Skip to main content

Fifth Third Sees 58 Percent Rise in Mortgage Revenue

NationalMortgageProfessional.com
Jul 22, 2011

Companywide, Fifth Third Bancorp has reported second quarter 2011 net income of $337 million, compared with net income of $265 million in the first quarter of 2011 and net income of $192 million in the second quarter of 2010. "Fifth Third's second quarter results were strong and reflected continued improvement in credit trends," said Kevin T. Kabat, president and chief executive officer of Fifth Third Bancorp. "Bottom-line results were the best Fifth Third has generated since 2007 and drove strong returns—a 1.2 percent return on assets, a 14 percent return on average tangible common equity, and four percent unannualized sequential growth in tangible book value per share." Fifth Third's mortgage banking net revenue was $162 million in the second quarter of 2011, a 58 percent rise from the first quarter of 2011, and a 42 percent increase from the second quarter of 2010. Second quarter 2011 originations stood at $3.1 billion, a decrease from $3.9 billion in the previous quarter and $3.8 billion in the second quarter of 2010. Second quarter 2011 originations resulted in gains of $64 million on mortgages sold compared with gains of $62 million during the previous quarter and $89 million during the second quarter of 2010. Gain on sale margins increased sequentially from weak first quarter levels as interest rates were generally lower this quarter. Mortgage servicing fees came in at $58 million, compared to an identical total of $58 million in the first quarter of 2011 and $54 million in the second quarter of 2010. Mortgage banking revenue was also impacted by net servicing asset value adjustments, which include mortgage servicing rights (MSR) amortization and MSR valuation adjustments (including mark-to-market adjustments on free-standing derivatives used to economically hedge the MSR portfolio). These net servicing asset valuation adjustments were positive $40 million in the second quarter of 2011 (reflecting MSR amortization of $25 million and MSR valuation adjustments of positive $65 million); negative $18 million in the first quarter of 2011 (MSR amortization of $28 million and MSR valuation adjustments of positive $10 million); and negative $29 million in the second quarter of 2010 (MSR amortization of $25 million and negative $4 million in MSR valuation adjustments). The mortgage-servicing asset, net of the valuation reserve, was $847 million at quarter end on a servicing portfolio of $56 billion.    
Published
Jul 22, 2011
Top Texas Originator Sees No Surrender To 2023

Big cities will determine the battle

Industry News
Jan 26, 2023
There’s Good & Bad News On The Horizon

There will be a real estate slump, but the big cities are coming out much better

Industry News
Jan 26, 2023
Housing Prices Across Texas Likely Hobbled In 2023

But you’re getting a lot less for $1 million

Industry News
Jan 23, 2023
UWM Adds 'Control Your Price' To 'Game On' Pricing

New program provides 125 basis points in price enhancements for loan orignators.

Industry News
Jan 11, 2023
Rocket Pro TPO Relieves Brokers Of Credit Fee Burden

Will provided free credit reports to brokers if they get their loan closed with the Detroit lender.

Industry News
Jan 10, 2023
Former Employees Sue Rocket Mortgage Over OT Pay

Claim company failed to properly calculate & pay OT for working beyond 40 hours a week.

Operations
Jan 09, 2023