CRE Loan Delinquency Rate, Smaller Banks

## What this measures

The share of commercial real estate loan balances at U.S. commercial banks outside the 100 largest that are 30 or more days past due or no longer accruing interest.

## Why it matters

Commercial real estate is a much larger share of lending at regional and community banks than at the largest banks, so problems here hit local credit hardest.

## How to read it

Higher is worse. It was 1.27% in the second quarter of 2026, up from 1.11% a year earlier and the highest since 2015, against 7.65% at the 2009 peak.

## What it does not say

These are commercial real estate loans held by U.S. commercial banks, not commercial mortgage-backed securities (CMBS), where office loan delinquency has run far higher. Bank figures also exclude life insurers, credit unions and private credit funds.

## Source

Board of Governors of the Federal Reserve System, Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks (FRED series DRCRELEXFOBS). Palanor pulls it from the FRED API (Federal Reserve Bank of St. Louis) nightly.