The residential mortgage banking segment at PNC Financial Services Group Inc. reported income of $45 million in 1Q13, an improvement over the loss of $192 million in 4Q12, but down from the $61 million earned in 1Q12.
Impacting profitability was a $20 million provision for credit losses in the most recent period. In 4Q12, there was a $2 million provision, while for 1Q12, PNC took a $7 billion benefit from the reserve.
However, in 4Q12, PNC did take a $254 million provision for
Origination volume was $4.2 billion, down from $4.4 billion in 4Q12, but up from $3.4 billion one year ago. Approximately one-third of originations were for the Home Affordable Refinance Program.
Loan sale margins declined at PNC. In 1Q13, they were 4.07%, down 80 basis points from 4Q12.
PNC earned $41 million in servicing fees and had a $37 million hedge gain for 1Q13. It ended the period with a $120 million portfolio.
As a company, PNC had net income of $1 billion, up from $719 million in 4Q12 and $811 million in 1Q12.
