The first guideline states that 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. The second guideline covers 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 be considered to have CRE concentrations above prudent levels, and should employ heightened risk management practices. Pipeline is the ratio of money lent on real estate loans vs. total loan commitments. A pipeline around 60% funded is considered healthy, while a pipeline ratio of 80% and higher is considered a potential problem. At 100% the bank has fully funded all real estate loan commitments. OV/UN Valued: Community banks with a Red reading is undervalued, while those with a Black reading is overvalued according to ValuEngine. VE Rating: A 3-Engine rating is a Hold, a 4-Engine rating is a Buy and a 5-Engine rating is a Strong Buy. Last 12-Month Return (%): Banks with a red number declined by that percentage. Those with a black number increased by that percentage. The performance has been mostly positive. Forecast 1-Year Return: All numbers are black, so all 29 community banks in the table are projected to move higher over the next 12 months. P/E Ratios: Community banks have some price-to-earnings ratios that are elevated, but most are favorable. I highlighted in red the banks with overexposure in C&D or CRE loans or elevated pipelines. The banks overexposed to C&D Loans are Cardinal Financial ( CFNL), Home BancShares ( HOMB) and Union First Market Bankshares ( UBSH). Overexposed to CRE Loans are Boston Private Financial Holdings ( BPFH), Cardinal Financial, East West Bancorp ( EWBC), Fulton Financial ( FULT), Hanmi Financial ( HAFC), Home BancShares, Independent Bank ( INDB), MetroCorp Bancshares ( MCBI), Sandy Spring Bancorp ( SASR), Union First Market Bankshares, Umpqua ( UMPQ), Virginia Commerce Bancorp ( VCBI) and Western Alliance Bancorporation ( WAL). Banks with a stuffed loan pipeline are East West, Hanmi, Home Bancshares, Virginia Commerce and Western Alliance.