While small banks far outside Columbus are getting clobbered by commercial real estate losses, Central Ohio’s community lenders appear to be weathering the storm.
A Feb. 11 report from the Congressional Oversight Panel studying the banking bailout and financial services regulation predicted that a gathering wave of commercial real estate loan defaults could jeopardize the stability of many banks over the next few years while battering a hobbled economy. It said the downturn could be acute among community banks because they are “proportionately even more exposed than their larger counterparts” to commercial real estate loans.
But an analysis by Columbus Business First using the government’s calculations found Central Ohio’s community banks have generally steered clear of the gorging on commercial real estate seen in other states, while a conservative approach has helped them avoid deep losses.
“In some really hot markets there were commercial real estate banks created, or they expanded greatly with (commercial real estate),” said Jeff Benton, CEO of the Delaware County Bank & Trust Co., a commercial real estate lender that has encountered relatively few problem loans. “Our banks here tend to be more balanced.”
No comments:
Post a Comment