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| SunTrust Banks Inc. cut its quarterly losses, increased home loan production and brought delinquency down.
Residential originations were $16.7 billion during the second quarter at the Atlanta-based firm, according to earnings data released today. Fundings jumped from $13.4 billion in the first quarter and $9.3 billion in the second-quarter 2008. Retail production accounted for $8.1 billion of business during the latest period, while correspondent and wholesale volume were each $4.3 billion. Refinances represented just over three-fourths of second-quarter originations. Loan applications fell to $23.5 billion in the second quarter from $25.6 billion in the previous period. Residential mortgages on the balance sheet were $32.0 billion as of June 30, off from $32.2 billion on March 31. Residential holdings included $3.2 billion in prime second mortgages, $2.1 billion in home-equity loans and $0.9 billion in Alt-A loans. Home-equity line-of-credit holdings eased to $16.3 billion from $16.5 billion, and construction loans declined to $8.2 billion from $9.0 billion. SunTrust serviced $173.1 billion in mortgages at the end of the second quarter, more than $166.4 billion at the end of the first quarter. The June 30 total included $137.2 billion in loans serviced for others. Residential delinquency of between 30 and 89 days stood at 2.50 percent as of June 30, better than 2.79 percent on March 31. Delinquency of at least 60 days was 2.49 percent, falling from 2.71 percent. HELOC delinquency improved to 1.38 percent from 1.44 percent, and real estate construction delinquency fell 88 basis points. Commercial mortgages outstanding ended the second quarter at $15.9 billion, climbing from $15.1 billion three months earlier. The latest figure included $9.3 billion in owner-occupied loans and $6.5 billion in investor owned assets. Commercial mortgage delinquency increased to 0.85 percent on June 30 from 0.72 percent three months earlier. Mortgage production income fell to $165 million from the first quarter’s $250 billion but was better than $64 million a year earlier. Mortgage repurchase reserve income was a $62 million hit, compared to the prior quarter’s negative $26 million. Earnings at SunTrust were an $0.2 billion loss, better than the $0.8 billion loss in the first quarter but deteriorating substantially from the $0.5 billion profit a year earlier. SunTrust Chairman and Chief Executive Officer James M. Wells III blamed recession-related costs for the sour earnings. The company ended the quarter with 28,520 full-time equivalent employees, lower than 29,279 three months earlier. |
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SunTrust profile |
