Home lending inched up from the previous quarter at U.S. Bancorp, as did the size of its servicing portfolio. There was quarter-over-quarter deterioration in delinquency.
From Oct. 1, 2017, through the end of the year, income before taxes came to $1.4 billion, according to fourth-quarter earnings data released Wednesday.
Income at the Minneapolis-based company declined from $2.1 billion during the same-three months in 2016 and $2.2 billion in the previous three-month period.
The report indicated that there was an $0.9 billion increase in after-tax earnings that was related to recently passed tax reform legislation.
In the final-three months of this year, mortgage banking revenues came to $202 million — including $120 million from origination and sales, $185 million from loan servicing and $103 million in charges related to mortgage-servicing rights. Income was a little less than $213 million in the third quarter and also down from $240 million in the fourth-quarter 2016.
Residential loan originations during the final-three months of last year came to $18.191 billion, increasing from the prior period’s $17.169 billion. But business slowed from $20.595 billion a year prior.
The fourth-quarter 2017 total was made up of $12.526 billion in mortgages originated by the bank for sale, $3.869 billion in branch-originated mortgages for investment and $1.796 billion in branch-originated home-equity loans for investment.
Full-year 2017 overall volume was $67.022 billion, retreating from $78.744 billion in 2016.
Production during the first quarter of this year has likely fell further based on application volume, which declined to $14.4 billion in the fourth quarter from $16.5 billion the preceding period.
U.S. Bank serviced $234.728 billion in residential loans for third parties as of Dec. 31, 2017. The servicing portfolio inched up from $233.128 billion three months earlier and $232.597 billion one year earlier.
The financial institution owned $76.110 billion in residential assets including $46.685 billion in mortgages, $13.098 billion in first-lien HELs and $16.327 billion in second-lien HELS and mortgages.
Residential holdings grew from $75.625 billion the prior quarter and $73.643 billion a year prior.
Mortgage delinquency of at least 30 days, including nonperforming loans, climbed to 1.29 percent from 1.24 percent. Still, the rate was lower than 1.57 percent at the end of 2016.
HEL delinquency also rose, to 1.53 percent from 1.37 as of Sept. 30 and 1.40 percent as of Dec. 31, 2016.
Commercial real estate loans on the balance sheet were reduced to $40.463 billion from $41.430 billion at the end of the third quarter and $43.098 billion at the end of 2016. Last month’s total consisted of $29.367 billion in commercial mortgages and $11.096 billion in construction-and-development loans.
At 0.45 percent, CRE delinquency was unchanged from the last report. But the rate has deteriorated from 0.41 percent at the conclusion of the previous year.
Branch count of 3,067 was down five locations from Sept 30, 2017.
