More Than Half U.S. Banks Posting Noteworthy Increases in Nonresidential, Multifamily Lending

Article submitted by Mike Stinson, CCIM,  Sales and Leasing Agent at Saurage Rotenberg Commercial Real Estate

Written by Mark Heschmeyer CoStar, September 21, 2011

While commercial real estate continues to burden the nation’s 7,522 banks and thrifts that reported results to the FDIC as of June 30, the severity of the CRE-related impairment is gradually decreasing and lending is on the increase.

Overall, banks continued to scale back the total amount of commercial real estate loans on their books. However, most of the drop came from loans for construction and development activities. Banks actually increased lending for multifamily projects over the first quarter by about $1.4 billion.

Significantly too, half the nation’s banks boosted their lending on nonresidential and multifamily properties by $50 million or more in the second quarter of the year.

Five banks did so by more than $1 billion.
* Manufacturers and Traders Trust Co., $3.36 bl
* Hancock Bank of Louisiana, $2.58 bl
* First Niagara Bank, $1.55 bl
* NAFH National Bank, $1.35 bl
* Wells Fargo Bank, $1.13 bl

All but Wells Fargo of that group increased commercial real estate lending across the board, including construction and development loans. Wells Fargo’s construction and development loan portfolio dropped by $2.2 billion.

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Mike Stinson, a native of Monroe, Louisiana, is a graduate of Louisiana State University (LSU). A real estate licensee since 2004, Mike specializes in the sale and leasing of commercial real estate. A Designee member of the Certified Commercial Investment Member Institute (CCIM), Mike’s other professional memberships include Baton Rouge’s Commercial Investment Division (CID), the LSU Alumni Association, REALTOR Land Institute (RLI), and an affiliate member of the National Association of REALTORS® (NAR).

Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Growth Coalition; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).