Profits and Balance Sheet Developments at U.S. Commercial Banks in 2007
Figure 26. Delinquency and charge-off rates for construction and land development loans, by type of loan, 2007. Data plotted as bars. Two panels. In the top panel, delinquencies on residential construction and land development loans begin in the first quarter at about 2.7 percent. They rise to about 3.1 percent in the second quarter, to about 4.5 percent in the third quarter, and to about 7.4 percent in the fourth quarter. Delinquencies on other types of construction and land development loans begin in the first quarter at about 1.7 percent, rise slightly to about 2.8 percent in the second quarter, rise again to about 2.4 percent in the third quarter, and rise again to about 3.7 percent in the fourth quarter. In the bottom panel, residential net charge-offs start at about 0.1 percent, rise in the second quarter to about 0.2 percent, rise in the third quarter to above 0.4 percent, and rise in the fourth quarter to about 1.2 percent. Other net charge-offs rise from about 0.05 percent in the first quarter, to slightly below 0.2 percent in the second quarter, to slightly above 0.2 percent in the third quarter, and to about 0.75 percent in the fourth quarter.
Note: For definitions of delinquencies and net charge-offs, see the note for figure 24..