Bank of America reported Tuesday morning that first-lien mortgage issuance was $5.7 billion from April through June, up 66.3% from $3.4 billion in the previous quarter but down 3.5% from $5.9 billion in the second quarter of 2023.
In the second quarter of 2024, the four largest deposit-based mortgage lenders generated a combined quarterly volume of $26 billion, with Bank of America second only to JPMorgan ($10.7 billion total). Wells originated $5.3 billion in mortgages and Citi originated $4.3 billion.
BofA's home equity segment also saw an increase in loan volume on a quarterly basis. Home equity loan volume for the second quarter of 2024 was $2.4 billion, up 26.5% from $1.9 billion in the prior quarter and down 5.8% from $2.5 billion in the same period in 2023.
“Mortgage balances remained flat while lending increased slightly this quarter,” Bank of America Chief Financial Officer Alastair Borthwick told analysts.
The bank has $227.5 billion in outstanding mortgage loans through June 30, 2024, up from $227.7 billion in the first quarter of 2024 and $228.7 billion in the second quarter of 2023.
The home equity portfolio ended the second quarter at $25.5 billion, remaining stable on both a quarterly and annual basis.
Bank of America's mortgage-backed securities had a total fair market value of $57.1 billion as of June 30, 2024, and $49.8 billion as of March 31, 2024.
Overall, the bank posted net income of $6.9 billion in April-June, down from $7.4 billion in the same period a year ago. Provisions increased to $1.5 billion in the second quarter of 2024, compared with $1.3 billion in the previous quarter and $900 million in the second quarter of 2023.
The consumer banking division posted net income of $2.59 billion in the second quarter of 2024, down $61 million from the previous quarter, according to a filing with the Securities and Exchange Commission.
Chairman and CEO Brian Moynihan said in a statement that the bank's team “delivered another strong quarter,” adding 278,000 checking accounts for the 22nd consecutive quarter.