The Safest Banks in America -- 2nd Quarter 2012

posted on 06-07-2019

The relationship between Americans and their banks used to be based on trust. 

As well it should. In many ways, banks make some of our biggest financial dreams come true. 

We go to the bank when we want to buy our dream home, and again when we remodel the kitchen. Our bank helps us buy that great new car we've been thinking about. When we retire, the bank turns a lifetime of savings into income by paying us interest on CDs, money markets and savings accounts.  

We trust banks to protect our hard-earned money. We expect that every dollar we put into our bank will be held safe until we come back for it.

But what if the bank doesn't deserve our trust?

In America, we have let our guard down when it comes to our banking relationships. We assume that everything will be fine if our bank fails. After all, the FDIC insures our deposits up to $250,000. Why worry? 

I hate to break this to you, but the FDIC's Deposit Insurance Fund (DIF) -- aka, the money used to cover bank failures -- has been all but drained. 

In 2007, the DIF had a healthy $52.4 billion. But since 2008 (after the housing meltdown), more than 413 banks have failed, and it's taken a devastating toll on the once-solid reserve fund.

According to the FDIC, the balance in the DIF is now just $11.8 billion -- almost 78% below where it was before the financial crisis. And though the fund will replenish slowly over time, the FDIC expects future bank failures from 2012 to 2016 to cost the fund $12 billion more. 

I don't know about you, but I'm not willing to assume that the FDIC will always be there to cover my savings. Instead, I want to pick the safest bank in my area, so that I know the FDIC will never have to get involved.

So, to help Americans regain their sense of financial security and peace of mind that their money is safe, we've found a way to find the safest banks in America -- using a special metric called the "Texas Ratio."

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The Texas ratio was developed by a financial wizard at RBC Capital Markets named Gerard Cassidy, who used it to correctly predict bank failures in Texas during the 1980s recession, and again in New England during the recession of the early 1990s.

While the ratio has been excellent at predicting bank failures, it can also be used to find the banks that are the furthest from failure.

Without walking through the formula (which you can see here in our definition of the Texas ratio), the takeaway is this: The closer the Texas ratio gets to zero, the lower the bank's risk of failure.

Out of more than 7,300, there are just 359 banks in America with a perfect Texas ratio of 0.0. We list them below, sorted by state:

A note from the editor: "InvestingAnswers regrets the errors in the original report, where some of our Safest Banks had the incorrect location listed. This article is updated as of 8/10/12 to reflect the most accurate information, according to the FDIC."




