North Carolina Bank Reports Jump in Mortgage Earnings

BB&T Corp., Winston-Salem, N.C., saw its mortgage-related revenues in the first quarter of this year increase by 218.6% when compared with the same period in 2008.The $188 million of mortgage-related revenues included an increase of $30 million in the value of its mortgage servicing rights when compared with the first quarter 2008. The MSR increase was because its hedge outperformed the decline in the value of the asset. Excluding the impact of this item, mortgage banking income increased $99 million or 162.3% over the same period last year. BB&T had $7.4 billion in mortgage loan originations in the first quarter 2009, more than double the $3.6 billion it did in the fourth quarter 2008. However, nonperforming asset levels and charge-offs increased, driven by continued deterioration in housing-related credit. The company said the largest concentration of credit issues are in Georgia, Florida and the District of Columbia metropolitan area. BB&T had net income of $318 million, including $271 million of net income available to common shareholders ($0.48 per share), compared with net income of $428 million ($0.78 per share) one year prior.