Preferred Bank: Texas Ratio
Data as of · sourced from FFIEC call reports. How we update
Preferred Bank reported a Texas ratio of 11.72% as of Q2 2026, ranking #496 of 3,643 U.S. banks (86th percentile). That is up 3.67 percentage points from 8.04% a year earlier, and above the 3.63% median of the 873 Large Community Banks ($1B–$10B in assets). The Texas Ratio is the most-cited bank failure indicator. A ratio above 100% historically correlates with elevated failure risk.
12-Quarter Trend
National Context
What is the Texas Ratio?
The Texas Ratio compares a bank's problem assets (nonaccrual and 90-day past due loans, net of government guarantees, plus other real estate owned) to its loss-absorbing capacity (tangible equity plus loan loss reserves). Coined during the 1980s Texas banking crisis, it remains the single most widely cited bank failure indicator.
Under 25%: healthy. 25-50%: above most banks (the median bank is near 3%) but below the 50% level at which problem assets reach half of the capital cushion. 50-100%: watch, problem assets exceed half of loss-absorbing capacity. Over 100%: elevated failure risk; the bank's bad assets exceed its capacity to absorb them. The ratio should be read against trend. A stable 70% is different from a quickly rising 60%.
Full definition & formula →Frequently asked questions
What is Preferred Bank's Texas Ratio?
Preferred Bank's Texas Ratio was 11.72% as of Q2 2026, ranking #496 of 3,643 U.S. banks.
What is the Texas Ratio?
The Texas Ratio compares a bank's problem assets (nonaccrual and 90-day past due loans, net of government guarantees, plus other real estate owned) to its loss-absorbing capacity (tangible equity plus loan loss reserves). Coined during the 1980s Texas banking crisis, it remains the single most widely cited bank failure indicator.
More Preferred Bank metrics
Source: FFIEC call reports, standardized by BankRegReports. Values are point-in-time as filed. See the full Preferred Bank profile or how this data updates. The figures come from the bank's call report.
Regulator records: FDIC BankFind (cert 33539) · FFIEC NIC profile (RSSD 1918344)