Oakworth Capital Bank Birmingham AL
McGehee Bank McGehee AR
First Scottsdale Bank, N.A. Scottsdale AZ
Armed Forces Bank of California, N.A. San Diego CA
Evergreen International Bank Long Beach CA
Premier Business Bank Los Angeles CA
Vibra Bank Chula Vista CA
Eastern International Bank Los Angeles CA
County Commerce Bank Ventura CA
The Merchants National Bank of Sacramento Sacramento CA
Focus Business Bank San Jose CA
Valley Republic Bank Bakersfield CA
California Republic Bank Newport Beach CA
1st Enterprise Bank Los Angeles CA
Capital Bank and Trust Company Irvine CA
Malaga Bank FSB Palos Verdes Pen. CA
First American Trust, FSB Santa Ana CA
Wells Fargo Bank, Ltd. Los Angeles CA
The Bank of New York Mellon Trust Company, N.A. Los Angeles CA
Young Americans Bank Denver CO
The Bank of Burlington Burlington CO
The Colorado State Bank of Walsh Walsh CO
Redstone Bank Centennial CO
First FarmBank Greeley CO
FlatIrons Bank Boulder CO
AMG National Trust Bank Boulder CO
Trust Company of America Centennial CO
Start Community Bank New Haven CT
The National Iron Bank Salisbury CT
The Bank of Fairfield Fairfield CT
The MassMutual Trust Company Enfield CT
Fieldpoint Private Bank & Trust Greenwich CT
Prudential Bank & Trust, FSB Hartford CT
Bank of New Castle New Castle DE
HSBC Trust Company (Delaware), N.A. Wilmington DE
One South Bank Chipley FL
FirstCity Bank of Commerce North Palm Beach FL
First Navy Bank Pensacola FL
Plus International Bank Miami FL
The Warrington Bank Pensacola FL
Bank of the South Pensacola FL
Prime Meridian Bank Tallahassee FL
Intracoastal Bank Palm Coast FL
Broward Bank of Commerce Fort Lauderdale FL
First Green Bank Mount Dora FL
Members Trust Company Tampa FL
Palm Beach Community Bank West Palm Beach FL
Verity Bank Winder GA
NOA Bank Duluth GA
Community Business Bank Cumming GA
Independence Bank of Georgia Braselton GA
Chattahoochee Bank of Georgia Gainesville GA
Invesco National Trust Company Atlanta GA
-- -- HI
Dysart State Bank Dysart IA
Peoples Trust and Savings Bank Riverside IA
Hartwick State Bank Hartwick IA
Center Point Bank and Trust Company Center Point IA
Maxwell State Bank Maxwell IA
Walker State Bank Walker IA
The Exchange State Bank Springville IA
ITS Bank Johnston IA
Swisher Trust & Savings Bank Swisher IA
Benton County State Bank Blairstown IA
Pleasantville State Bank Pleasantville IA
Breda Savings Bank Breda IA
First State Bank Stuart IA
Victor State Bank Victor IA
Panora State Bank Panora IA
Pocahontas State Bank Pocahontas IA
Western Capital Bank Boise ID
American Union Savings and Loan Association, SB Chicago IL
Sidell State Bank Sidell IL
Middletown State Bank Middletown IL
Peoples Bank of Macon Macon IL
North County Savings Bank Red Bud IL
Farmers State Bank of Medora Medora IL
Peoples State Bank of Colfax Colfax IL
Franklin Bank Franklin IL
Columbus Savings Bank Chicago IL
Elkville State Bank Elkville IL
Harris Central National Association Roselle IL
Community Bank of Easton Easton IL
Midland Community Bank Kincaid IL
Nashville Savings Bank Nashville IL
Buckley State Bank Buckley IL
Franklin Grove Bank Franklin Grove IL
The Bank of Lawrence County Bridgeport IL
The Lemont National Bank Lemont IL
Heritage State Bank Lawrenceville IL
Farmers State Bank of Emden Emden IL
Grand Ridge National Bank Grand Ridge IL
Washington Federal Bank For Savings Chicago IL
Burling Bank Chicago IL
Arcola First Bank Arcola IL
Teutopolis State Bank Teutopolis IL
Country Trust Bank Bloomington IL
Collinsville Building and Loan Association Collinsville IL
Everence Trust Company Goshen IN
Ossian State Bank Ossian IN
The Central National Bank and Trust Company Attica IN
Forethought Federal Savings Bank Batesville IN
Signature Bank Haddam KS
The Citizens State Bank Grainfield KS
The Farmers & Merchants State Bank of Cawker City Cawker City KS
The First National Bank of Harveyville Harveyville KS
The First National Bank of Howard Howard KS
Prescott State Bank Prescott KS
Leonardville State Bank Leonardville KS
The Downs National Bank Downs KS
1st Bank of Troy Troy KS
The State Bank of Conway Springs Conway Springs KS
The City State Bank Fort Scott KS
The Citizens State Bank Miltonvale KS
The Stock Exchange Bank, Caldwell, Kansas Caldwell KS
The Farmers State Bank of Bucklin, Kansas Bucklin KS
First National Bank in Frankfort Frankfort KS
The Caldwell State Bank in Caldwell, Kansas Caldwell KS
Millennium Bank Junction City KS
National Advisors Trust Company, FSB Overland Park KS
