New mortgage business zoomed higher at U.S. Bancorp, with the latest loan closings buzzing past the prior quarter’s volume by nearly a third.
The Minneapolis-based lender originated $18.901 billion in residential loans in the second quarter, according to data compiled from earnings reported Wednesday.
Home loan funding shot up from $14.398 billion in the prior quarter and $11.593 billion in the second-quarter 2014.
Included in the latest production total was $13.388 billion in loans originated for sale, $2.006 billion in mortgages originated for investment and $3.507 billion in home-equity loans originated for the investment portfolio.
For the first six months this year, U.S. Bank closed $33.299 billion.
Business will likely be steady in the third quarter based on recent-period mortgage application volume, which slightly dipped to $18.4 billion in the second quarter from $18.6 billion three months earlier.
As of June 30, third-party servicing was at $225.454 billion, an increase from $225.196 billion at March’s endpoint. The recent servicing portfolio also grew from $224.700 billion, at the same point a year earlier.
U.S. Bank’s residential assets ended the second quarter at $51.337 billion, slightly above the $51.089 billion benchmarking the first-quarter end cap. Recent assets were down, however, from the $51.965 billion revealed for the same point last year.
Residential mortgages at $38.310 billion and first-lien HELs at $13.027 billion made up the most-recent asset total.
Including non-performing loans, residential mortgage delinquency of at least 30 days was at 2.18 percent when last month ended. The rate was 14 basis points better than at the end of the first quarter and 36 BPS improved over loan delinquency calculated at the end of the second-quarter 2015.
Owned HELs and second mortgages were up to $16.071 billion from $15.859 billion at the end of the first quarter and $15.668 billion outstanding as of June 30, 2014.
HEL 30-day delinquency improved 14 BPS from the prior period to 1.59 percent. The rate was 28 BPS lower than one year prior.
Commercial real estate assets on the balance sheet came to $42.258 billion, a decline from the $42.409 billion owned as of the prior period but more than the $40.797 billion declared at the June-ended date last year.
Last month’s CRE loan holdings were comprised of $32.060 billion in commercial mortgages and $10.198 billion in construction-and-development loans.
In a quarter-over-quarter comparison, the second-quarter’s 30-day delinquency rate on CRE loans dropped 24 basis points to 0.58 percent. As well, the latest rate was 17 BPS better that the same time a year earlier.
During the latest completed quarter, mortgage repurchases and make-whole payments came to $9 million — down by $3 million from the first quarter and a staggering $21 million less than the second quarter 2014.
At the holding- company level, U.S. bank’s income before income taxes increased to $2.0 billion from $1.9 billion earned in the first quarter. Earnings slipped from $2.1 billion at the same point last year.
Branch count was 3,164 at the end of last month, eight fewer than reported as of March 31.
