Delinquency declined as earnings, originations and mortgage assets increased at The PNCÂ Financial Services Group Inc. Performance, however, on government mortgages has deteriorated over the past year.
Loan originations totaled $3.4 billion in the first quarter, according to earnings data from the Pittsburgh-based financial institution.
Business was better than the fourth-quarter 2011, when $3.0 billion was originated. Production was also higher than the first-quarter 2011’s $3.2 billion.
All of PNC’s production for the past five quarters has been agency and government programs.
Refinance share, meanwhile, widened to 82 percent from 79 percent during the final three months of 2011.
The third-party servicing portfolio has grown to $121 billion from $118 billion as of Dec. 31, 2011. The portfolio was $127 billion a year prior.
Residential mortgages owned by PNC grew to $15.287 billion from $13.885 billion and were $14.602 billion as of the same date in 2011.
Delinquency of at least 30 days on conventional loans fell to 2.60 percent as of March 31 from 2.79 percent at the end of last year. Delinquency was 3.06 percent a year prior.
On government-insured mortgages, delinquency improved to 13.78 percent from 16.27 percent as of Dec. 31. But the government rate was worse than the 14.06 percent a year prior.
Home-equity lines of credit totaled $24.668 billion, more than $22.491 billion three months earlier and $23.001 a year earlier. Home-equity loans on the books amounted to $11.076 billion, more than $10.598 billion as of the end of last year and $10.655 billion at the same point last year.
Delinquency on home-equity assets, excluding non-accrual assets, fell to 0.78 percent from 1.53 percent. However, the decline reflects PNC’s decision to reclassify 90-day delinquent home-equity assets as non-accrual status. The 90-day rate was 0.67 percent at the end of 2011.
Residential construction assets grew to $0.925 billion from $0.584 billion and were also higher than $0.731 billion as of March 31, 2011.
Commercial real estate assets were $18.534 billion as of March 31, more than the $16.204 billion owned as of Dec. 31. The total was $17.133 at the same point in 2011. The most recent balance included $12.589 billion in real estate projects and $5.945 billion in commercial mortgages.
Delinquency on CRE loans worsened to 1.05 percent from 0.85 percent but was better than 2.26 percent in the first-quarter 2011.
Income from residential mortgage banking swung to a $61 million profit from a $61 million fourth-quarter loss but fell short of the $71 million earned in the first quarter of last year.
PNC earned $1.092 billion before income taxes from all of its businesses, an improvement from the $0.640 billion earned during the final three months of last year. Income was $1.140 billion in the year earlier period.
As of the end of last month, PNC employed 4,055 people in residential mortgage banking. Headcount grew from 3,718 three months earlier and 3,682 a year earlier.
Staffing across all of PNC ended the first quarter at 56,605, more than the 51,891 employees as of the end of last year. Staffing stood at 51,126 a year previous.
PNC operated 2,900 branches as of the end of last month, growing from 2,511 at the end of December.
