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Mortgage Numbers Up for Fifth Third

""Fifth Third Bancorp"":https://www.53.com/wps/portal/personal had a great spring season, judging by the company's scorching second quarter numbers. The bank estimates its quarterly results were the best on record since 2007, and the dramatic, 58 percent increase in mortgage banking revenue between the first and second quarters of this year contributed heavily to the company's recent success.

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Total net income during Fifth Third's second quarter was $337 million, demonstrating a significant rise quarter-over-quarter, with correlating 2010 net income standing at $192 million during the same period one year ago. The company's mortgage banking net numbers rose 42 percent quarter-over-quarter.

Originations during the second quarter stood at $3.1 billion, down from $3.9 billion in the previous quarter, and representing a very slight quarter-over-quarter increase from $3.8 billion during the same quarter last year.

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Origination gains during the second quarter totaled $64 million, and the gain on sale margins rose between the first and second quarters, which is attributed to the lower interest rates during the period.

Of the positive second quarter statistics, Fifth Third's president and CEO Kevin T. Kabat, said, ""Bottom-line results ├â┬ó├óÔÇÜ┬¼├é┬ª drove strong returns - a 1.2 percent return on assets, a 14 percent return on average tangible common equity, and a 4 percent unannualized sequential growth in tangible book value per share.""

Other factors contributing to Fifth Third's strong second quarter include the amortization of mortgage servicing rights (MSRs) and MSR valuation alterations. Servicing asset adjustments were up $40 million during the quarter, improving from a negative $18 million during the first quarter, boosted by MSR amortization of $25 million and valuation changes of positive $10 million. Fifth Third's total mortgage-servicing component was valued at $847 million to end the quarter, and its servicing portfolio stood at $56 billion.

Fifth Third's mortgage servicing fees remain static, ringing in at $58 million during both the first and second quarters, which demonstrates a slight improvement quarter-over-quarter from $54 million in 2010.

Continuing his comments, Kabat noted, ""Fifth Third's second quarter results were strong and reflected continued improvement in credit trends. Bottom-line results were the best Fifth Third has generated since 2007.""

About Author: Abby Gregory

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