Trepp’s Bank Stability Research and January Bank Failure Report Released

NEW YORK--(BUSINESS WIRE)-- On Friday, February 4^th, Matt Anderson, Managing Director at Trepp, LLC, provided expert testimony at the Congressional Oversight Panel hearing on the current state of the commercial real estate (CRE) market in the U.S. and its implications for bank stability and returns to the Troubled Asset Relief Program (TARP). Mr. Anderson’s testimony highlighted some of the findings in this new research (available at www. trepp.com) including:

• As of Q3 2010, there were 753 U.S. banks on Trepp’s Foresight Watch List™ ¹ and Pre-Watch List due to their elevated risk of failure
• Q4 2010 estimates indicate that the delinquency rate for construction loans at banks is 18% and the commercial mortgage delinquency rate at banks is at 5.3%
• 1,300 of the nation’s banks at the end of Q3 2010 had a significant Commercial Real Estate Concentration
• 50% of the commercial loans maturing in 2011 to 2015 are currently “underwater”
• There has been a 42% drop in commercial real estate value since its 2007 peak

“We were honored to be chosen by the Congressional Oversight Panel to share with the nation our research on commercial real estate and its relation to the health of U.S. banks”, said Mr. Anderson. “We remain concerned about the volume of underwater commercial mortgages that will mature over the next several years, despite gradual improvement in the economy.”

About Trepp, LLC

Trepp, LLC is the leading provider of CMBS and commercial mortgage information, analytics and technology to the global securities and investment management industries. Trepp provides primary and secondary market participants with the tools and insight they need to increase their operational efficiencies, information transparency and investment performance. For more information visit www.trepp.com.

¹Foresight Watch List™

Trepp’s Foresight Watch List tracks U.S. banks at elevated risk of failure. The Watch List has successfully identified 96% of the banks that have failed in the current cycle that began in September 2007. Banks on the Watch List have been nearly 200 times more likely to fail than banks not on the list.

CONTACT:

Great Ink Communications
Eric Gerard or Roxanne Donovan, 212-741-2977
egerard@greatink.com

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Technology  Other Technology  Public Policy/Government  Congressional News/Views  Professional Services  Banking  Finance  Construction & Property  Commercial Building & Real Estate

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