Soured CRE loans pile up at BofA, Wells Fargo and PNC
Proportion of non-performing loans surges past the pandemic’s worst stretches
The proportion of Bank of America’s commercial real estate (CRE) loans tagged as non-performing ballooned sevenfold in 2023, a revealing sign of how a high-inflation, high-rate economy is pummelling CRE loans in a way not even the depths of the Covid-19 lockdowns did.
The bank’s non-performing CRE loans grew from $271 million to more than $1.9 billion over the year, pushing the proportion of soured CRE loans from 0.39% to 2.64%.
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