Although quarter-over-quarter home-lending volume subsided by a fourth at Regions Financial Corp., mortgage earnings were maintained.
In its first-quarter 2017 earnings report, Regions disclosed $422 million in income from continuing operations before income taxes.
The Birmingham, Alabama-based
financial institution earned more than the $386 million that was earned in the same three-month period last year.
Income was little changed from the $428 million earned in the final-three months of last year.
Mortgage income rose to $41 million from $38 million in the first-quarter 2016.
Hardly any difference was observed versus $43 million in the fourth-quarter 2016.
The latest mortgage income consisted of $26 million from production and sales, $23 million from loan servicing and an $8 million loss on mortgage-servicing rights.
Home-loan originations from Jan. 1, 2017, through March 31 were $1.154 billion, dropping from the previous quarter’s $1.538 billion. But mortgage production increased from $1.111 billion in the same-three months last year.
Refinance share fell to
29 percent from 41 percent in the final quarter of last year.
As of March 31, 2017, Regions serviced $30.960 billion in residential loans for third parties. The servicing portfolio was reduced from $31.335 billion three months earlier but has expanded from $28.035 billion one year earlier.
The weighted-average servicing fee was 27.4 basis points.
Regions said it acquired mortgage servicing rights on $2.6 billion in mortgages on Feb. 29 and another $2.7 billion in loans on April 28.
Residential assets finished the most-recent period at
$24.098 billion. The total was trimmed from $24.127 billion at the conclusion of last year but increased from $23.809 billion at the same point last year. The March 31, 2017, total included $13.565 billion in first-lien mortgages, $6.764 billion in first-lien home-equity assets and $3.769 billion in second-lien home-equity assets.
On the non-guaranteed portion of mortgage holdings delinquency of at least 30 days was slashed to 1.54 percent from 1.74 percent as of Dec. 31, 2016, and 1.78 percent as of March 31, 2016.
Home-equity delinquency was cut to 0.98 percent from 1.08 percent and was much lower than 1.10 percent as of the same date last year.
Commercial real estate loans
were reduced to $13.497 billion from $13.675 billion as of year-end 2016. At the same point in 2016. the balance was $14.801 billion. March 2017’s total consisted of $6.658 billion in owner-occupied commercial mortgages, $4.277 billion in investor commercial mortgages and $2.562 billion in construction loans.
Owner-occupied CRE delinquency improved to 0.44 percent from 0.56 percent and was nicely down from 0.50 percent at the conclusion of the first-quarter 2016.
Similarly, the late-payment rate on investor CRE loans
declined to 0.25 percent from 0.34 percent and was down even more compared to 0.51 percent the same date the preceding year.
As of the end of the first-quarter 2017, there were 22,150 people on Regions’ payroll. Headcount was trimmed from 22,166 the prior period and cut from 22,855 one year prior.
Branch count finished the latest quarter at 1,523, four fewer than at the end of last year.
