While The PNC Financial Services Group Inc.’s mortgage earnings and originations weakened from a year earlier, third-party mortgage servicing has grown during the period.
In the three months ended Sept. 30, the Pittsburgh-based company earned over $1.5 billion before income taxes and non-controlling interests, according to its third-quarter earnings report.
Income improved compared to the same three-month period in 2016, when PNC earned $1.3 billion. Earnings also were up from nearly $1.5 billion the preceding quarter.
Within just its residential lending business, income was $104 million, down from $160 million a year earlier but unchanged from three months earlier.
PNC reported $2.5 billion in residential loan originations during the period that began on July 1, 2017, and concluded on Sept. 30. Business was better than $2.2 billion the prior quarter but not as good as $3.1 billion in the year-earlier period.
During the nine months ended Sept. 30, 2017, mortgage originations came to $6.6 billion.
Refinance share widened to 43 percent in the third-quarter 2017 from 39 percent the preceding quarter.
The third-party servicing portfolio was trimmed to $129 billion from $131 billion but has grown from $126 billion as of Sept. 30, 2016. The capitalization rate on mortgage-servicing rights was 95 basis points.
As of the end of last month, PNC’s balance sheet contained $45.412 billion in residential assets — including $16.601 billion in mortgages and $28.811 billion in home-equity loans. Residential holdings were $45.268 billion as of mid-2017 and $45.573 billion at the same point in 2016.
Delinquency of at least 30 days on single-family loans that are not government insured finished the most-recent period at 0.62 percent, down three BPS from the prior report and a year prior.
Government-insured mortgage delinquency slipped a basis point to 3.14 percent and was far below 3.83 percent as of the same date last year.
At 0.37 percent, HEL delinquency was 8 BPS worse than the previous quarter and 10 BPS higher than at the end of the third-quarter 2016.
Commercial real estate assets came to $41.690 billion as of Sept. 30, 2017. That was about the same as the previous quarter and the third quarter of the previous year. The most-recent total was comprised of $29.516 in commercial mortgages and $12.174 billion in real estate related assets.
Delinquency on CRE loans jumped to 0.07 percent from 0.02 percent but was down 2 BPS from the same period in 2016.
Staffing concluded last month at 52,768 employees. PNC cut headcount by 188 positions during the quarter. But the payroll has grown by 725 people from a the same period a year ago.
There were 2,474 PNC branches in operation as of the close of the third-quarter 2017, seven fewer than in the last report.
