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

(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.


* 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)