U.S. Bancorp’s mortgage servicing portfolio expanded, as did its residential and commercial mortgage assets. Residential delinquency, meanwhile, saw an healthy improvement. But residential originations and home-equity assets were lower as home-equity delinquency increased.
From Jan. 1 through March 31, the Minneapolis-based company originated $21.698 billion in home loans, according to earnings data reported Tuesday.
Volume dipped from the prior period, when $22.111 billion in residential loans were closed. But production picked up from a year earlier, when $19.168 billion in mortgages were closed.
The third-party mortgage servicing portfolio closed out last month at $220.321 billion, growing from $215.637 billion at the end of last year. Mortgages serviced for others amounted to $200.171 billion as of March 31, 2012.
Residential mortgages held as investments totaled $45.984 billion. The portfolio was expanded from $44.018 billion at the end of the fourth quarter and $38.441 billion at the same point last year. Last month’s holdings included $33.779 billion in residential loans and $12.205 billion in first-lien home-equity loans.
Residential delinquency of at least 30 days, including non-performing loans, was reduced to 2.71 percent from 2.93 percent and was 3.52 percent as of the same date last year.
Also on the balance sheet were $16.131 billion in HELs and second mortgages. Junior-lien holdings were trimmed from $16.726 billion as of the end of December and cut from $17.697 billion at the end of the first-quarter 2012.
HEL delinquency climbed to 2.22 percent as of the end of last month from the prior period’s 2.19 percent. The HEL rate was 1.73 percent a year prior.
U.S. Bancorp owned $37.400 billion in commercial real estate loans, increasing its CREÂ holdings from $36.953 billion as of Dec. 31, 2012. CRE loans on the books a year earlier were $36.102 billion. The latest total included $31.155 billion in commercial mortgages and $6.245 billion in construction-and-development loans.
CRE delinquency was 1.60 percent, better than 1.93 percent as of the end of 2012 and 2.59 percent 12 months prior.
After paying out $79 million for mortgage repurchases and make-whole payments, outstanding repurchase demands were $66 million. Realized losses of $23 million left the repurchase reserve at $233 million.
Mortgage banking income before taxes came in at $333 million, an improvement from the $291 million earned in the prior quarter. But mortgage income fell from a year earlier, when the number was $387 billion.
Income for all of U.S. Bancorp was unchanged from the fourth quarter at $2.0 billion but was better than $1.9 billion in the same period last year.
U.S. Bank operated 3,080 branches as of March 31, four fewer than at the end of 2012.
