Fifth Third Bancorp reported a small quarterly gain in residential loans production. Its mortgage investment portfolio grew, but its servicing portfolio was off.
Mortgage originations during the period beginning July 1 and ending Sept. 30 came in at $2.1 billion.
Fifth Third outlined the operational data, as well as other financial results and metrics, in its third-quarter earnings report.
Business inched up from $2.0 billion closed during the second quarter but tumbled from $4.8 billion in the third-quarter 2013.
The report indicated that the year-over-year decline reflected Fifth Third’s exit from the broker business in the first quarter of this year.
“Despite significant elevated competition from banks and nonbanks alike, our loan production during the quarter was healthy and within our profitability targets,” Fifth Third Chief Executive Officer Kevin Kabat said in the report.
In the nine months ended Sept. 30, 2014, mortgage production amounted to $5.8 billion.
Thirty percent of third-quarter 2014 business was refinance. More than half of new home loans were originated for sale.
Fifth Third said it serviced $66.808 billion in residential loans for third parties, trimming its servicing portfolio from $68.085 billion in the previous quarter and $69.987 billion in the year-earlier quarter.
Residential assets on Fifth Third’s balance sheet grew to $22.507 billion from $22.306 billion at the end of the second quarter. At the same point last year, $23.188 billion in residential assets were in the investment portfolio.
Residential assets as of Sept. 30, 2014, included $13.520 billion in mortgages and $8.987 billion in home-equity loans. First-liens accounted for just over a third of HEL assets, and second liens accounted for two thirds.
On residential mortgages, 0.44 percent of the loans were past-due at least 90 days. The serious delinquency rate was reduced from 0.47 percent as of the end of the second quarter and 0.58 percent as of the same point last year.
HELÂ delinquency was deemed not meaningful.
The third-party commercial real estate servicing portfolio finished the latest period at $0.296 billion. The third-party CRE portfolio fell from $316 billion as of June 30 and $324 billion as of Sept. 30, 2013.
Commercial mortgages accounted for $274 billion of last month’s CRE servicing portfolio, while construction loans made up $22 billion.
The Cincinnati-based company reported that it owned $9.270 billion in CRE loans, lifting its holdings from $9.233 billion three months earlier and $8.937 billion a year earlier.
CRE assets as of last month included $7.566 in commercial mortgages and $1.704 billion in construction loans.
The bank-holding company earned $464 million prior to income taxes. Earnings deteriorated from $606 million three months earlier and $604 million twelve months earlier.
Company-wide staffing was cut to 18,503 from 18,732 as of June 30 and 20,256 as of Sept. 30, 2013.
Fifth Third operated 1,308 banking centers as of Sept. 30, one less than at the end of the second quarter.
