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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 construction and land development loans by charter stateUnited States map. Each state is colored by the share of its chartered banks' construction and land development loans that are noncurrent. Bands: under 0.50 percent green, 0.50 to 1.00 percent yellow, 1.00 to 2.00 percent orange, over 2.00 percent red.AK0.26%AL0.66%AR0.68%AZ2.73%CA3.13%CO0.45%FL0.32%GA0.27%HI0.18%IA0.96%ID0.30%IL0.61%IN0.34%KS0.43%KY0.21%LA1.48%ME0.16%MI1.35%MN0.78%MO1.28%MS0.42%MT0.45%NC0.27%ND1.09%NE0.59%NM0.86%NV0.21%NY1.04%OH1.41%OK0.95%OR0.10%PA0.95%SC0.19%SD2.77%TN0.46%TX0.72%UT0.44%VA0.87%WA0.57%WI0.46%WV1.40%WY0.25%VT0.00%NH1.21%MA1.26%RI1.60%CT0.24%NJ0.64%DE0.77%MD2.77%DC7.65%
Noncurrent rate bandStatesC&D balanceNoncurrentNoncurrent %30 to 89 days
under 0.50%22$131.1B$444.3M0.34%$338.4M
0.50 to 1.00%14$164.2B$1.2B0.74%$489.5M
1.00 to 2.00%10$119.4B$1.6B1.31%$571.8M
over 2.00%5$43.6B$1.3B2.91%$183.5M
All 50 states and DC51$458.3B$4.5B0.98%$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.

Construction & land development loans held by banks
$458.9B
FDIC call reports, Q2 2026
Noncurrent: nonaccrual plus 90+ days and still accruing
$4.5B
0.98% of the book
Early stress: 30 to 89 days past due
$1.6B
0.35% of the book
All 30+ days past due and nonaccrual
$6.1B
1.33% of the book

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

  1. 1The map and the dollars-by-band legend
  2. 2The 51-state table with totals
  3. 3The total-market model: bank measured, nonbank assumed
  4. 4Method and sources

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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. Informational and discussion purposes only. Not an offer, appraisal, or opinion of value, and not accounting, tax, legal, or investment advice. Estimates based on assumptions and unverified third-party information; actual results will differ. No reliance without independent verification — consult your own advisors. This report is a market sizing prepared from public regulatory data and stated assumptions. It does not describe any specific loan, borrower, or transaction.