Wells Fargo reported earnings today and in general, it said it thought the corner has been turned in terms of deterioration of credit quality in its lending portfolios – generally lower writeoffs and money set aside to cover bad loans. But, while things may be looking better, money still is being lost in these portfolios. And when it comes to commercial real estate, it continues to show stress. Wells Fargo reported that its nonperforming commercial real estate assets rose to 4.09% of total loans in the first quarter. That’s up from 3.77% in the 4Q and 3.22% in the quarter before that.
Improvement in general. But that commercial real estate market is still hurting pretty badly.