U.S. Bancorp Weathering the Credit Storm

Here's a look at a few capital and reserve coverage ratios, as provided by US Bancorp or derived from the earnings release. Again, we are defining nonperforming loans as loans past due 90 days or more, plus the other loans the company reported as "nonperforming."

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As you can see, US Bancorp's capital ratios haven't suffered over the past year. That's excellent, considering they have grown the balance sheet 11% and not raised capital.

Loan loss reserves covered 151.87% of nonperforming loans as of June 30, and the ratio of nonperforming loans to core capital and loan loss reserves was 7.84%. That last ratio has crept up, but for many of the regional banks, it was well above 20% last quarter.

The uptick in problem construction loans is a concern, as it is for so many banks at this point. While the company has a well-diversified loan portfolio, commercial mortgages and construction loans comprised 19% of total loans as of June 30. This is something to keep an eye on over subsequent quarters.