Bank Safety Analysis
Is First Southern Bank Safe? Florence, Alabama
Based on its Q3 2026 call report, First Southern Bank meets the community bank leverage ratio test for well capitalized, its Texas ratio is 58.07%, and its deposits are FDIC insured up to $250,000 per depositor.
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Short answer: is First Southern Bank safe?
On its Q3 2026 call report, First Southern Bank's Community Bank Leverage Ratio is 10.65%, above the 8% threshold that makes a community bank well capitalized.
- CET1 ratio (Q3 2026): not reported (community bank leverage ratio filer)
- Community Bank Leverage Ratio (Q3 2026): 10.65%
- Texas ratio (Q3 2026): 58.07%
- Noncurrent loans ratio (Q3 2026): 9.72%
First Southern Bank is an FDIC-insured commercial bank (FDIC Certificate #29332). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Source: the FFIEC call report First Southern Bank (FDIC Certificate #29332) filed for the quarter ended September 30, 2026. BankRegReports computes every ratio on this page from that filing.
Context: largest US bank failures.
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First Southern Bank is outside the pass range on 1 of 5 safety dimensions: asset quality. Capital and leverage are above their regulatory minimums. The failed band is a BankRegReports band, not a supervisory threshold. 2 risk screens are flagged: texas ratio and nonperforming loan ratio.
Nonperforming loan ratio (nonaccrual plus 90+ days past due) dropped 1.14 percentage points in Q3 2026, from 10.86% to 9.72%. It was the largest change from Q2 2026 among the key lines here. Within Alabama, First Southern Bank is 62nd of 92 on leverage ratio, 10.65% as of Q3 2026. First Southern Bank reported 10.65% on leverage ratio for Q3 2026, 0.43 points below the 11.09% median for banks in the $100M-1B asset tier.
From Q4 2023 to Q3 2026, First Southern Bank's Texas ratio ranged between 0.02% (Q4 2023) and 70.54% (Q2 2026). Between Q3 2025 and Q3 2026, First Southern Bank's nonperforming loan ratio (nonaccrual plus 90+ days past due) rose from 6.34% to 9.72%, Texas ratio rose from 45.42% to 58.07% and return on assets fell from 0.09% to -0.16%.
By total assets at Q3 2026, First Southern Bank is the 27th largest of the 92 banks headquartered in Alabama. 1-4 family residential loans are its largest loan category, $100.4M of $449.7M in total loans on its September 30, 2026 call report. Against the 2,730 banks with $100M to $1B in assets for Q3 2026, First Southern Bank's community bank leverage ratio of 10.65% is below the 11.09% median, nonperforming loans ratio of 9.72% is above the 0.43% median, Texas ratio of 58.07% is above the 2.96% median, and efficiency ratio of 71.31% is above the 61.25% median.
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.
First Southern Bank's 12-month failure risk score is 0.11 out of 100, on the model's 1-year horizon. 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. How the failure model was trained and tested.
How does First Southern Bank score on capital, credit and costs?
Peer cohort: $100M to $1B (2,646 banks) · Industry averages as of Q3 2026.
Median of the 2,730 banks with $100M to $1B in assets, Q3 2026: 11.09%.
Median of the 2,730 banks with $100M to $1B in assets, Q3 2026: 11.09%.
Median of the 2,730 banks with $100M to $1B in assets, Q3 2026: 0.43%.
Median of the 2,730 banks with $100M to $1B in assets, Q3 2026: 2.96%.
Median of the 2,730 banks with $100M to $1B in assets, Q3 2026: 61.25%.
Does First Southern Bank trip any risk screens?
