U.S. Banks Post Uneven Commercial Loan Growth in Third Quarter

Three large U.S. banks ended the third quarter of 2026 with higher average commercial lending, but their figures cover different loan categories and comparison periods. Credit measures also moved in different directions at PNC and Regions.

U.S. Bancorp’s average commercial loans reached $150.9 billion for the quarter ended Sept. 30, up 12.5% from a year earlier. PNC’s average commercial loans increased $10.4 billion, or 4%, from the second quarter. Its year-over-year increase was $42.4 billion and included loans acquired with FirstBank.

M&T’s average commercial and industrial loans totaled $65.9 billion, a 7% increase from a year earlier. Average commercial real estate loans reached $24.9 billion, up 4% year over year. The commercial and industrial and real estate figures reflect separate loan categories.

At PNC, nonperforming loans rose $167 million, or 8%, from the prior quarter to $2.2 billion. Net loan charge-offs totaled $257 million, including $35 million tied to a student-loan portfolio transfer.

Regions recorded $72 million in net charge-offs, equal to an annualized 0.29% of average loans. That rate was down 13 basis points from the second quarter. Business-services criticized loans and total nonperforming loans also declined during the quarter.

The results show growth across several commercial loan measures, alongside differing credit trends. PNC’s quarterly loan increase and the banks’ year-over-year figures use different comparison periods, while M&T reports commercial and industrial and commercial real estate lending separately.