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| PNC Financial Services Group Inc. plans to eliminate nearly 6,000 jobs now that it has taken over National City Corp. The acquisition makes PNC a player in the residential mortgage market.PNC acquired National City on Dec. 31 for $6.1 billion in stock and cash.
While PNC had not previously reported any residential originations, National City reported $3.6 billion in third-quarter 2008 production and $42.9 billion in 2007 volume. PNC and National City didn’t immediately respond to a request for fourth-quarter 2008 origination data. But an earnings report today noted that demand has recently increased for first-mortgages. PNC’s residential servicing portfolio ended 2008 at $187 billion — rising from nothing on Sept. 30. Cleveland-based National City previously reported that its residential servicing portfolio stood at 1.1 million loans for $175.3 billion on Sept. 30, 2008. Residential mortgage holdings at the combined institution were $21.8 billion on Dec. 31, climbing from $8.8 billion on Sept. 30 and reflecting the inclusion of National City holdings as of yearend. Home-equity holdings were $38.3 billion, jumping from $14.9 billion. Including residential mortgages and HELs it owns, PNC serviced around $247.1 billion in home loans on Dec. 31. PNC also held $23.2 billion in agency residential mortgage-backed securities, $8.7 billion in non-agency RMBS and $5.3 billion in commercial MBS at the end of 2008. PNC’s commercial mortgage servicing portfolio was $249.0 billion at the end of December, climbing from $247.0 billion at the end of September. Commercial mortgages on the balance sheet ended last year at $25.5 billion, up from $9.7 billion at the end on Sept. 30. Last year, Pittsburgh-based PNC earned $0.9 billion, down from $1.5 billion in 2007. Fourth-quarter earnings were a $248 million loss, compared to a $248 million profit in the third quarter and a $178 million profit a year earlier. Headcount ended 2008 at 59,595, including 25,313 PNC full-time employees, 2,908 PNC part-time employees and 31,374 National City employees. Three months earlier, PNC’s headcount was 28,129 and National City’s was 29,828. In an effort to cut costs, PNC said it plans to eliminate around 5,800 positions by 2011 either through attrition or through the elimination of open positions. PNC indicated it appointed a new chief executive officer to oversee its mortgage business — though the name of the new chief was not disclosed. |
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