Branch Banking and Trust reported a 22% increase in earnings in the third quarter, driven by an increase in mortgage banking income.
Net income increased 21.7% from last year to $599 million in the third quarter, or $0.73 per diluted common share.
That increase grows even more when excluding pre-tax merger-related and restructuring charges of $43 million. In that case, net income available to common shareholders was $626 million, or $0.76 per diluted share.
“We are pleased to report record earnings for the third quarter,” Chairman and CEO Kelly King said. “We achieved strong revenue growth and excellent expense control by capitalizing on our recent acquisitions.”
This increase was driven, in part, by the increase in mortgage banking income, which rose 38.7% from last year, and rose from last quarter’s $111 million to $154 million in the third quarter.
The increase in mortgage banking income was due to net mortgage servicing rights valuation adjustments and higher production volumes.
Of the increase, residential mortgage banking more than doubled from last year’s $58 million and last quarter’s $44 million to $117 million.
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