The book
Our current focus is banks with $1 billion to $10 billion in assets. At these banks, commercial real estate is showing early signs of strain. The numbers are still small. But past-due and nonaccrual loans have edged up since September 2025, and multifamily loans are part of the picture.
How much commercial real estate banks hold
Commercial real estate remains a large share of the book at banks of this size. In June 2026, the typical bank held commercial real estate equal to 221.8% of its capital. 168 of 895 banks were at or above 300%, one of the thresholds named in the 2006 regulator guidance on concentration.
| Quarter | Typical bank | At or above 300% |
|---|---|---|
| September 2025 | 223.6% | 174 of 900 |
| December 2025 | 224.6% | 176 of 905 |
| March 2026 | 224.1% | 173 of 898 |
| June 2026 | 221.8% | 168 of 895 |
Loans that need attention
At the typical bank, nonaccrual commercial real estate rose from 0.12% of those loans in September 2025 to 0.18% in June 2026. Loans 30 to 89 days past due rose from 0.02% to 0.04%.
| Quarter | 30–89 days past due | Nonaccrual |
|---|---|---|
| September 2025 | 0.02% | 0.12% |
| December 2025 | 0.03% | 0.15% |
| March 2026 | 0.04% | 0.19% |
| June 2026 | 0.04% | 0.18% |
Multifamily
Multifamily loans are starting to follow. The number of banks with multifamily loans on nonaccrual rose from 164 in September 2025 to 176 in June 2026.
| Quarter | Banks |
|---|---|
| September 2025 | 164 of 864 |
| December 2025 | 160 of 870 |
| March 2026 | 174 of 859 |
| June 2026 | 176 of 857 |
What comes next
As loans written at lower rates come due, more of them will need a decision. See one loan worked through, from start to finish.
FFIEC Call Reports, via FDIC BankFind, retrieved November 1, 2026. Quarters ending September 2025 through June 2026. Banks with assets of $1 billion to $10 billion. Commercial real estate is construction, multifamily, and non-owner-occupied property loans. Capital is Tier 1 capital plus the allowance for credit losses.