PNC Financial earns $1.1 billion in 3Q as mortgage demand remains soft
PNC Financial (PNC) earned $1.1 billion in the third quarter, or $2.07 per diluted common share, as mortgage originations dropped 25% from a year ago. Earnings nearly doubled the $559 million earned last year and increased 37% from the previous quarter, mostly driven by reducing its provisions for credit losses. In the third quarter PNC Financial set aside $486 million for potential losses, less than half the $914 million in the third quarter of last year. But total mortgage originations stayed flat from the previous quarter at $2.7 billion and 25% below the $3.6 billion originated a year ago. According to PNC, the decrease stemmed from a significantly higher refinance volume. Not all banks reported flat origination numbers this earnings season. Wells Fargo (WFC) reported record high mortgage loans for the third quarter. Non performing and foreclosed assets at PNC totaled $5.6 billion by the end of the third quarter, down 4% from the previous quarter. Loans behind by 90 days or more was flat from the previous quarter at $601 million but down 31% from last year. Write to Jon Prior.