Bank Safety Analysis
Is Connect Community Bank Safe? Raymond, Washington
Based on its Q2 2026 call report, Connect Community Bank falls below at least one capital ratio minimum for adequately capitalized, its Texas ratio is 2.62%, and its deposits are FDIC insured up to $250,000 per depositor.
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Short answer
On its Q2 2026 call report, Connect Community Bank's CET1 ratio is 7.66%, above the 6.5% well-capitalized threshold.
- CET1 ratio (Q2 2026): 7.66%
- Tier 1 leverage ratio (Q2 2026): 3.61%
- Texas ratio (Q2 2026): 2.62%
- Noncurrent loans ratio (Q2 2026): 0.15%
Connect Community Bank is an FDIC-insured savings bank (FDIC Certificate #28266). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Context: largest US bank failures · what these ratios mean · how we score.
Connect Community Bank is outside the pass range on 2 of 5 safety dimensions: leverage and operating efficiency. Leverage is below the regulatory minimum. 1 risk screen is flagged: held-to-maturity unrealized loss to equity. Analysis based on the Q2 2026 call report.
Compared with Q1 2026, net interest margin fell 0.23 percentage points in Q2 2026 to 2.82%, the biggest move on this page. On CET1 ratio, Connect Community Bank is 2nd from the bottom among 21 Washington banks, 7.66% (Q2 2026). Connect Community Bank's CET1 ratio of 7.66% is well below the 19.96% median for banks in the < $100M asset tier, a gap of 12.30 points (Q2 2026). From Q3 2023 to Q2 2026, Connect Community Bank's CET1 ratio ranged between 7.66% (Q2 2026) and 15.93% (Q3 2023) and its Texas ratio ranged between 0.00% (Q3 2025) and 3.01% (Q1 2026). Between Q2 2025 and Q2 2026, Connect Community Bank's CET1 ratio fell from 10.72% to 7.66%, nonperforming loan ratio (nonaccrual plus 90+ days past due) rose from 0.00% to 0.15%, Texas ratio rose from 0.00% to 2.62% and return on assets fell from -1.32% to -1.69%.
Data as of · sourced from FFIEC call reports. How we update
An exploratory screening score that ranks relative failure risk across filers. It is not a calibrated probability, not a credit rating, and not a CAMELS rating. Held-out test AUC 0.910 for the 1-year horizon (v20261026_025757). Trained on credit-driven community-bank failures, it carries little signal for interest-rate or deposit-flight risk. The score covers every FDIC-insured bank in the latest run, but the model was trained on community and regional banks and its accuracy above roughly $10 billion in assets is not established, so a low score is not evidence of safety. See the methodology. This is not investment advice or a credit rating.
Scorecard by dimension
Peer cohort: Under $100M (578 banks) · Industry averages as of Q2 2026.
CET1 of 7.66% sits comfortably above the 6.5% well-capitalized threshold under Prompt Corrective Action and the 7.0% level required once the capital conservation buffer is included.
Tier 1 leverage of 3.61% is below the 4% regulatory minimum.
Nonperforming loans at 0.15% are within industry-normal range.
Texas Ratio of 2.6% is well below the 100% historical failure threshold.
Efficiency ratio of 158.9% suggests significant cost-to-revenue challenges.
