Branch Banking and Trust Co. brought in more quarterly mortgage production, though volume fell short of last year’s level. The company has maintained growth in its servicing portfolio, and quarter-over-quarter mortgage earnings improved.
Home-loan production was $5.5 billion, according to third-quarter earnings data released Thursday by parent BB&TÂ Corp.
Business jumped from $3.9 billion three months earlier but came in below the $6.7 billion originated a year earlier. During the first nine months of 2011, fundings amounted to $15.2 billion.
BB&T’s servicing portfolio grew to $88.7 billion as of the end of September from $86.8 billion on June 30. The portfolio totaled $80.5 billion as of Sept. 30, 2010.
Last month’s total included $66.3 billion in loans serviced for others, up from $65.8 billion in the previous period.
Residential loans on the balance sheet of the Winston-Salem, N.C.-based company finished last month at $19.4 billion. BB&TÂ has grown its portfolio from three months earlier, when it stood at $18.4 billion, and a year earlier, when the total was $16.3 billion.
The third-quarter figure included $16.9 billion in prime mortgages, $1.8 billion in Alt-A assets and $0.4 billion each in subprime and construction-to-permanent loans.
Commercial mortgages owned fell to $10.9 billion from $11.1 billion and were $11.7 billion in the third-quarter 2010.
In addition, $2.4 billion in residential acquisition-and-development construction loans were on the books, down from $2.7 billion at the end of June and $3.8 billion during the same quarter last year.
Mortgage banking income jumped to $123 million from the second quarter’s $83 million. But the business earned less than the $184 million reported for the same quarter last year.
BB&T Corp. earned $439 million before income taxes, a little more than the $418 million earned in the prior quarter and a lot better than $246 million in the third-quarter 2010.
“We are very pleased to report our strongest earnings quarter in three years,” BB&TÂ Chief Executive Officer Kelly S. King said in the report. “The increase was driven by significantly improved credit quality and improved net interest income.”
Company-wide headcount inched up to 31,684 from the prior quarter’s 31,617. The staff size was 31,331 at the same point last year.
BB&T operated 1,780 banking offices as of Sept. 30.
