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.
