Fifth Third Says It’s No Longer Pursuing New Office Lending

Fifth Third Bancorp stopped originating new office loans as lenders become increasingly cautious about credit quality in commercial real estate.

The lender is “currently not pursuing new office CRE originations,” the Cincinnati-based bank said in a presentation. The $1.6 billion in office loans on its balance sheet represent 1.3% of total loans, and “office had already been de-emphasized for several years,” the company said.

First Citizens BancShares Inc. said last month it would cease originating new general office loans and diversify into other property types. Potential weaknesses in the sector have come under scrutiny after the collapse of four ...