Mortgage earnings didn’t move on a quarter-over-quarter basis at Regions Financial Corp., while a modest gain was made with originations. But there was growth in mortgage servicing.
Before income taxes, Regions earned $471 million from continuing operations during the three months ended Sept. 30. Income accelerated from $378 million earned one year prior.
The Birmingham, Alabama-based parent of Regions Bank released the numbers, in addition to other operational and financial metrics, as part of its third-quarter 2016 earnings report.
In the second quarter of this year, income totaled $387 million.
Regions said mortgage income was $46 million, the same as in the previous quarter. Mortgage income rose, though, from $39 million in the third-quarter 2016.
Residential loan originations came to $1.662 billion during the most-recent three-month period. Production was little changed from $1.656 billion in the second quarter but well ahead of $1.421 billion in the third-quarter 2015.
During the first-nine months of this year, Regions closed $4.429 billion in home loans.
Third-quarter 2016 refinance share was a third, up from a quarter in the previous three-month period.
There were $29.657 billion in mortgages serviced for third parties. The servicing portfolio was
$27.360 billion as of June 30, while it stood at $26.220 billion as of Sept. 30, 2015.
Regions’ weighted-average servicing fee was 27.6 basis points, off from 27.9 BPS a year previous.
Residential assets on the balance sheet grew to $24.151 billion from $23.996 billion and were also up from $23.677 billion as of Sept. 30, 2015.
The Sept. 30, 2016, total consisted of $13.402 billion in residential first liens, $6.762 billion in first-lien home-equity loans and $3.987 billion in second-lien HELs.
Delinquency of at least 30 days on non-guaranteed residential loans was 1.70 percent, improving 6 basis points from June 30, 2016, and 22 BPS better than as of Sept. 30, 2015.
HEL delinquency worsened, however, to 1.10 percent as of Sept. 30, 2016, from 1.00 percent as of three months earlier. But the HEL rate retreated from 1.36 percent one year earlier.
Commercial real estate holdings concluded the latest quarter at $14.120 billion. Regions reduced its CRE loan portfolio from $14,499 billion as of mid-2016 and $15.058 billion as of the close of September 2015.
The most-current CRE investment portfolio consisted of $7.007 billion in owner-occupied CRE loans, $4.306 billion in investor CRE loans and $2.807 billion in CRE construction loans.
On owner-occupied CRE loans, delinquency soared to 0.88 percent from 0.43 percent and was also worse than 0.61 percent as of the same date in 2015.
Investor CRE loan delinquency was slashed to 0.15 percent from 0.71 percent as of June 30 and 0.59 percent as of Sept. 30, 2015.
As of Sept. 30, 2016, there were 22,215 full-time equivalent employees on the bank-holding company’s payroll. Headcount was reduced from 22,447 people three months earlier and 23,423 people as of a year earlier.
Branch count closed out the third-quarter 2016 at 1,597, two fewer than at mid-year 2016.
