BankGrade

How to check your bank's financial health

By Editorial team · 2026-06-17

In short: To check a bank's health, look up its FDIC call-report data and read four signals together: the capital ratio (equity ÷ assets), the risk-based capital ratio, asset quality (nonperforming-asset ratio and Texas Ratio) and return on assets. No single number is decisive.

You don’t need to be an analyst to get a useful read on a bank’s financial health. The data is free and public, and four metrics cover most of it.

Step 1: find the call-report data

Every US bank files a quarterly call report with regulators, and the FDIC publishes it. Search your bank on the FDIC BankFind Suite, or look it up directly on BankGrade if it’s one of the largest banks.

Step 2: read these four signals together

MetricWhat it measuresRule-of-thumb
Capital ratio (equity ÷ assets)Loss-absorbing cushionHigher is sturdier; ~8–12% typical
Risk-based capital ratioCapital vs risk-weighted assets~10%+ is “well capitalized”
Nonperforming assets ÷ assetsProblem-loan shareUnder ~1% is comfortable
Texas RatioProblem assets vs capital + reservesLower is better; ~100% is a stress signal
Return on assets (ROA)Profitability per dollar of assets~1%+ is healthy

The key is reading them together. A bank can have strong capital but weak earnings, or fat profits with rising problem assets. Our guide to call-report metrics goes deeper on each.

Step 3: don’t confuse health with deposit safety

A bank’s metrics describe its balance sheet — they are not the thing that protects your money. That’s FDIC insurance, which covers $250,000 per depositor, per bank, per ownership category regardless of any ratio. Use the coverage calculator to confirm your balance is within the limit.

A shortcut

BankGrade rolls these signals into a single transparent A–F grade for each of the largest banks, while still showing every underlying number. It’s a fast starting point — but always read the detail and verify on the FDIC source before drawing conclusions.

Informational only — not financial advice or a solvency opinion. Source: FDIC BankFind Suite, Q1 2026.

Frequently asked questions

Where can I check my bank's financial health for free?

The FDIC's BankFind Suite is free and lets you search any insured US bank for its call-report figures. BankGrade presents the same public data as headline health metrics for the largest banks.

What's the single most important bank-health metric?

There isn't one. The capital ratio is the best starting point, but you should read it alongside asset quality (the Texas Ratio and nonperforming-asset ratio) and profitability (ROA). A high capital ratio with deteriorating asset quality tells a different story than a high ratio with clean assets.

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Last updated: 2026-06-17