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Construction loans at US banks at highest level since Q3'10

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Construction loans at US banks at highest level since Q3'10

Construction loans at U.S. banks and thrifts reached $338.33 billion at year-end 2017, up 2.3% for the quarter and 8.1% for the year. Nonresidential construction loans grew 8.4% year over year to $263.95 billion, while residential construction loans grew by 6.9% to $74.38 billion.

Total construction loans have been growing for 19 straight quarters after plummeting during the banking crisis. The last time total construction loans at U.S. banks and thrifts were this high, was in the third quarter of 2010. However, total construction loans are still well below the pre-recession peak of $631.36 billion reached in the first quarter of 2008.

Construction loan delinquencies fell to $2.92 billion or 0.86% of total construction loans at year-end 2017 from $3.31 billion or 1.06% of total construction loans at the end of 2016. Construction loan delinquency has fallen significantly since peaking at 19.64% in the first quarter of 2010 and is now below the levels reported before the banking crisis.

During the fourth quarter, both residential and nonresidential construction loans fell quarter over quarter at Wells Fargo & Co., the nation's largest bank construction lender. However, nonresidential construction loans were up $264.0 million year over year at the company, offsetting a $115.0 million decline in residential construction loans over the same period.

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Information about a company's specific loan types can be found on its Briefing Book page online. For aggregate loan information at U.S. commercial banks, click here.