In addition to lifting its quarterly home lending, SunTrust Banks Inc. grew its residential loan servicing portfolio. But mortgage earnings deteriorated.
Income before the provision for income taxes at the bank-holding company amounted to $752 million during the
three months that concluded on June 30.
Atlanta-based SunTrust provided the details, along with additional operational and financial metrics, in its earnings report for the second quarter of this year.
Earnings improved from $629 million three months earlier and $695 million one year earlier.
Deterioration in mortgage production and gain-on-sale margins drove down mortgage earnings to $100 million from $111 million in the first quarter of this year and $163 million twelve months previous. Most recently, $56 million came from mortgage production, and $44 million came from mortgage servicing income.
From April 1, 2017, through June 30, residential loan originations
came to $6.425 billion. Although business improved from $5.491 billion in the preceding quarter, it came up short of the $7.283 billion closed in the same-three months last year.
Retail lending made up $2.692 billion of the most-recent total, and correspondent acquisitions were responsible for $3.733 billion. Refinance share was far more narrow at 31 percent versus the 46 percent in the previous three-month period.
Mortgage production during the first-half 2017 was $11.916 billion.
It appears that the third quarter is maintaining the pace based on applications, which rose to $8.3 billion in the second quarter from $7.7 billion three months prior.
At the middle of this year, SunTrust serviced $165.601 billion,
expanding its servicing portfolio from $164.484 billion in the last quarter and $154.474 twelve months earlier. Third-party servicing accounted for $136.115 billion of the most-current figure.
The ratio of mortgage-servicing rights’ net carrying value to total loans serviced for others was 1.181 percent for the first-half 2017.
The bank owned $38.268 billion in residential assets, growing the investments from $38.170 billion as of March 31, 2017. But residential assets have been trimmed from $39.052 billion as of mid-2016. The latest total consisted of $0.501 billion in guaranteed mortgages, $26.594 billion in non-guaranteed assets and $11.173 billion in home-equity assets.
Delinquency of between 30 and 89 days was 0.21 percent on
non-guaranteed residential loans. The rate was 5 basis points lower than at the end of the first quarter and 10 BPS less than at the middle of last year.
Home-equity delinquency climbed to 0.66 percent from 0.63 percent the previous quarter and 0.64 percent the same quarter in 2016.
At $9.269 billion as of last month, the commercial real estate investment portfolio was little changed from $9.282 billion three months earlier. But CRE holdings have been bolstered from $8.845 billion at the same point in 2016. The June 2017 balance was comprised of $5.250 billion in commercial mortgages and $4.019 billion in commercial construction loans.
CRE delinquency inched up to 0.04 percent from 0.03 percent the prior period and a year prior.
SunTrust employed 24,278 full-time equivalent employees when last month ended. Headcount
ascended by 63 people from the end of March and by 338 employees from the same point last year.
At 1,281 full-service banking offices as of mid-year, SunTrust cut its locations by
35 during the quarter.
