According to CoStar the level of distressed commercial real estate loans appears to be reaching a peak. To date, the recession has only had an adverse impact on approximately 10% of all commercial real estate debt. The amount of distress still totals into the hundreds of billions of dollars. More normal levels of commercial loan origination should return in 2012, even as the level of distressed debt continues to stay high.
Banks are already setting aside fewer dollars for losses and that should free up capital for new loans. Only 7.4% of banks hold 80% of all the distressed commercial debt. The 10 largest banks in the country hold 29%. On the short list of five banks that have distressed real estate assets making up more than 30% of total assets three are in Georgia. They are First Choice Community Bank, Dallas, GA, High Trust Bank, Stockbridge, GA and Security Exchange Bank, Marietta, GA.
Banks are already setting aside fewer dollars for losses and that should free up capital for new loans. Only 7.4% of banks hold 80% of all the distressed commercial debt. The 10 largest banks in the country hold 29%. On the short list of five banks that have distressed real estate assets making up more than 30% of total assets three are in Georgia. They are First Choice Community Bank, Dallas, GA, High Trust Bank, Stockbridge, GA and Security Exchange Bank, Marietta, GA.
