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CRE
Oct 24, 2024
While asset quality is strong, rising charge-offs in CRE and credit cards suggest it’s time for CFIs to revisit risk management strategies. We discuss the trend and responses to consider.
Aug 21, 2024
Risk within CRE lending portfolios may be higher than the banking industry realizes. We discuss rising sources of risk and how stress testing can help CFIs proactively identify trouble spots.
Jul 24, 2024
As concerns about the CRE market continue, many CFIs are reevaluating their CRE lending portfolios. Could lending to CRE clients in the life sciences market be a rewarding niche opportunity?
Apr 8, 2024
The commercial real estate sector experienced significant headwinds during 2023. Fortunately, early signs suggest a more stable, and in some cases positive, market in 2024. We review the outlook for the industry and suggest ways in which CFIs can manage risk and continue to support their CRE customers.
Feb 27, 2024
It’s not clear if or when the CRE market will return to pre-pandemic levels, but experts say there are steps that banks with significant exposure to the space can take to help mitigate losses. We suggest five ways to navigate the slump.
Feb 12, 2024
Due to an aging population, demand for senior housing is expected to grow. As occupancy rates rise and margins improve following a pandemic slump, investment in the sector should rebound. We consider the lending environment, the size of the opportunity, and what it takes for a CFI to succeed in this market.
Sep 11, 2023
Responding to rising levels of CRE loans and recent bank failures, the FDIC has issued new guidance on risks. We review portfolio concentration red flags and risk factors.
Aug 8, 2023
CRE developers and lenders are seeing a stressed landscape for their business, as predictions of workers returning to offices haven’t been fully realized. A forward rate lock hedge can help both sides of the lending transaction by fixing a rate on future loans.
Aug 2, 2023
Certain segments of commercial real estate are showing signs of stress, with certain office markets reporting vacancy rates at record highs. CFIs should pay close attention to trends and forecasts while preparing for action in case loan defaults rise. We discuss six strategies to help identify and address CRE loans at risk of default.
Apr 28, 2023
Warehouse development reached a new record in 2022. While 2023 is not expected to be as robust, it is still shaping up as another big year. We discuss why CFIs may want to capitalize on warehouse financing for loan growth.
Apr 14, 2023
CFIs are stepping up and filling the gap as larger players in the financial industry reduce their commercial real estate lending. Are the benefits of CRE lending worth the risks for CFIs?
May 25, 2022
Is construction ebbing or flowing? It depends. Commercial construction spending was down in March. Yet, architecture backlogs are full. Community financial institutions having construction loans in their portfolios will need to firm up risk mitigation, as they closely watch economic indicators. Here are three reminders to lower the risk with these loans in your portfolio.
Oct 6, 2021
The federal eviction moratorium has ended, which gives landlords more control over their income flow. Yet, the situation is still complicated for landlords and the community financial institutions that lend to them. We explore the economic landscape and provide three strategies for lenders to use with their landlord customers.
May 14, 2021
The annualized GDP rate for Q1 was 6.4% putting us on track for recovery, as vaccinations continue to roll out, infections are down, and businesses open up. The CRE industry is getting a boost too. We share the latest trends affecting retail, hospitality & travel, office space, and industrial industry segments.
Apr 13, 2021
According to one estimate, tenants now owe more than $70B in back rent and utility bills and are on average nearly four months behind on rent. While the recovery seems to be gathering steam, how can community financial institutions help their landlord clients stay on track? We provide four ways: defer payments, obtain federal assistance, provide short-term loans, and educate landlords.
Dec 16, 2020
Commercial real estate (CRE) has been hit hard. Your CRE borrowers are exploring creative opportunities to sublease their properties. Here are three innovative options that have sprung up.
Apr 23, 2020
Keeping investments together these days isn't easy for your CRE borrowers. Top three things to do to protect your CRE loan portfolio.
Dec 27, 2021
While the BID takes a rest for the holidays, we revisit some of the year's most popular articles.
Feb 23, 2022
After initially suffering a severe setback as a result of the pandemic, some areas of the commercial real estate (CRE) market are recovering more strongly than others. Notably, offices, multi-family, and certain niche sectors are looking optimistic. The outlook for subsectors like hotels and retail remains less certain.
Mar 28, 2022
Consumer spending was up 2.1% in January, which has prompted several businesses to increase their inventory and turn to their community financial institutions for loans. What exactly is driving this need for more funds right now and how can bankers capitalize on them?
