Earnings were strong at USÂ Bancorp as home-loan originations grew and delinquency retreated.
Mortgage production volume was reported at $17.4 billion during the fourth quarter, according to earnings data released Wednesday.
Business climbed from $11.5 billion in the fourth quarter but fell short of $19.6 billion originated during the fourth-quarter 2010.
Full-year 2011 volume totaled $49.1 billion, less than the $55.8 billion in 2010 production.
U.S. Bancorp also reported $4 million in subprime mortgage originations, slipping from $5 million recorded for the third quarter and the same as $4 million a year prior.
The third-party servicing portfolio closed out last year at $191.1 billion, growing from $185.6 billion at the end of the third quarter. The company serviced $173.9 billion at the end of 2010.
Residential loans owned by the Minneapolis-based company finished last year at $37.1 billion, more than the $35.1 billion balance as of Sept. 30. Home-loan assets were just $30.7 billion in the year-earlier period.
Included in the Dec. 31, 2011, figure were $28.7 billion in residential mortgages and $8.4 billion in home-equity loans.
The 30-day delinquency rate, including non-performing loans, fell to 3.82 percent from the third quarter’s 3.97 percent. The residential rate was much higher at 5.18 percent in the same period during 2010.
HEL delinquency jumped to 1.85 percent from the third quarter’s 1.69 percent but was a little better than 1.90 percent in the year-earlier period.
On its $1.9 billion subprime residential portfolio in its consumer finance division, the 30-day delinquency rate was 19.60 percent, worsening from 17.70 percent as of Sept. 30 but about the same level as 19.35 percent in the last three months of 2010.
Commercial real estate holdings were $35.9 billion, a little more than $35.6 billion in the third quarter and $34.7 billion in the fourth-quarter 2010. The most-recent total included $29.7 billion in commercial mortgages and $6.2 billion in construction-and-development loans.
CRE delinquency of at least 30 days plunged to 2.93 percent from 3.95 percent three months earlier and 4.93 a year earlier.
Repurchases rose to $61 million from $57 million but were trimmed from 69 in the final quarter of 2010. Repurchase losses were unchanged at $31 million but climbed from $27 million in the fourth-quarter 2010.
A $130 million fourth-quarter charge was taken for “mortgage servicing matters.” No such charge was taken in any other quarter during 2011 or 2010.
Income before taxes at U.S. Bancorp climbed to $1.9 billion from $1.8 billion. The company earned $1.3 billion in the same period a year earlier.
U.S. Bancorp employed 62,000 people as of year-end 2011.
