Sterling Financial Corp. slashed its construction lending assets, cut its losses and increased its originations.
The Spokane, Wash.-based organization reported $732 million in residential originations during the third quarter. The level of activity was better than $622 million funded in the prior quarter. It was also better than $706 million at the same time during 2009.
From Jan. 1 to Sept. 30, home loan closings were $1.785 billion.
Commercial real estate production was $31 million, rising from $ 5 million in the prior period.
Sterling owned $0.753 billion in residential mortgages, lower than $0.863 billion a year earlier.
Multifamily holdings were $0.445 billion, down from $0.526 billion a year ago, and commercial real estate holdings declined to $1.327 billion from $1.407 billion..
Residential construction loans owned were $0.253 billion, lower than the $0.381 billion held as of June 30 and tumbling from $0.989 billion a year ago.
Commercial construction loans fell to $0.334 billion from $0.419 billion three months earlier and $0.655 billion a year earlier. Multifamily assets have fallen to $0.133 billion from $0.264 billion in the third-quarter 2009.
Mortgage banking income was $19 million, better than $12 million in the second quarter and also an improvement from $9 million during the third-quarter 2010. Sterling said it operated on a 2.43 margin — 100 basis points better than a year earlier.
While Sterling Financial had a $48 million third-quarter loss, it was a huge improvement from the $399 million loss suffered at the same time last year. It was also better than the $54 million second-quarter loss.
Sterling announced on Sept. 27 that the Federal Deposit Insurance Corp. and the Washington Department of Financial Institutions terminated a cease-and-desist order against the company. That order was issued against subsidiary Sterling Savings Bank on Oct. 9, 2009.
Golf Savings Bank was merged into Sterling Savings Bank on Aug. 2.
