Bank Safety Analysis
Is Southern Bank of Tennessee Safe? Mount Juliet, Tennessee
Based on its Q2 2026 call report, Southern Bank of Tennessee meets the community bank leverage ratio test for well capitalized, its Texas ratio is 0.37%, and its deposits are FDIC insured up to $250,000 per depositor.
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Short answer: is Southern Bank of Tennessee safe?
On its Q2 2026 call report, Southern Bank of Tennessee's Community Bank Leverage Ratio is 9.01%, above the 9% threshold that makes a community bank well capitalized.
- CET1 ratio (Q2 2026): not reported (community bank leverage ratio filer)
- Community Bank Leverage Ratio (Q2 2026): 9.01%
- Texas ratio (Q2 2026): 0.37%
- Noncurrent loans ratio (Q2 2026): 0.05%
Southern Bank of Tennessee is an FDIC-insured commercial bank (FDIC Certificate #34847). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Source: the FFIEC call report Southern Bank of Tennessee (FDIC Certificate #34847) filed for the quarter ended June 30, 2026. BankRegReports computes every ratio on this page from that filing.
Context: largest US bank failures.
Southern Bank of Tennessee passes all 5 scorecard dimensions, but not every risk screen below is clear. 1 risk screen is flagged: commercial real estate to capital.
Return on assets dropped 1.03 percentage points in Q2 2026, from 1.81% to 0.78%. It was the largest change from Q1 2026 among the key lines here. Within Tennessee, Southern Bank of Tennessee is 98th of 109 on leverage ratio, 9.01% as of Q2 2026. Southern Bank of Tennessee reported 9.01% on leverage ratio for Q2 2026, 1.95 points below the 10.95% median for banks in the $100M-1B asset tier. From Q3 2023 to Q2 2026, Southern Bank of Tennessee's CET1 ratio ranged between 11.00% (Q1 2025) and 13.59% (Q4 2023) and its Texas ratio ranged between 0.00% (Q4 2024) and 0.70% (Q4 2025). Between Q2 2025 and Q2 2026, Southern Bank of Tennessee's nonperforming loan ratio (nonaccrual plus 90+ days past due) rose from 0.01% to 0.05%, Texas ratio rose from 0.10% to 0.37% and return on assets fell from 0.97% to 0.78%.
Of the 109 banks headquartered in Tennessee, Southern Bank of Tennessee is the 53rd largest by total assets at Q2 2026. 1-4 family residential loans are its largest loan category, $175.3M of $394.3M in total loans on its June 30, 2026 call report. Against the 2,757 banks with $100M to $1B in assets for Q2 2026, Southern Bank of Tennessee's community bank leverage ratio of 9.01% is below the 10.95% median, nonperforming loans ratio of 0.05% is below the 0.41% median, Texas ratio of 0.37% is below the 2.65% median, and efficiency ratio of 69.46% is above the 61.41% 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.
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.
How does Southern Bank of Tennessee score on capital, credit and costs?
Peer cohort: $100M to $1B (2,660 banks) · Industry averages as of Q2 2026.
Median of the 2,757 banks with $100M to $1B in assets, Q2 2026: 10.95%.
Median of the 2,757 banks with $100M to $1B in assets, Q2 2026: 10.95%.
Median of the 2,757 banks with $100M to $1B in assets, Q2 2026: 0.41%.
Median of the 2,757 banks with $100M to $1B in assets, Q2 2026: 2.65%.
Median of the 2,757 banks with $100M to $1B in assets, Q2 2026: 61.41%.
Does Southern Bank of Tennessee trip any risk screens?
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Result |
|---|---|---|
| CET1 capital ratio supervisory threshold | — | Not reported |
| Texas ratio BankRegReports band | 0.37% | Within range |
| Non-performing loan ratio BankRegReports band | 0.05% | Within range |
| Uninsured deposit share BankRegReports band | — | Not reported |
| Loan-to-deposit ratio BankRegReports band | 84.02% | Within range |
| Commercial real estate to capital supervisory threshold | 254.37% | Flagged |
| Held-to-maturity unrealized loss to equity BankRegReports band | 0.00% | Within range |
Capital ratio: last 11 quarters
| Quarter | CET1 (%) |
|---|---|
| Q1 2026 | 11.84% |
| Q4 2025 | 12.06% |
| Q3 2025 | 11.58% |
| Q2 2025 | 11.57% |
| Q1 2025 | 11.00% |
| Q4 2024 | 11.50% |
| Q3 2024 | 11.90% |
| Q2 2024 | 12.42% |
| Q1 2024 | 12.92% |
| Q4 2023 | 13.59% |
| Q3 2023 | 13.53% |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 0.37% |
| Q1 2026 | 0.55% |
| Q4 2025 | 0.70% |
| Q3 2025 | 0.34% |
| Q2 2025 | 0.10% |
| Q1 2025 | 0.02% |
| Q4 2024 | 0.00% |
| Q3 2024 | 0.00% |
| Q2 2024 | 0.11% |
| Q1 2024 | 0.37% |
| Q4 2023 | 0.26% |
| Q3 2023 | 0.00% |
Loans by type, Q2 2026
- 1-4 family residential loans: $175.3M
- Non-owner-occupied commercial real estate loans: $71.9M
- Owner-occupied commercial real estate loans: $49.0M
- Construction and land development loans: $48.8M
- Commercial and industrial loans: $24.2M
- Other consumer loans: $17.6M
- Multifamily loans: $5.3M
- Auto loans: $360K
How have Southern Bank of Tennessee's safety ratios changed?
