Texas Banks with Weakest Asset QualityThe following list includes all banks in the state with nonperforming assets comprising more than 10% of total assets as of Dec 30:
Largest Texas BanksDeposit gathering in Texas is dominated by three of the "big four" U.S bank holding companies. JPMorgan Chase Bank NA -- the main subsidiary of JPMorgan Chase ( JPM) -- has the leading deposit market share in Texas, with 18% of deposits in the state as of June 30, 2011, according to the most recent FDIC data. The bank's deposit market share grew from 16% a year earlier. Bank of America NA-- held by Bank of America ( BAC) -- has a second-place market share in Texas, with 14% of deposits in the state as of June 30, with its share unchanged from a year earlier. After Tom Brown of Second Curve Capital said in December that he had suggested to Bank of America board of directors member Chad Gifford that the company consider selling part of its branch network -- with the company's Texas operations given as an example -- as a way of showing the market that the company's assets really were worth more than the fraction of book value the stock was trading for, the Wall Street Journal on Feb. 17 reported that the company might indeed consider a Texas sale if it were to come under severe stress.
Strongest Texas Banks and ThriftsBased on third-quarter financial reports, 117 Texas institutions were assigned "recommended" ratings of B-plus or above by Weiss Ratings:
Thorough Bank Failure CoverageThere have been no bank or thrift failures in Texas this year. Since the current wave of bank and thrift closures began in 2008, Texas has seen only 10 failures, which reflects the state's escape from the word effects of the real estate crisis, but is still a small number, considering how many banks there are in the state. Georgia leads all states with 75 institutions closed by regulators since the beginning of 2008, followed by Florida, with 60 failures, Illinois with 48, and California, with 38 bank and thrift closures. There were two bank failures in Georgia and Minnesota on Friday. All 423 U.S. bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map:
Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.