Latest filing (Q3 2026), passing screens included.
| Screen | Value | Result |
|---|---|---|
| CET1 capital ratio supervisory threshold | — | Not reported |
| Texas ratio BankRegReports band | 58.07% | Flagged |
| Nonperforming loan ratio BankRegReports band | 9.72% | Flagged |
| Uninsured deposit share BankRegReports band | — | Not reported |
| Loan-to-deposit ratio BankRegReports band | 83.82% | Within range |
| Commercial real estate to capital supervisory threshold | 129.84% | Within range |
| Held-to-maturity unrealized loss to equity BankRegReports band | 0.00% | Within range |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q3 2026 | 58.07% |
| Q2 2026 | 70.54% |
| Q1 2026 | 50.13% |
| Q4 2025 | 39.86% |
| Q3 2025 | 45.42% |
| Q2 2025 | 41.79% |
| Q1 2025 | 42.60% |
| Q4 2024 | 22.72% |
| Q3 2024 | 2.51% |
| Q2 2024 | 2.61% |
| Q1 2024 | 1.63% |
| Q4 2023 | 0.02% |
Loans by type, Q3 2026
- 1-4 family residential loans: $100.4M
- Non-owner-occupied commercial real estate loans: $56.2M
- Commercial and industrial loans: $55.9M
- Agricultural production loans: $47.9M
- Owner-occupied commercial real estate loans: $41.8M
- Construction and land development loans: $30.5M
- Multifamily loans: $15.6M
- Loans to states and political subdivisions: $5.5M
How have First Southern Bank's safety ratios changed?
| Quarter end | Total assets | Leverage (CBLR) | NPL ratio | Texas ratio | Efficiency |
|---|---|---|---|---|---|
| Sep 30, 2026 | $634.0M | 10.65% | 9.72% | 58.07% | 71.31% |
| Jun 30, 2026 | $679.2M | 8.95% | 10.86% | 70.54% | 74.08% |
| Mar 31, 2026 | $685.1M | 8.66% | 7.38% | 50.13% | 61.72% |
| Dec 31, 2025 | $732.2M | 9.97% | 5.94% | 39.86% | 51.91% |
| Sep 30, 2025 | $677.6M | 10.17% | 6.34% | 45.42% | 58.75% |
| Jun 30, 2025 | $651.9M | 10.31% | 5.73% | 41.79% | 61.15% |
| Mar 31, 2025 | $648.0M | 10.36% | 5.85% | 42.60% | 65.50% |
| Dec 31, 2024 | $679.1M | 10.32% | 3.02% | 22.72% | 56.18% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is First Southern Bank FDIC insured?
Yes. First Southern Bank is an FDIC-insured commercial bank (FDIC Certificate #29332). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Is First Southern Bank well capitalized?
On its Q3 2026 call report, First Southern Bank's Community Bank Leverage Ratio is 10.65%, above the 8% threshold that makes a community bank well capitalized. The threshold comes from Prompt Corrective Action, which its primary federal regulator, the FDIC, applies.
What are First Southern Bank's key safety ratios?
For Q3 2026, First Southern Bank reports leverage 10.65%, Texas ratio 58.07%, noncurrent loans 9.72%. Its Texas ratio compares with the 2.96% median for the 2,730 banks with $100M to $1B in assets.
What happens to my deposits if First Southern Bank fails?
For Q3 2026, First Southern Bank reported $536.5M in total deposits. If it failed, the FDIC would pay insured deposits up to $250,000 per depositor.
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Where does this data come from?
Not investment advice. See the full First Southern Bank profile.
How we score this
First Southern Bank elects the community bank leverage ratio, so it reports no risk-based capital ratios. Under Prompt Corrective Action (12 CFR 324.403) and that framework it is well capitalized above 8% from July 1, 2026 (9% before), with a grace band one point below. Banks that do not elect it are graded on the CET1 ratio and the Tier 1 and total capital ratios.
First Southern Bank fails or is near these bands: Nonperforming Loans (NPL) Ratio, pass < 1.5% and fail > 3.0%; Texas Ratio, pass < 50% and fail > 100% (historical failure threshold). Every ratio's definition, bands and risk screen.
Not a credit rating. Methodology.
Regulator records: FDIC BankFind (cert 29332) · FFIEC NIC profile (RSSD 66275)
Explore: Full First Southern Bank profile · Other banks in AL · Metric glossary · How the call report works
Ratio definitions: loan to deposit ratio, net interest margin, efficiency ratio, CET1 ratio, tier 1 capital and PPNR.