USAA Federal Savings Bank
Analysis
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Edited by General
USAA Federal Savings Bank is a FDIC-insured bank offering checking and savings accounts, CDs, credit cards, mortgages and other loans. The bank provides a large network of free ATMs as well as ATM fee rebates, but deposit account rates are low, and minimum balance requirements are often high.
Advantages
- ATM fees from out-of-network ATMs are generally low and it is easy to qualify for reimbursement.
Disadvantages
- USAA is members only and without a link to the military you will not qualify.
- Savings, CD, money market and checking rates are not competitive, and minimum deposit requirements are high.
- The bank only has 4 branches.
- Clark Howard has recently reported that, in addition to non-competitive deposit rates, the bank's service has deteriorated dramatically and existing customers are leaving.
Financial Details
USAA Federal Savings Bank Ratio Analysis
The following ratios and data are available to help you better understand the financial condition of USAA Federal Savings Bank. The data is provided by the FDIC. All banks listed on BestCashCow.com are FDIC-insured. No depositor has ever lost deposits that have been within the FDIC insurance limits.
Texas Ratio
| USAA Federal Savings Bank | U.S. Bank Average |
|---|---|
| 9.11% | 4.29% |
The Texas Ratio compares the bank’s non performing assets (non-performing loans and real estate owned) with its tangible common equity and its loan loss reserves. A lower Texas ratio indicates better coverage of problem loans. The closer the Texas Ratio is to 1-to-1 or 100%, the less capital and reserves a bank has to absorb its loan losses.
As of March 31, 2024, USAA Federal Savings Bank had $474,000,000 in non-current loans and $1,000,000 in owned real estate. To cover these potential losses it had $3,622,000,000 in equity and $1,592,000,000 in loans loss reserves. That gives it a Texas Ratio of 9.11%.
Return on Equity
| USAA Federal Savings Bank | U.S. Bank Average |
|---|---|
| -4.93% | 10.46% |
USAA Federal Savings Bank has a Return on Equity of -4.93% versus the BestCashCow average of 10.46%. Return on equity measures how efficiently a bank is making money from its capital. A bank with a consistently high ROE can be considered well run. A bank with a consistently low ROE can be considered poorly run.
Capitalization
| USAA Federal Savings Bank | U.S. Bank Average |
|---|---|
| 3.18% | 10.73% |
USAA Federal Savings Bank has a Capitalization of 3.18% versus the BestCashCow average of 10.73. Capitalization measures how much equity capital a bank has to underpin loans and other assets on its balance sheet. The higher the capitalization number the more secure a bank is considered.
USAA Federal Savings Bank Balance Sheet Analysis
As of March 31, 2024, USAA Federal Savings Bank had assets of $114,029,000,000, loans of $42,442,000,000, and deposits of $100,647,000,000. Long-term increases in deposits shows a bank's ability to raise funds to grow its loans and assets. Loan and asset growth may rise or fall depending on a bank's strategy for growth. Sharp rises and falls in assets, deposits, and loans can be problematic, indicating a loosening of lending standards, or financial distress leading to reduced lending. A big change in these figured can also be from a bank acquisition or merger.
Summary Balance Sheet
March 31, 2024| ASSETS | |
|---|---|
| Cash & Balances due from depository institutions | $ 15.41 billion |
| Interest-bearing balances | $ 9.05 billion |
| Total securities | $ 52.35 billion |
| Federal funds sold and reverse repurchase | N.A. |
| Net loans and leases | $ 42.44 billion |
| Loan loss allowance | $ 1,592.00 million |
| Trading account assets | N.A. |
| Bank premises and fixed assets | N.A. |
| Other real estate owned | $ 1.00 million |
| Goodwill and other intangibles | N.A. |
| All other assets | $ 3.39 billion |
| Total Assets | $ 110.41 billion |
| LIABILITIES | |
|---|---|
| Total deposits | $ 100.65 billion |
| Interest-bearing deposits | $ 100.27 billion |
| Deposits held in domestic offices | $ 100.65 billion |
| % insured (estimated) | 93.85% |
| Federal funds purchased and repurchase agreements | N.A. |
| Trading liabilities | N.A. |
| Other borrowed funds | $ 1,275.00 million |
| Subordinated debt | N.A. |
| All other liabilities | $ 2.15 billion |
| Total Liabilities | $ 110.41 billion |
| Shareholders’ Equity | $ 3.62 billion |
Summary Income Statement
March 31, 2024| INCOME AND EXPENSES | |
|---|---|
| Total Interest Income | $ 1,349.00 million |
| Total Interest Expense | $ 265.00 million |
| Net interest income | $ 1,084.00 million |
| Provision for loan and lease losses | $ 254.00 million |
| Total non interest income | $ 445.00 million |
| Total non interest expense | $ 1,331.00 million |
| Pre-tax Net Operating Income | $ 87.00 million |
Bank Loan Profile?
The top three loan types in USAA Federal Savings Bank’s loan portfolio are Consumer Auto Loans, Credit Card Loans, and 1-4 Family Residential Loans.
Compared to other banks in Arizona, USAA Federal Savings Bank has a significantly higher percent of 1-4 Family Residential Loans, Credit Card Loans, Consumer Auto Loans, Construction and Development Loans on its balance sheet, potentially indicating a specialty in that lending area.
Note: Percentages may not sum to 100% due to rounding and double categorization of some loan types. All data from the FDIC. Additional information about this table.
| % Loans |
% Comparison to Other Banks |
|||
|---|---|---|---|---|
| Low | Med | High | ||
| 1-4 Family Residential Loans | 9.05 | ✓ | ||
| Multifamily Mortgages |
0.00 | ✓ | ||
| Credit Card Loans | 33.51 | ✓ | ||
| Consumer Auto Loans | 37.48 | ✓ | ||
| Small Business Loans | 0.00 | ✓ | ||
| Construction and Development Loans | 0.01 | ✓ | ||
| Commercial Real Estate | 0.00 | ✓ | ||
| Commercial and Industrial Loans | 0.00 | ✓ | ||
| Farm Loans | 0.00 | ✓ | ||
Savings Fees
| Fee Type | |
|---|---|
| Non Sufficient Funds | $0.00 |
| Maintenance | $0.00 |
| Out-of-network ATM | $0.00 |
| Excessive Transaction | $0.00 |
| Incoming Wires | $0.00 |
USAA Federal Savings Bank Reviews
RYAN S
November 28, 2022 |
While USAA was at one point a great option for all your banking needs, the service has deteriorated so much that I'm currently in the process of changing banks after more than 2 decades. The final straw was on November 23rd, 2022, the day before Thanksgiving. On the 22nd of November I deposited two checks written to me by a family member, but woke up on the 23rd to find my account was locked. I called in to see what the issue was and was told by the clerk, quite rudely, that my deposits were suspicious. While I understand the need to hold the funds at times to verify funds are available, I do not understand nor appreciate being laughed at by the bank clerk who attempted to ridicule me. After being admonished by the clerk, she said my online account would be reinstated. Of course, it was not, so I was forced to call in yet again to reinstate access to the bank through my smart phone. On Friday, the 24th of November, I called in to make a complaint about my experience. The person I spoke to this time made excuses for why the first clerk was so rude, yet didn't bother to ask who I had spoken to or when this discussion had happened.
USAA no longer cares. I believe poor leadership from those at the top have ruined the organization. As a disabled Army veteran, I used to be able to rely on USAA to treat me with dignity and respect, but sadly this is no longer the case. It's sad, as their insurance products are wonderful, but banking here is far more trouble than it's worth.
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