Commercial real estate woes at California’s banks remained basically unchanged from the Q4 2010 to Q1 2011.
Two hundred and fifty two (252) California based banks reported for the quarter ending March 31st 2011. Of those, 59% reported some commercial real estate problems.
Banks based in California reported $4.64B in commercial real estate trouble (includes 30-89 day late loans, 90+ day late loans still accruing, non accrual loans and REO owner occupied and non-owner occupied) with the biggest trouble spot still in commercial real estate investment properties (non-owner occupied).
Commercial real estate loans reported as 30 days late but still accruing saw an overall increase of more than 17% pointing to increasing difficulties and a continued pipeline of commercial REO and non accrual.
- Commercial REO $570,119,000
- Owner-occupied – Past due 30 through 89 days and still accruing $307,315,000
- Owner-occupied – Past due 90 days or more and still accruing $73,371,000
- Owner-occupied – Nonaccrual $1,159,153,000
- Non-Owner-occupied – Past due 30 through 89 days and still accruing $488,637,000
- Non-Owner-occupied – Past due 90 days or more and still accruing $342,837,000
- Non-Owner-occupied – Nonaccrual $1,696,021,000
See California Banks REO and Non Performing Loans Report instead.
Banks continued to prefer to hold non accrual loans rather than foreclose and book in significant amounts of REO. The most recent numbers show that with $570MM in REO banks still hold some $2.9B in non performing loans, a multiple of five times the current REO inventory, all of which will undoubtedly have to be handled in the not-too-distant future. Only four CA banks sold any significant amounts of non performing loans during the previous quarter.
Top 5 California Banks with Commercial REO
- City National Bank $56,935,000
- Pacific Western Bank $35,281,000
- East West Bank $31,700,000
- CapitalSource Bank $30,416,000
- Bank of the West $29,526,000
Top 5 California Banks with Commercial Owner Occupied NPL
- Bank of the West $307,690,000
- Hanmi Bank $66,723,000
- California Bank & Trust $57,362,000
- Rabobank, National Association $46,000,000
- Union Bank, N. A. $42,459,000
Top 5 California Banks with Commercial Non Owner Occupied NPL
- Union Bank, N. A. $206,555,000
- Bank of the West $163,540,000
- Rabobank, National Association $162,000,000
- East West Bank $115,998,000
- Cathay Bank $111,323,000
Current data set excludes institutions regulated by the OTS (Office of Thrift Supervision).