Safe and Sound

T Bank, National Association

Dallas, TX
4
Star Rating
T Bank, National Association is an FDIC-insured bank founded in 2004 and currently based in Dallas, TX.273,026 The bank has equity of $34.9 million on $273.0 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 44 full-time employees, the bank holds loans and leases worth $215.0 million, including $110.5 million worth of real estate loans. U.S. bank customers currently have $218.5 million in deposits with the bank.

Overall, Bankrate believes that, as of December 31, 2017, T Bank, National Association exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the bank did on the three key criteria Bankrate used to score American banks.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for depositors when a bank is struggling financially. It follows then that when it comes to measuring an a bank's financial fortitude, capital is valuable. When looking at safety and soundness, the more capital, the better.

T Bank, National Association received a score of 8 out of a possible 30 points on our test to measure the adequacy of a bank's capital, falling short of the national average of 13.19.

One way to measure this buffer is looking at a bank's Tier 1 capital ratio. T Bank, National Association's Tier 1 capital ratio was 11.81 percent, exceeding the 6 percent level considered adequate by regulators, but under the national average of 25.67 percent. A higher capital ratio suggests the bank will be better able to weather economic downturns.

Overall, T Bank, National Association held equity amounting to 12.79 percent of its assets, which exceeded the national average of 12.04 percent.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the bank's loan loss reserves and overall capitalization.

A bank with lots of these types of assets may eventually have to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the bank, pushing down earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, T Bank, National Association scored 40 out of a possible 40 points, above the national average of 37.70 points.

A helpful indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets. As of December 31, 2017, 1.07 percent of T Bank, National Association's loans were noncurrent -- in other words, they were more than 90 days past due or were in non-accrual status. That's below the national average of 1.14 percent.

Banks maintain a reserve known as an "allowance for loan and lease losses" to deal with troubled assets . That reserve's size can be a helpful indicator when evaluating a bank's ability to manage problem assets, especially when compared to the total amount of problem loans. Unfortunately, the FDIC did not provide information on T Bank, National Association's loan loss allowance in its most recent filings.

Earnings score

A bank's earnings performance affects its long-term survivability. Earnings may be retained by the bank, expanding its capital cushion, or be used to address problematic loans, likely making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.

T Bank, National Association scored 14 out of a possible 30 on Bankrate's test of earnings, below the national average of 16.06.

Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for T Bank, National Association was 6.96 percent, below the national average of 8.10 percent.

For the twelve months ended December 31, 2017, the bank earned net income of $2.3 million on total equity of $34.9 million. The bank reported an annualized return on average assets, or ROA, of 0.95 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.