Feb 5 (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                 $22.64 bln   371%            113%
 subsidiary,                                       
 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)