While quarterly mortgage earnings and originations held up from the prior period at U.S. Bancorp, both retreated from a year ago. Residential holdings expanded, though.
From July 1 through Sept. 30 of this year, the financial institution earned $2.2 billion before taxes, according to its third-quarter earnings report.
Company-wide income at the Minneapolis-based organization was little changed compared to $2.1 billion in the previous quarter and the same quarter last year.
U.S. Bank generated $213 billion in mortgage revenues, about the same as the $212 billion reported for the second quarter but way down from $314 billion in the third-quarter 2016.
Mortgage revenues during the latest period were comprised of $122 million in originations and sales, $183 million in loan servicing and a $92 million loss on mortgage-servicing rights.
During the three months ended Sept. 30, single-family originations came to $17.169 billion. The total included $12.061 billion in mortgages originated for sale, $3.276 billion in portfolio mortgages and $1.832 billion in portfolio home-equity loans.
Total production improved from $16.525 billion in the prior period. But home-lending activity fell from $21.167 billion a year prior.
Overall residential originations during the first-nine months of this year amounted to $48.831 billion
The fourth quarter will likely see a similar level of mortgage production as the third quarter based on loan application volume, which slipped to $16.5 billion in the third quarter from $16.7 billion the prior period.
The bank-holding company said it serviced $233.128 billion in mortgages for others. The servicing portfolio inched up from $232.423 billion three months earlier and $232.120 billion one year earlier.
Residential assets in U.S. Bank’s investment portfolio inched up to $75.625 billion from $75.106 billion and grew from $72.696 billion as of Sept. 30, 2016. Last month’s total was comprised of $46.107 billion in mortgages, $13.210 billion in first-lien HELs and $16.308 billion in second-lien HELs and mortgages.
Mortgage delinquency of at least 30 days, including nonperforming loans, was 1.24 percent as of Sept. 30, 2017. The rate fell from 1.32 percent as of mid-2017 and has declined each quarter since the fourth-quarter 2014, when it was 2.50 percent. As of Sept. 30, 2016, the rate was 1.63 percent.
On the HEL portion of the portfolio, delinquency worsened to 1.37 percent from 1.32 percent but was down from 1.40 percent at the same point last year.
The
commercial real estate portfolio dipped to $41.130 billion from $41.908 billion and was also down from $43.468 billion at the same point last year. The Sept. 30, 2017, consisted of $29.902 billion in commercial mortgages and $11.528 billion in construction-and-development loans.
CRE delinquency jumped to 0.45 percent from 0.36 percent at the end of June 2017 and 0.34 percent in September 2016.
Last month finished with 3,072 branches, 16 fewer than as of mid-2017.
