New mortgage business at SunTrust Banks Inc. dropped to the lowest level in at least a decade.
In the three months ended March 31, the Atlanta-based company generated $3.106 billion in home loan production.
Quarterly mortgage originations have not been this slow for the Atlanta-based financial institution since at least 2002 based on the oldest available data tracked by Mortgage Daily.
Business declined from $3.935 billion closed in the fourth-quarter 2013.
Fundings slumped on a year-over-year basis, with volume plummeting from the first-quarter 2013 — when mortgage originations were $8.841 billion.
Retail originators were responsible for 54 percent of first-quarter 2014 volume, and correspondent acquisitions accounted for 46 percent.
Refinance share was 44 percent.
Second-quarter originations aren’t likely to rise based on new applications, which fell to $5.029 billion in the three months ended March 31 versus $5.304 billion in the fourth-quarter 2013.
At $135.180 billion, the servicing portfolio retreated from $136.704 billion as of Dec. 31, 2013. The servicing portfolio was $142.203 billion as of March 31, 2013.
Last month’s loans serviced included $105.746 billion in mortgages serviced for others.
On the balance sheet were $42.263 billion in residential assets. Holdings were off from $42.637 billion at the end of last year and $41.598 billion at the same point last year.
The most recent total reflected $3.295 billion in guaranteed residential loans, $24.331 billion in non-guaranteed mortgages and $14.637 billion in home-equity products.
Delinquency of between 30 and 89 days on the non-guaranteed portion was 0.50 percent, better than 0.61 percent three months earlier and 0.76 percent a year earlier.
Home-equity delinquency declined to 0.73 percent from 0.80 percent and was 0.79 percent as of the same date in 2013.
SunTrust also owned $0.532 billion in residential construction loans with a delinquency rate of 1.71 percent..
In addition, commercial real estate holdings increased to $6.881 billion from $6.336 billion at the end of the fourth quarter. The year-earlier CRE total was only $4.895 billion. The most-recent number was comprised of $5.961 billion in commercial mortgages and $0.920 billion in commercial construction loans.
Delinquency on commercial mortgages rose to 0.11 percent from 0.09 percent at the end of 2013. Commercial construction delinquency jumped to 0.25 percent from 0.14 percent.
Mortgage production income climbed to $43 million from $31 million earned by the business in the final three months of last year. Income, however, slid from $159 million in the year-earlier period.
The servicing business performed a little better, with income climbing to $54 million from $38 million both three months earlier and a year earlier.
At the parent company level, $536 million was earned prior to income taxes. SunTrust earnings inched down from $565 billion in the previous report but crept up from $519 million in the same three months last year.
As of the end of last month, 25,925 full-time employees were on SunTrust’s payroll. Headcount softened from 26,281 people at the end of December and 26,238 employees on staff as of the same date in 2013.
SunTrust grew its branch network, with the number of full-service banking offices climbing to 1,501 from four fewer at the end of last year.
