List of Texas ratios for all US banks

Just in time for failure Friday, Chris Bruner has assembled a list of Texas ratios for all US banks. This data is all publicly available, but is not often assembled in one place. This is a large html file, posted here on Lew Rockwell’s server. It can be searched using the keyboard command Control-X. The data is as of Q2 2009. From Wikipedia:

The Texas ratio is a measure of a bank’s credit troubles. Developed by Gerard Cassidy and others at RBC Capital Markets, it is calculated by dividing the value of the lender’s non-performing assets (Non performing loans + Real Estate Owned) by the sum of its tangible common equity capital and loan loss reserves.

Banks with ratios of 100 or higher are often considered very likely to fail soon, and those with scores of over 50 are sometimes considered risky.

The banking system is in much worse shape today than 12 months ago, with default rates up and collateral values down across the board. Loan loss reserves are absolutely pathetic relative to non-performing loans:

Source: St. Louis Fed

Remember that bank failures did not end with the crash of 1929, but continued to pick up steam into the 1930s, culminating in Roosevelt’s bank holiday in the spring of ’33, in which he stole the citizens’ gold and devalued the dollar. The Dow bottomed in July ’32 and had already doubled by then.

Update: Failed banks announced

Here are the losers this week, and their respective Texas ratios:
Partners Bank, Naples, FL (393)
American United Bank, Lawrenceville, GA (161)
Hillcrest Bank Florida, Naples, FL (286)
Flagship National Bank, Bradenton, FL (259)
Bank of Elmwood, Racine, WI (180)
Riverview Community Bank, Otsego, MN (238)

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3 thoughts on “List of Texas ratios for all US banks

  1. Thanks for the info., Mike. This is very helpful. Permit me to link to the unofficial FDIC troubled bank list (I got this from Mish’s site):

    The two lists complement each other, for example, Imperial B&T has Texas Ratio of 0, but is in trouble with FDIC.

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