Safest Banks in United States - According to Texas Ratio

Safest Banks in United States - According to Texas Ratio

The safest banks in the United States based on FDIC data. The health of a bank is especially important if you have more than the FDIC insurance limit on deposit at the bank.

BestCashCow has sifted through data on all FDIC insured banks, thrifts, and savings and loans to find those with the lowest Texas Ratios. The Texas Ratio measures a banks's non-performing loans and real estate (usually foreclosures the bank now owns) versus the bank's equity and loan loss reserves. In layman's terms the Texas Ratio measures how much capital a bank has at hand to cover any potential losses from bad loans. The lower the Texas Ratio, the better, as it indicates the bank has more in reserve to cover losses. The closer the Texas ratio is to 100%, the less margin a bank has to absorb bad loans. If you look at the Texas Ratio of some recently failed institutions you can see that high numbers are bad:

Closed Bank                          Texas Ratio

Community First Bank              206.85%

North Georgia Bank                 732.82%

American Trust Bank               571.69%

The average Texas Ratio for all FDIC insured banks is: 21.42% Many of the banks below have ratios so small they are practically zero.

Here are the banks with the lowest Texas Ratios:


Bank Texas Ratio State
The  Bank of River Oaks .01% TX
Adams State Bank .01% NE
Security State Bank .01% TX
Applied Bank .01% DE
The National Capital Bank of Washington .02% DC
Adams State Bank    .02% NE
Rayne State Bank & Trust Company .02% TX
The Farmers State Bank of Blue Mound .02% KS
Delta National Bank and Trust Company .02% NY
FDS Bank .02% OH


Most of these are small banks. So, let's look at banks with assets of over $1 billion dollars. We also removed banks that didn't primarily serve retail banking customers. So, while OptumHealth Bank was #1 on the list, we didn't put it there since it is primarily a provider of Health Savings Accounts (HSAs).

The banks with over $1 billion in assets that had the lowest Texas Ratios are:


Bank Texas Ratio State
Territorial Savings 0.15% HI
Sallie Mae Bank 0.41% UT
Glenview State Bank 0.61% IL
First Financial Bank, NA 0.77% TX
Yakima Federal Savings  0.78% WA
Nationwide Bank  1.00% MO
Cambridge Trust Company 1.00% MA
UMB Bank Colorado, National Association 1.04% CO
First Republic Bank 1.10% CA
Apple Bank for Savings 1.16% NY
Westfield Bank 1.22 MA


A low Texas Ratio isn't a guarantee the bank will not fail, but it's one indicator you can use to asses a bank's health. You can see the Texas Ratio for any bank and credit union in the United States by clicking on the bank name and then the Financial Overview tab. The tab also provides information on other key ratios such as Return on Equity and Capitalization as well as trends for those ratios and balance sheet information.

Image: Image courtesy of David Castillo Dominici at


  • Melissa

    June 20, 2016

    Does the Texas Ratio take into account bank derivatives?

  • HS

    February 14, 2011

    Interesting article.

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