Quarterly residential loan production shot up 42 percent at U.S. Bancorp , though business was down from last year. Although residential and commercial delinquency were both lower, late payment on home-equity loans worsened.
Home-loan fundings were $11.5 billion during the third quarter, earnings data released Wednesday indicated.
Business ascended from $8.1 billion in the second quarter but fell short of the $16.6 billion in residential originations during the third-quarter 2010.
During the first nine months of 2011, originations amounted to $31.7 billion.
An additional $5 million in subprime mortgages were originated during the most-recent quarter by the consumer finance division.
The company serviced $185.6 billion in mortgages for other investors. The third-party servicing portfolio has grown from $184.9 billion in the second quarter and $165.9 billion at the same point last year.
U.S. Bancorp owned $35.1 billion in residential loans on Sept. 30, more than the $33.1 billion owned as of June 30. Residential holdings have been bolstered from $28.6 billion a year earlier.
Home-loan assets included $7.6 billion in first-lien HELs, up from the second quarter’s $6.8 billion.
Residential delinquency of at least one month, including nonperforming loans, finished September at 3.97 percent. The rate was 4.27 percent as of June and 5.55 percent during the same period in 2010.
U.S. Bancorp also owned $18.4 billion in HELs and second mortgages, a little less than $18.6 billion on June 30 and lower than $19.2 billion on Sept. 30, 2010.
HEL delinquency climbed to 1.69 percent as of Sept. 30 from the prior quarter’s 1.65 percent. But the HEL rate has improved from the third-quarter 2010, when delinquency stood at 1.84 percent.
On the commercial side, new commercial and commercial real estate commitments came in at $18.4 billion in the third quarter, while renewals contributed another $22 billion to the quarter’s lending activity.
Commercial real estate loans owned finished the third quarter at $35.6 billion, creeping up from $35.5 billion three months prior and growing from $34.3 billion a year prior. The most-recent CRE holdings included $6.4 billion in construction-and-development loans.
CREÂ delinquency of at least 30 days fell to 3.95 percent from the prior quarter’s 4.30 percent. The CRE rate was 4.70 percent as of the third quarter of last year.
U.S. Bancorp realized $31 million in losses on mortgage repurchases, cutting its losses from $43 million in the prior quarter.
Earnings at the Minneapolis-based parent company were $544 million before taxes, edging up from $528 million three months earlier and $487 million a year earlier.
U.S. Bank operated 3,089 branches as of Sept. 30.