U.S. Bancorp, parent of U.S. Bank, confirmed Wednesday it is reducing the size of its mortgage division staff.
The nation’s fourth-largest bank, based in Minneapolis, Minn., did not say how many workers will be affected by the reduction in force, or how many would remain in the division after the cuts are completed. It also did not say whether the affected workers will receive a severance package.
“At U.S. Bank, we make decisions that position us well for today’s market and in the future,” the company said in an emailed statement to NMP. “By prioritizing investments in future growth opportunities, we maximize our potential to help more clients in the pursuit of sustainable homeownership.”
The statement continued, “With that in mind, we have made changes that allow us to maximize the mix of our home lending business. As a result, we have made the difficult decision to reduce resources in certain roles aligned to areas of the business that continue to slow — while investing in others where we see growth potential.”
The statement concluded, “We believe these changes are in the best interest of our team, our clients and the broader organization.”
The cuts come as the bank reported its second-quarter financial results Wednesday morning. The bank reported net income of $1.71 billion, or $1.12 per diluted share, down more than 3% from $1.77 billion, or $1.16 per diluted share, in the first quarter. Net income was up nearly 6%, however, from a year earlier.
The second-quarter results missed analyst expectations of $1.13 per diluted share, according to Zacks Equity Research.
The bank also reported originating $117.6 million in residential mortgage loans in the second quarter, up 1.1% from the first quarter and up 46.5% from the second quarter of last year. The bank said the increase was driven in part by its acquisition of MUFG Union Bank (MUB).
Following its acquisition of MUB, U.S. Bancorp said in December that it would close the wholesale mortgage businesses it inherited in the deal.
