Minneapolis-based U.S. Bancorp had nearly $20 billion in mortgage loan production during the fourth quarter, which led to an almost 15% increase in mortgage banking revenue over the same period in 2009.
The company reported mortgage banking revenues of $250 million for the fourth quarter 2010, compared with $310 million in the third quarter 2010 and $218 million in the fourth quarter 2009. For the full year, mortgage banking revenues declined by just over 3%, to $1 billion for 2010 from $1.04 billion in 2009.
The quarterly year-over-year increase was driven by higher origination and sales and servicing revenue, partially offset by a lower net valuation of mortgage servicing rights, U.S. Bancorp said.
There was a decline in commercial and commercial real estate loan net charge-offs, to $353 million in the fourth quarter of 2010 compared with $378 million in the third quarter of 2010 and $457 million in the fourth quarter of 2009. The decrease reflects the impact of more stable economic conditions.
Meanwhile, residential mortgage loan net charge-offs decreased to $131 million in the fourth quarter of 2010 compared with $132 million in the third quarter of 2010 and $153 million in the fourth quarter of 2009.
The mortgage banking division's contribution to U.S. Bancorp's net income for the fourth quarter was $151 million. The company had net income of $974 million for the period.
