UPDATE 3-PNC expects modest loan growth in Q2, shares fall

* CEO sees real estate market tightening

* Shares fall 3 pct; biggest percentage loser on S&P 500 Financial (New throughout after company earnings call)

April 13 (Reuters) - U.S. regional lender PNC Financial Services Group Inc on Friday forecast modest loan growth in the second quarter and predicted a rise in loan loss provision, sending its shares down more than 3 percent.

After PNC reported results broadly in line with Wall Street expectations, the guidance by Chief Financial Officer Robert Rilley pushed shares down further.

"Looking ahead to the second quarter of 2018, we expect modest loan growth, we expect total net interest income to be up low single digits," Rilley said on the company's conference call

The bank's Chief Executive Bill Demchak said he sees real estate market tightening and would not expect to see the same growth rates in the sector as in the past.

PNC Financial said its expenses grew 5 percent to $2.53 billion in the first quarter ended March 31, while its provision for credit losses rose 4.5 percent to $92 million.

The Pittsburgh-based bank, among the United States' largest local lenders by assets, had beaten analysts' profit estimates for seven quarters before the first quarter.

Net income attributable to common shares rose to $1.16 billion, from $963 million a year earlier.

The company reported earnings per share of $2.43, in line with analysts' average estimate, according to Thomson Reuters I/B/E/S.

PNC Financial, which owns a minority stake in BlackRock Inc , said its loan portfolio grew 4 percent in the first quarter, with commercial lending expanding 6 percent.

Net interest income rose 9 percent to $2.37 billion. (Reporting by Parikshit Mishra in Bengaluru; Editing by Sriraj Kalluvila)