All four of the states we have already surveyed for the fourth quarter had banks or thrifts included on TheStreet's Bank Watch List, that were undercapitalized under ordinary regulatory guidelines. Texas had none.
Texas Banks with Weakest Asset Quality
Nonperforming assets (NPA) include nonaccrual loans, loans past due 90 days or more and repossessed assets. Government-guaranteed loan balances are excluded. The ratio of net charge-offs to average loans is annualized.The total risk-based capital ratios needs to be at least 8% for most institutions to be considered adequately capitalized by regulators and 10% for most to be considered well-capitalized. Most of the undercapitalized banks on the above list are operating under regulatory orders to achieve and maintain total risk-based capital ratios higher than 10%. The list also includes financial strength ratings provided by Weiss Ratings. Weiss Ratings uses a very conservative ratings model, placing the greatest weight on capital strength, credit quality and earnings stability to assign ratings ranging from A-plus (Excellent) to E-minus (Very Weak). The Texas institution with the highest nonperforming assets ratio as of Dec. 30 was Park Cities Bank of Dallas, which had $612 in total assets as of Dec. 30 and a crippling nonperforming assets ratio of 29.23%. The bank is operating under an April 2010 consent order from the FDIC and state regulators, agreeing to raise its total risk-based capital ratio to 13%, submit a strategic plan, and improve its credit administration and interest rate risk management.