Risk screens
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Trigger | Result |
|---|---|---|---|
| CET1 capital ratio supervisory threshold | 7.66% | Flags below 7% | Within range |
| Texas ratio BankRegReports band | 2.62% | Watch at 50%, concern at 100% | Within range |
| Non-performing loan ratio BankRegReports band | 0.15% | Flags at 3% or above | Within range |
| Uninsured deposit share BankRegReports band | — | Watch at 50%, concern at 70% | Not reported |
| Loan-to-deposit ratio BankRegReports band | 83.67% | Flags at 100% or above | Within range |
| Commercial real estate to capital supervisory threshold | 79.30% | Watch at 200%, concern at 300% | Within range |
| Held-to-maturity unrealized loss to equity BankRegReports band | 36.63% | Watch at 10%, concern at 25% | Flagged |
Capital ratio: last 12 quarters
| Quarter | CET1 (%) |
|---|---|
| Q2 2026 | 7.66% |
| Q1 2026 | 8.40% |
| Q4 2025 | 9.05% |
| Q3 2025 | 9.80% |
| Q2 2025 | 10.72% |
| Q1 2025 | 10.99% |
| Q4 2024 | 11.91% |
| Q3 2024 | 13.17% |
| Q2 2024 | 13.93% |
| Q1 2024 | 14.69% |
| Q4 2023 | 15.80% |
| Q3 2023 | 15.93% |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 2.62% |
| Q1 2026 | 3.01% |
| Q4 2025 | 2.64% |
| Q3 2025 | 0.00% |
| Q2 2025 | 0.00% |
| Q1 2025 | 0.00% |
| Q4 2024 | 0.00% |
| Q3 2024 | 0.00% |
| Q2 2024 | 0.00% |
| Q1 2024 | 0.00% |
| Q4 2023 | 0.70% |
| Q3 2023 | 0.00% |
Connect Community Bank by quarter
| Quarter end | CET1 | NPL ratio | Texas ratio | ROA |
|---|---|---|---|---|
| Jun 30, 2026 | 7.66% | 0.15% | 2.62% | -1.69% |
| Mar 31, 2026 | 8.40% | 0.18% | 3.01% | -1.78% |
| Dec 31, 2025 | 9.05% | 0.17% | 2.64% | -1.17% |
| Sep 30, 2025 | 9.80% | 0.00% | 0.00% | -1.60% |
| Jun 30, 2025 | 10.72% | 0.00% | 0.00% | -1.32% |
| Mar 31, 2025 | 10.99% | 0.00% | 0.00% | -2.19% |
| Dec 31, 2024 | 11.91% | 0.00% | 0.00% | -1.51% |
| Sep 30, 2024 | 13.17% | 0.00% | 0.00% | -2.65% |
| Jun 30, 2024 | 13.93% | 0.00% | 0.00% | -1.39% |
| Mar 31, 2024 | 14.69% | 0.00% | 0.00% | -1.53% |
| Dec 31, 2023 | 15.80% | 0.08% | 0.70% | -1.53% |
| Sep 30, 2023 | 15.93% | 0.00% | 0.00% | -3.01% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Connect Community Bank FDIC insured?
Yes. Connect Community Bank is an FDIC-insured savings bank (FDIC Certificate #28266). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Is Connect Community Bank well capitalized?
On its Q2 2026 call report, Connect Community Bank's CET1 ratio is 7.66%, above the 6.5% well-capitalized threshold. The threshold comes from Prompt Corrective Action, which its primary federal regulator, the FDIC, applies.
What are Connect Community Bank's key safety ratios?
For Q2 2026, Connect Community Bank reports CET1 7.66%, leverage 3.61%, Texas ratio 2.62%, noncurrent loans 0.15%. The Texas ratio compares problem assets with tangible equity plus reserves; above 100% has historically signaled elevated failure risk.
What happens to my deposits if Connect Community Bank fails?
Insured deposits are protected up to $250,000 per depositor, per insured bank, per ownership category. If an insured bank fails, the FDIC pays insured depositors as soon as possible, usually the next business day.
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Free to use. It shows Connect Community Bank’s latest filed figures and updates each quarter.
Methodology & disclaimer
Based on the latest FFIEC call report. Model output is an estimate, not a credit rating, and this page is not investment advice. FDIC insurance covers deposits up to $250,000 per depositor per ownership category at any FDIC-insured bank, whatever its safety profile. See the methodology and full profile.
Regulator records: FDIC BankFind (cert 28266) · FFIEC NIC profile (RSSD 768476)
Explore: Full Connect Community Bank profile · Other banks in WA · Metric glossary · How the call report works