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42 | Th e M Rep o RT o r i g i nat i o n s e r v i c i n g a na ly t i c s s e c o n da r y M a r k e t ORIGINATION local edition ORIGINATION JPMorgan Q3 net income rises to $6.8 Billion The bank's morTgage banking neT income rose nearly 30 percenT from lasT year. NEW YORK // JPMorgan Chase, one of the nation's largest lenders, announced its 2015 third-quarter net income reached $6.8 billion, or $1.68 per share, up 22 percent year-over-year, according to the bank's earnings statement released in mid-October. According to the New York City-based company, net revenue fell 6.4 percent year-over-year to $23.5 billion, driven by lower CIB markets revenue, including business simplification and lower mortgage banking revenue. As lower investment securi- ties balances and lower trading net interest income were mostly offset by loan growth, net interest income declined 1 percent from last year to $11.2 billion and was up 2 percent from last quarter, driven by higher loan yields and balances. Jamie Dimon, chairman and CEO at JPMorgan, noted the company had "decent" results this quarter. "We saw the impact of a chal- lenging global environment and continued low rates reflected in the wholesale businesses' results, while the consumer businesses benefited from favorable trends and credit quality," he said. "Overall, our risk management discipline and diversified plat- forms across the businesses are serving us well." The statement showed nonin- terest expense was driven down 3 percent to $15.4 billion in the third quarter by lower CIB expense related to compensation and busi- ness simplification, but slightly offset by higher legal expenses. JPMorgan's credit losses de- clined 10 percent to $682 million due to lower net charge-offs, which were largely offset by lower reserve releases. The bank was also credited $2.2 billion after tax audits were resolved and deferred taxes were released. "We continue to focus on our commitments, optimize our balance sheet and manage our expenses. We are also building the businesses for the future, dedicating resources to controls, cybersecurity and technology," Dimon said. Mortgage banking net income with the company rose 29 percent year-over-year to $602 million, while net revenue fell 23 percent to $1.6 billion due to lower net servicing revenue and no non- recurring gain last year. Noninterest expense was $1.1 billion for the third quarter, de- clining 13 percent due to mortgage efficiencies, the statement said. Credit loss provisions were $534 million, a huge leap compared to a benefit of $19 million last year. JPMorgan explained this was driven by a larger reduction in the allowance for loan losses reflecting improvement in home prices and delinquencies. The third-quarter provision reflected an allowance reduction of $575 million, of which $375 mil- lion was related to the purchased credit-impaired portfolio and $200 million was related to the non credit-impaired portfolio. "Our position of strength allows us to make significant investments to transform the busi- nesses we operate, deliver better experiences to our customers and clients, gain share and be posi- tioned to be a long-term winner," Dimon concluded. Wells Fargo and Bofa report strong Q3 Financial results revenue aT Wells fargo increased, While iT declined aT bofa. CALIFORNIA & NORTH CAROLINA // Wells Fargo, headquartered in San Francisco, reported a net income of $5.8 bil- lion, or $1.05 per diluted common share, an increase of 1 percent year-over-year, according to the bank's 2015 third-quarter earnings statement released in mid-October. Charlotte, North Carolina-based Bank of America also posted strong financial results, with a third-quarter net income of $4.5 billion, or $0.37 per share, the bank's earning statement showed. Wells Fargo's strong third-quar- ter results were led by growth in loans, deposits and capital, and positive credit quality. The bank experienced strong growth in loans and deposits, with total average loans of $895.1 bil- lion, up 7 percent, or $61.9 billion, year-over-year. As of September 30, 2015, total loans were $903.2 bil- lion. Quarter-end loans rose $64.4 billion to $903.2 billion, while total average deposits increased $71.8 billion to $1.2 trillion. Revenue at Wells Fargo totaled $21.9 billion, an increase of 3 percent from $21.2 billion last year. Driven by growth in investment securities and loans, net interest income rose $187 million from the second quarter of 2015 to $11.5 billion in the current quarter. Meanwhile, the company's net interest margin was 2.96 percent, down 1 basis point from last quarter. John Stumpf, chairman and CEO of Wells Fargo noted that the strong third-quarter results "reflected the ability of our diver- sified business model to generate