Bank Safety Analysis
Is Sterling Federal Bank, Federal Savings Bank Safe? Sterling, Illinois
Based on its Q2 2026 call report, Sterling Federal Bank, Federal Savings Bank meets every capital ratio test for well capitalized, its Texas ratio is 49.06%, and its deposits are FDIC insured up to $250,000 per depositor.
BankRegReports is independent of Sterling Federal Bank, Federal Savings Bank and never asks for online banking logins or passwords.
Short answer: is Sterling Federal Bank, Federal Savings Bank safe?
On its Q2 2026 call report, Sterling Federal Bank, Federal Savings Bank's CET1 ratio is 10.61%, above the 6.5% well-capitalized threshold.
- CET1 ratio (Q2 2026): 10.61%
- Tier 1 leverage ratio (Q2 2026): 7.67%
- Texas ratio (Q2 2026): 49.06%
- Noncurrent loans ratio (Q2 2026): 6.26%
Sterling Federal Bank, Federal Savings Bank is an FDIC-insured savings institution (FDIC Certificate #27664). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Source: the FFIEC call report Sterling Federal Bank, Federal Savings Bank (FDIC Certificate #27664) filed for the quarter ended June 30, 2026. BankRegReports computes every ratio on this page from that filing.
Context: largest US bank failures.
Sterling Federal Bank, Federal Savings 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: non-performing loan ratio and commercial real estate to capital.
Return on assets dropped 4.08 percentage points in Q2 2026, from -0.18% to -4.26%. It was the largest change from Q1 2026 among the key lines here. On CET1 ratio, Sterling Federal Bank, Federal Savings Bank is 14th from the bottom among 195 Illinois banks, 10.61% (Q2 2026). Sterling Federal Bank, Federal Savings Bank reported 10.61% on CET1 ratio for Q2 2026, 4.47 points below the 15.08% median for banks in the $100M-1B asset tier. From Q3 2023 to Q2 2026, Sterling Federal Bank, Federal Savings Bank's CET1 ratio ranged between 10.61% (Q2 2026) and 12.55% (Q3 2023) and its Texas ratio ranged between 12.28% (Q4 2023) and 50.19% (Q2 2025). Between Q2 2025 and Q2 2026, Sterling Federal Bank, Federal Savings Bank's CET1 ratio fell from 11.39% to 10.61%, nonperforming loan ratio (nonaccrual plus 90+ days past due) rose from 5.79% to 6.26%, Texas ratio fell from 50.19% to 49.06% and return on assets fell from 0.26% to -4.26%.
By total assets at Q2 2026, Sterling Federal Bank, Federal Savings Bank is the 105th largest of the 319 banks headquartered in Illinois. Non-owner-occupied commercial real estate loans are its largest loan category, $109.5M of $338.0M in total loans on its June 30, 2026 call report. Against the 2,757 banks with $100M to $1B in assets for Q2 2026, Sterling Federal Bank, Federal Savings Bank's CET1 ratio of 10.61% is below the 15.08% median, Tier 1 leverage ratio of 7.67% is below the 10.95% median, nonperforming loans ratio of 6.26% is above the 0.41% median, Texas ratio of 49.06% is above the 2.65% median, and efficiency ratio of 85.50% 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.
How does Sterling Federal Bank, Federal Savings Bank 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: 15.08%.
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 Sterling Federal Bank, Federal Savings Bank trip any risk screens?
