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BNY Mellon, S&T Share Q1 Earnings

Revenues from residential mortgage lending were down for BNY Mellon in the first quarter, dipping from $90 million in Q4 2016 to $88 million in March. Revenues were up slightly in the bank’s wealth management loans/mortgages category, increasing from $8 million to $10 million over the same time period.

BNY Mellow saw virtually no change in the fair value of its agency RMBS portfolio, while its non-agency portfolio dipped slightly.

The bank reported a total revenue of $3.84 billion for the quarter—a 3-percent increase over March 2016. Other highlights of BNY Mellon’s Q1 Earnings Report included: A year-over-year 14-percent increase in earnings per common share; a 4-percent increase in investment service fees; a 4-percent increase in investment management and performance fees; and a 3-percent increase in net interest revenue.

According to Gerald L. Hassell, Chairman and CEO of BNY Mellon, the bank’s efforts in digitization should propel the business forward even further as the year goes on.

"The progress we are making in digitizing our firm and harnessing emerging technologies should result in an increasingly distinctive client experience, new sources of value for our clients, and reduced structural costs for our company,” Hassell said. “We see ourselves as being an investments platform company that integrates the best of what we and others have to offer for the benefit of our clients and the marketplace.”

While mortgage earnings may have waned for BNY Mellon, earnings on mortgage loans were up for S&T Bancorp in the first quarter. According to its recent earnings report, total noninterest income in the bank’s mortgage lending sector jumped from $694,000 to $733,000 for the quarter. That’s a more than $200,000 jump over Q1 2016.

Total residential mortgage assets also increased over the year—from $650,000 to $700,000—though they dipped by about $1,000 over the quarter. Net interest on residential mortgage lending was up over both periods.

S&T also saw a decrease in its share of nonperforming residential mortgage loans. They represented just 1.17 percent of all NPLs; last quarter there accounted for 1.4 percent, and last year, it was 1.39 percent.

Overall, the bank increased its total loan portfolio by 9.8 percent for the quarter and increased its net interest income by $1.4 million—or 2.7 percent.

"We are pleased to announce another quarter of solid earnings driven by strong loan growth," said Todd Brice, President and CEO of S&T Bancorp. "Our ability to grow organically combined with recent increases in short-term rates positively impacted our earnings with higher net interest income and expansion of our net interest margin."

View the full BNY Mellon earnings report or the S&T Bancorp earnings report.

About Author: Aly J. Yale

Aly J. Yale is a freelance writer and editor based in Fort Worth, Texas. She has worked for various newspapers, magazines, and publications across the nation, including The Dallas Morning News and Addison Magazine. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more.

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