U.S. Bancorp's Mortgage Banking Income Increases Year-to-Year

U.S. Bancorp, Minneapolis, saw a $215 million increase in its mortgage banking income over the year prior as it had loan production volume of $14.8 billion and loan application volume of $15.5 billion during the third quarter of 2009. The bank had mortgage banking revenue of $276 million for the third quarter 2009, compared with $308 million for the second quarter 2009 and $61 million for the third quarter of 2008. Year-to-date mortgage banking revenues are $817 million, up from $247 million for the same period last year. However, the bank also saw $189 million in commercial real estate loan net chargeoffs for the quarter, up from $65 million one year ago, and $129 million in residential mortgage net chargeoffs, up from $71 million for the third quarter of 2008. Home equity loan and second mortgage chargeoffs were $89 million for the most recent quarter, up from $48 million for the same period a year ago. U.S. Bancorp has approximately $4 billion in total nonperforming loans, including $1.7 billion in commercial real estate and $383 million in residential mortgage loans. For the third quarter, U.S. Bancorp had net income of $603 million ($0.30 per share), up from $576 million ($0.32 per share) for the same quarter in 2008. The third quarter results included a $415 million loan loss provision.