Home loan originations moved higher in the second quarter at U.S. Bancorp, while residential and commercial mortgage delinquency was reduced.
Total mortgage production volume during the three months ended June 30 worked out to $11.593 billion, the Minneapolis-based company said in its second-quarter earnings report.
Activity included $7.950 in bank-originated mortgages, $2.456 billion in residential loans originated for the portfolio and $1.187 billion in branch-originated home-equity loans.
Total business rose from the first quarter, when originations came in at $9.251 billion.
But production tumbled from the second-quarter 2013, when $23.881 billion in loans were closed.
From Jan. 1 through June 30, U.S. Bancorp originated $20.844 billion.
New business in the current quarter likely will be even greater based on mortgage application volume, which rose to $13.7 billion from $10.1 billion in the first quarter.
U.S. Bancorp reported that it serviced $224.700 billion in mortgages for others as of June 30, cutting the servicing portfolio from $227.186 billion at the end of March. As of mid-year 2013, $223.904 billion in home loans were serviced for others.
The Minneapolis-based company owned $51.965 billion in residential mortgages, lifting its holdings from $51.708 billion as of March 31 and $47.753 billion as June 30, 2013.
The June 30, 2014, total included $38.747 billion in residential loans and $13.218 billion in first-lien home-equity loans.
Delinquency of at least 30 days on the residential portfolio, including nonperforming loans, fell to 2.54 percent from 2.73 percent and was 20 basis points better than as of the same date last year.
Also on the balance sheet were $15.668 billion in HELs and second mortgages, more than $15.261 billion owned as of March 31 but less than $15.816 billion as of June 30, 2013.
Delinquency on the junior lien portfolio fell 12 BPS from the first quarter to 1.87 percent. The rate was 2.22 percent as of a year earlier.
Commercial real estate loans on the balance sheet increased to $40.797 billion from $40.131 billion three months earlier and $38.298 billion a year earlier.
The second-quarter 2014 CRE assets consisted of $32.125 billion in commercial mortgages and $8.672 billion in construction-and-development loans.
CRE delinquency dropped 12 BPS to 0.75 percent. At the same point in 2013, CRE delinquency was 1.37 percent.
As of the end of last month, there were $35 million in outstanding repurchase and make-whole requests.
Before income taxes, the bank-holding company earned $2.1 billion, climbing from $2.0 billion in the previous quarter and year-earlier period.
Income was impacted by an $0.2 billion settlement with the Department of Justice to resolve an investigation into compliance with Federal Housing Administration requirements.
U.S Bank closed out the second quarter with 3,174 branches, 91 more than as of three months prior.
