Construction and development loans are down $411.5 billion since the end of 2007, or 65.4%. Back between the 1988 and 1992 crisis, C&D Loans declined 54.7%, and thus the "Great Credit Crunch" has exceeded that percentage. This is the loan category where community banks remain reluctant to lend and it remains a drag on the homebuilders, who want to rebuild inventories.

As the graph below from the FDIC shows, the noncurrent rate on C&D loans peaked in early 2009, but remains significantly elevated. This indicates that continued write-offs are necessary and implies that the FDIC will continue the bank failure process to whittle down their List of Problem Banks from the current total of 732 FDIC-insured financial institutions.

Courtesy FDIC

The above table shows data from the FDIC and covering 29 community banks that have overexposures to real estate loans. This is just a sampling.

Click here for a larger version of the bank chart.

Reading the Table:

FDIC Assets: The assets shown in FDIC data. Synovus ( SNV) is the largest in the table with $26.04 billion in assets.

C&D Loans: The dollar amount of the exposure. SNV has the largest size exposure at $2.7 billion.

Cons/RBC: The percent exposure vs. risk-based capital. Banc Trust Financial has the highest risk at 154% of risk-based capital vs. the 100.0% regulatory guidelines.

CRE/RBC: The percent exposure vs. risk-based capital. Pacific Premier Banc has the highest risk at 585% of risk-based capital vs. the 400.0% regulatory guidelines.

Pipeline: The percentage of CRE loans outstanding versus loan commitments. At 100% all commitments are fully funded which is a negative sign as a healthy pipeline is around 60%. Franklin Financial ( FRAF) and Virginia Commerce ( VCBI) have their CRE loan commitments fully funded.

OV/UN Valued: The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating: A "1-Engine rating" is a Strong Sell, a "2-Engine rating" is a Sell, a "3-Engine rating" is a Hold, a "4-Engine rating" is a Buy and a "5-Engine rating" is a Strong Buy.

If you liked this article you might like

Community Banks Could Be Big Winners in Treasury Regulation Overhaul

Buyout Firms Are Heading for the Exit With Their Bank Investments

Insider Trading Alert - UCBI, PGTI And LNKD Traded By Insiders

Insider Trading Alert - UCBI, CRM And JNPR Traded By Insiders

Insider Trading Alert - TIPT, TMH And UCBI Traded By Insiders