Regional bank M&T Bank Corp., Buffalo, N.Y., said the 13% increase in the company's 2Q12 net income over 1Q12 reflects, among other items, a 24% increase in mortgage banking during the time frame. When compared with 2Q11, mortgage banking revenue is up 65%.
The company noted the higher mortgage banking revenue reflects significant improvements in both residential and commercial real estate lending activities.
For the most recent period, M&T reported mortgage banking revenue of nearly $70 million, up from $56 million in the first quarter and $42 million one year prior.
Meanwhile, Beloit, Wis.-based Blackhawk Bancorp Inc. saw its 2Q12 earnings rise 70% over 2Q11, as growth in mortgage banking revenue and other non-interest income more than offset increases in the company's loan loss provision.
It reported profits of $745,000 for 2Q12, compared with profits of $439,00 one year prior.
“We are extremely pleased to be reporting another quarter of positive earnings,” said Rick Bastian, president and CEO. "Growth in mortgage banking revenue and other non-interest income has allowed us to increase profitability despite heavy additions to the provision for loan losses as we vigorously address asset quality issues."
Blackhawk increased its loan loss provision by 33% as its elevated level of nonperforming loans and the potential for continued economic weakness present a heightened level of risk.
It plans to continue conserving capital and strengthening its allowance for loans losses going forward.
Blackhawk had a net loss on mortgage servicing of $42,000 in 2Q12, compared with net income of $29 million in 2Q11.
