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| Residential loan production and new loan applications reached a record at U.S. Bancorp. But the story wasn’t so good for delinquency.First quarter originations were $13.4 billion, according to earnings data released today. The level of activity represented a record. Production climbed from $8.1 billion during the previous period and $9.3 billion during the first-quarter 2008.
Loan applications during the latest quarter were $25.0 billion — also a record. The Minneapolis-based bank said it serviced $126.7 billion in mortgages for investors as of March 31, climbing from $120.3 billion on Dec. 31, 2008, and $102.0 billion as of March 31, 2008. U.S. Bancorp owned $24.0 billion in residential mortgages at March’s end, higher than the $23.6 billion three months earlier and $23.2 billion 12 months earlier. Residential holdings included $5.4 billion in first-lien home-equity loans. HELs stood at $5.3 billion at the end of December and $5.6 billion the previous year. In addition, to its residential holdings, the financial institution owned $19.2 billion in “home-equity and second mortgages.” HELs stood at $19.2 billion at the end of the prior quarter and $16.6 billion 12 months prior. Retail loan growth at the institution was, in part, fueled by home-equity line-of-credit business. Residential delinquency of at least 90 days, including nonperforming loans, was 3.02 percent, surging from 2.44 percent in the fourth quarter and 1.24 percent during the first-quarter 2008. “Stress in residential housing-related industry sectors continued to have an impact on our consumer and commercial customers, and the increases in net charge-offs and the level of nonperforming assets are a direct result of that stress,” U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis explained in the report. “Nonperforming assets to loans plus other real estate owned, excluding covered assets, was 1.56 percent at March 31, 2009, higher than the 1.14 percent posted at Dec 31, 2008.” Commercial mortgage holdings rose to $33.6 billion from the prior quarter’s $33.2 billion and the prior year’s $30.0 billion. Commercial mortgage delinquency was 3.87 percent, climbing from 3.34 percent in the prior quarter and 1.18 percent the prior year. Fee revenue from the mortgage banking division was a record. Mortgage banking net income climbed to $128 million from $43 million a year earlier. First-quarter net income across the complete conglomeration came in at $0.5 billion, increasing from $0.3 billion in the fourth quarter but worse than $1.1 billion during the first-quarter 2008. Headcount was 56,000, Davis said in his statement. |
