Key facts
- Huntington Bancshares' acquisition of Cadence Bank on February 2 significantly increased its commercial real estate (CRE) holdings.
Huntington Bancshares' acquisition of Cadence Bank increased its commercial real estate holdings by 60% to $24.3 billion, raising CRE's share of total loans to 12.9%. This comes as delinquencies in the sector reach an eight-year high.
The significant increase in Huntington's exposure to commercial real estate, particularly amid rising delinquencies in the sector, raises concerns about the bank's risk profile and potential future losses.
Huntington Bancshares' commercial real estate (CRE) holdings have surged following its acquisition of Cadence Bank on February 2. The addition of Cadence's CRE loans propelled Huntington's CRE book by 60% quarter-on-quarter to $24.3 billion. Consequently, CRE now accounts for 12.9% of the bank's total loans and leases, an increase of 2.7 percentage points. This expansion occurs against a backdrop of an eight-year high in CRE delinquencies.