Huntington Grows Mortgage Investments, Servicing

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MORTGAGE EXPERT
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Home lending slowed from the prior quarter but rose from the prior year at Huntington Bancshares Inc. The mortgage servicing and investment portfolios grew.

From Oct. 1, 2016, through the end of last year, income before income taxes at Huntington was $271 million, surging from $152 million the prior quarter.

That was according to the Columbus, Ohio-based bank-holding company’s fourth-quarter 2016 earnings report that was released on Wednesday.

Income was also up from $234 million the same period last year.

Within just its mortgage banking business, income fell to $38 million from $41 million in the third quarter but was up from $31 million in the final-three months of 2015.

Residential loan originations totaled $1.542 billion in the most-recent period. Business slowed from $1.744 billion in the third quarter but improved from $1.012 billion in the fourth-quarter 2015.

During all 12 months of last year, mortgage originations amounted to
$5.822 billion, more than $4.705 billion in all of 2015.

In addition, Huntington originated
$2.717 billion in home-equity loans during 2016, off from $3.048 billion the prior year.

Residential loans serviced for third parties by Huntington came to $18.852 billion at the close of 2016. The servicing portfolio grew from $18.631 billion at the end of the prior quarter and $16.168 billion at the end of the prior year.

The ratio of capitalized mortgage servicing rights to
the servicing portfolio was 0.99 percent as of the end of last month.

Huntington reported a residential investment portfolio of $17.831 billion, more than $17.785 billion as of Sept. 30 and $14.469 billion as of Dec. 31, 2015.

The year-end 2016 total consisted of $10.106 billion in home-equity loans and $7.725 billion in mortgages.

On mortgages, delinquency of at least 30 days was 2.82 percent at the conclusion of 2016. The rate deteriorated from 2.74 percent as of the end of the third quarter but improved from 3.28 percent as of the close of the fourth-quarter 2015.

Delinquency on HELs climbed to 0.70 percent from 0.66 percent but was slightly off the 0.71 percent as of the end of 2015.

Commercial real estate assets finished last year at $7.301 billion. The total was up from $7.256 billion three months earlier and $5.268 billion one year earlier. Last month’s total was comprised of $1.446 billion in construction loans and $5.855 billion in commercial mortgages.

CRE delinquency was 0.56 percent as of the end of last month, worsening from a downwardly revised 0.36 percent as of the close of the third quarter and 0.35 percent as of the close of 2015.

The fourth-quarter 2016 concluded with 15,993 people on Huntington’s payroll. Staffing expanded from 14,511 employees at the end of the prior period and 12,418 at the end of the prior year.

Branch count finished 2016
with 1,115 branches, 14 fewer than at the end of September.

The company
celebrated its 150th anniversary.

Mortgage Expert

Mortgage Daily Staff

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