River City Bank’s Post

Being a community bank means being there. "The style of being the local bank, being there to talk to people, to reach out to people, it means something to many customers." Discover how Columbia Bank’s President and CEO, Thomas J. Kemly, explained the importance of the community and branch connection. Read more about how Columbia approaches its growing branch network and how its newest Camden branch will expand its impact on the local community. https://bit.ly/3AdJNSO #CountOnColumbia

As turmoil hits New York Community Bancorp, Valley National Bancorp, which also has a concentration in commercial real estate (CRE) lending, sees a 17% decline in its stock price. Travis Lan, Valley's deputy chief financial officer, remarks, "Not all CRE portfolios are created equally." This highlights the importance of portfolio diversity and risk management in the banking sector. #Banking #CommercialRealEstate #RiskManagement #FinancialSector

https://lnkd.in/eTVj45_z "What's Ailing NYCB? NYCB has a big red flag that many other regional banks don't have: an $18.3 billion portfolio of loans made to rent-regulated multifamily buildings in New York City. That equaled roughly 22% of all of the bank’s loans at the end of December. High interest rates, persistent inflation and plummeting property values are putting owners of such buildings in a bind, jeopardizing their ability to pay back loans. Add to that, the city’s strict 2019 rent stabilization legislation, which basically makes it harder for landlords to hike rents in order to pay for things like renovations."

Who will solve this $90 billion problem? Signature Bank and New York Community Bank (NYCB) were two of the "big three" banks lending on Rent Stabilized Multifamily properties. With Signature gone and NYCB in full retreat, will any other lenders step in to fill a massive void? If not, there will be a severe crisis for both borrowers and lenders alike. Read more about this at insights.maverickrep.com #banking #rentstabilization

In the ever-evolving landscape of the financial sector, community banks have proven to be not only stable and resilient, but are thriving and retaining deposits. "Community banks play a pivotal role in fostering economic stability and growth within our neighborhoods," writes Gwen Crawford, CNB's Executive Vice President, Chief Retail Officer, in her latest article. "At CNB, we reinvest our deposits back into the communities we serve." Read the full article at: https://bit.ly/48AttqV

River City Bank: Thinking big while staying grounded! 💸 💼 Experiencing rapid growth in recent years, the bank's commercial real estate loans now make up 660% of its capital. With the level of market downturn, banks are facing challenges in refinancing, especially in California's office markets which have been impacted by the pandemic. Michael Imerman, faculty director of the master of finance program here at the Merage School of Business, warns that "small banks cater to a specific clientele and that can lead to an age-old problem: concentration risk". #UCIMerage Read more here: https://bit.ly/3W3Tqft

California, an epicenter of last year’s regional-bank turmoil, is also at the forefront of the industry’s latest trouble spot: commercial real estate. Almost a third of its 127 registered banks have property debt above the 300% level, the most among US states, according to a Bloomberg analysis of federal call reports that lenders filed for the end of last year. Regulators and investors are closely watching lenders’ commercial real estate holdings as values tumble across the US, particularly for office and apartment buildings. Last week, Michael Barr, the Federal Reserve’s vice chair for supervision, likened the market’s stress to a “slow-moving train.” He said the central bank is particularly focused on lenders that have exposure to office space in areas where significant price declines are expected. With thanks to: Kara Wetzel John Gittelsohn Ann Choi Bre Bradham https://lnkd.in/dB5EuXbD

Robert Augusto Riva spoke with Reuters about how commercial real estate exposure led to the fall in New York Community Bancorp's shares and explains how this may affect more banks in the near future. https://lnkd.in/eJGwa7VY #commercialrealestate #realestatefinance #nycb #shortsellers #coleschotz

🔔 Industry Update: Christine Camp announces her departure from the boards of Central Pacific Financial and Central Pacific Bank after two decades of influential leadership. This marks a significant transition for the institutions. Meanwhile, Cohen & Company Inc. reports a robust Q4 with a net income of $4.5 million, showcasing the resilience of the financial sector amidst economic challenges. In other news, the legal battle over New York's most expensive one-bedroom apartment highlights the complexities of high-end real estate transactions. As the real estate landscape continues to evolve, these developments underscore the importance of strategic leadership, financial stability, and legal diligence in navigating the market's dynamic challenges. #RealEstate #Leadership #Finance #LegalChallenges https://fxn.ws/49BjNNQ

New York Community Bancorp (NYCB)/Flagstar's total assets have grown rapidly as the two institutions merged and bought around $38 billion of Signature's assets in 2023. While it has benefited historically from good underwriting and low non-performing loans (NPLs), the exogenous factors of office vacancies and multifamily rent and absorption are catching up. Per NYCB 8-K reporting, Q4 2023 was the first time the bank’s NPL ratio went above a popular index in almost 25 years of history. Here, we provide a short snapshot of what happened to NYCB in late January and what’s likely to follow... https://hubs.li/Q02jVwTv0 As Trepp continues to stay on top of the news, we will cover our findings next Monday, February 12th at 1 PM ET on a webinar for the market. Join us for "Risk Management and Benchmarking ACL for Commercial Portfolios" to hear from the Trepp team and get a snapshot of the CRE loan-level dataset used in the blog: https://hubs.li/Q02jVxjv0