282 Banks at “risk of failure” from commercial real estate and Fed rate hikes.

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Consulting firm Klaros Group analyzed approximately 4,000 U.S. banks and found that 282 banks face a dual threat. These threats stem from both commercial real estate loans and potential losses tied to higher interest rates. It’s important to note that the majority of these banks are smaller lenders with less than $10 billion in assets. While most of these banks aren’t insolvent, they are experiencing stress. Consequently, there may be fewer bank failures, but communities and customers could still be indirectly affected by reduced investments in areas like new branches, technology, and staff. If a failing bank is insured by the FDIC, depositors will be protected up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category.

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