MN banks

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The median tier 1 leverage ratio, whichy determines how well a bank canwithstanxd losses, was 9.06 percent for Minnesota’s 430 banks. That’sd fallen from 9.17 percenty in the fourth quarter of 2008and 9.39 percent in the firs quarter of last year, but well abovse the 5 percent regulators typically require for a well-capitalize bank. Minnesota’s banks have continued to protect their liquidit y through theeconomic downturn. The median percentagr of loans to assets at Minnesotq banksis 71.5 percent, about the same level they had in 2007. Liquidit and capitalization ratios are important in keeping banks healthy and able towithstanc losses.
Asset quality has continued to deteriorate, as banks continue to work troubler real estate loans throughtheitr systems. The median percentage of past-due and nonaccruao loans out of total loan portfolioswas 3.86 up from 3.5 percent in the fourth quarter of 2008 and 2.93 percent in the first quarter of last Nonaccrual loans are ones that are at least 90 days overdue and have stopped earning interest for the bank. The percentag of net loan losses to total loans for the first quarterwas 0.1 percent, better than the 0.32 percent in the fourthg quarter of 2008, but up from 0.02 percentr in the first quarter of 2008.