| Quarter end | Total assets | Leverage (CBLR) | NPL ratio | Texas ratio | Efficiency |
|---|---|---|---|---|---|
| Jun 30, 2026 | $533.4M | 9.01% | 0.05% | 0.37% | 69.46% |
| Mar 31, 2026 | $490.1M | 9.49% | 0.07% | 0.55% | 71.12% |
| Dec 31, 2025 | $477.6M | 9.38% | 0.09% | 0.70% | 69.57% |
| Sep 30, 2025 | $477.5M | 9.20% | 0.04% | 0.34% | 68.34% |
| Jun 30, 2025 | $473.6M | 9.02% | 0.01% | 0.10% | 70.77% |
| Mar 31, 2025 | $469.1M | 9.05% | 0.00% | 0.02% | 74.90% |
| Dec 31, 2024 | $449.9M | 9.02% | 0.00% | 0.00% | 76.71% |
| Sep 30, 2024 | $425.8M | 9.13% | 0.00% | 0.00% | 81.97% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Southern Bank of Tennessee FDIC insured?
Yes. Southern Bank of Tennessee is an FDIC-insured commercial bank (FDIC Certificate #34847). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Is Southern Bank of Tennessee well capitalized?
On its Q2 2026 call report, Southern Bank of Tennessee's Community Bank Leverage Ratio is 9.01%, above the 9% threshold that makes a community bank well capitalized. The threshold comes from Prompt Corrective Action, which its primary federal regulator, the Federal Reserve, applies.
What are Southern Bank of Tennessee's key safety ratios?
For Q2 2026, Southern Bank of Tennessee reports leverage 9.01%, Texas ratio 0.37%, noncurrent loans 0.05%. Its Texas ratio compares with the 2.65% median for the 2,757 banks with $100M to $1B in assets.
What happens to my deposits if Southern Bank of Tennessee fails?
For Q2 2026, Southern Bank of Tennessee reported $469.4M in total deposits. If it failed, the FDIC would pay insured deposits up to $250,000 per depositor.
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Free to use. It shows Southern Bank of Tennessee’s latest filed figures and updates each quarter.
Where does this data come from?
Not investment advice. See the full Southern Bank of Tennessee profile.
How we score this
Southern Bank of Tennessee 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.
Community Bank Leverage Ratio: Tier 1 capital divided by average total assets, for a qualifying community bank that elects the simpler framework. Pass > 9.0% (CBLR elected); 8.0% from July 1, 2026, fail ≤ 8.0%.
Tier 1 Leverage Ratio: The same ratio as its community bank leverage ratio. Pass ≥ 5.0% (well-capitalized), fail < 4.0% (below minimum).
Nonperforming Loans (NPL) Ratio: Nonaccrual loans plus loans 90 or more days past due, divided by total loans. Pass < 1.5%, fail > 3.0%.
Texas Ratio: Problem assets (nonaccrual loans, loans 90+ days past due and still accruing, and OREO, net of U.S. government-guaranteed portions) divided by tangible equity plus the allowance for credit losses. Pass < 50%, fail > 100% (historical failure threshold).
Efficiency Ratio: Noninterest expense divided by revenue (net interest income plus noninterest income). Pass ≤ 75% (lower is better), fail ≥ 90%.
Risk screens, beyond those bands: Uninsured deposit share watch at 50%, concern at 70%; Loan-to-deposit ratio flags at 100% or above; Commercial real estate to capital watch at 200%, concern at 300%; Held-to-maturity unrealized loss to equity watch at 10%, concern at 25%; NPL, Texas ratio and efficiency bands are ours.
Not a credit rating. Methodology.
Regulator records: FDIC BankFind (cert 34847) · FFIEC NIC profile (RSSD 2793593)
Explore: Full Southern Bank of Tennessee profile · Other banks in TN · Metric glossary · How the call report works