NEW YORK (TheStreet) -- If you own shares in a community bank, it may be time to come up with an exit strategy.

Bank of the Ozarks (OZRK) , Cardinal Financial (CFNL) , Wilson Bank (WBHC) , Texas Capital Bancshares (TCBI) - Get Report, Home BancShares (HOMB) - Get Report, HomeStreet (HMST) - Get Report, Green Bancorp (GNBC) - Get Report, ConnectOne Bancorp (CNOB) - Get Report and BNC Bancorp (BNCN) are among the 488 publicly traded community banks with too many commercial real estate loans.

Of these hundreds of banks, 62 also have too many construction and development loans. Here's why this is important.

Back in the fall of 2005, the Federal Reserve, U.S. Treasury and the Federal Deposit Insurance Corporation realized that community banks were loaning funds to the housing and real estate markets at a pace above what these regulators thought was prudent.

Guidelines were set and monitored via quarterly filings to the FDIC. These guidelines were formalized by the end of 2006 and included the following stipulations:

Overexposure to construction and development loans: If loans for construction, land development and other land are 100% or more of total risk-based capital, the institution is considered to have loans concentrations above prudent risk levels, and should have heightened risk management practices.

Overexposure to construction and development loans including loans secured by multifamily and commercial properties: If loans for construction, land development and other land, and loans secured by multifamily and commercial property are 300% or more of total risk-based capital, the institution would also be considered to have a CRE concentrations above prudent levels, and should employ heightened risk management practices.

Instead of enforcing these guidelines, the regulators ignored them. Even as the subprime mortgage problems began to surface, these regulators shrugged them off by saying subprime issues would be contained and not spread to the rest of the economy. They were wrong.

According to the FDIC Quarterly Banking Profile, for the second quarter of 2015 these risks are once again increasing as new communities are developed and homebuilders increase the inventory of new homes on speculation.

Here's a table of data for nine publicly traded community banks that illustrate how real estate loan exposures increased in the second quarter. 

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Bank of the Ozarks increased total assets by 4.9% in the second quarter to $8.7 billion while increasing C&D loans by 11.9% to 1.96 billion, which raised the ratio to risk-based capital by 7.9% to 162.8%, well above the regulatory guideline of 100%.

Cardinal Financial increased total assets by 9.3% in the second quarter to $3.7 billion while increasing C&D loans by 13.3% to $540 million, which raised the ratio to risk-based capital by 10.7% to 133.7%.

Wilson Bank increased total assets by just 0.7% in the second quarter to $1.9 billion while increasing C&D loans by 7.7% to $278 million, which raised its ratio to risk-based capital by 4.3% to 123.4%.

Texas Capital Bancshares increased total assets by 2.8% in the second quarter to $17.8 billion while increasing C&D loans by 15.2% to $2.0 billion, which raised the ratio to risk-based capital by 10.8% to 111.5%.

Home BancShares increased total assets by 7.5% in the second quarter to $8.1 billion while increasing C&D loans by 8.1% to $821 million, which raised its ratio to risk-based capital by 6.2% to 109.7%.

HomeStreet increased total assets by 5.7% in the second quarter to $4.8 billion while increasing C&D loans by 11.5% to $495 million, which raised the ratio to risk-based capital by 9.9% to 107.9%. This bank had a manageable exposure of 98.2% in the first quarter of 2015.

Green Bancorp increased total assets by 7% in the second quarter to $2.4 billion while increasing C&D loans by 6.1% to $293 million, which raised the ratio to risk-based capital by 3.8% to 106.4%.

ConnectOne Bancorp increased total assets by 4.4% in the second quarter to $3.7 billion while increasing C&D loans by 10.6% to $312 million, but the ratio to risk-based capital declined by 4% to 103.9%, but still above the regulatory guideline of 100%.

BNC Bancorp increased total assets by 2.5% in the second quarter to $4.3 billion while increasing C&D loans by 19.5% to $429 million, which raised the ratio to risk-based capital by 17.9% to 103%. This bank had a manageable exposure of 87.3% in the first quarter of 2015.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.