First-quarter home lending gained ground at Citigroup Inc., and the forward momentum is likely continuing into the next earnings period. The servicing portfolio, however, was scaled back.
The global bank originated $7.0 billion in residential loans during the first three months of 2015, as indicated by the company’s current period earnings data.
Mortgage funding activity inched ahead of the $6.7 billion loans closed in the three months prior.
Loan production was $1.8 billion higher than the first-quarter 2014 total.
New loan business might continue its forward momentum based on salable mortgage rate locks, which popped up to $4.4 billion from $3.8 billion in the final three months of last year.
As of March 31, Citi serviced $168.2 billion in loans for third parties. The servicing portfolio declined from $171.9 billion reported at the close of the fourth-quarter 2014 and $178.8 billion reported at the end of the third month a year ago.
The servicing portfolio for Citi Holdings also thinned — to $43.4 billion from $47.4 billion. At the completion of last year’s first earnings period, Citi Holdings’ third-party servicing was at $88.4 billion.
Real estate lending assets were at $37.8 billion as of the last day in March. The investment portfolio grew from $36.7 billion in the preceding quarter and was bigger than the $35.1 billion that end capped the year-prior quarter.
At 0.69 percent, the 30-day delinquency rate was 26 basis points lower than both quarter-over-quarter and year-over-year time frame comparisons.
Residential assets owned by Citi Holdings fell from $59.3 billion to $53.6 billion. When March ended in 2014, Citi Holdings’ investment portfolio was at $70.9 billion.
The first-quarter 2015 total included $23.8 billion in home-equity loans and $29.8 billion in first mortgages.
The delinquency rate for Citi Holding’s mortgage portfolio was 5.33 percent, 34 BPS lower than delinquency as of Dec. 31, 2014, and 130 BPS lower than as of March 31, 2014.
Earnings from continuing operations before income taxes soared $5.5 billion from the fourth quarter to $6.9 billion at the holding company level. First-quarter 2014 income was $6.1 billion.
As of the three months ended March 31, 2015, company-wide workforce numbers were at 239,000 — a decline in staffing of 2,000 from the final three months of last year. Nine thousand fewer employees were on the Citi payroll compared to when 2014’s first quarter culminated.
Global consumer banking division branches in North America at the 203-year-old institution fell to 788 from 849 just three months prior.
Citi Holding’s North American footprint plummeted to just 278 branches from 1,424 at the end of 2014. The steep decline reflects Citi’s recent decision to sell OneMain Financial to Springleaf Financial.
