Huntington Bancshares Inc.’s mortgage servicing portfolio and residential assets have grown over the past year, while its quarterly originations increased from a year earlier. Mortgage earnings, however, sank.
The Columbus, Ohio-based company closed $0.922 billion in mortgages during the fourth-quarter 2014, earnings data indicate.
Business slipped from the previous period, when $0.997 billion in home lending was generated.
Mortgage production was up, however, from $0.841 billion funded in the final quarter of 2013.
During the 12 months ended Dec. 31, 2014, residential loan originations amounted to $3.558 billion, off from the previous year’s $4.418 billion.
The third-party mortgage servicing portfolio grew to $15.637 billion from $15.593 billion at the end of the third quarter. The serviced-for-others portfolio has expanded from $15.239 billion at the end of 2013.
Huntington owned $14.322 billion in residential assets, more than the $14.224 billion in loans on its balance sheet as of Sept. 30 and the $13.657 billion for this category as of Dec. 31, 2013.
The latest residential number reflected $8.491 billion in home-equity loans and $5.831 billion in residential mortgages.
Commercial real estate assets rose to $5.197 billion from the third quarter’s $4.991 billion and the fourth-quarter 2013’s $4.850 billion. The year-end 2014 number was comprised of $4.322 in commercial mortgages and $0.875 billion in construction loans.
Mortgage banking income plunged to $14 million from the third quarter’s $25 million and the $24 million earned in the final quarter of 2013. The quarter-over-quarter decline was impacted by a $7 million loss from valuation adjustments on mortgage servicing rights.
At the bank-holding company level, income before income taxes climbed to $221 million during the most recent three months from $209 million and was also better than the year earlier’s $210 million.
Headcount at Huntington Bancshares was reduced to 11,875 from 11,946 as of the end of September. Staffing has grown, however, from 11,765 as of year-end 2013.
The bank cut the number of full-services branches by 24 to 729 in the fourth-quarter 2014.
