During the first three months of this year, home-loan production was 10 percent stronger, residential delinquency was 30 basis points better and net income was up nearly $0.2 billion at US Bancorp.
The report of earnings data from the Minneapolis-based firm for the period beginning Jan. 1 and ending March 31 reflected mortgage fundings of $19.168 billion.
Tucked away deep in the report were $3 million in residential subprime originations. Subprime production was $4 million in the previous report but unchanged from a year earlier.
The “mortgages-serviced-for-others” portfolio ended the latest period at $200.171 billion, more than $191.082 billion at the end of 2011 and the $182,665 billion at the end of the first quarter 2011.
There were $38.441 billion in residential mortgages on the balance sheet as of the end of last month, growing from $37.082 in the fourth quarter and $32.344 billion as of March 31, 2011.
The most-recent figure reflects $29.610 billion in residential loans and $8.831 billion in first-lien home-equity loans.
Residential delinquency of at least 30 days including non-performing loans was 3.52 percent. The level of late payments improved from 3.82 percent in the fourth quarter and 4.67 percent a year prior.
The March 31 residential rate was based on a 30-to-89-day rate of 0.95 percent, a 90-day rate of 0.79 percent and a nonperforming rate of 1.78 percent.
The report noted that “there continues to be stress in the residential mortgage portfolio due to the decline in home values.”
In addition, U.S. Bancorp owned $17.697 billion in HELs and second mortgages. The bank has trimmed its junior-lien holdings from $18.131 billion as of Dec. 31 and $18.628 billion at the end of the first quarter last year.
On home-equity loans, the 30-day rate fell 12 basis points from the prior period to 1.73 percent. The rate was worse at 1.75 percent in the year-earlier period. The HEL 30-to-89-day rate was 0.82 percent as of March 31, while the 90-day rate was 0.68 percent and the non-performing HEL rate was 0.23 percent.
The balance sheet also grew for commercial real estate loans, which increased to $36.102 billion from $35.851 billion as the end of last year and $35.437 billion at the same point last year. The March 31 total included $30.215 billion in commercial mortgages and $5.887 billion in construction-and-development loans.
CRE delinquency, including loans delinquent at least 30 days and non-performing loans, improved to 2.59 percent from 2.93 percent and sank from the first quarter of last year, when the rate was 4.91 percent. The most recent CRE figure reflected a 30-to-89-day rate of 0.45 percent, a 90-day rate of 0.04 percent and a nonperforming rate of 2.10 percent.
Despite $25 million in repurchase losses, “the contribution of the mortgage banking division increased $130 million over the first quarter of 2011,” according to the report. Repurchase costs were down from $31 million in the prior period and $32 million in the year-prior period.
Income across all of U.S. Bancorp was $513 million before taxes, improving from the fourth quarter’s $430 million and $325 million in the first quarter of last year.