Key facts
- Huntington Bancshares acquired Cadence Bank.
- The acquisition increased Huntington's commercial real estate holdings by 60%.
- Huntington's total commercial real estate holdings now amount to $24.3 billion.
- Commercial real estate loans now constitute 12.9% of Huntington's total loan portfolio.
- Delinquencies in the commercial real estate sector have reached an eight-year high.
Huntington Bancshares has substantially increased its commercial real estate (CRE) holdings following its acquisition of Cadence Bank. The deal has expanded Huntington's CRE portfolio by 60%, bringing its total CRE holdings to $24.3 billion. Consequently, commercial real estate loans now represent 12.9% of Huntington's total loan portfolio. This strategic expansion into CRE occurs at a time when the sector is experiencing significant challenges. Delinquencies within the commercial real estate market have climbed to an eight-year high, indicating a period of increased risk and stress for property owners and lenders alike. The acquisition of Cadence Bank, therefore, places Huntington in a more prominent position within a sector that is currently navigating considerable headwinds and elevated default rates.