Compared to last year’s third quarter — residential originations, residential delinquency and commercial mortgage delinquency have roughly doubled at U.S. Bancorp.
Third-quarter mortgage production was $14.8 billion, earnings data released today indicated. Volume fell from a record $16.3 billion in the prior period but nearly doubled from $7.6 billion a year earlier. The year-over-year increase was impacted by the November 2008 acquisition of failed Downey Savings and Loan Association, F.A., from the Federal Deposit Insurance Corporation.
Year-to-date Sept. 30, originations totaled $44.5 billion at the Minneapolis-based parent of U.S. Bank Home Mortgage.
The portfolio of mortgages serviced for others climbed to $145.0 as of Sept. 30 from $134.7 billion three months earlier. The portfolio stood at $112.9 billion on Sept. 30, 2008.
U.S. Bancorp owned $24.9 billion in residential mortgages at the end of the third quarter, more than $24.0 billion at the end of the previous quarter and $23.3 billion 12 months prior. Home-equity loans accounted for $5.3 billion of the latest total, about the same as the level at the end of the second quarter.
Commercial mortgage holdings ended September at $33.9 billion, up from $33.7 billion at the on June 30 and $32.2 billion last year.
Residential delinquency of at least 90 days, including nonperforming loans, climbed to 3.86 percent at the end of last month from 3.46 percent at the end of June and just 2.00 percent at the end of the third-quarter 2008.
Commercial mortgage delinquency was also higher, rising to 5.22 percent from 5.05 percent three months earlier and 2.25 percent one year earlier.
Mortgage banking revenue came in at $276 million, off from the second quarter’s $308 million but better than $61 million in the third-quarter 2008. The mortgage banking operation earned $232 million before taxes during the latest quarter, while year-to-date earnings were $677 million.
Across all of U.S. Bancorp, third-quarter net income was $603 million after taxes, climbing from the previous period’s $471 million and the previous year’s $576 million.
