Close

Factbox-US banks' commercial real estate loan worries linger after latest tumble

July 3, 2024 12:42 PM EDT

FILE PHOTO: People walk around the Financial District near the New York Stock Exchange (NYSE) in New York, U.S., December 29, 2023. REUTERS/Eduardo Munoz/File Photo

(Reuters) - Several U.S. regional and mid-sized banks continue to face the squeeze from high exposure to the commercial real estate (CRE) sector that has been roiled by higher-for-longer interest rates and empty office buildings.

On Wednesday, First Foundation's shares slumped after the Texas-based lender with a huge portfolio of multifamily real estate loans disclosed a $228 million "unexpected" capital raise at a steep discount.

Below is a list of U.S. banks with some of the largest ratio of CRE loans to Tier 1 capital plus allowance for loan losses, as of March 31, according to S&P Global Market Intelligence.

Note:

* ALLL - allowance for loan and lease losses

Data source: S&P Global Market Intelligence

(Reporting by Manya Saini and Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Reuters