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TH E M R EP O RT | 47 O R I G I NAT I O N S E R V I C I N G A NA LY T I C S S E C O N DA R Y M A R K E T DEPARTMENT ORIGINATION DEPARTMENT ORIGINATION billion in first-lien residential mortgage loans and $3.1 billion in home equity loans in the third quarter of 2015, compared to $11.7 billion and $3.2 billion, respective - ly, in the year-ago quarter. Bank of America CEO Brian Moynihan explained that the "solid results" in the third quarter reflected the execution of the bank's "long-term strategy." "The key drivers of our busi - ness—deposit taking and lending to both our consumer and cor- porate clients—moved in the right direction this quarter and our trading results on behalf of clients remained fairly stable in challeng - ing capital markets conditions. Our balanced approach to serving customers and clients is on track as the economy continues to move forward," Moynihan said. "Our results this quarter reflect our ongoing efforts to improve operating leverage while continu - ing to invest in our business," said Paul Donofrio, CFO at Bank of America. "We built capital and liquidity to record levels and grew total loans for the second consecu - tive quarter while continuing to op- erate within our risk framework." U.S. Bancorp and PNC Post Negative Fourth Quarters BOTH BANKS REPORTED DECLINES IN NET INCOMES AND MORTGAGE REVENUES. PENNSYLVANIA // U.S. Bancorp and the PNC Financial Services Group Inc., reported net income at both banks is down from the previous year, and the re - sults for mortgage banking revenues at both banks followed right along, according to Q 4 earnings state- ments for both banks. U.S. Bancorp's 2015 fourth-quar- ter earnings statement showed its net income for the fourth quarter of 2015 totaled $1,476 million, or $0.80 per share, down 0.8 per - cent from $1,488 million, or $0.79 per share reported in the fourth quarter of 2014 and down 0.9 percent from $1.489 million in the third quarter of 2015. The bank said its fourth-quarter earnings decrease is credited to a "higher provision for credit losses, lower noninterest income, impacted by the 2014 Nuveen gain, partially offset by increases in payments- related revenue and trust and in - vestment management fees and the gain on the sale of a Health Savings Account deposit portfolio, along with an increase in net interest income primarily driven by growth in earning assets." U.S. Bancorp Chairman, President and CEO Richard K. Davis noted, "U.S. Bancorp deliv - ered a remarkable performance in 2015; a year underscored by persis- tent and historically low interest rates, modest economic growth, and increasing regulatory require- ments. More than any year in recent history, 2015 required strong management focus as we balanced decisions on operating efficiencies with opportunities for investing in future growth and address - ing our customers' needs. U.S. Bancorp rose to that challenge, delivering record net income and diluted EPS for the year and continuing with industry-leading performance metrics." Average total loans grew 4.2 percent, or $10.3 billion year-over- year in the fourth quarter of 2015 to reach $256.7 billion, with residential mortgages contributing 2.1 percent to this growth, accord - ing to the statement. Residential mortgages totaled $53.0 billion, up from $51.8 billion in the previous quarter and $51.9 billion last year. Despite the increase in loan vol - ume, however, mortgage banking revenue for U.S. Bancorp totaled $211 million in Q 4, down over the quarter from $2.24 million and over the year from $235 million. The decline in mortgage banking revenue was primarily due to "an unfavorable change in the valuation of mortgage servicing rights, net of hedging activities," the bank stated. Overall noninterest income was down by $30 million over-the-year for U.S. Bancorp (from $2.370 billion down to $2.340 billion), though it did increase over-the- quarter by $14 million. "As we look to 2016, we are well positioned to continue providing quality products and services to our customers and ex - ceptional value to our sharehold- ers from a position of strength and stability that our stakeholders have come to expect from U.S. Bancorp," Davis said. Pittsburgh-based PNC's 2015 net income total was $4.1 billion, or $7.39 per share, down from 2014's profits of $4.2 billion, or $7.30 share, according to the bank's 2015 fourth-quarter earnings state - ment. In addition, 2015 fourth- quarter earnings were $1.0 billion, or $1.87 per share, compared with $1.1 billion, or $1.90 per share, for the third quarter of 2015 and $1.1 billion, or $1.84 per share, for the fourth quarter of 2014. The institution stated that its fourth-quarter results reflect "reve - nue growth over the third quarter in both net interest income and fee income, a continued focus on disciplined expense management, and higher loans and deposits." Residential mortgage banking noninterest income decreased $12 million primarily as a result of lower loan sales revenue, the statement showed. Residential mortgages totaled $113 million in the fourth quarter of 2015, down from last quarter's $125 mil - lion and last year's $135 million. Mortgage loans declined despite an increase in total loans at PNC by $1.7 billion as of December 31, 2015 compared with September 30, 2015. "PNC delivered consistent, quality results and advanced our strategic priorities in 2015," said William S. Demchak, Chairman, President and CEO. "We increased fee income, reduced ex - penses and managed a strong bal- ance sheet that will benefit from rising interest rates heading into 2016. Our strong capital position enabled us to increase the amount of capital returned to sharehold - ers in 2015. We're positioned to continue to drive long-term value through our execution in 2016 and beyond."