PNC CRE Nonperforming Loans Rise to $559 Million in Third Quarter
PNC's nonperforming commercial real estate loans rose $95 million in the third quarter to $559 million, and CRE net charge-offs climbed to $32 million.
Why it matters
- PNC's nonperforming commercial real estate loans rose to $559 million on Sept. 30 from $464 million on June 30, according to the bank's third-quarter financial supplement filed Thursday, Oct. 15. A year earlier they were $663 million.
- CRE net charge-offs rose to $32 million in the quarter from $21 million in the second quarter and $13 million a year earlier. CRE loans 60 to 89 days past due jumped to $102 million from $9 million.
- PNC kept growing the book. Quarter-end CRE loans rose to $37.0 billion from $36.0 billion, and the allowance for CRE loan losses edged up to 2.94% of CRE loans from 2.88%.
PNC Financial Services Group's nonperforming commercial real estate loans rose $95 million in the third quarter to $559 million, the bank said Thursday, Oct. 15. CRE net charge-offs rose to $32 million from $21 million in the second quarter, according to the financial supplement PNC filed with the Securities and Exchange Commission.
What did PNC report on commercial real estate credit?
Problem CRE loans rose from the second quarter but stayed below year-earlier levels. Total nonperforming loans rose $167 million, or 8%, to $2.2 billion, "driven by higher commercial nonperforming loans," PNC said in its earnings release. Total net loan charge-offs were $257 million, including $35 million tied to moving its student loan portfolio to held for sale.
| PNC CRE measure | Sept. 30, 2026 | June 30, 2026 | Sept. 30, 2025 |
|---|---|---|---|
| CRE loans outstanding | $36.96 billion | $35.96 billion | $30.28 billion |
| Nonperforming CRE loans | $559 million | $464 million | $663 million |
| CRE loans 30–59 days past due | $11 million | $7 million | $9 million |
| CRE loans 60–89 days past due | $102 million | $9 million | — |
| CRE net charge-offs (quarter) | $32 million | $21 million | $13 million |
| CRE allowance, % of CRE loans | 2.94% | 2.88% | 3.77% |
Source: PNC third-quarter 2026 financial supplement. Past-due figures are accruing loans. A dash means the supplement showed none.
By our math, the $32 million in CRE net charge-offs equals about 0.35% of PNC's $36.6 billion in average CRE loans for the quarter, annualized. Gross CRE charge-offs were $33 million, with $1 million in recoveries.
Is PNC still lending on commercial real estate?
Yes. Average CRE loans rose 4% from the second quarter and 19% from a year earlier, to $36.6 billion, the earnings release showed. Quarter-end CRE balances were up 22% from a year earlier.
The jump in loans 60 to 89 days past due is one to watch. Those loans are still accruing interest, and the filing does not say which property types or borrowers they involve.
How does this compare with other banks?
For another large lender's third-quarter numbers, see our report on Wells Fargo's third-quarter CRE results. A few banks' quarterly results do not show a trend for the whole CRE market.
For where private loan pricing stands as Treasury yields move, see private lending rates today and our rates and data page.
Sources
- The PNC Financial Services Group, Third-quarter 2026 earnings release, Exhibit 99.1 to Form 8-K (Oct. 15, 2026)
- The PNC Financial Services Group, Third-quarter 2026 financial supplement (Oct. 15, 2026)
