It was the lowest level of delinquency for BB&T Corp. in three years as its servicing portfolio and mortgage assets grew. But home-loan fundings tumbled 31 percent.
Residential originations fell to $5.8 billion from $8.4 billion in the fourth quarter, according to first-quarter earnings data. Production was better, though, than $4.8 billion closed in the first-quarter 2010.
The Winston-Salem, N.C.-based firm serviced $86.2 billion in home loans as of the end of last month, more than $83.2 billion in the previous quarter. The portfolio has risen from $75.9 billion at the same point last year. The weighted average servicing fee was 35 BPS.
BB&TÂ said third-party servicing represented $64.9 billion of the March 31 total.
Residential holdings grew to $18.2 billion from the fourth-quarter’s $17.6 billion. Home-loan holdings were also higher than $15.5 billion a year prior.
Commercial real estate assets were $14.3 billion, falling from $14.8 billion in the final quarter of last year and $17.6 billion 12 months earlier.
Within the mortgage banking business, first-quarter earnings were $95 million, less than the $138 million earned three months prior but a little better than $89 million earned a year prior.
“The increase in mortgage banking income was driven by a $13 million, or 162.5 percent, increase from commercial mortgage banking activities due to improving market conditions, partially offset by lower revenues from residential mortgage banking activities,” the report stated.
First-quarter income before taxes at the holding company was a $287 million profit, an improvement from $232 million. The company earned $242 million a year earlier.
BB&T Chairman and Chief Executive Officer Kelly S. King noted that the “solid” results were attributable to declining credit costs and improving economic conditions.
“In particular, we experienced significant declines in past due loans, to our lowest level in three years,” King said in the report.
At 31,365, the number of full-time employees was 11 more than at the end of December but fewer than 31,929 during the first-quarter 2010.
