Taylor Capital Group, the parent company of Cole Taylor Mortgage, saw its profit dip to $15.6 million from $17.3 million.
But despite the small decline, the company’s recent growth in its mortgage division helped offset the decline.
The mortgage division created its own loan servicing platform in early June and acquired the servicing rights to 4,600 mortgages along with the office space and servicing assets of Liberty Savings Bank in Wilmington, Ohio.
The increase in noninterest income to $46.1 million in the second quarter from $39.7 million in the previous quarter was primarily due to an increase in mortgage banking revenue comprised of a $2.9 million increase in origination revenue and a $3.6 million increase in mortgage servicing revenue.
“Total mortgage banking revenue increased 20% to $38.5 million this quarter. This accomplishment reflects the ability of our mortgage team to adapt to the significant interest rate volatility we saw this quarter,” said Mark Hoppe, president and CEO of the company.
“Our second quarter results demonstrate the success of our diversified model and the significant opportunities for future growth. We are extremely fortunate to have the right team in place to implement our strategy and achieve continuing strong results,” Hoppe added.