The CRE worries extend across the banking sector, with several giants including Wells Fargo WFC.N shoring up rainy-day funds over the last 12 months. Meanwhile, smaller lenders have sought to reduce the risk by raising their loan loss provisions and shedding these portfolios through sales to private equity firms.
Here is the commercial real estate exposure of some prominent U.S. regional banks:
* Note: Data as of the third quarter of 2023
* CRE concentration ratio refers to the extent to which a bank's loan portfolio consists of commercial and multifamily mortgages
* Source: Real estate data provider Trepp, using a combination of bank SEC filings and call sheets
