Last year’s home-lending volume at Regions Financial Corp. increased as servicing grew. But mortgage delinquency turned higher.
Prior to income taxes, the
Birmingham, Alabama-based firm earned $428 million during the three months ended Dec. 31, 2016.
Regions disclosed the numbers, in addition to other financial and operational results, in its fourth-quarter 2016 earnings report.
Income dipped from $471 million in the prior three-month period but inched up from $408 million in the final quarter of 2015.
Mortgage income
was trimmed to $43 million from $46 million in the third quarter but rose from $37 million in the fourth-quarter 2015.
Residential loan originations from Oct. 1, 2016, through year-end 2016 were $1.538 billion, easing from $1.662 billion in the prior period. Business improved, though, from $1.190 billion a year prior.
Refinance share climbed to 40.8 percent in the fourth-quarter 2016 from 33.1 percent the previous period.
Full-year 2016 production amounted to $5.967 billion,
rising from $5.483 billion during 2015.
At the close of the latest three-month period, Regions serviced $31.335 billion in residential loans. The servicing portfolio grew from $29.657 billion at the close of the third quarter and $25.840 billion at the conclusion of the fourth-quarter 2015.
Residential assets on the financial institution’s balance sheet finished last year at $24.127 billion, a slight decrease from
$24.151 billion at the end of September but more than $23.789 billion at the close of 2015. The most-recent total was comprised of $13.440 billion in first liens, $6.800 billion in first-lien home-equity loans and $3.887 billion in second-lien HELs.
Regions reported delinquency of at least 30 days on its non-guaranteed residential first-lien portfolio at 1.74 percent as of Dec. 31, 2016, rising 4 basis points from the end of the third quarter but 15 BPS lower than at the end of 2015. HEL delinquency slipped to 1.08 percent from 1.10 percent and tumbled from 1.30 percent as of Dec. 31, 2015.
Commercial real estate loans
concluded 2016 at $13.675 billion. Regions reduced its portfolio from $14.120 billion the prior quarter and $14.908 billion the prior year.
The year-end 2016 CRE investment portfolio was comprised of $6.867 billion in owner-occupied loans, $4.087 billion in investor loans and $2.721 billion construction loans.
Owner-occupied CRE loan delinquency sank to 0.56 percent from 0.88 percent as of Sept. 30, 2016. But the rate climbed from 0.45 percent as of year-end 2015.
Investor CRE loan delinquency worsened to 0.34 percent from 0.15 percent but was still better than 0.73 percent one year prior.
At the end of last year, there were 22,166 people on the payroll of the bank-holding company. Headcount was trimmed from 22,215 three months earlier and was reduced from 23,393 one year earlier.
Branch outlets were reduced to 1,527 as of year-end 2016 from 1,597 at the end of September 2016.
