More bad bank news: U.S. Bancorp (USB) missed its Q2 numbers, reporting EPS of $0.53, down 18% year-over-year and below the Street’s $0.59 estimate. USB also tripled its loan loss provision, citing:
continuing stress in the residential real estate markets, including homebuilding and related supplier industries, driven by declining home prices in most geographic regions [and] current economic conditions and the corresponding impact on the commercial and consumer loan portfolios.
One recent concern about banks is that mortgage problems will spread into construction loans. It appears they have.