The Liberty Savings Association, FSA Fort Scott KS
The Montezuma State Bank Montezuma KS
Bank of Prairie Village Prairie Village KS
First Kansas Bank Hoisington KS
Flint Hills Bank Eskridge KS
The Citizens State Bank Hugoton KS
Sebree Deposit Bank Sebree KY
Hart County Bank and Trust Company Munfordville KY
Bluegrass Community Bank Danville KY
West Carroll Community Bank Oak Grove LA
Tri-State Bank and Trust Haughton LA
Lakeside Bank Lake Charles LA
Patriot Community Bank Woburn MA
Mercantile Bank and Trust Company Boston MA
Foxboro Federal Savings Foxboro MA
Winter Hill Bank, FSB Somerville MA
Northmark Bank North Andover MA
Boston Trust & Investment Management Company Boston MA
Fidelity Personal Trust Company, FSB Boston MA
Fidelity Management Trust Company Boston MA
T. Rowe Price Savings Bank Baltimore MD
Revere Bank Laurel MD
Legg Mason Investment Counsel & Trust Company, N.A. Baltimore MD
-- -- ME
Bank of Birmingham Birmingham MI
Ann Arbor State Bank Ann Arbor MI
Comerica Bank & Trust, National Association Ann Arbor MI
JPMorgan Chase Bank, Dearborn Dearborn MI
Auto Club Trust, FSB Dearborn MI
Kent State Bank Kent MN
St. Martin National Bank Saint Martin MN
Union State Bank of Browns Valley Browns Valley MN
The First National Bank of Herman Herman MN
State Bank of Jeffers Jeffers MN
State Bank of Bellingham Bellingham MN
American State Bank of Erskine Erskine MN
State Bank of Lismore Lismore MN
Liberty Savings Bank, FSB Saint Cloud MN
Bank of Minden Mindenmines MO
Bank of Hillsboro Hillsboro MO
Midwest Federal Savings and Loan Association of St. Joseph  Saint Joseph MO
Peoples Bank of Wyaconda, Missouri Kahoka MO
Silex Banking Company Silex MO
Community Bank of Russellville Russellville MO
Springfield First Community Bank Springfield MO
Parkside Financial Bank & Trust Clayton MO
Edward Jones Trust Company Saint Louis MO
Missouri Bank and Trust Company of Kansas City Kansas City MO
TIAA-CREF Trust Company, FSB Saint Louis MO
Scottrade Bank Saint Louis MO
The Bank of Bolivar County Shelby MS
First Federal Savings and Loan Association Aberdeen MS
Bank of Walnut Grove Walnut Grove MS
Bank of Jones County Laurel MS
Davidson Trust Co. Great Falls MT
Bank of Montana Missoula MT
Montana State Bank Plentywood MT
Mount Gilead Savings and Loan Association Mount Gilead NC
Coastal Bank & Trust Jacksonville NC
Cedar Hill National Bank Charlotte NC
Live Oak Banking Company Wilmington NC
Grant County State Bank Carson ND
Farmers Security Bank Washburn ND
Strasburg State Bank Strasburg ND
Liberty State Bank Powers Lake ND
Peoples State Bank of Velva Velva ND
First State Bank of Golva Golva ND
Stock Growers Bank Napoleon ND
Heartland State Bank Edgeley ND
Farmers State Bank of Crosby, N. D. Crosby ND
Peoples State Bank Westhope ND
Merchants Bank Rugby ND
Sargent County Bank Forman ND
United Community Bank of North Dakota Leeds ND
Farmers and Merchants Bank Axtell NE
Citizens State Bank Carleton NE
Farmers State Bank Carroll NE
Boelus State Bank Boelus NE
Bank of Mead Mead NE
Tri Valley Bank Talmage NE
Battle Creek State Bank Battle Creek NE
Cedar Rapids State Bank Cedar Rapids NE
Farmers State Bank Humphrey NE
Bank of Newman Grove Newman Grove NE
Stanton State Bank Stanton NE
Farmers State Bank Wallace NE
Winside State Bank Winside NE
Curtis State Bank Curtis NE
Farmers and Merchants Bank Milligan NE
Bank of Hartington Hartington NE
Bank of Lewellen Lewellen NE
Farmers State Bank Dodge NE
Adams State Bank Adams NE
Oak Creek Valley Bank Valparaiso NE
Home State Bank Louisville NE
First National Bank and Trust Company Falls City NE
NebraskaLand National Bank North Platte NE
First Commerce Bank Lakewood NJ
Bessemer Trust Company Woodbridge NJ
Sumitomo Mitsui Trust Bank (USA) Limited Hoboken NJ
DSRM National Bank Albuquerque NM
Western Heritage Bank Las Cruces NM
Western Bank of Clovis Clovis NM
The Carlsbad National Bank Carlsbad NM
Eaglemark Savings Bank Carson City NV
Credit One Bank, N.A. Las Vegas NV
HSBC Bank Nevada, N.A. Las Vegas NV
Emigrant Mercantile Bank New York NY
WSB Municipal Bank Watertown NY
Pioneer Commercial Bank Troy NY
Sunnyside Federal Savings and Loan Association of Irvington Irvington NY
Pathfinder Commercial Bank Oswego NY
PCSB Commercial Bank Brewster NY
Berkshire Bank Municipal Bank Albany NY
State Bank of Chittenango Chittenango NY
Greene County Commercial Bank Catskill NY
Fairport Savings Bank Fairport NY
Gold Coast Bank Islandia NY
Eastbank, N.A. New York NY
Mizuho Trust & Banking Co. USA New York NY