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Result |
|---|---|---|
| CET1 capital ratio supervisory threshold | 10.61% | Within range |
| Texas ratio BankRegReports band | 49.06% | Within range |
| Non-performing loan ratio BankRegReports band | 6.26% | Flagged |
| Uninsured deposit share BankRegReports band | — | Not reported |
| Loan-to-deposit ratio BankRegReports band | 83.79% | Within range |
| Commercial real estate to capital supervisory threshold | 273.35% | Flagged |
| Held-to-maturity unrealized loss to equity BankRegReports band | 0.00% | Within range |
Capital ratio: last 12 quarters
| Quarter | CET1 (%) |
|---|---|
| Q2 2026 | 10.61% |
| Q1 2026 | 11.84% |
| Q4 2025 | 11.80% |
| Q3 2025 | 11.48% |
| Q2 2025 | 11.39% |
| Q1 2025 | 10.95% |
| Q4 2024 | 10.89% |
| Q3 2024 | 11.05% |
| Q2 2024 | 11.37% |
| Q1 2024 | 11.51% |
| Q4 2023 | 12.21% |
| Q3 2023 | 12.55% |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 49.06% |
| Q1 2026 | 40.74% |
| Q4 2025 | 41.53% |
| Q3 2025 | 47.20% |
| Q2 2025 | 50.19% |
| Q1 2025 | 45.18% |
| Q4 2024 | 44.91% |
| Q3 2024 | 18.92% |
| Q2 2024 | 21.28% |
| Q1 2024 | 22.69% |
| Q4 2023 | 12.28% |
| Q3 2023 | 13.88% |
Loans by type, Q2 2026
- Non-owner-occupied commercial real estate loans: $109.5M
- 1-4 family residential loans: $93.3M
- Owner-occupied commercial real estate loans: $75.7M
- Commercial and industrial loans: $13.9M
- Multifamily loans: $12.2M
- Construction and land development loans: $9.9M
- Agricultural production loans: $7.4M
- Other consumer loans: $852K
How have Sterling Federal Bank, Federal Savings Bank's safety ratios changed?
| Quarter end | Total assets | CET1 | Leverage | NPL ratio | Texas ratio | Efficiency |
|---|---|---|---|---|---|---|
| Jun 30, 2026 | $481.6M | 10.61% | 7.67% | 6.26% | 49.06% | 85.50% |
| Mar 31, 2026 | $500.9M | 11.84% | 8.62% | 5.31% | 40.74% | 80.25% |
| Dec 31, 2025 | $513.7M | 11.80% | 8.73% | 5.46% | 41.53% | 74.64% |
| Sep 30, 2025 | $514.9M | 11.48% | 8.64% | 5.72% | 47.20% | 87.73% |
| Jun 30, 2025 | $521.0M | 11.40% | 8.27% | 5.79% | 50.19% | 89.43% |
| Mar 31, 2025 | $536.7M | 10.95% | 8.11% | 5.00% | 45.18% | 75.98% |
| Dec 31, 2024 | $534.3M | 10.89% | 7.92% | 4.73% | 44.91% | 82.96% |
| Sep 30, 2024 | $553.2M | 11.05% | 8.22% | 2.14% | 18.92% | 90.68% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Sterling Federal Bank, Federal Savings Bank FDIC insured?
Yes. Sterling Federal Bank, Federal Savings Bank is an FDIC-insured savings institution (FDIC Certificate #27664). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Is Sterling Federal Bank, Federal Savings Bank well capitalized?
On its Q2 2026 call report, Sterling Federal Bank, Federal Savings Bank's CET1 ratio is 10.61%, above the 6.5% well-capitalized threshold. The threshold comes from Prompt Corrective Action, which its primary federal regulator, the OCC, applies.
What are Sterling Federal Bank, Federal Savings Bank's key safety ratios?
For Q2 2026, Sterling Federal Bank, Federal Savings Bank reports CET1 10.61%, leverage 7.67%, Texas ratio 49.06%, noncurrent loans 6.26%. 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 Sterling Federal Bank, Federal Savings Bank fails?
For Q2 2026, Sterling Federal Bank, Federal Savings Bank reported $403.4M 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 Sterling Federal Bank, Federal Savings Bank’s latest filed figures and updates each quarter.
Where does this data come from?
Not investment advice. See the full Sterling Federal Bank, Federal Savings Bank profile.
How we score this
Capital categories follow Prompt Corrective Action (12 CFR 324.403): well capitalized at a CET1 ratio of 6.5%, Tier 1 risk-based 8%, total risk-based 10% and Tier 1 leverage 5%; adequately capitalized at 4.5%, 6%, 8% and 4%. A community bank may elect the community bank leverage ratio instead.
CET1 Ratio: Common equity tier 1 (CET1) capital, mostly common stock and retained earnings, divided by risk-weighted assets. Pass ≥ 7.0% (well-capitalized plus buffer), fail < 4.5% (below minimum).
Tier 1 Leverage Ratio: Tier 1 capital divided by average total assets, with no risk weighting. 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.