Federal Reserve Bulletin

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2005

Figure 6. Changes in the major components of commercial real estate loans, by purpose, 1990-2005. Data plotted as curves. The annual change in construction and land development loans is about negative 5 percent in 1990; the change drops to about negative 25 percent in 1992, rises steadily to reach about 25 percent in 1999, and then is about 20 percent over the next two years. It drops to about 6 percent by 2002 and then rises steadily to about 35 percent in 2005. The annual change in multifamily residential loans is about 5 percent in 1990 and then moves in a range between about 5 percent and 15 percent through 1998. In 1999 it spikes to about 25 percent, moves down to less than 10 percent in 2001, and then holds at around 10 percent through 2005. The annual change in nonfarm nonresidential loans is about 10 percent in 1990, falls to reach about 5 percent in 1992, rises gradually, on balance, to about 12 percent in 1999, then declines, on balance, to about 10 percent in 2005.

Note: The data are annual.