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Texas Ratio: From Wikipedia – The Texas Ratio is a measure of a bank’s credit troubles. Developed by Gerard Cassidy and others at RBC Capital Markets, it is calculated by dividing the value of the lender’s non-performing assets (Non performing loans + Real Estate Owned) by the sum of its tangible common equity capital and loan loss reserves.

In analyzing Texas banks during the early 1980s recession, Cassidy noted that banks tended to fail when this ratio reached 1:1, or 100%. He noted a similar pattern among New England banks during the recession of the early 1990s.

There are nearly 380 banks with a Texas Ratio greater than 100%, 190 banks with a Texas Ratio above 150%, and 122 banks with a Texas Ratio above 200%.

Capitalization: Capitalization is the ratio of tangible equity to assets expressed as a percentage. Well capitalized banks have a ratio above 6%.

19 banks in the pool have a ratio under 1%, 35 banks have a ratio under 2%, 62 banks have a ratio under 3%, and 105 banks have a ratio under 4%.

30+ Days: This is the ratio of loans 30 days or longer delinquent to total assets. It is a measure of loan quality.

Non-Accrual: This is the ratio of non-accrual loans to total assets. It is a measure of loan quality.

Construction: This is the percentage of construction loans to total loans. Construction loans are particularly at risk. Note: this is a relative number and if a bank has made few loans and is otherwise sitting on cash, a high number may not be indicative of a significant problem.

Source: http://globaleconomicanalysis.blogspot.com/2010/03/interactive-map-of-worst-banks-in-us-by.html