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Regions, KeyCorp Face Losses From Commercial Property Defaults

Ari Levy Bloomberg
Regions, KeyCorp Face Losses From Commercial Property Defaults - Commercial Property - Housing Crisis - Financial/Loan - Real Estate Market - United States

July 20 (Bloomberg) -- Regions Financial Corp., Zions Bancorporation and KeyCorp may tell investors this week how hard they’ll be hit by the doubling of commercial property defaults after tying up 25 percent of their loans in the business.

Analysts expect the three regional banksto report more than $400 million in combined second-quarter losses as more borrowers fell behind on loan payments. Zions, the biggest bank based in Utah, releases results after U.S. markets close today. Regions, the largest in Alabama, reports before trading tomorrow and KeyCorp, ranked second in Ohio, follows on July 22.

With more than $108 billion of U.S. commercial properties in distress, according to Real Capital Analytics Inc., banks are being forced to extend and modify loans to avoid taking losses. There were 5,315 buildings in default, foreclosure or bankruptcy at the end of June, more than twice the number at the close of 2008, according to New York-based Real Capital.


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