Methodology & data sources
Transparency is the whole point of BankGrade. This page documents exactly where every number comes from and how each derived figure — the Texas Ratio and the A–F grade — is calculated. We do not invent numbers, and the grade is a transparent computation over public data, not an opinion.
Data source
All figures come from the FDIC BankFind
Suite via the public FDIC API (https://api.fdic.gov/banks/), which is US Government public-domain
data. We use the call-report period Q1 2026 (call report dated March 31, 2026) for the
118 largest active US banks by total assets (a tier-1 launch set). Snapshot
compiled June 2026.
| Source | Refresh cadence | License |
|---|---|---|
| FDIC BankFind Suite API — Institutions & Financials | static snapshot | U.S. Government public domain |
The FDIC fields we use
| FDIC field | Meaning | Type |
|---|---|---|
| ASSET | Total assets | USD thousands |
| DEP | Total deposits | USD thousands |
| EQ | Total bank equity capital | USD thousands |
| NETINC | Net income, year-to-date | USD thousands |
| NPERF | Nonperforming assets (90+ days past due / nonaccrual + repossessed) | USD thousands |
| LNATRES | Allowance for loan & lease losses | USD thousands |
| EQV | Bank equity capital ÷ assets (our 'capital ratio') | percent |
| NPERFV | Nonperforming assets ÷ total assets | percent |
| RBCRWAJ | Total risk-based capital ratio (PCA) | percent |
| ROA | Return on assets (FDIC-annualized) | percent |
Derived figure: the Texas Ratio
The only headline figure we compute ourselves is the Texas Ratio. We define it as:
Texas Ratio = NPERF ÷ (EQ + LNATRES) × 100
That is nonperforming assets divided by the sum of total equity and the loan-loss allowance — the capital and reserves available to absorb problem assets — expressed as a percentage. A lower value is healthier. See the Texas Ratio explainer for how to read it and its limitations (classification of "nonperforming" assets varies, and some are government-guaranteed).
Derived figure: the A–F grade
The BankGrade letter grade scores five public FDIC signals on a fixed, published points scale, then maps the total to a letter. Higher capital and earnings and lower problem-asset ratios earn points. The maximum possible score is 9 and the minimum is −7.
| Signal | Points awarded |
|---|---|
| Capital ratio (EQV) | ≥10% → +2 · ≥8% → +1 · <6% → −1 |
| Risk-based capital (RBCRWAJ) | ≥14% → +2 · ≥12% → +1 · <10.5% → −1 |
| Texas Ratio (computed) | <5% → +2 · <10% → +1 · ≥15% → −1 · ≥25% → −2 |
| Return on assets (ROA) | ≥1.2% → +2 · ≥0.8% → +1 · <0.4% → −1 · <0% → −2 |
| Nonperforming assets ÷ assets (NPERFV) | <0.5% → +1 · ≥2% → −1 |
The total score maps to a letter grade:
| Total score | Grade | Label |
|---|---|---|
| 8 or 9 | A | Strong |
| 6 – 7 | B | Sound |
| 4 – 5 | C | Adequate |
| 2 – 3 | D | Watch |
| 1 or below | F | Elevated ratios |
What the grade is — and is not
The grade is a transparent ratio-based score computed from public FDIC call-report data. It is not a credit rating, an investment recommendation, or a statement about any bank's actual solvency or likelihood of failure. It reflects one quarterly snapshot and a fixed rubric; reasonable analysts would weight these signals differently. Always read the underlying numbers (shown on every bank page) and verify on the FDIC source.
Coverage calculator
The FDIC coverage calculator runs entirely in your browser and estimates insured deposits across the common ownership categories: single accounts capped at $250,000; joint accounts at $250,000 per co-owner (modelled as two co-owners); retirement accounts at $250,000; and revocable-trust balances at $250,000 per unique beneficiary. It is a simplified estimate of the most common categories — the FDIC's EDIE tool is authoritative. We do not store your inputs.
Limitations & disclaimer
Call-report data is a quarterly snapshot and may lag or contain reporting nuances; some "nonperforming" assets are government-guaranteed or fully collateralised, which can inflate ratios without the same risk. Figures are for general information only and are not financial advice or a solvency opinion. FDIC insurance protects deposits up to $250,000 per depositor, per bank, per ownership category regardless of any metric here. Verify everything against the FDIC source before relying on it. See our full disclaimer.
Last updated: 2026-06-20