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Mortgage Originations, Servicing Grow at SunTrust

In addition to increasing the quarterly volume of its home lending, SunTrust Banks Inc. expanded the size of its residential loan servicing portfolio.

From Oct. 1, 2016, through Dec. 31, SunTrust earned $660 million before the provision for income tax, less than $691 million three months earlier.

The Atlanta-based company disclosed the results, along with other operational and financial metrics, in its fourth-quarter 2016 earnings report.

Income also retreated from $672 million during the same three-month period in 2015.

SunTrust reported mortgage income of $103 million, falling from $167 million in the third quarter and
and $109 million in the fourth-quarter 2015.

The most-recent mortgage income total was comprised of $78 million in production income and $25 million in
servicing income.

SunTrust originated $8.665 billion in residential loans during the three months ended Dec. 31, 2016.
Business was slightly better than $8.459 billion closed in the previous three-month period and soared from $4.956 billion funded in the same three months during 2015.

Retail lending made up $3.368 billion of fourth-quarter 2016 activity, while the other $5.297 billion came from correspondent acquisitions.

Refinance share widened to 58 percent from
51 percent in the third quarter.

For all of last year, mortgage production amounted to $29.359 billion, improving from $22.732 billion in 2015.

Mortgage originations are likely far lower during the first quarter of this year based on applications, which sank to $8.3 billion in the fourth-quarter 2016 from $11.9 billion the prior period.

The financial institution serviced $160.175 billion in mortgages as of the latest period. The servicing portfolio
expanded from $153.984 billion at the close of September 2016 and $148.232 billion at the conclusion of 2015.

The year-end 2016 servicing portfolio included $129.626 billion in loans serviced for others.
The net carrying value of mortgage servicing rights on the third-party servicing portfolio was 1.213 percent, while the annualized servicing fee was 29 basis points.

SunTrust’s balance sheet contained $38.586 billion in residential assets. The asset class was trimmed from $39.005 billion as of Sept. 30, 2016. But the bank has grown residential assets from $38.544 billion as of year-end 2015.

The year-end 2016 total consisted of $0.537 billion in guaranteed
mortgages, $26.137 billion in non-guaranteed mortgages and $11.912 billion in home-equity assets.

Delinquency of between 30 and 89 days on non-guaranteed mortgages rose to 0.32 percent from 0.29 percent at the close of the third-quarter 2016. The rate was lower, though, than 0.42 percent at the end of the previous year.

Home-equity delinquency climbed to 0.68 percent from 0.63 percent three months earlier and 0.66 percent one year earlier.

Commercial real estate investments closed out last year at $9.011 billion, less than
$8.931 billion three months earlier and $8.190 billion one year earlier.

The most-recent CRE total was comprised $4.996 billion in commercial mortgages and $4.015 in commercial construction loans.

On commercial mortgages, delinquency was reduced to 0.02 percent from 0.04 percent as of Sept. 30 and 0.05 percent as of year-end 2015.

Last year concluded with 24,375 full-time equivalent employees. Staffing expanded from 23,854 at the end of September and 24,043 at the end of 2015.

Full-service banking offices numbered 1,367 at the end of the fourth-quarter 2016, two fewer than at the end of the prior quarter.

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