Slideshow Banks That Felt Sting of Rising Rates, Fewer Refis in Q3

Published
  • November 19 2013, 7:30am EST
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Many community banks reported lower earnings or lost money outright in the third quarter. Behind the bad numbers was a spike in long-term rates that dumped ice on refinancing activity. Following is a look at notable instances of banks that suffered from the mortgage shift.

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First Mariner

The Baltimore company had finally returned to profitability before refi activity imploded. First Mariner lost $7.4 million in the third quarter after its mortgage revenue fell 96% from a year earlier, to just $548,000.

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Banc of California

Some analysts have blamed CEO Steven Sugarman's aggressive acquisitions for the Irvine, Calif., company's $9.5 million quarterly loss. But a 20% decline in mortgage revenue from a quarter earlier didn't help.

BOK Financial

The Tulsa, Okla., company's profits fell 13% from a year earlier on a 50% decline in mortgage revenue. Stan Lybarger, BOK Financial's president and CEO, blamed "uncertainty over government policies" for a spike in interest rates.

Heartland Financial

Profit at the Dubuque, Iowa, company fell nearly 48% from the third quarter of 2012. Mortgage issues played a big role in the decline; gains from the sale of loans fell 85% from a year earlier. The company did add $1 million in servicing income from one year earlier.

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First Horizon

The Memphis, Tenn., company shut down its mortgage operations a few years ago, but it still makes loans to mortgage lenders. First Horizon, which lost $107 million in the third quarter due to mortgage repurchase costs, noted that warehouse lending fell during the period.

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Sterling Financial

"A substantial decline in mortgage banking activity" contributed to a 31% decline in the Spokane, Wash., company's earnings from a year earlier, CEO Greg Siebly said. The company recently agreed to sell itself to Umpqua.

Valley National

The Wayne, N.J., company's net income fell 31% from a year earlier after it reported a large drop in residential mortgage sales. Gerald Lipkin, Valley's president and CEO, said the decline was expected and that other businesses are improving.

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Sun Bancorp

The Vineland, N.J., company cut 19 jobs after mortgage banking income fell $3.5 million from the second quarter. Sun lost $4.9 million in the third quarter; noninterest income fell 39% from a year earlier.

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