Friday, October 3, 2008

Texas Banks Among the Most Stable, Safest in the Nation

In a recent article Sheshunoff & Co. Investment Banking reports:

"Though 14 banks have failed nationwide in 2008, the outlook for Texas banks appears more positive, the report shows. Sheshunoff credits the strong Texas economy and continued migration into the state as two factors that have enabled the state’s banks to stay healthy despite the growing financial crisis. Meanwhile in rural areas, the high price of farm commodities coupled with the small number of real estate transactions have made it possible for agricultural banks to remain stable."

The report goes on to say:

"One measure of how well or poorly a bank is faring is its ratio of bad loans as a portion of total assets. Referred to as the non-performing assets to total assets ratio, the figure measures the quality of a bank’s assets and indicates the scope of the problem. The higher the percentage, the more troubled the loan portfolio. Although there is no hard and fast rule, a NPAs/total assets ratio of less than 1 percent is an indicator of good asset quality; the lower the ratio, the better the quality of the bank’s assets."

The report also makes available reports for banks in major areas of the state of Texas:

Asset Quality Reviews for Top Five Texas MSAs

Dallas/Fort Worth

Houston

San Antonio

Austin

El Paso

You can read the full article here:

http://www.smslp.com/investment-banking/knowledge/texas-banks-among-the-most-stable-safest-in-the-nation/


It seems there is some good news for Texans in the current financial crisis. It looks like our Texas banks are doing pretty good through the first half of 2008.

Be aware. Be informed. Be prepared.

Riverwalker

2 comments:

Wretha said...

It's nice to hear some positive news in this glut of negative-negative-negative news, while I have been visiting my Dad, he is a major news-a-holic, he does not have cable or satellite, so the news is mostly local and network world news... ALL I have seen all week is bad bad bad, no one (that I have seen) is talking about the positives at all, and there are positives in all of this, your story for one, and what about buying stock in some of these large companies whose stocks are down? Property prices are dropping, bad news for the owners, but great news for those in the market... just my 2 cents. :)

Wretha

riverwalker said...

To: wretha

Eventually there will be some real bargains out there.

It helps to find something positive to help combat the huge amount of negativity out there right now. In some ways the media sensationalizes everything, just for ratings.

RW