Quarterly home lending activity at Regions Financial Corp.popped thanks to a nearly one-half surge in purchase financing. In addition, company earnings got better. But mortgage delinquency worsened.
Regions’ second-quarter residential lending volume totaled $1.602 billion, according to the company’s July 21 earnings report.
Business fared far better than the $1.270 billion funded by the financial institution in both the first-quarter 2015 and the second-quarter 2014.
Altogether, the Birmingham, Alabama-based lender closed $2.872 billion in home loans for the first half of 2015.
Making up the majority of second-quarter 2015 lending volume, at $1.097 billion, purchase financing soared over the $0.743 billion originated in the preceding three months.
The most-recent refinance share dropped to 32 percent from 41 percent in the first quarter. Actual refinance volume, however, slipped just $0.022 billion to $0.505 billion.
Region’s second-quarter earnings did not include information on its servicing portfolio, but its latest 10-Q filing with the Securities & Exchange Commission listed third-party servicing at $26.903 billion as of the last day of March.
On the balance sheet were $23.488 billion in residential assets, slightly more than the $23.272 billion documented as of March 31. As well, the most current balance marginally increased over the $23.251 billion listed at the end of the second-quarter 2014.
Residential assets as of June 30, 2015, included first liens at $12.589 billion, first-lien home-equity loans at $6.424 billion and second-lien HELs at $4.475 billion.
On non-guaranteed residential first liens, delinquency of at least 30 days rose 10 basis points to 1.91 percent as of the end of last month but still was 54 BPS lower than at the same point a year ago.
At 1.32 percent, however, the HEL 30-day rate improved by 23 BPS versus March-ended rates and by 26 BPS compared to rates as of June 30, 2014.
Commercial real estate assets on the balance sheet pulled back to $15.173 billion from $15.401 billion as of March 31 and fell further from $16.363 billion listed as of the end of the second quarter a year ago.
CRE assets on the most-recent balance sheet were comprised of owner-occupied loans at $7.797 billion, owner-occupied construction loans at $0.448 billion, investor CRE loans at $4.509 billion and investor construction loans at $2.419 billion.
In total, the rate of owner-occupied CRE loans at least 30-days delinquent rose five BPS to 0.51 percent as of June 30. But the rate was down 17 BPS from a year earlier.
Thirty-day delinquency on investor CRE loans climbed 16 BPS to 0.40 percent as of the second quarter’s end. Still, the most current delinquency rate improved by 109 BPS compared to the same period in 2014.
Regions overall mortgage income grew to $46 million from $40 million earned the first three months of this year. Mortgage income was $3 million ahead of the second-quarter 2014.
In addition to a $5 million mortgage servicing rights loss, Regions’ second-quarter mortgage earnings reflected a $31 million profit from loan production and $20 million in income from mortgage servicing.
At the holding-company level, income from continuing operations before taxes came to $413 million — an $82 million quarter-over-quarter improvement. Earnings, however, were down $30 million from the same period last year.
Region’s company-wide employee ranks were 23,694 as of June 30, increasing by 93 from the first quarter. The most-recent staff numbers increased by 278 employees compared to those accounted for at the same point last year.
The number of branch outlets decreased by two to 1,631 at the end of the second-quarter.
