CRE

Stonegate Bank in Florida figured its balance sheet was too small and undiversified to stay independent. But it was choosy in approaching potential buyers and aggressively scrutinized the lead bidder’s loan book.

Banks are increasingly tightening lending standards for commercial real estate loans and are likewise seeing a drop-off in demand, according to a report released Monday by the Federal Reserve Board.

Growth in commercial real estate loans is a big reason the New Jersey bank had a strong quarter.

The Tennessee company has been working to resolve a memorandum of understanding tied to its CRE exposure.

Vacancies and rent-slashing have some banks worried that certain markets are overheating, but others say the decline in nonperforming loans is a sign the sector has never been healthier.

Joseph Ficalora, New York Community's CEO, told analysts that his company could still have a chance to buy Astoria "down the road."

A number of banks are tapping the brakes on commercial real estate lending, giving others an opportunity to make more loans at better terms.

On Sept. 30, 2016. Dollars in thousands.

There is optimism that consolidation could bounce back from a lackluster 2016 as bank stocks rally. At the same time, expectations of regulatory easing and tax reform could entice more banks to stay independent, at least in the short term.

Weakness in the energy sector and a surge in new construction are pushing up vacancy rates at offices and hotels, leading to a spike in delinquencies on loans tied to them. The safer bet, bankers say, is lending on industrial properties.