Sunday, March 22, 2009

How healthy is your bank?

A reader of the blog showed me this website which lists the 'troubled asset ratio' of each bank. You can search by state or name and some of the ratios will surprise you.

The ratio is derived by adding the amounts of loans past due 90 days or more, loans in non-accrual status and other real estate owned (primarily properties obtained through foreclosure) and dividing that amount by the bank's capital and loan loss reserves. It is reported as a percentage. For example, a bank with $100,000 in "troubled assets" and $1,000,000 in capital would have a "troubled asset ratio" of 10 percent.

Here are some local banks:

Sorry, I forgot the link...