Fifth Third Sets Record in Loan Production in 2Q '09

Second quarter 2009 mortgage banking net revenue at Fifth Third Bancorp, Cincinnati, was up 72% over the same quarter last year, $147 million vs. $86 million. The bank set a record for loan production at $6.9 billion, up from $4.9 billion for the first quarter 2009. As a result, Fifth Third had gains on mortgages sold of $161 million. In addition, mortgage-related revenues included a $1 million gain on sale of portfolio loans. Net servicing revenue, before mortgage servicing rights valuation adjustments, was $2 million. The MSR valuation adjustment, including mark-to-market of hedges, was a loss of $16 million. Fifth Third took a net charge off of $626 million, as the company continues to be plagued by losses related to commercial and residential real estate loans in Michigan and Florida. Commercial mortgage net losses were $85 million, 45% from those two states. Those states also represented 45% of the second quarter home equity loan charge-offs of $88 million and 75% of the $112 million of net charge-offs in the residential mortgage portfolio.