Bank Safety Analysis
Is Mountain Valley Bank Safe? Dunlap, Tennessee
Based on its Q2 2026 call report, Mountain Valley Bank meets every capital ratio test for well capitalized, its Texas ratio is 4.09%, and its deposits are FDIC insured up to $250,000 per depositor.
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Short answer: is Mountain Valley Bank safe?
On its Q2 2026 call report, Mountain Valley Bank's CET1 ratio is 15.17%, above the 6.5% well-capitalized threshold.
- CET1 ratio (Q2 2026): 15.17%
- Tier 1 leverage ratio (Q2 2026): 10.02%
- Texas ratio (Q2 2026): 4.09%
- Noncurrent loans ratio (Q2 2026): 0.54%
Mountain Valley Bank is an FDIC-insured commercial bank (FDIC Certificate #1705). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Source: the FFIEC call report Mountain Valley Bank (FDIC Certificate #1705) filed for the quarter ended June 30, 2026. BankRegReports computes every ratio on this page from that filing.
Context: largest US bank failures · what these ratios mean · how we score.
Mountain Valley Bank meets regulatory minimums but is on the watch band for 1 of 5 safety dimensions. 2 risk screens are flagged: loan-to-deposit ratio and commercial real estate to capital. Analysis based on the Q2 2026 call report.
In Q2 2026, net interest margin edged up by 0.12 percentage points, from 3.90% to 4.02%, the largest move among the key lines here. Mountain Valley Bank ranks 20th of 71 Tennessee banks on CET1 ratio, in the upper half at 15.17% (Q2 2026). At 15.17%, Mountain Valley Bank's CET1 ratio is close to the 15.08% median for banks in the $100M-1B asset tier (Q2 2026). From Q3 2023 to Q2 2026, Mountain Valley Bank's CET1 ratio ranged between 13.23% (Q4 2024) and 15.17% (Q2 2026) and its Texas ratio ranged between 2.90% (Q2 2024) and 9.99% (Q4 2025). Between Q2 2025 and Q2 2026, Mountain Valley Bank's CET1 ratio rose from 13.75% to 15.17%, nonperforming loan ratio (nonaccrual plus 90+ days past due) rose from 0.38% to 0.54%, Texas ratio rose from 3.10% to 4.09% and return on assets rose from 0.32% to 0.46%.
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.
The risk tier comes from the composite score; the 12-month figure rounds to zero for this bank, so it is not shown beside a tier above Low. See the methodology. This is not investment advice or a credit rating.
How does Mountain Valley Bank score on capital, credit and costs?
Peer cohort: $100M to $1B (2,757 banks) · Industry averages as of Q2 2026.
CET1 of 15.17% 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 10.02% is above the 5% well-capitalized threshold.
Nonperforming loans at 0.54% are within industry-normal range.
Texas Ratio of 4.1% is well below the 100% historical failure threshold.
Efficiency ratio of 85.4% is elevated, suggesting cost-to-revenue pressure.
Does Mountain Valley Bank trip any risk screens?
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Trigger | Result |
|---|---|---|---|
| CET1 capital ratio supervisory threshold | 15.17% | Flags below 7% | Within range |
| Texas ratio BankRegReports band | 4.09% | Watch at 50%, concern at 100% | Within range |
| Non-performing loan ratio BankRegReports band | 0.54% | 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 | 101.36% | Flags at 100% or above | Flagged |
| Commercial real estate to capital supervisory threshold | 215.66% | Watch at 200%, concern at 300% | Flagged |
| Held-to-maturity unrealized loss to equity BankRegReports band | 0.00% | Watch at 10%, concern at 25% | Within range |
Capital ratio: last 12 quarters
| Quarter | CET1 (%) |
|---|---|
| Q2 2026 | 15.17% |
| Q1 2026 | 14.79% |
| Q4 2025 | 14.38% |
| Q3 2025 | 13.39% |
| Q2 2025 | 13.75% |
| Q1 2025 | 13.33% |
| Q4 2024 | 13.23% |
| Q3 2024 | 13.76% |
| Q2 2024 | 13.42% |
| Q1 2024 | 13.33% |
| Q4 2023 | 13.81% |
| Q3 2023 | 14.71% |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 4.09% |
| Q1 2026 | 4.99% |
| Q4 2025 | 9.99% |
| Q3 2025 | 4.52% |
| Q2 2025 | 3.10% |
| Q1 2025 | 4.23% |
| Q4 2024 | 3.34% |
| Q3 2024 | 3.01% |
| Q2 2024 | 2.90% |
| Q1 2024 | 7.13% |
| Q4 2023 | 6.11% |
| Q3 2023 | 3.47% |
How have Mountain Valley Bank's safety ratios changed?
