Nonresidential Lending Ramps Up – Construction Market: Better Than You Thought?

The construction market – and thus the commissioning profession – is reputedly slower since the onset of COVID-19. But in the second quarter, U.S. banks had $380.61 billion in total construction loans on their books, according to regulatory filings, up 2.9% from the first quarter. Banks’ construction loans as a percentage of total loans and leases rebounded to 3.46%, after a dip to 3.37% in the first quarter. Nonresidential construction lending drove the second-quarter gain, rising 4.2% sequentially to $300.35 billion. The following chart from S&P Global lists the top 20 lenders nationwide:

The leading construction lenders in the quarter were Wells Fargo & Co. and U.S. Bancorp, both of which increased their holdings of nonresidential construction loans from the prior quarter.

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