Thursday, June 28, 2012

Construction and Land Development Loans

During the recent financial crisis and recession, construction and land development loans were the loan category that was most likely to become impaired.

For example, the FDIC reported that 12.52 percent of all construction loans were non-current as of March 2012 -- down from a peak of 16.82 percent, as of March 2010.

Since construction loans were more likely to become delinquent and be charged off, I thought it is worthwhile to identify those credit unions with the most construction loans.

The following table identifies the 25 credit unions with the largest amount of construction and land development loans as of March 2012. In addition, the table specifies what percent of total business loans at these 25 credit unions were construction and land development loans. The table does not include information on performance -- this will have to wait for a later posting.



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