Fifth Third Bancorp lifted mortgage production on a quarter-over-quarter basis. But its investment and servicing portfolios subsided, while delinquency deteriorated.
Home loan production during the three months ended June 30 was $2.0 billion, the Cincinnati-base company said in its second-quarter earnings report.
New business improved from the first quarter, when Fifth Third originated $1.7 billion.
But, as has been the case with most mortgage lenders, production nose dived compared to the second-quarter 2013 — when Fifth Third closed $7.5 billion.
During the first six months of 2014, mortgage production amounted to $3.7 billion.
Fifth Third said it serviced $68.085 billion in residential loans for others. The servicing portfolio was trimmed from $68.909 billion at the end of March but grew from $67.160 billion as of the same date last year.
Residential assets closed out the latest period at $22.306 billion, slightly less than the $22.400 billion owned in the first quarter and down from a revised $24.044 billion in the second-quarter 2013. The second-quarter 2014 total was comprised of $13.250 billion in residential loans and $9.056 billion in home-equity loans.
Delinquency of at least 90 days on residential mortgages rose to 0.47 percent from 0.44 percent as of March 31 but improved from 0.57 percent as of June 30, 2013.
Serious delinquency on HELs were deemed “not meaningful.”
The third-party commercial mortgage servicing portfolio was $0.277 billion, slipping from $0.280 billion three months earlier and $0.293 billion a year earlier.
Commercial real estate loans in the investment portfolio were $9.233 billion as of June 30, 2014, expanding from $9.179 billion at the end of the previous quarter and $9.208 billion at the same point last year. The latest number consisted of $7.807 billion in commercial mortgages and $1.426 billion in commercial construction loans.
Serious delinquency on commercial mortgages was classified as “not meaningful.”
The bank-holding company earned $606 million before taxes, improving on the $438 million earned three months earlier but falling short of the $841 million in income 12 months earlier.
Company-wide headcount finished the second quarter at 18,732 full-time equivalent employees, dropping from 19,080 at the end of the first quarter. At the same point in 2013, staffing stood at 20,569 people.
Fifth Third banking centers numbered 1,309, two fewer than as of March 31.
