Residential production eased at The PNCÂ Financial Services Group Inc., but an increase in new purchase-money applications might lead to an improvement for the current quarter. The company trimmed its servicing portfolio and mortgage assets, while delinquency rose and mortgage income fell.
Second-quarter home-loan originations were $2.6 billion, the Pittsburgh-based firm announced Wednesday. Volume fell from $3.2 billion in the prior period but was up from $2.3 billion in the same period last year.
Refinances accounted for 68 percent of the most recent activity, dropping from the previous quarter’s 85 percent.
An increase in purchase applications pushed overall new loan applications up 23 percent from the first quarter.
The mortgage servicing portfolio contracted, falling to $125 billion from $127 billion in the prior quarter. The residential servicing portfolio was $137 billion in the same quarter last year.
Residential loans owned by PNC were $14.3 billion, lower than the first quarter’s $14.6 billion and less than the $16.6 billion owned a year prior.
Residential delinquency of at least 30 days was 17.23 percent, worsening from the prior quarter’s 17.13 percent.
Home-equity line-of-credit assets slipped to $22.8 billion from $23.0 billion and were $23.9 billion a year earlier. In addition, another $10.5 billion in installment home-equity loans was owned, a little less than $10.7 billion the prior quarter and $11.1 billion at the same point last year.
The default rate on home-equity products was also higher, climbing to 1.24 percent from 1.21 percent in the first quarter.
PNC additionally owned $0.7 billion in residential construction loans, about the same as the first quarter and down from the second-quarter 2010’s holdings of $1.2 billion.
The servicing portfolio of commercial real estate loans closed out June at $268 billion, a little more than $266 billion at the end of March and $265 billion at the close of June 2010.
CREÂ loans on the balance sheet finished the second quarter at $16.3 billion, falling from $17.1 billion at the end of the first quarter and $20.4 billion as of June 30, 2010. The latest total included $11.1 billion in real estate projects and $5.2 billion in commercial mortgages.
CRE delinquency tumbled to 1.11 percent from 2.26 percent three months prior.
Residential mortgage banking income fell to $55 million from the first quarter’s $71 million and the second-quarter 2010’s $91 million.
Net income before taxes at the parent company were $1.1 billion, almost unchanged from three months earlier and a year earlier.
Within the mortgage banking unit, 3,688 people were employed as of June 30. Staffing stood at 3,682 as of March 31 and 3,348 at the same time last year.
Company-wide headcount finish June at 51,843, more than the 51,126 people employed at the end of March.
PNCÂ Bank operated 2,459 branches as of the end of the second quarter.
