ReGround Asset Resolution · Market Sizing
The National Construction Loan Distress Map
Every FDIC-insured institution's construction and land development book, by charter state, with the share that has stopped performing. Bank figures are reported call report data. The nonbank layer is a stated assumption.
Issue: Q2 2026 · Bank data as of June 30, 2026 · 4,313 reporting institutions · Published September 23, 2026
Noncurrent rate by charter state
| Noncurrent rate band | States | C&D balance | Noncurrent | Noncurrent % | 30 to 89 days |
|---|---|---|---|---|---|
| under 0.50% | 22 | $131.1B | $444.3M | 0.34% | $338.4M |
| 0.50 to 1.00% | 14 | $164.2B | $1.2B | 0.74% | $489.5M |
| 1.00 to 2.00% | 10 | $119.4B | $1.6B | 1.31% | $571.8M |
| over 2.00% | 5 | $43.6B | $1.3B | 2.91% | $183.5M |
| All 50 states and DC | 51 | $458.3B | $4.5B | 0.98% | $1.6B |
Loans sit in the state where the holding bank is chartered, not where the collateral is. The map shows who holds the paper and whose book is deteriorating; it does not say where the projects are. Band totals are computed from the state rows and tie to the FDIC checksum.
Working number
$10 billion of distressed construction loans nationwide at any point in time. Reported bank noncurrent of $4.5 billion, grossed up for the nonbank share of construction credit at a higher distress rate, lands between $9 and $11 billion depending on the share assumed. The $4.5 billion is a floor: extensions and modifications keep loans current, and a loan that has stopped funding but has not matured reports nothing.
The nonbank share and its distress rate are assumptions, labeled as such wherever they appear. Set the nonbank share to zero and every figure in the report is reported data.
The 51-state table
The Q3 2026 issue publishes in December, after third-quarter call reports.
What's inside
- 1The map and the dollars-by-band legend
- 2The 51-state table with totals
- 3The total-market model: bank measured, nonbank assumed
- 4Method and sources
ReGround Asset Resolution™ 2026 · All rights reserved · Western Realty Finance, Inc., dba ReGround Asset Resolution · California Real Estate Broker · DRE #01065844 · 701 Palomar Airport Rd, Suite 300, Carlsbad, CA 92011. We use your registration to deliver this report and future issues. Unsubscribe any time. This report is a market sizing prepared from public regulatory data and stated assumptions. It does not describe any specific loan, borrower, or transaction.
Disclaimer: Prepared by ReGround Asset Resolution as a capital advisor, not as legal, tax or accounting advice, and not for use in any securities offering. Figures are drawn from documents supplied by the client and third parties and have not been independently verified; confirm against originals before reliance. Nothing here is an offer, commitment or representation on behalf of any lender, agency or other party, and the preparer has no authority to bind any party.