This interactive Texas Ratio display contains data for every bank and credit union found in 3rd quarter FDIC and NCUA reports. This is a lot of data and it may take extra time to load. Please be patient. It takes an extra 3-5 seconds on my computer. Your results may vary. If you have an inadequate memory, the display may be slow or inoperable. 2010 Texas Ratios
Q3 2010 Texas Ratios

Thanks to Ellie Fields and Ross Perez at Tableau Software for help with the display.

Data compiled by and thanks to Ken Tumin at

Texas Ratio Definition

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 higher the Texas Ratio the higher the risk of failure. Ratios above 100% may be problematic.

Mike “Mish” Shedlock
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