Commercial and saving banks originated $133.8 billion of single-family loans using the retail channel in the second quarter, a 10% increase from the prior period, according to new figures released by the Federal Deposit Insurance Corp.
The origination statistics filed by 769 FDIC-supervised banks is the first increase in bank originations since the 2009 second quarter when retail fundings hit $222.4 billion during a refinancing boom.
FDIC also reported that banks and thrifts posted $21.6 billion of earnings for the second quarter, the industry's most profitable quarter since 3Q 07.
FDIC officials noted that charge-offs on many loan categories have declined over the past year.
However, FDIC figures also show that the remaining residential mortgages and construction loans on their books continue to have high delinquency rates.
Bank and thrifts charged off $1.45 billion of single-family construction loans in the second quarter, down 43% from a year ago. However, the remaining $70.8 billion of construction loans carries a serious delinquency rate of 20.8%. In other words, $14.7 billion of those loans are 90 days or more past due or in non-accrual status and are considered uncollectible.
Net charge-offs on single-family loans totaled $5.26 billion in the second quarter, down 11% from a year ago. However, 10.35% of the $1.7 trillion in residential mortgages is seriously delinquent, up from 7.15% in the second quarter of 2009.
