Bank Safety Analysis
Is Highland Federal Savings & Loan Association Safe?
Highland Federal Savings & Loan Association meets regulatory minimums but is on the watch band for 1 of 5 safety dimensions. Analysis based on the Q2 2026 call report.
Net interest margin rose 0.13 percentage points from Q1 2026 to Q2 2026, ending at 3.71% against 3.58%. It was the largest change among the key lines on this page. On leverage ratio, Highland Federal Savings & Loan Association ranks 2nd highest among the 109 banks headquartered in Tennessee, at 22.20% (Q2 2026). Against a median of 12.62% for banks in the < $100M asset tier, Highland Federal Savings & Loan Association reported 22.20% on leverage ratio in Q2 2026, 9.58 points higher. From Q3 2023 to Q2 2026, Highland Federal Savings & Loan Association's Texas ratio ranged between 0.00% (Q2 2026) and 0.78% (Q3 2023). Compared with Q2 2025, Highland Federal Savings & Loan Association's noncurrent loans to total loans from 0.00% to 0.00%, Texas ratio from 0.00% to 0.00%, return on assets from 0.66% to 0.63% in Q2 2026.
Data as of · sourced from FFIEC call reports. How we update
A relative risk score, not a calibrated probability: it ranks this bank against every other filer. Model AUC 0.988 (v20261005_114304). Trained on credit-driven community-bank failures, it carries little signal for interest-rate or deposit-flight risk, and its accuracy above roughly $10B 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: banks with under $100M in assets (536 banks) · Industry averages as of Q2 2026.
Leverage ratio of 22.20% exceeds the 9% Community Bank Leverage Ratio threshold. The bank is deemed well-capitalized under CBLR.
Tier 1 leverage of 22.20% is above the 5% well-capitalized threshold.
Nonperforming loans at 0.00% are within industry-normal range.
Texas Ratio of 0.0% is well below the 100% historical failure threshold.
Efficiency ratio of 79.7% is elevated, suggesting cost-to-revenue pressure.
Note: This bank has elected the Community Bank Leverage Ratio framework, a simplified capital regime for community banks meeting size and complexity criteria. Banks under CBLR don't report CET1 separately; the CBLR leverage threshold serves as the well-capitalized benchmark.
Risk screens
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Trigger | Result |
|---|---|---|---|
| CET1 capital ratio supervisory threshold | — | Flags below 7% | Not reported |
| Texas ratio BankRegReports band | 0.00% | Watch at 50%, concern at 100% | Within range |
| Non-performing loan ratio BankRegReports band | 0.00% | 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 | 62.94% | Flags at 100% or above | Within range |
| Commercial real estate to capital supervisory threshold | 39.37% | Watch at 200%, concern at 300% | Within range |
| Held-to-maturity unrealized loss to equity BankRegReports band | 1.40% | Watch at 10%, concern at 25% | Within range |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 0.00% |
| Q1 2026 | 0.00% |
| Q4 2025 | 0.00% |
| Q3 2025 | 0.00% |
| Q2 2025 | 0.00% |
| Q1 2025 | 0.00% |
| Q4 2024 | 0.26% |
| Q3 2024 | 0.00% |
| Q2 2024 | 0.00% |
| Q1 2024 | 0.75% |
| Q4 2023 | 0.77% |
| Q3 2023 | 0.78% |
Highland Federal Savings & Loan Association by quarter
| Quarter end | CET1 | Noncurrent loans | Texas ratio | ROA |
|---|---|---|---|---|
| Jun 30, 2026 | — | 0.00% | 0.00% | 0.63% |
| Mar 31, 2026 | — | 0.00% | 0.00% | 0.58% |
| Dec 31, 2025 | — | 0.00% | 0.00% | 0.45% |
| Sep 30, 2025 | — | 0.00% | 0.00% | 0.64% |
| Jun 30, 2025 | — | 0.00% | 0.00% | 0.66% |
| Mar 31, 2025 | — | 0.00% | 0.00% | 0.88% |
| Dec 31, 2024 | — | 0.00% | 0.26% | 0.98% |
| Sep 30, 2024 | — | 0.00% | 0.00% | 1.07% |
| Jun 30, 2024 | — | 0.00% | 0.00% | 0.64% |
| Mar 31, 2024 | — | 0.00% | 0.75% | 0.57% |
| Dec 31, 2023 | — | 0.00% | 0.77% | 0.84% |
| Sep 30, 2023 | — | 0.00% | 0.78% | 1.06% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Highland Federal Savings & Loan Association FDIC insured?
Yes. Highland Federal Savings & Loan Association is an FDIC-insured commercial bank (FDIC Certificate #31232). Customer deposits are protected up to the standard FDIC insurance limit of $250,000 per depositor, per ownership category.
Is Highland Federal Savings & Loan Association well capitalized?
Yes. Highland Federal Savings & Loan Association reports a Community Bank Leverage Ratio of 22.20%, comfortably above the regulatory well-capitalized threshold that its primary federal regulator, the OCC, applies under Prompt Corrective Action.
What is Highland Federal Savings & Loan Association's nonperforming loan ratio?
As of the most recent call report, Highland Federal Savings & Loan Association's nonperforming loan ratio is 0.00%. Nonperforming loans at 0.00% are within industry-normal range.
What is Highland Federal Savings & Loan Association's Texas Ratio?
Highland Federal Savings & Loan Association's Texas Ratio is 0.00%. It compares nonperforming assets with tangible equity plus reserves; above 100% has historically signaled elevated failure risk.
How safe is my money at any FDIC-insured bank?
FDIC insurance covers up to $250,000 per depositor, per insured bank, per ownership category. If an insured bank fails, the FDIC typically pays insured depositors within one business day.
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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.