Like many of its peers, Regions Financial Corp. saw lower quarterly residential mortgage production. Company-wide and mortgage income also fell, while loan delinquency increased.
The Birmingham, Alabama-based entity funded $1.421 billion in home loans in the three months ended Sept. 30, according to third-quarter company earnings data.
New mortgage business declined from $1.602 billion in the second-quarter but rose from $1.285 billion in the third-quarter 2014.
For the nine months ended September 2015, Regions originated $4.293 billion residential loans.
Most of third-quarter 2015 lending volume came from purchase financing. At $1.057 billion, though, volume was down $0.040 billion from the second quarter.
Refinance share slipped to 26 percent from 32 percent in the second quarter. Refinance volume came to $0.364 billion, down from $0.505 billion for the three months ended June 30.
Region’s third-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 $26.637 billion as of June 30.
Residential assets on the balance sheet amounted to $23.677 billion, a tad more than the June 2015-ended amount of $23.488 billion. The latest balance also was slightly higher than the $23.232 billion listed at the end of the third-quarter 2014.
The latest residential investment portfolio included first liens at $12.730 billion, first-lien home-equity loans at $6.577 billion and second-lien HELs at $4.370 billion.
As of Sept. 30, the 30-day or more delinquency rate of non-guaranteed residential first liens was to 1.92 percent. Delinquency was 1 basis point worse than the rate listed as of June 30 but 38 basis points better than Sept. 30 a year prior.
Delinquency on HELs rose 4 BPS to 1.36 percent as of the final day of the third quarter. Compared to the last day of September a year ago, however, the recent delinquency rate was 29 BPS better.
As of Sept. 30 this year, the commercial real estate portfolio was trimmed to $15.058 billion from $15.173 billion as of June. 30. As of the third quarter last year, the portfolio was $15.834 billion.
The most recent CRE portfolio amount included owner-occupied loans at $7.741 billion, owner-occupied construction loans at $0.406 billion, investor CRE loans at $4.386 billion and investor construction loans at $2.525 billion.
As of Sept. 30, owner-occupied CRE loan delinquency was 0.61 percent. As a result, loan delinquency was 10 BPS higher than the rate as of June 30 and Sept. 30, 2014.
Investor CRE loan delinquency jumped up 19 BPS to 0.59 percent as of the final day of the third quarter. Still, the most current figure was 29 BPS better than the rate from the same period one year ago.
On a quarter-over-quarter basis, overall mortgage income fell $7 million to $39 million. On a year-over-year basis, total income was the same.
Third-quarter total mortgage income reflects an $11 million mortgage servicing rights loss, a $30 million loan production profit and $20 million in loan servicing earnings.
Company-wide, income from continuing operations before income taxes came to $378 million — down from $413 million earned in the second quarter and $468 million earned in the third-quarter 2014.
Income from Sept. 30 last year was originally reported as $449 million.
Across all of Regions, employees numbered 23,952 as of the last day of last month. Employment was up from 23,694 as of the end of the second quarter. The latest headcount also increased compared to the same point last year by 353.
Total branch outlets, which include full-service and drive-through or transaction service only, dropped one from at the end of the second quarter to 1,630.
