Quarterly residential loan originations regressed at The PNC Financial Services Group Inc. Third-party servicing managed to expand, while delinquency rates on several loan types worsened.
For the three months ended Sept. 30, PNC’s third-quarter earnings report listed home loan production at $2.7 billion.
Lending activity slipped from the $2.9 billion originated in the second quarter.
New business was up, however, from third-quarter 2014 volume of $2.6 billion.
Altogether, PNC closed $8.2 billion in home loans from Jan. 1 to Sept. 30.
Third-quarter 2015 refinance share fell to 45 percent from 50 percent in the prior three-month period.
As of the end of last month, PNC serviced $122 billion in residential loans for third parties.
The servicing portfolio grew from $115 billion as of June 30 and $111 billion as of the same point a year earlier.
Residential assets on the balance sheet slipped to $47.044 billion from $47.576 billion inventoried at the end of the second-quarter and $48.860 totaled for the third-quarter 2014.
These latest assets included $14.038 billion in mortgages, $19.309 billion in home-equity lines of credit and $13.697 billion in home-equity loans.
At the end of the third-quarter, the 30-day delinquency rate on non-government insured mortgages increased 8 basis points from three months prior to 0.89 percent. The delinquency rate was still 6 BPS better than the Sept. 30, 2014 tally.
Compared to the prior period, the recent 30-day delinquency rate on government-insured loans improved 17 BPS to 4.56 percent. The recent rate also saw a 173-basis-point improvement over last year’s third-quarter total.
The 30-day home-equity delinquency rate was 0.30 percent, or four BPS higher than the rate at the end of both the second quarter and the third-quarter 2014.
The commercial loan servicing portfolio grew to $441 billion from $436 billion as of June 30 and $363 billion as of Sept. 30, 2014.
As of Sept. 30, 2015, PNC’s assets also included $0.454 billion in residential construction loans.
The lender’s commercial real estate assets grew to $37.585 billion from a second-quarter balance of $35.737 billion and a third-quarter 2014 balance of $33.664 billion.
Making up the most-recent CRE investment portfolio were CRE real estate projects at $15.333 billion, commercial mortgages at $10.760 billion and real estate related assets at $11.492 billion.
Thirty-day delinquency on CRE loans was 0.19 percent, or 15 BPS worse than at the end of June. The rate did improve by four BPS, however, over the Sept. 30, 2014, delinquency rate.
The Pittsburgh-based company’s pre-tax mortgage earnings swung to a $7 million dollar loss from a $30 million dollar profit in the second-quarter and an $18 million profit last year in the three months ended September.
At the holding company level, earnings before income taxes and non-controlling interests slipped to $1.3 billion from $1.5 billion in the prior quarter and $1.4 billion in the third-quarter 2014.
At the end of September, PNC had 53,148 employees — 561 fewer than accounted for on June 30 and 507 fewer than counted last year on Sept. 30.
PNC increased its September-end branch count by one from three months prior to 2,645.
