According to the Federal Deposit Insurance Corporation (FDIC), the number of banks on the Problem Bank List increased from 52 in the fourth quarter of 2023 to 63 in the first quarter of 2024. These problem banks represent 1.4 percent of total banks, which falls within the normal range for non-crisis periods (typically one to two percent of all banks). Additionally, the total assets held by these problem banks rose by $15.8 billion, reaching a total of $82.1 billion during the quarter
Charge-off rates on CRE loans have risen above the levels seen during the height of the pandemic. With interest rates remaining elevated, this issue may continue to get worse for banks, particularly regional: https://t.co/Oo1v7JKTeh
— Reef Insights (@ReefInsights) June 13, 2024