Construction loans at U.S. banks and thrifts rose to a new postcrisis high of $359.84 billion as of Sept. 30, an increase from $357.22 billion at the end of June, but still much lower than the precrisis peak of $631.36 billion reached in the first quarter of 2008.
Nonresidential construction loans grew 2.7% year over year to $279.51 billion, while residential construction loans gained 1.6% to $80.33 billion.
Construction loan delinquencies fell 3.1% quarter over quarter to $2.79 billion as of Sept. 30. Delinquent nonresidential construction loans dropped 4.6% quarter over quarter to $2.05 billion. In contrast, delinquent residential construction loans increased by 1.3% to $743.1 million.
Wells Fargo & Co., the largest construction lender among U.S. banks and thrifts, held $18.77 billion in total construction loans at the end of September, almost double the amount of the next-largest lender. Residential and nonresidential construction loans at the company fell by 14.6% and 2.9% over the quarter, respectively.