Huntington Bancshares' delinquent real estate-backed loans and leases surpassed $2 billion in the second quarter, marking the largest quarterly jump on record. This pushed the delinquency rate to 2.38%, the highest since 2016, with overall delinquent loans rising 18% to $3.3 billion.
The record high in delinquent real estate loans at Huntington Bancshares signals potential stress in the commercial real estate sector, which could impact financial institutions with significant exposure and potentially affect broader credit markets.
Huntington Bancshares reported that its delinquent loans and leases backed by real estate surpassed $2 billion for the first time in the second quarter. This increase pushed the share of these delinquent loans to 2.38%, the highest level recorded since 2016. The bank's overall delinquent loans and leases saw a significant rise of $508 million, or 18%, compared to the previous quarter, reaching a total of $3.3 billion. More than half of this increase was attributed to non-accrual loans.