USB's Mortgage Business Had Record Revenue

U.S. Bancorp said its mortgage banking business had record revenue for the first quarter of 2009 driven by record application and production volume. The company had $233 million in mortgage banking revenues, compared with $23 million for the fourth quarter and $105 million for the first quarter of 2008. During the quarter, U.S. Bancorp had $25 billion of loan applications and $13.4 billion of loan production volume. However, the company had a $530 million credit loss provision and total net charge-offs of $788 million for the first quarter. The increase in net charge offs from $239 million for the same period one year ago was due to factors affecting the residential housing markets, including homebuilding and related industries. Residential mortgage loan net charge-offs increased from $26 million in the first quarter 2008 to $91 million for the most recent period.