Despite a rise in quarterly residential originations at Regions Financial Corp., mortgage income was lower. The rate of past-due payments on residential loans improved, but home-equity delinquency deteriorated.
Second-quarter earnings data indicated that mortgage production totaled $1.921 billion from April 1 through June 30.
Business was better than in the first quarter, when $1.819 billion was originated.
But business slipped from the same three-month period last year, when $2.066 billion in home loans were closed.
Regions doesn’t report its third-party mortgage servicing portfolio in quarterly earnings. However, in a 10-Q filing with the Securities and Exchange Commission for the first quarter, the servicing portfolio was listed at $28.739 billion as of March 31, up from $25.796 billion at the end of last year. The servicing portfolio was $26.218 billion at the end of 2011.
Residential assets were trimmed to $24.249 billion from $24.421 billion as of March 31. At the same point last year, Regions had $25.715 billion invested in residential assets.
The June 30 total included $12.839 in first mortgages, $5.726 billion in first lien home-equity loans and $5.684 billion in second lien HELs.
Delinquency of at least 30 days on the non-guaranteed portion of Region’s residential first mortgage portfolio was 2.89 percent, improving from the prior period’s 3.27 percent. As of June 30, 2012, the 30-day rate was 3.24 percent.
On HELs, delinquency worsened to 1.82 percent from 1.78 percent but was better than at the end of the second-quarter 2012, when the rate was 1.85 percent.
Commercial real estate loans on the books declined $17.090 billion from $17.459 billion and have tumbled from $20.334 billion as of a year earlier.
The most-recent CRE loan total included $9.731 billion in owner-occupied mortgages, $5.806 billion in investor financing, $0.345 billion in owner-occupied CRE construction loans and $1.208 billion in investor CRE construction loans.
Delinquency on owner-occupied CRE loans was 0.70 percent, climbing from 0.59 percent as of the end of the first quarter. But delinquency was lower than a year prior, when it stood at 0.93 percent.
On investor CRE loans, delinquency fell to 1.45 percent from 1.52 percent but deteriorated from 1.39 percent at the end of the second quarter last year.
Mortgage income at the Birmingham, Ala.-based bank dipped to $69 million from the first quarter’s $72 million. Regions earned $90 million from its mortgage business in the second-quarter 2012.
The bank-holding company earned $390 million in income before taxes from continuing operations. Earnings were down from $447 million three months earlier and $477 million 12 months earlier.
Regions reported “associate headcount” at 23,692 as of the end of last month, increasing its ranks from 23,466 at the end of March. Human resources has also expanded from the same point last year, when staffing stood at 23,422.
There were 1,709 branch outlets open as of the second quarter’s close, the same as at the close of the first quarter.
