On a quarter-over-quarter basis, residential loan originations, home loan delinquency and mortgage production earnings were all better at SunTrust Banks Inc.
The Atlanta-based company closed $4.084 billion in mortgages from April 1 through June 30, earnings data indicate.
Loan production increased from $3.106 billion funded during the first quarter. Full first-half volume came to $7.190 billion.
But, in line with industry-wide trends, business sank compared to the second-quarter 2013, when SunTrust originated $9.090 billion in home loans.
Second-quarter 2014 activity included $2.204 billion in retail originations, $0.001 billion in wholesale fundings and $1.879 billion in correspondent acquisitions.
Refinance share slid to a third from 44 percent in the previous period.
If new applications are any indication, third-quarter business will end up higher than in the second quarter — with applications rising to $6.720 billion in the three months ended June 30 from $5.029 billion in the first quarter.
The total mortgage servicing portfolio ended last month at $134.420 billion, down from $135.180 billion at the end of March and also lower than a downwardly revised $140.129 billion at the same point in 2013. Loans serviced for others made up $105.388 billion of last month’s total.
Residential assets ended June at $39.353 billion, less than the $42.263 billion owned as of March 31. As of June 30, 2013, the total was $41.645 billion. The most recent amount reflected $0.661 billion in guaranteed mortgages, $24.173 billion in non-guaranteed mortgage and $14.519 billion in home-equity products.
On non-guaranteed mortgages, delinquency of between 30 and 89 days improved by 4 basis points to 0.46 percent and has tumbled 24 BPS from June 30, 2013.
Home-equity delinquency slipped to 0.72 percent from 0.73 percent and was 6 BPS better than mid-year 2013.
Another $0.508 billion in residential construction loans were on the books, off from $0.532 billion three months earlier and $0.635 billion 12 months earlier. Delinquency on this portfolio sank to 0.76 percent from 1.71 percent and was also better than 1.07 percent at the end of the second-quarter 2013.
Commercial real estate assets climbed to $7.201 billion from $6.881 billion and were just $4.975 billion at the same point last year. The latest total was comprised of $6.105 billion in CRE loans and $1.096 billion in commercial construction loans.
CRE loans delinquency was cut to 0.07 percent from 0.11 percent and has plunged from 0.34 percent as of June 30, 2013.
Commercial construction loan delinquency plummeted 21 basis points from the first quarter to 0.04 percent but was worse than 0.01 percent in the second-quarter 2013.
SunTrust reported $52 million in mortgage production income, improving on the $43 million earned in the prior three-month period thanks to increased purchase production. But the lender came up short versus the $133 million earned in the second-quarter 2013 primarily due to lower refinance volume.
An increase in prepayment speeds pulled down mortgage servicing income to $45 million from $54 million in the first quarter. However, a decline in loan prepayments helped lift earnings from just $1 million in the year-earlier period.
Company-wide income before taxes rose to $576 million from $536 million in the first-quarter 2014 and an upwardly revised $536 million in the second-quarter 2013.
In discussing its earnings, SunTrust highlighted the $204 million second-quarter pre-tax charge it took as a result of the $320 million settlement with the Department of Justice over its handling of Home Affordable Modification Program.
SunTrust closed out the second quarter with 25,841 full-time equivalent employees across all business lines, trimming its ranks from 25,925 at the end of the first quarter. Staffing stood at 26,199 as of mid-2013.
The number of full-service banking offices was cut to 1,473 from 1,501.
