BB&T Sees Lower MSR Recapture

In what may be a harbinger for other banks, BB&T Corp. has reported a net recapture of valuation for its mortgage servicing rights in the fourth quarter totaling $4 million.BB&T, one of the first banks to report fourth-quarter earnings, said the recapture was lower than the $20.1 million recorded in the fourth quarter of last year. Revenue from mortgage banking activity totaled $26.9 million in the fourth quarter, down $14 million from that of a year earlier, and the bank cited fluctuation in the valuation of its MSRs as the primary reason for the decrease. Overall, BB&T reported net income of $416.9 million in the fourth quarter, or $0.75 per share, compared with $305 million, or $0.55 per share, a year earlier.