Evaluate the Financial Health of Your Bank

The global financial crisis of 2008 has prompted many to take a second look at the health of their financial institutions. Many banks and credit unions were not as financially healthy as many believed. How many banks and credit unions have actually failed? Have things improved? What about the “Too Big to Fail” banks? Which states are home to the healthiest and riskiest banks? Where does your bank rank? Click through the below slideshow to find out.

Are Banks Healthier Today Than in 2008?

If you are not concerned about the financial health of your bank or credit union, you should be. Many folks assume that because their accounts are protected by the FDIC or NCUA, there is nothing to worry about – even if the financial institution fails. While this is largely true as long as you are below the $250,000 maximum insured limit, there are a number of inconveniences associated with having your money in a failed bank or one that is on the verge of failing:

2020 List of the Healthiest Banks and Credit Unions in America

1Applied BankWilmington, DE1Long Beach Firemens Credit UnionLong Beach, CA
2Northside Community BankGurnee, IL2Cascade Community Credit UnionRoseburg, OR
3The Bank of Grain ValleyGrain Valley, MO3H-E-B Federal Credit UnionSan Antonio, TX
4First Security Bank of NevadaLas Vegas, NV4Greater Springfield Credit UnionSpringfield, MA
5First Federal of Van WertVan Wert, OH5Moog Employees Federal Credit UnionEast Aurora, NY
6American Interstate BankElkhorn, NE6Denver Fire Department Federal Credit UnionDenver, CO
7First Citizens State BankWhitewater, WI7Telcoe Federal Credit UnionLittle Rock, AR
8Pioneer Federal Savings and Loan AssociationDeer Lodge, MT8New Hampshire Federal Credit UnionConcord, NH
9Bank of MaysvilleMaysville, KY9Schlumberger Employees Credit UnionSugar Land, TX
10SFC BankSpringfield, MO10FAST Federal Credit UnionHanford, CA
Show Full List ∨

How Do You Know if Your Bank is at Risk?

The FDIC and NCUA each maintain a watch list of banks and credit unions they believe are at risk of failing, but they keep these lists secret in order to prevent panic among customers at those institutions, resulting in more failures. They do, however, publish the raw financial numbers for each institution every quarter. It is possible to use different formulas with this data to determine the financial health of banks and credit unions. DepositAccounts uses its own proprietary formula to assess the financial health of all federally insured banks and credit unions in the US. Peruse some of the key components of the formula that are discussed below, and then see how your bank or credit union measures up by using the search box below.

Texas Ratio

Developed at RBC Capital Markets, the Texas Ratio is a relatively straightforward and effective way to determine the overall credit troubles experienced by financial institutions. It is determined by comparing the total value of at risk loans to the total value of funds the bank has on hand to cover these loans. At risk loans are any loans that are more than 90 days past due and are not backed by the government. The amount of funds on hand consists of the loan loss allowance that the bank has set aside plus any equity capital.

For example, a bank with $65 million in at risk loans and $72 million in cash on hand to cover those loans would have a Texas Ratio of $65mm / $72mm, which is 90.3%. This figure is approaching the 100% threshold, which is considered very risky. You can also look at the trend in this Texas Ratio as an additional factor to tell if the bank's financial health is heading in the right direction.

Deposit Growth

When people put money in a bank, it is an indicator of confidence. It also increases the money that a bank has on hand and can help strengthen the balance sheet of the bank. You can look to see the amount of total deposits that a bank has and look to see whether they have been increasing over time. A strong track record of stable growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The opposite can be an indicator of a decline in confidence in the institution and, if pronounced and prolonged, can mean that the bank’s ability to keep a strong balance sheet is in jeopardy.


Another quick, at-a-glance indicator of bank financial health is its available capital. You can figure available capital with a direct calculation of an institution’s assets minus its liabilities. Stronger capital means that more assets are available to cover potential losses.

How Does Your Bank Measure Up?

