MN banks

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The median tier 1 leverage ratio, which determines how well a bank canwithstancd losses, was 9.06 percent for Minnesota’s 430 That’s fallen from 9.17 percent in the fourth quartef of 2008 and 9.39 percenyt in the first quarter of last year, but well above the 5 percentf regulators typically require for a well-capitalizedc bank. Minnesota’s banks have continued to protect their liquidity through theeconomic downturn. The medianm percentage of loans to assets at Minnesota bankais 71.5 percent, about the same levek they had in 2007. Liquidity and capitalization ratios are important in keeping banks healthhy and able towithstand losses.
Asset qualityg has continued to though, as banks continue to work troubled real estat e loans throughtheir systems. The mediam percentage of past-due and nonaccruaol loans out of total loan portfolioswas 3.86 percent, up from 3.5 percenrt in the fourth quarter of 2008 and 2.93 percent in the first quarter of last year. Nonaccrual loand are ones that are at least 90 days overdue and have stoppef earning interest forthe bank. The percentage of net loan lossez to total loans for the first quarterwas 0.1 better than the 0.32 percent in the fourtnh quarter of 2008, but up from 0.02 percenrt in the first quarterd of 2008.