Residential loan originations at SunTrust Banks Inc. climbed to the highest level since 2009. Delinquency was also better. Mortgage earnings, however, were lower.
Home loan fundings amounted to $8.841 billion during the first three months of 2013 based on earnings data released Friday.
It was the best quarter for SunTrust since the third-quarter 2009, when mortgage production came in at $11.6 billion.
Business was better than the final three months of 2012, when originations totaled $7.995 billion.
During the same period last year, SunTrust originated $7.673 billion.
Retail originations accounted for $4.735 billion of first-quarter volume, while wholesale production was $1.180 billion and the correspondent channel was responsible for $2.926 billion.
The refinance share of first-quarter activity was 80 percent.
Applications edged down to $12.212 billion from $12.638 billion in the fourth-quarter 2012 — suggesting that second-quarter originations aren’t likely to be much different than the first quarter.
The lender’s mortgage servicing portfolio closed out March at $142.320 billion, a little smaller than $144.878 billion as of the end of the fourth quarter. SunTrust has reduced it servicing portfolio from $155.351 billion a year previous.
Loans serviced for others accounted for $111.973 billion of last month’s total servicing portfolio.
On SunTrust’s balance sheet were $3.930 billion in guaranteed residential loans. The assets were reduced from $4.252 billion in the previous period and $6.447 billion in the same period last year.
Another $23.051 billion in non-guaranteed home loans were owned, not quite as much as $23.389 billion at the end of December and $23.653 billion at the same point in 2012.
Delinquency of between 30 and 89 days was 0.76 percent on non-guaranteed loans, improving from 0.82 percent three months earlier and 1.28 percent a year earlier.
Home-equity assets totaled $14.617 billion, off from $14.805 billion in the fourth quarter and $15.472 billion a year prior.
The delinquency rate on this portion of the portfolio dropped to 0.79 percent from 1.00 percent and was 1.10 percent as of March 31, 2012.
The investment portfolio included $0.683 billion in residential construction loans, down from $0.753 billion at the end of the prior quarter and $0.924 billion 12 months prior. Delinquency tumbled to 1.04 percent from 2.03 percent at the end of last year.
The Atlanta-based bank owned $4.261 billion in commercial real estate loans, raising its holdings from $4.127 billion at the end of the fourth quarter. But CRE assets have been cut from $4.910 billion one year prior.
CREÂ delinquency fell to 0.18 percent from 0.26 percent in the fourth quarter and 0.27 percent in the same quarter last year.
Commercial construction loans fell to $0.634 billion from $0.713 billion the prior quarter and $1.086 billion at the same point in the prior year.
Repurchase demands were received on $491 million in loans, worsening from the $384 million in demands received in the fourth quarter. Pending demands dropped to $559 million from $655 million.
After charging off $133 million, the ending repurchase reserves were $513 million.
SunTrust said mortgage production income dropped to $159 million from the fourth quarter’s $241 million. But the business earned more than the $63 million earned in the year-earlier period.
The servicing side of the mortgage business earned $38 million, down from $45 million three months earlier and $81 million a year earlier. The decline from the third quarter was attributed to a shrinking servicing portfolio that is leading to lower fees.
Earnings before taxes for the company as a whole climbed to $509 million from $423 million and were $329 million one year prior.
As of the end of last month, 26,238 full-time equivalent employees were on staff, off from 26,778 at the end of last year. Headcount was 28,615 at the same point last year.
SunTrust had 1,574 full-service banking offices in operation as of March 31, fewer than the 1,616 branches open as of Dec. 31, 2012.
