When it comes to residential mortgage production, business has never been so good at BB&T Corp. It was the same story for quarterly earnings. In addition, the servicing portfolio grew larger and delinquency was lower.
Home loan fundings at the Winston-Salem, N.C.-based company were $9.260 billion during the second quarter, earnings data indicated.
It was the most volume for mortgage production in any quarter since BB&T was originally established as Branch and Hadley in 1872.
Originations improved form the first quarter, when BB&T closed $8.665 billion in residential loans.
Volume was also better than the same three-month period in 2012, when it came in at $8.045 billion.
From Jan. 1 through June 30, mortgage production totaled $17.925 billion.
BB&T reported that year-to-date correspondent production was up 14 percent from 2012, while second quarter volume was 24 percent better than the year-earlier period.
“Mandatory delivery expansion will partially offset slower originations,” the report said.
The total mortgage servicing portfolio closed out the second quarter at $107.057 billion, growing from $103.792 billion at the end of the first quarter.
BB&T serviced $97.658 billion at the same point last year.
The most recent number reflected $80.846 billion in loans serviced for others and $26.211 billion in bank-owned loans serviced.
Residential loans on the balance sheet dipped to $23.795 billion from $23.954 billion but were up from $23.117 billion as of June 30, 2012.
Residential loans that were a least 30 days past due accounted for 3.13 of the held-for-investment portfolio. The delinquency rate was better than 3.60 percent in the last report and 3.30 percent in the year-earlier period.
Residential acquisition-and-development loan holdings fell to $1.058 billion from $1.175 billion and tumbled from $1.590 billion as of the same date in 2012.
The bank owned $11.440 billion in commercial real estate loans as of the end of last month. CREÂ holdings crept up from $11.425 billion at the end of March and grew from $10.457 billion a year earlier.
Foreclosed property expense was down $6 million to $12 million.
Second-quarter mortgage banking income prior to income taxes was $126 million, down from the $166 million earned in the prior period but better than the $113 million earned in the same period during the prior year.
“Non-interest expense increased $18 million primarily due to higher expense associated with mortgage repurchase reserves and higher salary and incentive costs,” the report said.
Income before taxes at the bank-holding company grew to $797 million from $737 million three months earlier and $729 million a year earlier.
BB&T Chairman and Chief Executive Officer Kelly S. King called second quarter net income available to common shareholders the “strongest” ever.
BB&T employed 33,869 full-time employees as of last month. Staffing fell from 33,952 people at the end of March but has expanded from 32,998 employees as of June 30, 2012.
Banking offices in operation increased to 1,851 from 1,842 at the end of the first quarter.
