$18.6 billion production, record net income
By MortgageDaily.com staff
4/16/2004

A jump in originations at First Franklin enabled the subprime mortgage lender's parent company to report an increase in overall first quarter fundings.

According to National City Corp.'s latest financial supplement, mortgage volume totaled $18.6 billion, nudging up from the fourth quarter's $17.2 billion. In the first quarter 2003, volume stood at $26.0 billion.

"Mortgage-related activities have remained strong in the low interest environment that prevailed during the first quarter," the Ohio-based financial thrift's chief executive officer David Daberko said in a statement.

The thrift said its conforming mortgage division, National City Mortgage Corp., originated nearly $14.1 billion of the latest volume. Of this total, retail loans were $6.6 billion and $7.5 billion were wholesale. This sector's production slightly declined from the previous quarter and stands 42% below volume in the first quarter last year.

Subprime subsidiary First Franklin funded the remaining $4.6 billion -- a 53% jump from the fourth quarter total and almost triple the $1.7 billion during the first quarter 2003, the report said.

National City said its servicing portfolio rose to $144.6 billion at the end of the first quarter and had a delinquency rate of 3.15%. The previous quarter, the balance was $141.1 billion and the default rate 4.00%.

The Cleveland company also reported that its first quarter net income reached a record $710 million, or $1.16 per share, up from $643 million, or $1.05, a year ago.

"The positive momentum in our core banking businesses, coupled with the acquisitions of Allegiant Bank, completed last week, and Provident Financial Group, expected to be completed near the end of the second quarter, positions us well for further growth in 2004 and 2005," Daberko said.

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