Capital RatiosWhile the guidelines don't apply directly to holding companies, banks and S&Ls are generally considered to be well-capitalized if they maintain Tier 1 ratios of at least 5% and risk-based capital ratios of at least 10%. Two of the holding companies on the list had Dec. 31 Tier 1 leverage ratios exceeding their risk-based capital ratios, because their average total assets for the fourth quarter (the denominator of the Tier 1 leverage ratio) were much lower than their Dec. 31 total assets, because of large mergers.
Texas RatioAnother quick way of identifying potential risk is the ratio of nonperforming loans and securities to Tier 1 capital and loan loss reserves. This is also known as the Texas ratio. The listed company with the highest Texas ratio as of Dec. 31 was Bank of America ( BAC), at 24.74%. However, the ratio doesn't reflect the $30 billion in new capital infusions from the Treasury during the first quarter. Other listed companies with relatively high Texas ratios included Fifth Third ( FITB), at 22.94% and SunTrust ( STI) with a Texas ratio of 21.75%. Fifth Third also had a nonperforming assets ratio of 3.01% as of Dec. 31, the highest on the list.
Stock PerformanceThe following table includes stock price and return information as of Wednesday's market close: