A quarter-over-quarter gain was made in home lending at The PNCÂ Financial Services Group Inc., though there was a year-over drop.
In the three months that ended on June 30, PNC’s residential loan origination volume was $2.6 billion.
That was among many operational details disclosed by the Pittsburgh-based financial institution in its second-quarter 2016 earnings report.
While PNC bested its first-quarter volume of $1.9 billion, mortgage production came up short compared to the $2.9 billion in closings generated during the second-quarter 2015.
First-half 2016 originations totaled $4.5 billion.
Refinance share thinned to 52 percent from 60 percent but was up from half as of the same point last year.
Last month’s serviced portfolio balance was $126 billion, a billion dollars more than at the end of March. The total was $11 billion more than at the end of June 2015.
The company has cut its capitalization value on mortgage-servicing rights to 61 basis points form 88 BPS in the second-quarter 2015.
PNC finished mid-year with $45.445 billion in residential assets. The residential portfolio was off from $45.883 billion as of March 31 and lower than $47.576 billion as of June 30, 2015.
Last month’s total included
$14.562 billion in mortgages, $18.203 billion in home-equity lines of credit and $12.680 billion in home-equity loans.
Conventional mortgage delinquency of at least 30 days was 0.76 percent, better than 0.80 percent in the prior report and 0.81 percent in the year-prior report.
The 30-day rate for government-insured loans was 3.86 percent, improving 15 BPS from March 31 and 87 BPS below the rate as of June 30, 2015.
HEL delinquency inched up 2 basis points to 0.29 percent and was 3 BPS higher than mid-2015.
Commercial real estate assets
were nudged up to $40.805 billion from $40.383 billion three months earlier and $35.737 billion one year earlier.
June 30, 2016, CRE holdings were comprised of $11.965 billion in real-estate related loans, $16.468 billion in real estate projects and $12.372 billion in commercial mortgages.
CRE delinquency rose to 0.06 percent from 0.02 percent and was also up from the same date a year earlier, when the 30-day rate was 0.04 percent.
Income from residential mortgage banking swung to a $46 million profit from a $13 million loss and was also better than $19 million in the year-earlier quarter.
For the second-three months of this year, income before income taxes and non-controlling interests at the bank-holding company
came to $1.3 billion.
Earnings inched up from $1.2 billion in the first quarter, but returns fell short of the $1.5 billion earned in the second-quarter 2015.
Despite the year-over-year deterioration, PNC Chairman, President and Chief Executive Officer William S. Demchak noted in the report that the organization
had a good quarter against a backdrop of global uncertainty.
“We grew fee income, along with average loans and deposits, and we announced plans to return additional capital to our shareholders in the coming year,” Demchak stated. “In the wake of the Brexit vote, as lower interest rates weigh on future performance, we remain focused on executing against our strategic priorities to create long-term shareholder value without compromising our risk profile or balance sheet.”
As of the close of the second-quarter 2016, there were 52,390 employees on PNC’s payroll, 10 more than at the end of the prior three-month period. Headcount, however, has been trimmed from 53,709 twelve months earlier.
Branch count was reduced by 12 to 2,601 as of the close of the most-recent quarter.
