Fifth Third Bancorp has managed to increase its residential assets and servicing portfolio. But the same can’t be said for home-loan production — which was down by nearly half.
Loans fundings faltered at the Cincinnati-based bank, with originations deteriorating to $3.9 billion in the first quarter from $7.4 billion three months earlier, earnings data released Friday indicated.
However, Fifth Third noted that its residential business was better than $3.5 billion in the first-quarter 2010.
The mortgage servicing portfolio grew to $55 billion as of March 31 from $54 billion at the end of last year. The portfolio has grown 10 percent over the past year.
The company owned $9.5 billion in residential loans, growing from $9.0 billion at the end of last year and $7.9 billion at the same point last year. Home-equity loan holdings were trimmed to $11.2 billion from $11.5 billion and were down from $12.2 billion a year prior.
Another $10.5 billion was owned in commercial mortgages, slightly less than $10.8 billion three months earlier and lower than $11.7 billion a year earlier. Commercial construction loans were $2.0 billion, about the same as the prior quarter but lower than $3.3 billion during the same period in 2010.
Fifth Third cut its provision expense for mortgage repurchases to $8 million from the fourth quarter’s $20 million.
Net income during the first quarter fell to $265 million from $333 million but was better than the $10 million loss suffered a year earlier.
Headcount was down one employee from Dec. 31 to 20,837. On March 31, 2010, the staff size was 20,038.
Fifth Third said it operates 1,310 full-service banking centers.
