A significant expansion from a year earlier in open-end home-equity holdings at smaller commercial banks was more than enough to offset an equally significant decline at larger financial institutions — pushing overall bank portfolios higher.
Bank News
Bank News about Home-Equity Lending
Key Leads Bank Home Equity Assets Down; Robust Citizens Growth
In the first-three months of 2024, banks that are major home-equity lenders reduced their collective home-equity portfolios by $1.5 billion compared to a year earlier. Leading the pullback was KeyBank. Citizens Bank, however, continued its robust growth.
Truist Staff, Branches & Home Equity Assets Cut
Truist Bank continued to reduce its headcount, branch count, and investments in home-equity assets. The financial institution, however, saw net income improve by more than $6 billion on a linked-quarter basis.
Fifth Third Home Equity Yield Up, Delinquency Down
While there was little change in the size of the home-equity portfolio at Fifth Third Bank, N.A., during the past year, the yield on the portfolio has soared 182 basis points, and delinquency has dropped 14 BPS.
Huntington’s CES & HELOC Originations, Yield, Delinquency Up YoY
The Huntington National Bank bumped up home-equity originations from a year ago and improved credit scores in the process. The bank-holding company, however, reduced its open- and closed-end home-equity assets, and saw a 43-basis-point escalation in home-equity delinquency during the period — though yields on the portfolio were up modestly.
Continued Growth in Citizens’ Home Equity Portfolio, Yield Up
Growth continued in Citizens Bank’s home-equity portfolio, with a year-over-year improvement in the yield. Home-equity credit scores and delinquency, however, deteriorated from 12 months prior. Company-wide staffing has been reduced 6% during the past year, while branch count was cut by roughly 9%.
🔒KeyBank Q1 Home Equity Assets Down, Record Investment Banking Income
KeyBank has cumulatively cut its home-equity holdings by 10% during the past four quarters. Its investment banking business, however, generated record activity.
Fed Reports Pickup in HELOC Demand
An anecdotal barometer of economic conditions from the 12 Federal Reserve Banks indicate increased activity for open-end home-equity loans.
Jr Lien Home Equity Assets Hold at US Bank, 1st Lien Down 13%
U.S. Bank, N.A., maintained year-over-year growth in its junior-lien home-equity portfolio, albeit minimal growth. Its first-lien home-equity investments, however, were 13% lower.
BofA Home Equity Asset Quality Better, Lending Down
Home-equity asset quality has improved over the past year at Bank of America, N.A., with combined loan-to-value ratios decreasing and the average credit score rising. But lending volume has tumbled by 37% during the period. More recently, yields on the portfolio have fallen.
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