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The U.S. Banks With the Highest Exposure to Commercial Real Estate

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See this visualization first on the Voronoi app.

This bar graphic shows the U.S. banks with the most exposure to commercial property loans.

U.S. Banks With the Most Commercial Real Estate Exposure

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Today, there is roughly $5.7 trillion in commercial real estate debt outstanding—with U.S. banks holding approximately half of this total on their balance sheets.

The commercial property sector, which includes office, retail, healthcare, and multi-family properties, has faced mounting pressures amid high interest rates and lower occupancy levels. Given these headwinds, it poses the risk of higher defaults and steep loan losses in a sector that has not fully recovered since the collapse of Silicon Valley Bank last year.

This graphic shows the U.S. banks with the highest exposure to the commercial real estate sector, based on analysis from UBS.

Top U.S. Banks, by Share of Commercial Property Loans

Here are the banks with the greatest concentration of commercial property loans as of the third quarter of 2023:

BankCommercial Real Estate
Share of Total Loans
Total Commercial Real Estate
Loans
Total Assets
Bank OZK68.6%$17.4B$32.8B
Home BancShares, Inc.63.0%$9.0B$22.0B
Pacific Premier Bancorp, Inc.63.0%$8.4B$20.3B
International Bancshares Corporation59.3%$4.7B$14.9B
New York Community Bancorp Inc57.0%$49.0B$111.2B
Independent Bank Group, Inc.56.1%$8.0B$18.5B
Valley National Bancorp54.9%$27.5B$61.2B
CVB Financial Corp.50.2%$4.5B$15.9B
Independent Bank Corp.48.9%$7.0B$19.4B
Axos Financial, Inc.48.6%$8.3B$20.8B
Simmons First National Corporation Class A48.2%$8.1B$27.6B
United Bankshares, Inc.46.2%$9.8B$29.2B
WaFd, Inc.45.9%$8.1B$22.5B
ServisFirst Bancshares Inc44.9%$5.2B$16.0B
WesBanco, Inc.43.4%$4.9B$17.3B
Banner Corporation42.9%$4.6B$15.5B
TowneBank42.6%$4.8B$16.7B
Renasant Corporation42.4%$5.3B$17.2B
FB Financial Corporation42.3%$4.0B$12.5B
Glacier Bancorp, Inc.42.0%$6.8B$28.1B

As the above table shows, the vast majority of banks with the greatest exposure are small and medium-sized financial institutions.

Bank OZK, based in Arkansas, has the highest proportion of commercial property loans, at 68.6% of total loans. As one of the country’s most prominent lenders to Manhattan property developers, its share price has outperformed the S&P 500 by tenfold since going public 27 years ago.

New York Community Bancorp, the only big bank on the list, has $49 billion in commercial property loans, making up 57% of its overall loans. At the height of regional banking turmoil last year, one of New York Community Bancorp’s subsidiaries took over the failed Signature Bank in a multi-billion dollar deal.

Since the bank reported $2.7 billion in losses in the fourth quarter of 2023, its share price has plummeted roughly 68%. The surprise loss—which was revised from $252 million—prompted the bank to seek a $1 billion lifeline from investors to help shore up confidence in the institution. Former U.S. Treasury Secretary Steven Mnunchin was a major investor in the deal.

Like New York Community Bancorp, a number of other regional banks have seen their share prices lag due to its fallout.

Commercial Property Debt Concentrated in Small Banks

Below, we show how the majority of commercial real estate loans are found in small U.S. banks, which are those with assets of $20 billion and under:

This pie chart shows the share of commercial real estate debt according to bank assets.

With 56.1% of all commercial property loans, small U.S. banks face the highest risk compared to other bigger banks.

Given the high share of loans, banks may run the risk of failure especially if credit losses accelerate and valuations decline. At the same time, it could be more challenging to refinance debt as valuations deteriorate.

While these troubles have begun to emerge over the last year, there is also the likelihood that losses could continue over the next several years. In fact, after the global financial crisis, credit losses peaked two years after delinquencies hit their highest point.

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U.S. Debt Interest Payments Reach $1 Trillion

U.S. debt interest payments have surged past the $1 trillion dollar mark, amid high interest rates and an ever-expanding debt burden.

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This line chart shows U.S. debt interest payments over modern history.

U.S. Debt Interest Payments Reach $1 Trillion

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The cost of paying for America’s national debt crossed the $1 trillion dollar mark in 2023, driven by high interest rates and a record $34 trillion mountain of debt.

Over the last decade, U.S. debt interest payments have more than doubled amid vast government spending during the pandemic crisis. As debt payments continue to soar, the Congressional Budget Office (CBO) reported that debt servicing costs surpassed defense spending for the first time ever this year.

This graphic shows the sharp rise in U.S. debt payments, based on data from the Federal Reserve.

A $1 Trillion Interest Bill, and Growing

Below, we show how U.S. debt interest payments have risen at a faster pace than at another time in modern history:

DateInterest PaymentsU.S. National Debt
2023$1.0T$34.0T
2022$830B$31.4T
2021$612B$29.6T
2020$518B$27.7T
2019$564B$23.2T
2018$571B$22.0T
2017$493B$20.5T
2016$460B$20.0T
2015$435B$18.9T
2014$442B$18.1T
2013$425B$17.2T
2012$417B$16.4T
2011$433B$15.2T
2010$400B$14.0T
2009$354B$12.3T
2008$380B$10.7T
2007$414B$9.2T
2006$387B$8.7T
2005$355B$8.2T
2004$318B$7.6T
2003$294B$7.0T
2002$298B$6.4T
2001$318B$5.9T
2000$353B$5.7T
1999$353B$5.8T
1998$360B$5.6T
1997$368B$5.5T
1996$362B$5.3T
1995$357B$5.0T
1994$334B$4.8T
1993$311B$4.5T
1992$306B$4.2T
1991$308B$3.8T
1990$298B$3.4T
1989$275B$3.0T
1988$254B$2.7T
1987$240B$2.4T
1986$225B$2.2T
1985$219B$1.9T
1984$205B$1.7T
1983$176B$1.4T
1982$157B$1.2T
1981$142B$1.0T
1980$113B$930.2B
1979$96B$845.1B
1978$84B$789.2B
1977$69B$718.9B
1976$61B$653.5B
1975$55B$576.6B
1974$50B$492.7B
1973$45B$469.1B
1972$39B$448.5B
1971$36B$424.1B
1970$35B$389.2B
1969$30B$368.2B
1968$25B$358.0B
1967$23B$344.7B
1966$21B$329.3B

Interest payments represent seasonally adjusted annual rate at the end of Q4.

At current rates, the U.S. national debt is growing by a remarkable $1 trillion about every 100 days, equal to roughly $3.6 trillion per year.

As the national debt has ballooned, debt payments even exceeded Medicaid outlays in 2023—one of the government’s largest expenditures. On average, the U.S. spent more than $2 billion per day on interest costs last year. Going further, the U.S. government is projected to spend a historic $12.4 trillion on interest payments over the next decade, averaging about $37,100 per American.

Exacerbating matters is that the U.S. is running a steep deficit, which stood at $1.1 trillion for the first six months of fiscal 2024. This has accelerated due to the 43% increase in debt servicing costs along with a $31 billion dollar increase in defense spending from a year earlier. Additionally, a $30 billion increase in funding for the Federal Deposit Insurance Corporation in light of the regional banking crisis last year was a major contributor to the deficit increase.

Overall, the CBO forecasts that roughly 75% of the federal deficit’s increase will be due to interest costs by 2034.

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