and a reprint fo this article in PDF format.
BankProspector subscribers have access to the late and non performing loan totals as well as contact information for decision makers at thousands of banks nationwide.
About Brecht Palombo