Mortgage production increased at Bank of America (BofA) in the second quarter of 2024 compared to the previous three months, but the bank’s home loan volumes were still lower than those delivered in the same period last year.
Competitors Wells Fargo, JPMorgan Chase and Citi showed the same trend when opening the Q2 2024 earnings season for mortgage businesses on Friday. Nonbanks Rocket Mortgage, United Wholesale Mortgage, loanDepot, Pennymac, Newrez and Mr. Cooper are expected to report their earnings in the coming weeks.
On Tuesday morning, BofA reported production volume of $5.7 billion in first mortgages from April to June, up 66.3% from the $3.4 billion in the previous quarter but down 3.5% from the $5.9 billion figure in Q2 2023.
The four largest depository mortgage originators combined to produce a quarterly volume of $26 billion in Q2 2024, with BofA behind JPMorgan ($10.7 billion in total). Wells delivered $5.3 billion and Citi originated $4.3 billion in home loans.
BofA’s loan production in the home equity arena also increased on a quarterly basis. Home equity loan originations came in at $2.4 billion in Q2 2024, up 26.5% from $1.9 billion in the previous quarter and down 5.8% compared to $2.5 billion in the same period of 2023.
BofA chief financial officer Alastair Borthwick told analysts that “while the home lending balances were flattish, originations picked up a bit this quarter.”
The bank had $227.5 billion in outstanding residential mortgages on its books through June 30, 2024, compared to $227.7 billion in Q1 2024 and $228.7 billion in the second quarter of 2023.
The home equity portfolio stood at $25.5 billion at the end of the second quarter, flat on both a quarterly and a yearly basis.
Bank of America’s total mortgage-backed securities had a fair market value of $57.1 billion as of June 30, 2024, compared to $49.8 billion as of March 31, 2024.
Overall, the bank posted a net income of $6.9 billion from April to June, down from $7.4 billion in the same period last year. Provisions increased to $1.5 billion in Q2 2024, compared to $1.3 billion in the previous quarter and $900 million in Q2 2023.
According to its filing with the Securities and Exchange Commission (SEC), the consumer banking division posted a net income of $2.59 billion in Q2 2024, down $61 million from the prior quarter.
Chair and CEO Brian Moynihan said in a statement that the bank’s team” produced another strong quarter,” adding 278,000 net checking accounts in 22 consecutive quarters of growth.
