Although home lending slipped from the previous quarter at Bank of America Corp., business improved from a year prior. Mortgage earnings strengthened significantly.
Prior to the provision for income taxes, the bank-holding company earned $7.3 billion during the period that commenced on July 1, 2016, and concluded on Sept. 30.
Those details were among operational and financial metrics included in the Charlotte, North Carolina-based organization’s third-quarter earnings results released Monday.
Within just home lending, BofA reported $589 million in mortgage banking income. The division’s earnings expanded from $312 million the prior quarter and $407 million a year prior.
The report indicated that BofA closed $20.406 billion in residential loans during the most-recent three-month period. Business slipped from $20.617 billion in the second quarter but was elevated from $16.852 billion in the third-quarter 2015.
Third-quarter 2016 originations included $16.865 billion in first mortgage production, up from $16.314 billion the prior quarter, and $3.541 billion in home-equity loans, down from $4.303 billion.
From Jan. 1, 2016, through Sept. 30, BofA closed $57.451 billion in residential loans, including $45.802 billion in first mortgages and $11.649 billion in HELs.
The fourth quarter is shaping up to be slightly better than latest period, with the first-mortgage production pipeline increasing 14 percent between the second and third quarters.
BofA serviced $336 billion in mortgages for investors as of the close of the third-quarter 2016. The third-party servicing portfolio was reduced from $353 billion as of June 30 and $391 billion as of Sept. 30, 2015.
The bank’s balance sheet had $256.965 billion in residential assets. The total slipped from $257.530 billion at the end of the second quarter and has been reduced from $265.969 billion at the same point last year.
Last month’s residential holdings were comprised of $187.968 billion in mortgages and $68.997 billion in HELs.
BofA additionally owned $53.9 billion in U.S. commercial real estate loans, off from $54.3 billion the prior period but up from $51.8 billion a year prior.
As of the end of last month, BofA had 209,009 people on its payroll. Employee count
was trimmed from 210,516 three months earlier and cut from 215,193 one year earlier.
The financial institution operated 4,629 financial centers as of Sept. 30, fifty-two fewer than as of mid-2016.