Quarterly earnings from its mortgage business moved higher at SunTrust Banks Inc. An even more impressive improvement was made with production.
Income at the bank-holding company before the provision for income taxes came to $691 million during the three months that ended on Sept. 30.
Those details and additional financial and operational metrics were presented by the Atlanta-based company Friday in its third-quarter earnings results.
Income was off slightly from $695 million three months earlier and down from $726 million one year earlier.
Within just the mortgage business, income rose to $167 million from $163 million in the second quarter and $98 million in third-quarter 2015. The latest total consisted of $118 million in production income and $49 million in servicing income.
From July 1, 2016, through Sept. 30, SunTrust originated $8.459 billion in residential loans. Business climbed from $7.283 billion in the previous three-month period and jumped from $6.175 billion in the year-earlier period.
The latest activity brought year-to-date 2016 mortgage production to $20.694 billion.
Third-quarter 2016 volume included $3.386 billion in retail production and $5.073 billion in correspondent acquisitions.
Refinance share was 51 percent,
widening from 45 percent in the second quarter.
Fourth-quarter home-lending volume is poised to improve further based on loan applications, which rose to $11.9 billion in the third quarter from $11.2 billion in the prior three-month period.
SunTrust serviced $153.984 billion in home loans as of Sept. 30, 2016. The servicing portfolio
was trimmed from $154.474 billion in the prior quarter. But the total was beefed up from $149.221 billion as of one year prior.
Last month’s servicing portfolio included $123.936 billion in loans serviced for others. Annualized servicing fees most recently worked out to 30 basis points.
The financial institution’s balance sheet contained $39.005 billion in residential assets as of the most-recent date. Residential holdings dipped from $39.052 billion as of June 30 but inched up from $38.394 billion as of Sept. 30, 2015.
The Sept. 30, 2016, total was comprised of $0.521 billion in guaranteed loans, $26.306 billion in non-guaranteed loans and $12.178 billion in home-equity loans.
Delinquency of between 30 and 89 days on non-guaranteed residential loans was 0.29
percent, down 2 BPS from three months earlier and 14 BPS lower than a year earlier.
HEL delinquency dropped a basis point to 0.63 percent but was up 2 BPS from the same point in 2015.
Commercial real estate loans owned by SunTrust grew to $8.931 billion from $8.845 billion as of mid-year and $7.931 billion as of the same point last year.
CRE assets as of last month consisted of $5.056 billion in commercial mortgages and $3.875 billion in commercial construction loans.
Commercial mortgage delinquency was 0.04 percent, up
a basis point from the prior period and the year-prior period.
The most-recent quarter ended with 23,854 full-time equivalent employees on SunTrust’s payroll. Headcount was reduced from 23,940 people as of mid-2016 and 24,124 employees as of the same date in 2015.
SunTrust operated 1,369 full service banking offices, 20 fewer than as of June 30.
