This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

FDIC Data Show Stressed Community Banks

The table shows key line items from the FDIC Quarterly Banking Profile comparing data from the end of 2007 versus Q4 2012.

Nonfarm / Nonresidential Real Estate Loans: This category is a portion of what's known as commercial real estate loans (CRE). This category has not suffered the fate of other real estate loan categories with a rise of 10.8% since the end of 2007 to $1.073 trillion.

Construction & Development Loans: C&D loans have been the Achilles Heel for community banks. These are loans to developers and home builders where a significant number of loans became noncurrent. While this asset class is down 67.6% since the end of 2007 it remains elevated at $203.9 billion.

Other Real Estate Owned (OREO): This asset class has been declining since peaking at $53.2 billion in the third quarter of 2010. This is still a source of stress in the banking system because at $38.5 billion is up 217.2% since the end of 2007.

Noncurrent Loans: The peak in this bad loan category was $405.4 billion at the end of Q1 2010. While significantly lower today at $276.8 billion it's up $166.9 billion, or 151.8% higher since the end of 2007. This is another sign that the banking system continues to experience the affects of "The Great Credit Crunch."

The daily chart for the America's Community Bankers Index (ABAQ) (186.88), which represents 389 publicly-traded community banks, tested a multi-year high last Friday at 187.42. My monthly value level is 180.51 with a weekly risky level at 189.37. I show significant downside risk as my quarterly value level lags at 158.71.

Chart Courtesy of Thomson / Reuters

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
STSA $33.10 -1.52%
UCBI $18.94 0.00%
BPFH $13.06 0.00%
BXS $24.24 0.00%
SNV $27.62 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs