Regions Financial Corp. reported that its mortgage originations declined, as mortgage earnings tumbled. The financial institution reduced the size of its servicing portfolio.
During the three months ended Sept. 30, Regions earned $451 million from continuing operations before income taxes, according to its third-quarter earnings report.
Income at the Birmingham, Alabama-based bank-holding company was down from $471 million a year earlier. But earnings were little changed from $450 million three months earlier.
Regions reported $32 million in mortgage income, off from $46 million in the third-quarter 2016 and $40 million in the second-quarter 2017.
Most recently, mortgage earnings consisted of $28 million in production income and $24 million in servicing income. The combined total was offset by a $20 million charge related to mortgage-servicing rights.
Single-family lending volume declined to $1.311 billion in the three months ended Sept. 30 from $1.447 billion the prior quarter and $1.662 billion a year prior. So far this year, $3.912 billion in mortgages have been originated.
Third-quarter 2017 refinance share was 24.0 percent,
broadening from 20.2 percent the previous three-month period.
Regions serviced $32.586 billion in home loans for third parties. The servicing portfolio was trimmed from $33.055 billion as of the middle of this year and $29.657 billion at the same point last year.
Residential assets on Regions’ balance sheet finished the latest quarter at $24.179 billion — including $13.903 billion in first liens, $6.693 billion in home-equity lines of credit and $3.583 billion in home-equity loans. The overall total was off from $24.184 billion as of mid-year but inched up from $24.151 billion at the same point last year.
Delinquency of at least 30 days on non-guaranteed residential loans
was 1.42 percent, climbing 4 basis points from three months earlier but 28 BPS lower than one year earlier.
Home-equity delinquency jumped to 1.19 percent from 1.01 percent at the end of the second quarter and 1.10 percent at the same point last year.
Commercial real estate loans owned by Regions came to $12.554 billion and were comprised of $6.284 billion in owner-occupied commercial mortgages, $3.999 billion in investor CRE loans and $2.271 billion in construction
loans. Total CRE holdings were $13.122 billion the preceding quarter and $14.120 billion as of the same period last year.
CRE owner-occupied delinquency sank to 0.37 percent from 0.50 percent and saw an even bigger improvement from 0.88 percent at the close of the third-quarter 2016.
On investor CRE loans, the rate plummeted to 0.18 percent from 0.42 percent but was modestly higher than 0.15 percent as of the report from a year ago.
Staffing finished the third-quarter 2017 at 22,101 people, fewer than 22,126 as of mid-year 2017 and 22,215 as of the same date in 2016.
Branch count was 1,489,
off three branches from the end of the second quarter.
