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PNC Mortgage Originations, Servicing & Assets Fall

Company-wide earnings improved at The PNC Financial Services Group Inc. But mortgage originations sank, while residential servicing and assets were diminished.

Prior to income taxes and non-controlling interests, PNC revealed in its first-quarter earnings report income of $1.5 billion during the three months ended March 31.

Earnings at the Pittsburgh-based bank-holding company increased from $1.4 billion during the first-three months of last year and soared from $1.1 billion in the preceding three-month period.

Residential mortgage earnings came in at $97 million, off from $113 million in the first-quarter 2017 but up from just $29 million in the fourth-quarter 2017. The quarter-over-quarter improvement reflected a $71 million fourth-quarter charge for residential mortgage-servicing rights fair value assumption updates,

PNC originated $1.7 billion in single-family loans from Jan. 1, 2018, through March 31. Production tumbled from $2.4 billion in the previous quarter and was also down from $1.9 billion
in the year-earlier period.

Refinance share was cut to 44 percent from half in the final quarter of last year.

PNC serviced $125 billion in residential loans at the conclusion of the first-quarter 2018. The servicing portfolio declined from $127 billion in the preceding quarter and $130 billion as of the same date last year. The MSR capitalization value was 101 basis points.

Residential loan holdings dipped to $45.155 billion as of March 31, 2018, from $45.576 billion three months earlier
and $45.358 billion a year earlier. Last month’s holdings included $17.456 billion in mortgages and $27.699 billion in home-equity assets.

As of the close of the first quarter of this year, delinquency of at least 30 days on conventional residential loans was 0.54 percent, sinking from 0.78 percent the prior quarter and also better than 0.60 percent a year prior.

Government mortgage delinquency was cut to 2.74 percent from 3.34 percent as of Dec. 31, 2017, and 3.39 percent as of March 31, 2017.

On HELs, delinquency worsened to 0.45 percent from 0.36 percent and soared from 0.27 percent at the same point last year.

Commercial real estate assets inched up to $41.536 billion from $41.474 billion as of year-end 2017 and grew from $41.125 billion at the same point in 2017. The most-recent total was comprised of $28.835 billion in commercial mortgages and $12.701 billion in real estate-related assets.

CRE delinquency crept up to 0.11 percent from 0.10 percent and climbed from 0.07 percent at the end of the first-quarter 2017.

Staffing ended the latest period at 53,484 employees, more than 52,906 at the conclusion of last year and 52,355 at the same point last year.

Branch count was 2,442 last month, down 17 branches from December.

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