U.S. Bancorp Sees Record Mortgage Banking Revenue

U.S. Bancorp, Minneapolis, saw record mortgage banking revenue for the second quarter 2009, driven by loan applications of $21.6 billion and record mortgage loan production volume of $16.3 billion. It had $308 million in mortgage banking revenue for the period, up from $233 million in the first quarter of 2009 and $81 million in the second quarter of 2008. The company also had over $25 billion of new and renewed commercial real estate and commercial loan commitments. The mortgage banking division's contribution to U.S. Bancorp's net income was $162 million. The company had net income of $471 million ($0.12 per share) for the second quarter, down from $950 billion ($0.53 per share) one year prior as the provision for credit losses exceeded net charge-offs by $466 million. The loan loss provision for the quarter was $1.4 billion, up $799 million over the same period in 2008, reflecting continued stress in residential real estate markets driven by declining home prices in most geographic regions. Net charge-offs for the quarter included $121 million in commercial real estate, $116 million in residential mortgages and $83 million in home equity and second mortgages.