According to the report, CRE loans comprised $797 million--or 77%--of the total $1.03 billion in nonperforming loans at the failed banks. Construction and land loans made up $480 million--or 47%, while commercial mortgages comprised $317 million--or 31--of the total nonperforming pool, Trepp says.

The majority of the failures occurred in the Southeast, with seven total, followed by the West at four and two in the Midwest. Out of the 13 banks, three failures took place in both Florida and Colorado. Florida ranks second for bank failures overall, with nine total this year alone. But the largest failure was Integra Bank in Indiana, reporting losses of $2.2 billion in assets.

Though Trepp does not rank the nonperforming loans by property sector, Anderson says the bulk of the distress most likely lie in the office and retail segments. “Those are the two areas that have experienced problems,” he says. “What we’ve seen is retail leveling out and new problems on the office front,” he adds, describing that the long-term nature of office leases in a worsening market can impact them over time. “The fact that you don’t feel the pain immediately, but as the leases roll over, then oftentimes they are rolling over to vacant space, or even if it remains filled, it’s likely to roll over to a lower rent. That’s reflected in the rising delinquencies for the office segment.”

According to Trepp’s July 2011 delinquency report, CRE loans in CMBS skyrocketed to 51 basis points to 9.88%, the highest rate in the history of the market--but much of the jump can be attributed to changes in the way special servicers are calculating data. “It certainly puts a damper on the mood in the CMBS market and the market more broadly,” Anderson says. “But I think the mood in the banking sector, especially for commercial real estate, has been gradually improving."