Mortgage banking revenue made a significant contribution to Bank of America's record $2.74 billion in earnings for the second quarter of 2003, according to the company's second quarter 2003 statement.
The Charlotte, North Carolina-based company reported a new record of more than $40 billion in quarterly mortgage originations. According to the supplemental filing information, $28.2 billion came from retail and $12.2 billion from wholesale originations. Both segments are reporting more than double the volume compared to year-to-date numbers from 2002.
Bank of America's mortgage servicing portfolio finished the quarter at $249.6 billion, a $7.6 billion drop from first quarter 2003, the statement said. The company has reported a consistent drop in the portfolio during each quarterly report back to the earliest listed on the report, 2002's second quarter portfolio totaling $287.8 billion.
Mortgage banking income, however, was up more than 300 percent over last year, totaling $559 million for the quarter with a year-to-date total of $964 million, the company said. For first quarter 2003, Bank of America reported $405 million in mortgage banking income.
As for mortgage banking assets, the company said it had $1.75 billion as of June 30, 2003, a drop of almost half from second quarter 2002's closing value of $3.4 billion, according to the statement. Assets were also lower compared to first quarter 2002's 2.0 billion, the statement said.
On the company's "average balances and interest rates" section of the earnings statement, Bank of America said that residential mortgages averaged a $120.8 billion balance, with an average interest rate of 5.64 percent. Home equity lines averaged $22.8 billion at an average rate of 4.64 percent, the company said.
The company reported net charge-offs for residential mortgages of $11 million for the quarter, edging higher than first quarter 2003's $2 million. Non-performing assets in the residential mortgage segment totaled $618 million for the quarter, down from $628 million the prior quarter, the company said.
According to the statement, Bank of America now holds 8.5 percent of mortgage-backed securities in the U.S. market.