Home lending and mortgage earnings weakened from a year ago at SunTrust Banks Inc., though earnings improved on a quarter-over-quarter basis. Delinquency deteriorated.
From July 1, 2017, through Sept. 30, income before the provision for income taxes was $765 million, according to SunTrust’s third-quarter earnings report.
Income at the Atlanta-based bank-holding company improved from $691 million a year prior and was also up from $752 billion in the prior quarter.
Mortgage income was $107 million during the most-recent three-month period, falling from $167 million in the third-quarter 2016. But mortgage earnings were up from $100 million in the second-quarter 2017. Third-quarter 2017 mortgage earnings consisted of $61 million in production-related income and $46 million in servicing-related income.
Single-family loan originations
during the three months ended Sept. 30, 2017, came to $6.153 billion. Business dipped from $6.425 billion the preceding period and tumbled from $8.459 billion the same-three months last year.
For all three quarters that have elapsed so far this year, mortgage production amounted to $18.069 billion.
The latest activity consisted of $2.438 billion in retail lending and $3.715 billion in correspondent acquisitions.
Refinance share was 32 percent, slightly more broad than 31 percent in the second quarter.
Mortgage production during the final-three months of this year is likely easing based on new applications, which fell to $7.7 billion in the third quarter from $8.3 billion three months prior.
SunTrust serviced $165.273 billion in mortgages at the conclusion of the latest period,
a little less than $165.601 billion serviced at the end of June. But the servicing portfolio expanded from $153.984 billion as of Sept. 30, 2016.
Third-party servicing made up $135.411 billion of the most-recent total. The ratio of the net carrying value of mortgage-servicing rights to total third-party servicing was 1.202 percent.
On SunTrust’s balance sheet were $38.403 billion in residential assets, a little more than $38.268 billion three months earlier but less than $39.005 billion one year earlier. Most recently, residential assets consisted of $0.497 billion in guaranteed mortgages, $27.041 billion in non-guaranteed loans and $10.885 billion in home-equity products.
The report indicated that delinquency of between 30 and 89 days on mortgages was 0.27 percent, 6 basis points worse than mid-year 2017 but 2 BPS better than the same period a year ago.
HEL delinquency soared to 0.85 percent from 0.66 percent as of June 30, 2017, and 0.63 percent as of Sept. 30, 2016.
Commercial real estate loans were trimmed to $9.202 billion from $9.269 billion at the end of the second quarter. But the total grew from $8.931 billion as of the same date last year. Commercial mortgages accounted for $5.238 billion of the latest amount, and construction loans made up $3.964 billion.
Delinquency on commercial mortgages fell to 0.02 percent from 0.04 percent the prior period and a year prior.
The latest quarter concluded with 24,215 people on the payroll. Full-time equivalent employment was trimmed from 24,278 as of mid-2017 but expanded from 23,854 at the same point in 2016.
There were 1,275 full-service banking offices when last month finished, six fewer than at the end of the second quarter.
