CRE

Banks that are heavily involved in commercial real estate lending may shy away from buying institutions with similar concentrations.

While troubling factors such as higher risk profiles may be behind the recent lending boom, the industry could also just be returning to the historical average for loan growth following the "Great Panic" of 2008-2010.

The Bancorp in Wilmington, Del., has sold a loan portfolio as part of its effort to reduce the size of its discontinued commercial loan book.

The first commercial mortgage-backed security to comply with "skin in the game" requirements was extremely well received. Market participants credit the way the large banks sponsoring the deal retained the risk – a strategy unavailable to nonbank lenders.

United Community and Wells Fargo are among the banks building platforms to lend to senior-care facilities. Demographics suggest the business should grow significantly in coming years.

Under pressure from regulators to beef up risk management in commercial real estate lending, banks are using new software tools to improve analysis.

The impressive loan growth in the second quarter is surprising in an economy that grew by 1.2% in the second quarter and by only 0.8% in the first quarter.

Carver Bancorp in New York is dealing with a new set of challenges just months after being released from a longstanding enforcement order. The company’s woes highlight the challenges for banks with narrowly constrained business models.

Regulators' recent warnings on emerging risks with commercial real estate indicate banks have reverted to CRE practices that got them in hot water once before.

Suffolk Bancorp in New York, which recently agreed to be sold to People's United Financial, discouraged several suitors from bidding due to concerns about concentrations of commercial real estate loans at those banks. The disclosures highlight the challenges that banks with heavy CRE exposure could face — as buyers or sellers — if they want to do deals.