Delta National Bank and Trust Company New York NY
Provident Municipal Bank Montebello NY
Flushing Commercial Bank New Hyde Park NY
Bessemer Trust Company, N.A. New York NY
Nelsonville Home and Savings Nelsonville OH
Home Savings Bank of Wapakoneta Wapakoneta OH
The Marblehead Bank Marblehead OH
First Federal Savings and Loan Association Centerburg OH
The Baltic State Bank Baltic OH
The Corn City State Bank Deshler OH
Credit First National Association Brook Park OH
First State Bank Elmore City OK
The First National Bank of Nash Nash OK
Peoples State Bank Blair OK
Farmers & Merchants Bank Duke OK
Community National Bank of Okarche Okarche OK
First American Bank Erick OK
The State Bank of Wynnewood Wynnewood OK
The Farmers and Merchants National Bank of Fairview Fairview OK
Prime Bank Edmond OK
Citizens Bank of Oklahoma Pawhuska OK
Centerpointe Community Bank Hood River OR
Manor Bank Manor PA
Second Federal Savings and Loan Association of Philadelphia Philadelphia PA
The Philadelphia Trust Company Philadelphia PA
Gateway Bank of Pennsylvania McMurray PA
The Haverford Trust Company Radnor PA
Eureka Bank Pittsburgh PA
American Bank Allentown PA
SEI Private Trust Company Oaks PA
Talbots Classics National Bank Lincoln RI
The Farmers State Bank of Turton Turton SD
American State Bank Oldham SD
Menno State Bank Menno SD
The Security State Bank Emery SD
Richland State Bank Bruce SD
The Roberts County National Bank of Sisseton Sisseton SD
Security National Bank of South Dakota Dakota Dunes SD
Farmers State Bank Parkston SD
Target National Bank Sioux Falls SD
Independence Trust Company Franklin TN
Bloomburg State Bank Bloomburg TX
Citizens State Bank Anton TX
The Commercial Bank Mason TX
Amistad Bank Del Rio TX
The Lone Star State Bank Lone Star TX
The First National Bank of Amherst Amherst TX
First National Bank of Colorado City Colorado City TX
Memphis State Bank Memphis TX
First State Bank Junction TX
The First National Bank of Seymour Seymour TX
American Bank, N.A. Dallas TX
The First National Bank of Hico Hico TX
Schwertner State Bank Schwertner TX
Brazos National Bank Clute TX
The Granger National Bank Granger TX
Citizens State Bank Ganado TX
Bandera First State Bank Bandera TX
The First National Bank of Woodsboro Woodsboro TX
White Oak State Bank White Oak TX
First National Bank in Whitney Whitney TX
The City State Bank of Palacios Palacios TX
First National Bank in Dalhart Dalhart TX
The First National Bank of Tahoka Tahoka TX
Citizens National Bank of Crosbyton Crosbyton TX
First Bank and Trust of Memphis Memphis TX
Stockmens National Bank in Cotulla Cotulla TX
Gruver State Bank Gruver TX
The First National Bank of Eldorado Eldorado TX
Farmers and Merchants Bank De Leon TX
Peoples State Bank Rocksprings TX
Texas Financial Bank Eden TX
The City National Bank of San Saba San Saba TX
First State Bank Overton TX
The Chasewood Bank Houston TX
Citizens Bank Claude TX
Tejas Bank Monahans TX
Liberty Capital Bank Addison TX
Citizens National Bank of Wills Point Wills Point TX
Columbus State Bank Columbus TX
Heritage Bank Pearland TX
Business Bank of Texas, N.A. Austin TX
First-Lockhart National Bank Lockhart TX
The First National Bank of Mertzon Mertzon TX
Pegasus Bank Dallas TX
R Bank Round Rock TX
Hill Bank & Trust Co. Weimar TX
First State Bank Stratford TX
Memorial City Bank Houston TX
Texas Regional Bank Harlingen TX
Bank of Texas Midland TX
Texas Security Bank Dallas TX
The Bank of San Antonio San Antonio TX
First Private Bank of Texas Dallas TX
Tolleson Private Bank Dallas TX
Grand Bank Dallas TX
Citizens National Bank Cameron TX
First Associations Bank Dallas TX
First Electronic Bank Sandy UT
OptumHealth Bank, Inc. Salt Lake City UT
Morgan Stanley Bank, N.A. Salt Lake City UT
1st Commonwealth Bank of Virginia Arlington VA
The Trust Company of Virginia Richmond VA
Frontier Community Bank Waynesboro VA
Oak View National Bank Warrenton VA
Chain Bridge Bank, N.A. McLean VA
E*TRADE United Bank Arlington VA
Farmington State Bank Farmington WA
Raymond Federal Bank Raymond WA
Liberty Bay Bank Poulsbo WA
Milton Savings Bank Milton WI
M&I Bank of Mayville Mayville WI
Collins State Bank Collins WI
Palmyra State Bank Palmyra WI
WPS Community Bank, FSB Madison WI
Settlers Bank De Forest WI
Northwestern Mutual Wealth Management Milwaukee WI
First Federal Savings & Loan Association of Ravenswood Ravenswood WV
Wyoming State Bank Laramie WY
The Converse County Bank Douglas WY
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