The unexpected events that have occurred with SVB Financial, Signature Bank, and First Republic Bank have sparked contagion in the broader industry, taking down other regional bank stocks that have nothing to do with the troubled capital providers. Just look at U.S. Bancorp (USB 1.56%), whose shares are down a jaw-dropping 24% this month (as of March 29), despite no material news flow coming from the business. 

Amid the turmoil, is U.S. Bank stock a buy at this point? To find the answer, investors need to focus on what really matters, and that's the cold hard facts. Let's take a closer look. 

Facing the industry's chaos 

Even with the scary situation going on in the banking industry, which is certainly a huge worry for both investors and customers, U.S. Bank continues to look like a diamond in the rough. Net revenue of $6.4 billion in the fourth quarter of 2022 (ended Dec. 31) was up 12% year over year, and it was up 6.5% on a full-year basis.

Even more encouraging, the loan book and deposit base increased 18.8% and 7.1%, respectively, compared to Q4 2022. And the company's adjusted return on assets of 1.2% and adjusted return on equity of 16.8% (excluding acquisition-related expenses) are superb for a bank.  

But what should ease investor worries at a time like this is U.S. Bank's capital position. Because U.S. Bank has a Tier-1 capital ratio of 9.8%, a total risk-based capital ratio of 11.9%, and a leverage ratio of 7.9% (as of Dec. 31), it can easily be considered well-capitalized. The company's $162 billion of investment securities only constitutes 24% of the entire asset base, significantly below SVB's 55% exposure. 

In the world of banking, U.S. Bank can be considered a boring enterprise, taking in deposits and issuing loans to commercial borrowers, homeowners, and credit card holders. But at its core, this is what a bank should be doing -- facilitating the flow of capital in the most prudent way possible. This boring factor is a beacon of hope given what's gone on in the industry.  

The effect of rising rates 

Besides the recent banking industry fiasco, investors are probably also concerned with how the general macroeconomic uncertainty, and rising interest rates more specifically, will continue to affect a large financial institution like U.S. Bank. Net interest income in Q4 2022 jumped 37.5% year over year to $4.3 billion, a positive indicator. 

There's a downside to this, however. U.S. Bank's provision for credit losses totaled $1.2 billion in the last three months of 2022, up substantially from just $362 million in the third quarter. This means that management is preparing for rough seas in the near term. In fact, the net charge-off ratio was 0.64% in Q4, up from 0.17% in the year-ago period. Moreover, U.S. Bank will likely have to raise the rates it pays on its interest-bearing deposit accounts, which can pressure net interest margin. 

"There is still a tremendous amount of economic and geopolitical uncertainty, and we are preparing for any scenario," CEO Andy Cecere said on the latest earnings call. 

Despite these headwinds, Wall Street analysts are optimistic. They think revenue will rise 22.2% in 2023. That's the kind of growth U.S. Bank hasn't registered in decades. And the recent acquisition of MUFG Union Bank substantially expands U.S. Bank's presence in California, providing upside to U.S. Bank's financials. 

As I previously mentioned, U.S. Bank shares are down nearly 30% in the month of March. The stock now trades at a price-to-earnings ratio of 9.4, a sizable discount to the trailing 10-year average of 13.2. To entice investors even more, there's a 5.4% dividend yield that the business currently pays, providing a further boost to shareholder returns. 

Investors who are looking to get aggressive and take advantage of the recent concerns facing the banking industry -- issues that have crushed even sound financial institutions' share prices -- should take a closer look at U.S. Bank. "Be greedy when others are fearful," Warren Buffett says. Now is the time to do just that.