Quarterly home loan closing volume increased by more than a third for Fifth Third Bancorp. But its earnings decreased, and the servicing portfolio shrank.
For the three-month period ended June 30, Fifth Third closed $2.5 billion in residential loans, according to financial information in the company’s second-quarter earnings report.
New mortgage business eclipsed first-quarter production by $0.7 billion and second-quarter 2014 originations by a half-billion dollars.
Refinance share was 47 percent during the most-recent period.
For the first two quarters this year, total home lending activity came to $4.3 billion.
Third-party loan servicing ended June 2015 at $61.727 billion. The mortgage servicing portfolio thinned from $64.178 billion at the end of March and $68.085 billion at the end of June in 2014.
The Cincinnati-based bank claimed $22.383 billion in residential assets, up from the March-ended balance of $21.972 and slightly more than last year’s June ended total of the $22.306.
The latest residential asset total included $13.792 billion in mortgages and $8.591 billion in home-equity loans.
Dropping five basis points to 0.33 percent was residential mortgage delinquency of at least 90 days. Compared to the same point last year, delinquency improved by 14 BPS.
On the commercial real estate side, Fifth Third serviced $0.291 billion CRE loans for third-parties. The CRE servicing portfolio fell from $0.300 billion recorded as of March 31 but widened from $0.316 billion at June’s end cap a year ago.
The most-recent CRE loan servicing total included $0.266 billion in commercial mortgages and $0.025 billion in commercial construction loans.
As of the end of last month, the lender’s commercial assets came to $9.874 billion — a holdings increase over the March 31-reported amount of $9.513 billion and the June 30, 2014-ended balance of $9.233 billion.
Commercial mortgages at $7.165 billion and commercial construction loans at $2.709 billion comprised the most-recent CRE asset total.
Fifth Third earned $422 million before taxes at the holding-company level.
This figure was down from first-quarter income of $490 billion — adjusted down from the amount originally reported. As well, current earnings fell below the second-quarter 2014 total of $611 billion — adjusted up from what was first documented.
The number of full-time associates increased to 18,527 — fifty-six more than reported at the end of March. Still, headcount fell from the June 30, 2014, tally of 18,732.
With 1,299 banking centers counted at the end of June, Fifth Third’s locations fell by four from March 31.
