Quarterly production of home purchase financing at The PNCÂ Financial Services Group Inc. declined. In addition, mortgage earnings turned negative, and delinquency deteriorated.
Residential loan originations in the three months ended Dec. 31 were $2.4 billion, fourth-quarter earnings data indicate.
Mortgage production slowed from the three months ended Sept. 30, a period that saw $2.6 billion in loan volume.
Business was also down from $2.5 billion during the year-earlier period.
Refinances accounted for 58 percent of fourth-quarter volume, widening from a 50 percent share three months prior. That put refinance volume at $1.4 billion, improving from $1.3 billion in the third quarter. But purchase volume dropped to $1.0 billion from $1.3 billion.
For all of last year, PNC originated $9.5 billion, slowing from the $15.1 billion funded in 2013.
PNC serviced $108 billion in residential loans for third parties. The servicing portfolio slipped from $111 billion in the prior period and $114 billion in the year-earlier period.
On PNC’s balance sheet were $48.562 billion in residential assets. This portion of the investment portfolio was trimmed from $48.860 billion at the end of the third quarter and reduced from $50.865 billion at the end of 2013.
The Dec. 31, 2014, residential loan portfolio included $13.885 billion in residential mortgages, $20.361 billion in home-equity lines of credit and $14.316 billion in home-equity loans.
Delinquency on loans not guaranteed by the government was at 0.99 percent as of the fourth quarter, worsening from the previous period’s 0.95 percent but better than 1.17 percent as of the fourth-quarter 2013.
Government-guaranteed delinquency, however, retreated 53 basis points from the third quarter to 5.76 percent. (an earlier version of this story had the incorrect rate).
Home-equity delinquency climbed 3 basis points from Sept. 30 to 0.29 percent.
Residential construction loans on the balance sheet as of year-end 2014 were $0.522 billion.
The total commercial mortgage servicing portfolio climbed $14 billion to $336 billion. The portfolio was only $308 billion as of the end of 2013.
PNC’s investments in commercial real estate loans finished last year at $23.262 billion, off slightly from $23.942 billion at the end of September but higher than $21.191 billion as of Dec. 31, 2013.
The most-recent CRE loan portfolio consisted of $14.577 billion in real estate projects and $8.685 billion in commercial mortgages.
Thirty-day delinquency on the CRE portfolio
plummeted 12 BPS to 0.11 percent as of Dec. 31, 2014.
The residential mortgage banking business segment had a $9 million fourth-quarter loss, swinging from a $12 profit three months earlier and $55 million a year earlier.
Company-wide income before income taxes and non-controlling interests slipped below $1.4 billion from above $1.4 billion three months earlier and a year earlier.
The Pittsburgh-based company employed 53,587 people as of the end of last year, fewer than 53,655 three months earlier and 54,433 twelve months earlier.
