Regions Residential Originations Better, Delinquency Worse

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Home-loan fundings improved from the prior quarter at Regions Financial Corp., though there was deterioration in residential delinquency. But late payments on commercial mortgages have shown improved performance. Regions has been scaling back its staffing and assets.

Fourth-quarter loan originations were $1.8 billion, according to data outlined in the company’s earnings report. Originations grew from $1.5 billion closed in the third quarter.

Business fell well short, however, of the $2.6 billion in residential loans funded during the fourth-quarter 2011.

Full-year volume was $6.3 billion, also short of 2010’s production of $8.2 billion.

Regions has been trimming its mortgage assets.

Residential holdings finished last month at $26.8 billion, down from $27.4 billion at the end of September and $29.1 billion at the end of 2010. The Dec. 31, 2011, total included $13.8 billion in residential first liens, $5.9 billion in home-equity first liens and $7.1 billion in home-equity second liens.

Delinquency of at least 30 days on residential first mortgages closed out last year at 4.14 percent, higher than 3.97 percent at the end of the third quarter but better than 4.44 percent at the end of 2010.

Home-equity delinquency rose to 2.23 percent from 1.97 percent and was down from 2.97 percent in the same period a year prior.

Commercial real estate loans closed out 2011 at $22.2 billion, less than the $23.8 billion owned at the finish of the third quarter and $28.4 billion on the books a year prior. Last month’s total included $11.2 billion in owner-occupied commercial mortgages, $0.3 billion in owner-occupied construction loans, $9.7 billion in investor commercial mortgages and $1.0 billion in investor construction loans.

On owner-occupied CRE loans, the delinquency rate improved to 0.71 percent from 0.81 percent three months earlier and 0.89 percent a year earlier. Investor CRE delinquency retreated to 0.91 percent from 1.26 percent and was 1.59 percent as of Dec. 31, 2010.

Mortgage income was $57 million in the fourth quarter, weakening from $68 million in the prior period. During the same period a year earlier mortgage income came in at $51 million.

A company-wide loss before taxes of $63 million swung from a $158 million third-quarter profit. Earnings were $111 million in the fourth-quarter 2010.

Regions has been reducing its human resources. As of Dec. 31 of last year, 26,813 people were on staff, fewer than 26,881 three months earlier and 27,829 a year earlier.

The bank operated 1,726 branch outlets, also fewer than at the end of 2010 when 1,772 branches were open.

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Mortgage Daily Staff

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