Evaluate the Financial Health of Your Bank

The global financial crisis of 2008 was the start of a wave of bank failures. From 2008 through 2012, a total of 465 banks failed with combined assets of $689 billion. The number of bank failures diminished significantly after 2012, In 2023, banks are once again under stress. This time it is due to the rapid rise of interest rates that began in 2022. A new wave of bank failures may be starting. The number of bank failures in 2023 has remained small, but three of the banks that failed were large banks with combined assets of $549 billion. That exceeds the combined assets of the failed banks in the worst year of the financial crisis (2008) when 25 banks failed with combined assets of $374 billion. With more banks (both large and small) likely to fail, make sure to keep an eye on your bank. Search for your bank below to review its financial health.

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:


How Does Your Bank Measure Up?

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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.

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Bank or Credit UnionHeadquartersTexas RatioAssets
Carter Bank & TrustMartinsville, VA68.55%$4.55 billion
Citizens Bank and Trust (FL)Frostproof, FL53.26%$1.31 billion
Summit State BankSanta Rosa, CA30.52%$1.08 billion
Patriot Bank (CT)Stamford, CT25.78%$1.07 billion
Century Bank (NM)Santa Fe, NM22.72%$1.43 billion
Blue Ridge BankMartinsville, VA22.07%$3.05 billion
Bank of WashingtonWashington, MO22.02%$1.07 billion
Pioneer Bank (NM)Roswell, NM21.89%$1.03 billion
Citizens Bank (WI)Mukwonago, WI17.94%$1.09 billion
First Bankers Trust CompanyQuincy, IL17.9%$1.11 billion
Liberty Savings BankWilmington, OH17.55%$1.23 billion
Meridian BankPaoli, PA17.26%$2.29 billion
CB&S BankRussellville, AL16.61%$2.65 billion
Emigrant Bank (FL)Miami, FL16.07%$6.24 billion
PeoplesSouth BankColquitt, GA15.96%$1.10 billion
United Texas BankDallas, TX15.91%$1.12 billion
Cross River BankFort Lee, NJ15.78%$8.91 billion
Gulf Coast Bank & Trust Co.New Orleans, LA15.45%$3.21 billion
First Western Trust BankDenver, CO15.43%$2.93 billion
TAB BankOgden, UT15.38%$1.51 billion
Woodforest National BankThe Woodlands, TX15.33%$9.18 billion
Sullivan BankSullivan, MO14.99%$1.09 billion
Bread SavingsDraper, UT14.5%$12.73 billion
Lincoln Savings BankReinbeck, IA14.31%$1.83 billion
M1 FinanceChicago, IL14.31%$1.83 billion
First Fed BankPort Angeles, WA14.14%$2.22 billion
Pegasus BankDallas, TX13.92%$1.25 billion
Hometown Community BanksMorton, IL13.88%$5.48 billion
Bank of SpringfieldSpringfield, IL13.75%$1.59 billion
CFG BankBaltimore, MD13.74%$5.06 billion
First National Bank of AmericaEast Lansing, MI13.73%$5.80 billion
CoreFirst Bank & TrustTopeka, KS13.65%$1.27 billion
R BankRound Rock, TX13.57%$1.05 billion
Home Federal Bank of TennesseeKnoxville, TN13.48%$3.51 billion
American State BankSioux Center, IA13.32%$1.40 billion
Crescent BankNew Orleans, LA13.3%$1.36 billion
Merrick BankSouth Jordan, UT13.23%$5.98 billion
FAB&TJacksonville, AR13.14%$1.13 billion
Lead BankKansas City, MO13.08%$1.05 billion
North American Banking CompanyRoseville, MN12.86%$1.27 billion
First Southern BankMarion, IL12.65%$1.01 billion
Bankwell BankNew Canaan, CT12.61%$3.15 billion
The Freedom Bank of VirginiaFairfax, VA12.56%$1.09 billion
PathFinder BankOswego, NY12.32%$1.45 billion
First Guaranty BankHammond, LA12.32%$3.55 billion
Evans Bank, National AssociationAngola, NY12.25%$2.26 billion
Bank7Oklahoma City, OK12.23%$1.77 billion
Royal Banks of MissouriUniversity City, MO12.19%$1.02 billion
BankFinancial, FSBOlympia Fields, IL12.1%$1.47 billion
Fieldpoint Private Greenwich, CT12.01%$1.24 billion
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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.

Capitalization

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.