BB&T profits fall on weak mortgages
CEO blames underwriting costs
The CEO of BB&T just appeared on CNBC to rail against onerous underwriting costs and guidelines hurting the bottom line of his residential mortgage lending department.
It's been a bad quarter for the bank.
According to MarketWatch, the Winston-Salem, N.C.-based bank's profit fell to $425 million from $547 million a year earlier. On a per-share basis, the bank earned $0.58 compared with $0.77 a year earlier.
Here's the latest on the residential mortgage situation:
BB&T continued to feel pressure in its mortgage business, where a drop-off in refinancing activity last year pummeled large and small banks.
The bank said net income in its mortgage-banking unit fell 49% to $86 million, although it rose by $12 million from the previous quarter due to higher residential mortgage sales.
Credit quality improved in the quarter, as its net charge-off rate declined to 0.40%, the lowest level since 2007, from 0.75% a year earlier and from 0.55% in the previous quarter, the bank said.