Company-wide earnings improved at U.S. Bancorp, but mortgage income worsened. Home-lending volume was solidly lower. As residential servicing and assets grew, delinquency decreased.
During the three months ended March 31, income before taxes was $2.1 billion, according to U.S. Bank’s earnings report for the first quarter of this year.
At $184 million, mortgage banking revenues tumbled from $207 million in the first-quarter 2017 and $202 million in the first-quarter 2018. Revenues consisted of $80 million from originations and sales, $190 million from servicing and a $105 million charge for changes in the fair value of mortgage-servicing rights.
From the beginning of this year through the end of last month, U.S. Bank originated $14.529 billion in residential loans — including $9.982 billion in mortgages, $2.973 billion in branch originations for the portfolio and $1.574 billion in branch-originated home-equity loans.
Business fell from $18.191 billion in final quarter of last year and $15.137 billion in the same quarter last year.
Second-quarter 2018 production is likely to be similar to the latest period based on mortgage application volume, which crept up to $14.8 billion in the first-three months of this year from $14.4 billion in the final-three months of last year.
Third-party servicing inched up to $234.975 billion from $234.728 billion and was also greater than $233.558 billion as of the same date in 2017.
The value of MSRs versus loans serviced was 116 basis points.
U.S. Bank owned $76.507 billion in residential assets — including $47.583 billion in mortgages, $12.894 billion in first-lien HELs and $16.030 billion in HELs and second mortgages. The total expanded from $76.110 billion as of year-end 2017 and $74.429 billion as of March 31, 2017.
Mortgage delinquency of at least 30 days fell to 1.17 percent from 1.29 percent and was also lower than 1.44 percent as of the same date last year.
HEL delinquency was 1.52 percent, retreating a basis point from the fourth-quarter 2017
but worsening 16 BPS from the first-quarter 2017.
Commercial real estate holdings slipped to $40.140 billion as of March 31, 2018, from $40.463 billion the prior quarter and $42.832 billion as of a year prior.
CRE delinquency declined 5 BPS to 0.40 percent and was 2 BPS better than at the same point in 2017.
With 3,054 branches in operations, branch count fell 13 from the end of last year.