Monday, 08 June 2009
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SOUTHERN NEVADA ECONOMY: Slump leaves bankers blue
State-chartered lenders mostly lose money in quarterBankers need to look no further than their first-quarter financial reports for a reminder that Southern Nevada's economy is in a slow, whining fall.
The hottest markets during the good times are getting beaten up the worst during the recession, said Tim Coffey, vice president of FIG Partners, a stock brokerage specializing in bank stocks. That includes Las Vegas, Phoenix, Southern California's Inland Empire and parts of the Pacific Northwest, he said.
Coffey agrees with analysts who predict commercial real estate loan problems loom for banks.
"It's going to happen, and it might be worse in this market," he said. "We're not seeing it yet, because a lot of the loans haven't come up for maturity."
Many loans secured by commercial real estate face balloon payments starting this year, increasing next year and declining some in 2011. Values have declined as vacancy increased and rents dropped, he said.
"Retail is the worst," he said. "Hotels seem to be better."
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