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The FDIC Quarterly Banking Profile for the fourth quarter of 2016 shows increasing exposures to construction and development loans, which are potential problems for these 14 community banks.
While nearly 40% of California emerges from the drought, generational farmers in the state are still concerned that regulatory changes will lead them to sell to investor groups.
However, it is a risky trade as management could fail to turn it around.
The FDIC has released positive data for community banks, but these 14 banks have rallied too far too fast.