With only four banks failing last month, June had the second-lowest failure count in the past year, Trepp reports. However, more than 1,000 banks remain on the firm's ‘watch list,’ with almost 250 banks at very high levels of risk.
All four banks were located in the Southeast region, and according to Trepp, commercial real estate exposure was the key driver of the banks' problem loans. The banks that failed were Charleston, S.C.-based Atlantic Bank and Trust; Jackson, Ga.-based McIntosh State Bank; Tampa, Fla.-based first Commercial Bank of Tampa Bay; and Clayton, Ga.-based Mountain Heritage Bank.
Trepp reports that commercial real estate loans accounted for $91 million, or 77%, of the total $119 million in nonperforming loans at the four banks. Construction and land loans made up $57 million of the total, while commercial mortgages were responsible for $34 million of the total nonperforming loan pool.
