Quarterly home lending slowed at The PNCÂ Financial Services Group Inc., and part of the reason was the implementation of new regulations.
PNC closed $2.3 billion from the period that began on Oct. 1 and ended at the end of last month.
The number, as well as other financial and operational figures, was included in the financial institution’s fourth-quarter 2015 earnings report.
Mortgage originations slowed from the previous three-month period, when production came in at $2.7 billion.
PNC said the quarter-over-quarter decline partly reflected longer processing times as a result of the “implementation of new regulations.”
Home lending volume also weakened compared to the same three months during 2014, when $2.4 billion in mortgages were funded.
But for all of last year, residential loan production increased to $10.5 billion from $9.5 billion for all of 2014.
The report indicated that PNC’s strategic focus is retail purchase originations obtained through superior service and leveraging cross-sell opportunities.
As of the end of December 2015, the Pittsburgh-based company serviced $123 billion in mortgages for third parties. The portfolio inched up from $122 billion at the end of September and was larger than $108 billion at the same point in 2014.
Residential assets on the balance sheet finished last year at $46.295 billion, slimmer than $47.044 billion as of Sept. 30 and $48.562 billion as of Dec. 31, 2014.
The Dec. 31, 2015, total included $14.162 billion in residential loans, $18.828 billion in home-equity lines of credit and $13.305 billion in home-equity loans.
On the conventional portion of the residential
loan portfolio, the 30-day delinquency rate was 0.89 percent, the same as at the end of the third quarter but lower than 0.99 percent at the end of the fourth-quarter 2014.
The government-insured portion of residential loans had a 4.48 percent delinquency rate, improving from 4.56 percent at the close of the previous three-month period and 5.76 percent as of the year-earlier date.
HEL delinquency slipped to 0.29 percent from 0.30 percent and was no different than as of Dec. 31, 2014.
Another
$0.249 billion in residential construction loans were owned of of the end of last month.
Commercial loans serviced
finished the fourth-quarter 2015 at $447 billion, more than the $441 billion on the books three months prior and $377 billion one year prior.
Commercial real estate loans in the investment portfolio grew to $39.127 billion from $37.585 billion and were also up from $34.074 billion at the end of 2014.
The CRE portfolio as of the end of 2015 consisted of $11.659 billion in real-estate-related loans, $15.697 billion in real estate projects and $11.771 billion in commercial mortgages.
Delinquency on CRE loans tumbled to 0.05 percent from 0.19 percent at the end of September and 0.11 percent at the end of December 2014.
The residential mortgage banking division had a $26 million fourth-quarter 2015 pre-tax loss, worsening from the $7 million loss in the prior quarter and the $13 million loss in the year-earlier quarter.
“Non-interest income decreased in both comparisons due to lower loan sales revenue and, in the comparison with the third quarter, lower net hedging gains on mortgage servicing rights partially offset by higher servicing revenue,” PNC said. “Non-interest expense increased compared with the third quarter reflecting higher legal accruals and decreased from fourth-quarter 2014 primarily as a result of lower residential mortgage compliance costs.”
The report indicated that company-wide income
before taxes and non-controlling interests was $1.38 billion, up from $1.34 billion three months earlier and slightly more than $1.36 billion a year earlier.
Including full- and part-time employees, staffing closed out last year at 52,513. Headcount was down from 53,148 people three months earlier and 53,587 one year earlier.
There were 2,616 branches as of the end of last year, 29 fewer than at the end of 2014.