Search For Your Bank

Best and Worst Banks and Credit Unions by Texas Ratio

In addition to our proprietary health rating system that assigns an overall letter grade to financial institutions based on a number of factors, we recognize that many visitors also want to see the raw Texas Ratio figures for each financial institution. Use the filter options below to access our database and search by best/worst, institution type (banks/CUs), state, and asset size.

Show the   in   with assets of  

Bank or Credit UnionHeadquartersTexas RatioAssets
Nano BancIrvine, CA24.81%$1.03 billion
Patriot Bank (CT)Stamford, CT23.57%$1.05 billion
Bank of SpringfieldSpringfield, IL19.56%$1.50 billion
CNB Bank and Trust, N.A.Carlinville, IL18.79%$1.52 billion
Royal Banks of MissouriUniversity City, MO17.14%$1.04 billion
Emigrant BankNew York, NY16.67%$5.61 billion
First National Bank of AmericaEast Lansing, MI15.2%$3.82 billion
Beal Bank USALas Vegas, NV14.74%$14.62 billion
Alma BankAstoria, NY14.61%$1.30 billion
bankHometownOxford, MA14.35%$1.37 billion
Industrial and Commercial Bank of China (USA) NANew York, NY14.22%$2.78 billion
Hometown Community BanksMorton, IL13.96%$5.02 billion
Hawthorn BankJefferson City, MO13.8%$1.78 billion
The Moody National BankGalveston, TX13.66%$1.62 billion
Liberty Savings BankWilmington, OH13.4%$1.26 billion
CoreFirst Bank & TrustTopeka, KS13.07%$1.22 billion
Oriental BankSan Juan, PR12.91%$10.19 billion
First Bankers Trust CompanyQuincy, IL12.84%$1.15 billion
BankWest (SD)Pierre, SD12.42%$1.52 billion
Beal BankPlano, TX12.32%$4.50 billion
Sterling Bank and Trust, FSBSouthfield, MI12.23%$2.50 billion
Orange Bank & Trust CompanyMiddletown, NY12.09%$2.38 billion
Savings Bank of DanburyDanbury, CT12.06%$1.45 billion
Crescent BankNew Orleans, LA11.97%$1.26 billion
Beneficial State BankOakland, CA11.82%$1.62 billion
Malvern Bank (PA)Paoli, PA11.36%$1.03 billion
Kearny BankFairfield, NJ11.03%$7.72 billion
Meridian BankPaoli, PA10.92%$1.85 billion
Poppy BankSanta Rosa, CA10.85%$4.51 billion
State Bank of India (California)Los Angeles, CA10.78%$1.04 billion
West Gate BankLincoln, NE10.58%$1.04 billion
Dubuque Bank & TrustDubuque, IA10.57%$2.15 billion
The Citizens Bank of Philadelphia, MississippiPhiladelphia, MS10.28%$1.30 billion
Fieldpoint Private Greenwich, CT10.25%$1.36 billion
American State BankSioux Center, IA10.14%$1.16 billion
InterBank (OK)Oklahoma City, OK10.11%$3.91 billion
M&T BankBuffalo, NY10.04%$203.66 billion
Sturdy Savings BankStone Harbor, NJ9.87%$1.21 billion
Queensborough National Bank & Trust CompanyLouisville, GA9.87%$1.98 billion
Lowell FiveTewksbury, MA9.62%$1.72 billion
Bank of GuamHagatna, GU9.45%$2.65 billion
Horicon BankHoricon, WI9.43%$1.21 billion
FirstBank (FL)Miami, FL9.43%$19.52 billion
First Farmers Bank & Trust CompanyConverse, IN9.33%$2.48 billion
First National Bank, Ames, IowaAmes, IA9.23%$1.09 billion
Evans Bank, National AssociationAngola, NY9.18%$2.19 billion
First Commerce Bank (NJ)Lakewood, NJ9.04%$1.18 billion
Stride BankEnid, OK8.99%$2.41 billion
Peoples National Bank , N.A.Mount Vernon, IL8.93%$1.57 billion
Woodforest National BankThe Woodlands, TX8.91%$9.24 billion