Factbox-US regional lenders' commercial real estate exposure in spotlight after carnage

(Reuters) - A sell-off in regional U.S. bank stocks triggered by New York Community Bancorp last week has brought the group's exposure to commercial real estate (CRE) in focus for analysts and investors alike.

The industry has grappled with looming losses on CRE loan books since early 2023, as the sector faced the twin challenges of financing difficulties amid high interest rates and lower office occupancy due to widespread adoption of remote work.

Investors fear weak demand for offices could trigger a wave of defaults and put pressure on banks and other lenders, which are hoping to avoid selling CRE loans at significant discounts.

The CRE worries extend across the banking sector, with several giants including Wells Fargo shoring up rainy-day funds over the last 12 months. Meanwhile, smaller lenders have sought to reduce the risk by raising their loan loss provisions and shedding these portfolios through sales to private equity firms.

Here is the commercial real estate exposure of some prominent U.S. regional banks:

Bank Assets CRE Construction

concentration concentration

ratio as of Q3 ratio as of

2023 Q3 2023

New York Community $116.3 bln 477% 30%

Bancorp's

subsidiary,

Flagstar Bank

Valley National $61.18 bln 472% 66%

Bancorp

Columbia Banking $52.17 bln 323% 58%

Systems' Umpqua

Bank

Bank OZK $34.24 bln 345% 200%

City National Bank $26.14 bln 310% 46%

of Florida

BCI Financial Group $26.05 bln 309% 46%

WaFd subsidiary, $22.64 bln 371% 113%

Washington Federal

Bank

Axos Financial $20.83 bln 356% 135%

Pacific Premier $20.28 bln 312% 17%

Bancorp

Independent Bank $19.37 bln 302% 45%

Corp

* Note: Data as of the third quarter of 2023

* CRE concentration ratio refers to the extent to which a bank's loan portfolio consists of commercial and multifamily mortgages

* Source: Real estate data provider Trepp, using a combination of bank SEC filings and call sheets

(Reporting by Manya Saini in Bengaluru and Matt Tracy in Washington, D.C.; Editing by Sriraj Kalluvila)