From John Johnson, CCIM - Atlanta, GA |  Via the Wall Street Journal, the number of banks on the “troubled” list increases even as the FDIC continues to close banks, with the number of such troubled (mostly community) banks now at 775 nationally.

While the first quarter of 2010 did see a return to profitability for a substantial segment of banks, the continuing deterioration of commercial loan portfolios also signals that new CRE loans will remain difficult to obtain.  And with non-earning loans and mounting Other Real Estate (foreclosed properties) carried at values higher than the market will absorb, the ability of real estate brokers to list and sell such assets is severely constrained (extend, pretend, and hope).

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Tags: assets, banks, commercial, Commercial Real Estate, cre, debt, defaults, distressed, economy, FDIC, loans, market, real estate, troubled banks

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