| Quarter end | CET1 | NPL ratio | Texas ratio | ROA |
|---|---|---|---|---|
| Jun 30, 2026 | 15.17% | 0.54% | 4.09% | 0.46% |
| Mar 31, 2026 | 14.79% | 0.63% | 4.99% | 0.55% |
| Dec 31, 2025 | 14.38% | 1.27% | 9.99% | 0.86% |
| Sep 30, 2025 | 13.39% | 0.54% | 4.52% | 0.69% |
| Jun 30, 2025 | 13.75% | 0.38% | 3.10% | 0.32% |
| Mar 31, 2025 | 13.33% | 0.50% | 4.23% | 0.31% |
| Dec 31, 2024 | 13.23% | 0.39% | 3.34% | 0.52% |
| Sep 30, 2024 | 13.76% | 0.35% | 3.01% | 0.17% |
| Jun 30, 2024 | 13.42% | 0.35% | 2.90% | 0.20% |
| Mar 31, 2024 | 13.33% | 0.86% | 7.13% | 0.31% |
| Dec 31, 2023 | 13.81% | 0.76% | 6.11% | 0.22% |
| Sep 30, 2023 | 14.71% | 0.41% | 3.47% | 1.99% |
What do these ratios mean?
CET1 Ratio
Common equity tier 1 (CET1) capital, mostly common stock and retained earnings, divided by risk-weighted assets. It is the most-watched single capital ratio in US bank supervision. CET1 Ratio in the glossary.
Tier 1 Leverage Ratio
Tier 1 capital divided by average total assets, with no risk weighting. It caps how far a bank can grow its balance sheet on its capital. Tier 1 Leverage Ratio in the glossary.
Nonperforming Loans (NPL) Ratio
Nonaccrual loans plus loans 90 or more days past due, divided by total loans. Regulators call these noncurrent loans, the name the short answer above uses. Nonperforming Loans (NPL) Ratio in the glossary.
Texas Ratio
Problem assets (nonaccrual loans, loans 90 or more days past due and foreclosed real estate) divided by tangible equity plus the loan-loss reserve. Readings above 100% have historically come before bank failures. Texas Ratio in the glossary.
Efficiency Ratio
Noninterest expense divided by revenue (net interest income plus noninterest income). Lower is better: it is what the bank spends to earn each dollar. Efficiency Ratio in the glossary.
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Mountain Valley Bank FDIC insured?
Yes. Mountain Valley Bank is an FDIC-insured commercial bank (FDIC Certificate #1705). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Is Mountain Valley Bank well capitalized?
On its Q2 2026 call report, Mountain Valley Bank's CET1 ratio is 15.17%, above the 6.5% well-capitalized threshold. The threshold comes from Prompt Corrective Action, which its primary federal regulator, the FDIC, applies.
What are Mountain Valley Bank's key safety ratios?
For Q2 2026, Mountain Valley Bank reports CET1 15.17%, leverage 10.02%, Texas ratio 4.09%, noncurrent loans 0.54%. 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 Mountain Valley 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 Mountain Valley Bank’s latest filed figures and updates each quarter.
Where does this data come from?
Source: the FFIEC call report Mountain Valley Bank (FDIC Certificate #1705) filed for the quarter ended June 30, 2026. BankRegReports computes every ratio on this page from that filing.
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 1705) · FFIEC NIC profile (RSSD 714437)
Explore: Full Mountain Valley Bank profile · Other banks in TN · Metric glossary · How the call report works