Huntington's earnings base remains sound, but its commercial-real-estate reserve trend now carries more weight than the headline income statement. CRE allowance fell from $819 million to $800 million quarter over quarter, reducing estimated coverage from roughly 3.5% to 3.3%, while nonaccruals grew about 29% against 13% growth in the underlying book.
Realized losses remain low, including a 0.25% portfolio net-charge-off rate and roughly 0.06% CRE-specific charge-offs. The shares also remain above their 50-day and 200-day averages. The October 22 disclosure must show whether reserve coverage stabilizes and whether nonaccrual growth slows.
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