An increase in home-lending activity at BB&T Corp. was complimented by a surge in mortgage earnings. But one trouble spot for the financial institution lies in mortgage performance.
Before income taxes, income was $915 million during the three months that concluded on Sept. 30. Earnings increased from $839 million the prior period and $755 million a year prior.
The performance data, in addition to other operational and financial statistics, were presented in the Winston-Salem, North Carolina-based company’s third-quarter 2016 earnings report.
Residential mortgage banking income was $188 million before taxes, soaring from $71 million in the second quarter and $93 million in the third-quarter 2015.
The bank attributed the improvement in mortgage income “to net mortgage servicing rights valuation adjustments and higher production volumes.”
During the period that began on July 1, 2016, and ended on Sept. 30,
residential loan originations came to $6.264 billion. Business climbed from $5.605 billion in the prior three-month period and $5.039 billion in the year-prior period.
In the nine months ended last month, mortgage production amounted to $15.471 billion.
Retail originations accounted for $2.4 billion of third-quarter 2016 production, while correspondent purchases made up $3.9 billion.
Refinance share was 43 percent during the latest three-month period, the same as in the second quarter.
As of the close of the third-quarter 2016, BB&T serviced
$122.460 billion in home loans. The servicing portfolio dipped from $122.617 billion at the end of June 2016 and $122.580 billion at the same point last year.
Loans serviced for others accounted for $90.157 billion of the most-recent total servicing portfolio.
BB&T owned
$30.369 billion in residential mortgages as of the end of last month. The residential portfolio was trimmed from $30.650 billion as of mid-2016 and $31.070 billion as of the same point last year.
Mortgage delinquency of at least 30 days was 3.69 percent as of Sept. 30, 2016.
Delinquency deteriorated 5 basis points compared the three months prior and 90 BPS versus one year prior.
Commercial real estate assets totaled
$18.488 billion as of Sept. 30, 2016, retreating from $18.562 billion three months earlier and $17.120 billion one year earlier.
The latest CRE total consisted of $14.624 billion in loans on income-producing properties and $3.864 billion in construction-and-development loans.
BB&T finished the latest period with 37,662 full-time employees. Staffing grew from 37,644 people three months earlier and 35,002 employees a year earlier.
The number of banking offices closed out last month at 2,220. Branch count was reduced by 29 offices from the end of June.
