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| Home-loan delinquency edged higher as earnings tanked at Regions Financial Corp. But an improvement was reported in residential originations, home-equity delinquency and commercial mortgage delinquency — which still sits well below 1 percent.
Earnings data released this week indicated the Birmingham, Ala.-based company originated $3.1 billion in mortgages during the second quarter. Business increased from $2.8 billion during the first quarter. Refinance activity drove the quarterly increase. The residential first mortgage portfolio ended June at $15.6 billion, lower than $15.7 billion three months earlier and $16.5 billion a year earlier. The June 30 portfolio included $2.4 billion in Alt-A loans. Residential delinquency of at least 90 days was 2.32 percent on June 30, edging up from 2.29 percent on March 31 and significantly higher than 1.28 percent 12 months earlier. Home-equity loan holdings were $15.8 billion, easing from $16.0 billion at the end of March but higher than $15.4 billion on June 30, 2008. HELÂ delinquency fell to 0.94 percent from 1.52 percent at the end of the first quarter and 1.08 percent on June 30, 2008. Construction financing owned by Regions was $8.2 billion at the end of last month, lower than $8.9 billion at the end of the prior quarter and $12.0 billion at the end of the second-quarter 2008. “Regions’ most stressed portfolios continue to be residential homebuilders; home equity second liens in Florida; and condominiums,” the report said. “These stressed assets currently make up about 8 percent of the total loan portfolio,” Commercial mortgage holdings were $28.7 billion on June 30, rising from $27.9 billion on March 31 and $24.9 billion the previous year. Non-owner occupied commercial mortgages accounted for $16.4 billion of the latest figure. Commercial mortgage delinquency of at least 90 days on owner-occupied properties fell to 0.12 percent at the end of the second quarter from 0.16 percent the prior quarter. But late payments worsened from 0.04 percent the prior year. On investor-owned commercial properties, delinquency dropped to 0.27 percent from 0.50 percent on March 31 but was much worse than 0.04 percent the previous year. Second-quarter mortgage income was $64 million, down from $73 million the prior quarter but more than double $25 million the prior year. Second-quarter net income from continuing operations at Regions Financial was a $244 million loss, deteriorating from a $26 million profit in the first quarter and a $206 million profit a year earlier. Employee count at Regions fell to 29,838 from 30,613 at the end of the first quarter. On June 30, 2008, headcount was 31,564. Regions reported 1,899 total branch outlets as of the end of last month. |
