Is your bank solvent? How's its Texas ratio?

[Snarkoleptic]

Look it up here...
http://nuscho.com/

More on the Texas Ratio-
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.

In analyzing Texas banks during the early 1980s recession, Cassidy noted that banks tended to fail when this ratio reached 1:1, or 100%. He noted a similar pattern among New England banks during the recession of the early 1990s.

[The Velveteen Ocelot]

1. It's a 6. I guess that's good.

[TNDemo]

2. So what is the important number here?

What is a good Texas ratio number? And what about those other ratio numbers?

[Snarkoleptic]

3. The Texas Ratio that exceeds 100 means trouble.

The others are capital ratios.
The Texas Ratio is a good take on their loan losses vs. overall assets.

Here's a semi-updated chart that shows how bank w/ high Texas Ratios tend to implode.
(The TR column is fourth from the right)
http://bankimplode.com/list/troubledbanks.htm

[TNDemo]

4. Thanks.

What was confusing me was that two of my banks had a 21 and a 35 and they both said "bad." I was thinking they would have been higher or closer to 100 to be categorized as bad but apparently not.