Quarterly home lending increased and delinquency decreased at Regions Financial Corp. Meanwhile, the mortgage servicing portfolio was reduced.
At the bank-holding company level, income
from continuing operations before income taxes was $387 million, up $1 million from the previous quarter.
Those details, along with other operational and financial metrics, were delivered in the Birmingham, Alabama-based firm’s second-quarter earnings results.
But income was down from $413 million in the year-earlier period
Mortgage income came in at $46 million, improving from $38 million in the first quarter and unchanged from the year-earlier quarter.
Second-quarter 2016 mortgage income reflected $32 million in earnings from production and sales, $22 million in loan servicing income and $8 million in losses from mortgage servicing rights.
Mortgage production totaled $1.656 billion during the latest three-month period, more than $1.111 billion in the first quarter and $1.602 billion in the year-previous period.
Refinance share declined to 25.4 percent from 32.0 percent the previous quarter.
As of mid-2016, the unpaid principal balance of the third-party mortgage servicing portfolio stood at $27.360 billion.
Regions serviced $28.035 billion three months earlier and $26.637 billion one year earlier.
As of June 30, 2016, Regions residential assets stood at $23.996 billion. The portfolio grew from $23.809 billion at the end of March and $23.488 billion at the same point last year.
The latest number included $13.164 billion in residential first liens, $6.727 billion in home-equity first liens and $4.105 billion in home-equity second liens.
Delinquency of at least 30 days on non-guaranteed residential first liens
was 1.76 percent as of June 30 of this year, 2 basis points lower than as of March 31 and 15 BPS less than as of mid-2015.
The past-due rate on HELs fell to 1.00 percent from 1.10 percent the previous quarter and 1.32 percent in the year-previous quarter.
Commercial real estate assets were trimmed to $14.499 billion from $14.801 billion as of the end of the first-quarter 2016 and $15.173 billion as of the end of the second-quarter 2015.
The CRE total at the close of the second-quarter 2016 included $7.193 billion in owner-occupied commercial mortgages, $4.302 billion in investor commercial mortgages and $3.004 billion in construction loans.
Owner-occupied CRE loan delinquency fell to 0.43 percent from 0.50 percent. The rate was 0.51 percent as of June 30, 2015.
Investor CRE loan delinquency soared to 0.71 percent from 0.51 percent. The year-over-year deterioration was far more significant given the 0.40 percent rate in place as the middle of last year.
There were 22,447 full-time equivalent employees on the company’s payroll as of mid-2016.
Regions cut headcount from 22,855 three months earlier and
23,155 one year earlier.
Branch count was 1,599 as of June 30, 2016, six fewer than at the end of March.
