Quarterly mortgage lending fell at U.S. Bancorp, and new applications suggest the trend might continue. Full-year volume improved, though.
For the final three months last year, U.S. Bank funded residential loans at $17.421 billion.
This information and other financial and operational data were compiled from the Minneapolis-based company’s fourth-quarter earnings report.
New residential mortgage business was down from the $19.809 billion originated in the third quarter.
Still, the financial institution saw improvement on a year-over-year basis with just $14.485 billion loaned during the same period in 2014.
The most-recent production total reflected $11.426 billion in loans originated for sale, $3.989 billion in mortgages originated for investment and $2.006 billion in branch-generated home-equity loans originated for the investment portfolio.
The banking firm’s full-year 2015 residential mortgage volume came to $70.529 billion — better than the $50.068 billion closed in 2014..
With fourth-quarter mortgage application volume down to $14.0 billion from $17.0 billion in the prior period, new home loan activity will most likely continue its decline in the first three months this year.
U.S. Bank serviced $231.771 billion residential mortgages for others as of Dec. 31 of last year. The servicing portfolio fattened from $229.294 billion as of Sept. 30 and $225.007 billion as of Dec. 31, 2014.
The residential mortgage investment portfolio grew to $69.880 billion from $68.537 billion as of Sept. 30. The recent December-end balance also increased from $67.535 billion accounted for at the same point in 2014.
This latest asset balance aggregated $40.425 in first mortgages, $13.071 billion in first-lien HELs and $16.384 billion in HELs and second mortgages.
Residential loan delinquency of at least 30 days, including nonperforming loans, dropped 10 basis points to 1.98 percent.
The delinquency rate was 52 BPS lower than in the fourth-quarter 2014.
At the end of last year, the 1.44 percent HEL delinquency improved by eight BPS from the end of the third quarter and by 43 BPS from the end of 2014.
As of the end of last year, U.S. Bank held $42.137 billion in commercial real estate assets, just shy of $42.478 billion owned as of Sept. 30. Recent holdings also were less than the $42.795 billion accounted for at the same point in 2014.
The latest CRE loans on the balance sheet included $31.773 billion in commercial mortgages and $10.364 billion in construction-and-development loans.
Delinquency of at least thirty days remained unchanged from the September-end rate of 0.54 percent and was 38 BPS better than delinquency as of the same point in 2014.
In the three months ended December 2015, mortgage repurchases and make-whole payments came to $7 million–$7 million less than in the prior quarter.
Fourth-quarter income before income taxes came to just under $2.1 billion, slightly higher but nearly unchanged from both third-quarter and fourth-quarter 2014 earnings.
As of the end of last year, U.S. Bank had 3,133 branches or 18 fewer than last counted on Sept. 30.
