CRE

Multifamily family construction is reaching the point where some markets can't absorb the new supply of units.

The management team at Bank of the Ozarks knows it has a dependency on commercial real estate. But they assert that sound underwriting, and efforts to diversify, are what really matters when assessing risk.

Delinquencies on non-owner-occupied commercial real estate loans ticked up in the first quarter after years of steady declines. Some are shrugging off the increase, saying it was expected given the strong demand for CRE loans, but others say there's good reason to be concerned.

Small-business lenders are scrambling for financing to accommodate a possible real-estate-related borrowing surge once a key federal rule change takes effect next week.

An executive from Regions Financial said recently that his bank plans to pad fee income by expanding into syndication of low-income housing credits. The comment shed light on an increasingly competitive business — and reminded the world again how eager banks are for even incremental boosts to revenue.

A number of executives are warning that midsize borrowers are hoarding cash rather than borrowing, reflecting increased concern about the economy.

The financial services sector would benefit from companies — banks included — submitting dedicated disclosures on the impact of climate change.

Loan growth at several Boston banks, including many former mutuals, is higher than the national average. Still, bankers are closely watching for any indication that a bubble is forming.

Shares in Bank of the Ozarks slid Wednesday after an investor known for shorting stocks warned about risk in the company's construction portfolio. The stock recovered some by the end of trading, and several analysts said the concerns are unfounded.

At least one banker has gone public with expectations that the OCC will force his institution to hold more capital. More could soon follow.