Guide · Data methodology · 6 min read
How Bank Health Grades Work
PlainBankData assigns A-F letter grades to every FDIC-insured bank using four key financial metrics from official FDIC quarterly Call Report data.
The short answer
Of 4,307 scored banks, 2,052 are Grade A (composite 80–100). That is not the 10% Tier 1 band: 3,940 sit at ≥10% (28 of 40 capital points). 1,099 Grade A banks are below 15% capital, and 528 banks at full 40-point capital (≥15%) still miss Grade A because ROA, Texas Ratio, or efficiency keep the composite under 80.
- 2,052
- Grade A banks (composite 80–100)
- 3,940
- Banks at ≥10% Tier 1 (28 of 40 capital points)
- 1,099
- Grade A banks below 15% Tier 1
- 528
- ≥15% Tier 1 banks that still miss Grade A
A low grade is not a deposit-risk verdict. FDIC-insured deposits are protected to $250,000 per depositor, per ownership category, at every insured bank.
The Four Pillars
Our health grade combines four metrics into a 100-point score, then converts to a letter grade:
Every bank starts from zero. Each of the four metrics then adds points, up to its own maximum, based on where the bank falls against real regulatory thresholds. There is no baseline and no subtraction, only points earned. The four maximums (40 + 25 + 20 + 15) sum to a 0-100 score.
Core capital divided by risk-weighted assets. This is the most heavily weighted safety metric. Regulatory minimums: 6% (adequate), 8% (well-capitalized). Exceptional banks maintain 12-20%.
Net income divided by total assets (annualized). Measures how efficiently a bank uses its assets to generate profit. Industry average: ~1%. Above 1.5% is exceptional.
Non-performing loans divided by tangible equity plus loan loss reserves. A ratio above 100% is a serious warning sign. Below 5% is the strongest tier.
Operating expenses divided by net revenue. Lower is better, it means the bank spends less to generate each dollar of income.
The point tiers above are the exact scoring rule applied to every bank on this site. See any bank's profile for its own point-by-point breakdown.
Grade Scale
Data Source & Limitations
All data comes from the FDIC BankFind Suite API, which aggregates quarterly Call Report submissions from all FDIC-insured institutions. Data is for Q4 2025 (REPDTE: 20251231).
Limitations: Not all banks report all fields. Banks without Tier 1 capital data (often very large institutions with consolidated reporting) receive scores based on available metrics only. Grades are informational, not investment advice.
Frequently Asked Questions
What does a Grade A bank mean?
Grade A is a composite score of 80–100 from four FDIC Call Report metrics, not a 15% Tier 1 badge. 1,099 of 2,052 Grade A banks sit below 15% capital, and 528 banks at ≥15% capital still miss Grade A. Full 40-point capital (≥15% Tier 1) is one path into the A band, not the definition of it.
Is a Grade F bank dangerous?
Grade F banks have financial weaknesses, but your FDIC-insured deposits (up to $250,000) are still fully protected. A low grade means the bank may be struggling with capital, profitability, or loan quality, not that failure is imminent or certain.
What is the Texas Ratio?
The Texas Ratio was developed by Gerard Cassidy at RBC Capital Markets in the 1980s to predict bank failures. It measures non-performing assets divided by tangible equity capital plus loan loss reserves. A ratio above 100% indicates the bank has more problem loans than capital to absorb losses.
Where the grade is documented
The scoring rule, the directory, and the national board.
- National ranking of banks by the same composite grade this page defines. Safest banks
- Any bank profile lists the four pillars that produced its grade. Browse banks
- Field codes, vintage, and scoring thresholds for every grade. Methodology
Not financial advice. Health grades are PlainBankData's interpretation of public FDIC Call Report data, not official FDIC ratings.
Every figure on PlainBankData is rendered directly from FDIC federal source data, no number is typed in by an editor. This page draws directly on FDIC federal source data, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of Q4 2025.
Disclaimer: Data from the FDIC BankFind Suite. PlainBankData does not rate or rank banks as investment or safety recommendations. Health grades are informational only, computed from public regulatory filings. Always verify current standing directly with FDIC.gov before making financial decisions.