Apr 26, 2022
A full economic recovery in the various CRE sectors is crucial both for community financial institutions and their customers. The overall CRE market seems to be making a recovery after the pandemic's impact, especially the industrial sector. We highlight this sector and explore whether it will stay strong through the end of 2022.
May 3, 2022
Hotels have seen their ups and downs in the past couple of years. Now, as consumers are flush with savings and ready to venture out again, hotels are seeing a welcomed burst of activity. This is good news for bankers supporting these businesses. Trepp’s CMBS delinquency rate for hotels sank to 6.87% in March, a decrease of 95 basis points MoM. But the real question is — will this high level of activity continue?
May 6, 2022
Community financial institutions are looking for lending opportunities. Yet, they may not naturally think about mobile home lending as a means to grow their loan portfolio. But, this sector had a stellar performance last year. In 2021 alone, more than $3B in mobile home loans were issued, which is higher than anything experienced in this market in the past 5Ys. We explore this hot lending segment further.
Sep 20, 2022
After two years of post-pandemic recovery in the CRE market, there are signs of a cooling off, driven by rising rates and fears of a recession. This leaves leading financial institutions with high CRE concentrations exposed and subject to greater scrutiny by regulators. We provide four strategies to manage CRE in this current market uncertainty.
Nov 16, 2022
Following yet another interest rate hike, economists are predicting that the housing market will not only continue to slow, but will hit a major downturn in 2023. We discuss how CFIs can pivot and demonstrate their value to potential borrowers, when it occurs.
Jun 30, 2021
C-PACE is a low-cost, long-term, fixed-rate financing tool funded by private capital providers. It is being used by building owners to pay as much as 100% of the costs for energy efficiency, carbon emission reduction, and resiliency projects. We explore what you need to know about C-PACE in order to be prepared today and in the future.
Aug 31, 2021
While the economic recovery is not yet complete, there are some bright spots, including CRE. Certain sectors of CRE are showing strength, such as industrial, which has been outperforming other asset classes, according to the CRE Financial Council (CREFC) Board. We reveal other insights by the CREFC Board and the Fed while highlighting certain CRE opportunities found by community financial institutions.
Sep 16, 2021
With the economy slowly recovering, bankers wonder when loan growth will return. With the continuing uncertainties of the Delta variant, labor constraints, and supply issues, significant challenges remain. However, there are some bright spots. We highlight three important lending areas: mortgage lending, CRE, and small business.
Nov 24, 2021
In this second part of our review of 2021, we look at how lending was shaped and specifically address the shifts in the commercial real estate sector. While lending remained low across the board throughout the year, a recovery appears to be in the cards. Meanwhile, commercial real estate seems to have undergone a likely permanent transformation.
Apr 2, 2021
Commercial real estate (CRE) was hit hard because of the pandemic. Now, lenders are hoping that with the economic recovery, CRE will get back on track. We map out what to expect in the coming months with some of the winners and losers along with how to best prepare your institution for the anticipated CRE recovery.
Jan 7, 2021
With tight competition for top-quality borrowers and high levels of deposits, lending has its challenges in 2021. Three ways to handle these challenges: book more working capital loans, manage CRE portfolio challenges, and monitor nonbank and fintech competition.
Dec 31, 2020
While the BID takes a rest for the holidays, we revisit some of 2020's most popular articles.
Oct 27, 2020
CRE lenders have a lot to manage these days. We provide you with five key indicators to help.
Jun 11, 2020
Lenders have lots of questions these days. We shed some light on a few of them.
May 14, 2020
The world of commercial real estate (CRE) lending has changed virtually overnight given COVID-19. Three steps to keep you on track to best support your customers.
Apr 28, 2021
Bankers are waiting with bated breath to see how commercial real estate portfolios will land now that some economic recovery seems to be underway. We detail some of the continuing challenges to CRE — retail, remote work, and inflation — along with our thoughts on the effects of these challenges to help with your plans for the future.
Jul 20, 2022
In this second part of our summary of the FDIC 2022 Risk Review, we take a closer look at the FDIC’s findings on potential credit risks for the banking industry and community financial institutions. While credit conditions for banks have improved in 2021, we examine the increased credit risk in certain sectors and markets linked to pandemic-related challenges, rising inflation and the war in Ukraine.