The PNC Financial Services Group Inc.’s quarterly home-lending volume rose and delinquency fell. The servicing portfolio was flat.
Income before income taxes and non-controlling interest at PNC came to $1.3 billion during the three months that ended on Sept. 30.
The Pittsburgh-based firm provided the details, along with other operational and financial metrics, in its third-quarter earnings report.
PNC earned about the same as it did in the prior quarter and in the year-prior period.
Residential mortgage banking income plunged to $13 million in the most-recent quarter from $46 million three months earlier. But income swung from a $4 million loss one year earlier.
Residential loan originations came to $3.1 billion in the the period that started on July 1, 2016, and finished on Sept. 30. Business improved from $2.6 billion in the second quarter and $2.7 billion in the third-quarter 2016.
Year-to-date production amounted to $7.6 billion.
Refinance share climbed to 59 percent in the third-quarter 2016 from 52 percent the previous three-month period.
As of the latest date, PNC serviced $126 billion in residential loans. The servicing portfolio didn’t change from the prior period but did grow from $122 billion as of the same date in 2015.
PNC said its capitalization value on its mortgage servicing rights climbed to 65 basis point from 61 BPS in the second quarter.
On PNC’s balance sheet were
$45.347 billion in residential assets. The investment portfolio expanded from $45.445 billion three months earlier and $47.044 billion a year earlier.
The Sept. 30, 2016, total consisted of $14.915 in mortgages, $18.014 billion in home-equity lines of credit and $12.418 billion in home-equity loans.
Delinquency of at least 30 days on residential conventional loans
tumbled to 0.65 percent from 0.76 percent and was 24 basis points better than one year previous.
On government mortgages, the past-due rate fell to 3.83 percent from 3.86 percent and was much lower than 4.56 percent the same quarter a year earlier.
Residential construction loans on the balance sheet totaled $0.226 billion as of last month.
PNC also owned $41.318 billion in commercial real estate loans. The balance was up from $40.805 billion the prior quarter and $37.585 billion a year prior.
PNC’s most-recent CRE holdings included $12.045 billion in real-estate related loans, $16.851 billion in real estate projects and $12.422 billion in commercial mortgages.
CRE loan delinquency was 0.09 percent, up 3 BPS from three months earlier but falling 10 BPS from a year earlier.
As of the end of last month, there were 52,043 employees on PNC’s payroll. Staffing subsided from 52,390 at the end of June and 53,148 at the same point in 2015.
PNC operated 2,600 branches as of the most-recent date, one less than the previous period.
