PNC Successfully Shifts to Home Purchase Financing

Pittsburgh-based PNC disclosed in its second-quarter earnings report $1.5 billion in income prior to income taxes and non controlling interests.

The bank-holding company earned more than $1.4 billion in the preceding three-month period and $1.3 billion during the same three months last year.

At $104 million, residential mortgage income deteriorated from $113 million three months earlier and $165 million one year earlier.

Single-family lending volume was pushed up to $2.2 billion from $1.9 billion in the first quarter. But business wasn’t as good as $2.6 billion in the second-quarter 2016.

First-half volume came to $4.1 billion.

Second-quarter 2017 refinance share was slashed to 39 percent from 57 percent. Based on the change in refinance share, Mortgage Daily estimates that refinance volume tumbled 21 percent from the first-three months of this year to $0.858 billion.

But estimated purchase-money production soared 64 percent to $1.342 billion.

The bank’s third-party mortgage servicing portfolio was $131.000 billion, modestly growing most quarters since the beginning of last year.

PNC’s investment portfolio included $45.268 billion in residential lending assets. The total consisted of $16.049 billion in residential real estate loans and $29.219 billion in home-equity assets.

While 30-day HEL delinquency of 0.29 percent and a conventional rate of 0.65 percent were both higher than as of March 31, a 24-basis-point plunge was recorded for government mortgages to 3.15 percent.

Commercial real estate holdings were $41.668 billion as of the end of last month, up modestly over the past year. CRE holdings were made up of $12.179 billion in real estate-related loans and $29.489 billion in commercial mortgages.

CRE delinquency fell 5 basis points to 0.02 percent.

PNC had 52,956 full- and part-time employees on its payroll at the middle of 2017, continuing a trend observed at some banks of expanding on a quarter-over-quarter and year-over-year basis.