For BB&T Corp., second-quarter mortgage business was good — with quarter-over-quarter improvement reported in several aspects of the business. But company-wide earnings came up short.
From April 1 through June 30, Branch Banking and Trust Co. funded $5.498 billion in new home loans, according to data in the company’s second-quarter earnings report.
Quarterly fundings surpassed both the $4.035 billion loaned in the first quarter and the $4.710 billion originated during the same period last year.
In the first six months this year, BB&T’s production volume came to $9.533 billion.
Correspondent acquisitions made up $3.3 billion of second-quarter 2015 closed loans, while retail originations contributed $2.2 billion.
Refinance share dropped to 47 percent from 56 percent in the first quarter.
At the end of last month, the total mortgage servicing portfolio was at $121.162 billion, which edged just over the March 31-documented amount of $121.079 billion.
The portfolio, however, fell short of the $122.749 billion listed as of June 30, 2014.
Third-party servicing for residential mortgages made up $89.860 billion of the most-recent amount.
Residential assets on BB&T’s balance sheet fell to $30.054 from the prior reporting amount of $30.533 billion. The investment portfolio’s negative growth from the prior period was a categorical rarity for the latest period.
Recent residential assets also thinned from the $32.800 billion documented as of June 30, 2014.
As of June 30 this year, the 30-day or more delinquency on residential loans worsened to 2.81 percent from 2.10 percent at the tail end of March. But the delinquency rate has improved from 3.84 percent as of mid-2014.
The Winston-Salem, North Carolina-based company grew its commercial real estate assets to $14.006 billion from $13.374 billion as of March 31 and $13.072 billion as of the same point a year ago.
CRE holdings listed at the end of last month included $11.132 billion in commercial mortgages and $2.874 billion in construction and development loans.
Unsurprisingly, residential mortgage banking income before taxes climbed to $116 million, a $13 million earnings lift over the first-quarter. Compared to the $33 million loss in the second-quarter 2014, the recent mortgage sector profit was a complete U-turn.
Despite the mostly positive gains across reported categories for BB&T’s mortgage banking division, holding-company level income failed to reflect this growth.
Second-quarter income before taxes tumbled to $581 million from $788 million earned in the prior quarter. At this juncture last year, the financial institution also registered higher earnings at $693 million, revised up from the originally reported amount of $651 million.
As of June 30, 2015, BB&T accounted for 32,598 employees, 489 more than reported at the end of the first quarter. Staffing declined from the same point last year, when the company’s employee count of 33,637 was revised up from the originally documented amount.
According to the most current quarterly data, headcount “represents a quarterly average.”
