|
|
| Residential originations improved at U.S. Bancorp. But delinquency and earnings were worse.The company reported 2008 loan production of $34.1 billion, higher than $27.0 billion reported for 2007.
Fourth-quarter originations at the Minneapolis-based institution were $8.1 billion, climbing from $7.6 billion in the third quarter. A year earlier, volume was $7.7 billion. U.S. Bancorp said its portfolio of mortgages serviced for others was $120.3 billion on Dec. 31, climbing from $112.9 billion three months earlier and $97.0 billion 12 months earlier. The increase reflected the Nov. 21, 2008, acquisition of assets from Downey Financial Corp. — which failed and was taken over by the Federal Deposit Insurance Corporation. Downey reported that it serviced $5.3 billion in loans for other parties as of Sept. 30, 2008. Residential mortgages owned by the bank were $23.6 billion at the end of the fourth quarter, edging higher from $23.3 billion at the end of the prior quarter and $22.8 billion at the end of the prior year. Residential holdings at the end of last month included $5.3 billion in home-equity first liens, which slipped from $5.4 billion at third-quarter’s end and $5.7 billion a year earlier. In addition to its residential loans, U.S. Bancorp held $19.2 billion in second-lien HELs, up from $18.2 billion the prior quarter and $16.4 billion the prior year. Including mortgage serviced for others, residential loans it owns and HEL holdings, U.S. Bancorp serviced $163.1 billion in home-secured loans on Dec. 31, 2008, up from $136.2 billion on Dec. 31, 2007. Residential delinquency of at least 90 days — including nonperforming loans — ended the year at 2.44 percent, rising from 2.00 percent on Sept. 30, 2008, and 1.10 percent on Dec. 31, 2007. Commercial mortgage holdings were $33.2 billion, climbing from $32.2 billion at the end of the third quarter and $29.2 billion at the end of the fourth-quarter 2007. Commercial mortgage delinquency was 3.34 percent at the end of the fourth quarter, jumping from 2.25 percent three months earlier and 1.02 percent at the end of 2007. Net income last year was $2.9 billion, down from $4.3 billion in 2007. Fourth-quarter earnings of $330 million fell from $576 million the prior quarter and tumbled from $942 million the prior year. U.S. Bancorp said it benefited from a “flight to quality” as customers sought safe haven in well capitalized institutions. Chairman, President and Chief Executive Officer Richard K. Davis noted in the report that the company employs 56,000 people. |
