PNC · 10-Q · 2026Q2 · Full report

Commercial Real Estate Risk

PNC FINANCIAL SERVICES GROUP, INC. · 2026-08-05 · Importance 50 · Surprise 24 · From source text

Commercial real estate loans totaled $36.0 billion at June 30, 2026, including $23.5 billion of income-producing property mortgages, $7.2 billion of intermediate-term financing loans, and $5.3 billion of construction loans. The office portfolio totaled $5.1 billion, or 1.4% of total loans, with an additional $0.4 billion of unfunded commitments. Criticized loans represented 29.4% of the office portfolio, nonperforming loans represented 8.1%, and reserves covered 8.8% of office loans. The commercial real estate portfolio was geographically diversified, with California at $5.3 billion, Colorado at $4.8 billion, and Florida and Texas at approximately $3.3 billion each.

Key facts

• Commercial real estate office portfolio outstanding loan balances at June 30, 2026: $5.1 billion, representing 1.4% of total loans; additional unfunded loan commitments: $0.4 billion; criticized loans in office portfolio: 29.4%; nonperforming loans: 8.1%; reserves of 8.8% against office loans source
• Owner-occupied commercial real estate loans totaled $10.4 billion at June 30, 2026 and $9.0 billion at December 31, 2025 source
• Commercial real estate loans of $36.0 billion as of June 30, 2026 comprised $23.5 billion commercial mortgages, $7.2 billion intermediate-term financing, and $5.3 billion real estate construction project loans source
• Commercial real estate loans total at December 31, 2025: $29.6 billion total, $17.4 billion commercial mortgages, $8.2 billion intermediate-term, $4.0 billion construction project loans source

Impact estimates