BestCashCow released updated bank and credit union financial information with the latest data available from the FDIC and the NCUA. Using this information, the site has calculated key financial ratios for every bank and credit union in the United States. For banks, this data includes:

• Texas Ratio - a measure of a bank's ability to weather loan losses.
• Return on Equity
• Capitalization
• Ratio, Asset, Deposit, and Loan trends for the past give years.

For credit unions, the data includes:

• Texas Ratio
• Net Worth - Ratio that measures how much total assets exceed total liabilities.

We provide this information to so that you can understand the financial condition of the institutions you bank with, or are thinking of banking with. While every bank on BestCashCow is FDIC insured and almost every credit union is NCUA insured, there are downsides to banking with a distressed bank or credit union. These include:

• A deterioration of customer service as cost cutting becomes more of a priority.
• The potential to lose interest on CDs. When a bank is taken over, it does not have to honor rates on CDs.
• Lower rates. BestCashCow research has shown that banks in stronger financial condition tend to offer better rates. Banks in worse financial condition do the opposite.
• Bailouts. Ultimately, the general public bears the cost of supporting and propping up distressed financial institutions

As an example, this link shows a financial snapshot of JP Morgan Chase Bank, the largest bank by assets according to BestCashCow.

View the financial condition of any bank.

View the financial condition of any credit union.

Trends in Bank Data

Not only has every bank and credit union been updated, but we spent some time crunching through the numbers at a high level to see what is going on in the banking world. In general, the data shows a banking industry that is awash in cash, not lending, and slowly mending.

The first chart shows that the Texas Ratio for all U.S. banks has continued to decline after peaking in 2009.

The Texas Ratio measures bank stress and stability with a number over 100% indicating that a bank cannot cover all of its potential losses. The lower the number the better. The chart shows that the ratio spiked in 2008, went higher in 2009 and has been gradually coming down since then. The banking sector is healing. (Read more about how the Texas Ratio predicts bank failure.)

I then examined two main components of the Texas Ratio, non-performing loans and bank capitalization. Non-performing loans peaked in 2009 and have been coming down over the past two years. This indicates that not as many loans are going bad, a good sign for bank health.

Capitalization dropped in 2008 and then has gradually been increasing. Banks have raised money both from the government (via TARP) and from private investors to bolster their capital. Both an improvement in loan losses and in bank capitalization have contributed to an improving national Texas Ratio.

Over the last four years, bank deposits have grown from $8 trillion in 2008 to $9 trillion today. Individuals and corporations are parking their money in cash. Demand for cash is not high which is one reason banks have been able to drop savings and CD rates to record lows. Many banks simply don't need your money and have more cash than they know what to do with. We have heard anecdotally of some banks locking in cash at low rates now in anticipation of a rising rate environment over the next couple of years. Notice though that loan growth has not kept pace. Bank loans have dropped from $6.6 trillion in 2008 to $6.3 trillion today.

What are banks doing with that extra money? Investing it, most likely in US Treasuries and other safe investments. The next chart shows what has happened to bank net interest margin. Net interest margin is the difference between the rate banks pay depositors for their cash, and interest rate they lend the money. That difference is income for the bank.

Notice the increase starting in 2007 as the Fed lowered short term rates and banks lowered deposit rates. NIM increased until 2010 and has begun to come down. That's not because deposit rates have gone up, but because rates on bonds and Treasuries have dropped, squeezing the banks profit. Eventually if this squeeze continues, banks will be forced to deploy their deposits in a more profitable way. That's good news for those looking for loans to finance a business, house purchase, or a car.

In addition to tracking the financial condition of every bank and credit union, BestCashCow also tracks CD and Savings rates for thousands of banks and credit unions. To see the rates and financial conditions of a bank in your area, view our local bank finder.

Have any questions or comments? Post them below.

Money market accounts (MMA) are once again getting more attentions from banks, financial services firms and customers. Of course, the objective of the banks and financial services firms is not the same as the consumer . Consumers want the highest interest rate and the lowest minimum balance, while banks and financial services firms require a healthy opening deposit and minimum balance and in turn offer the lowest interest rate that they can and still attract new deposits. The introduction of MMAs in the mid-1980s came with new rules from the Federal Reserve and higher interest rates – both of which were different from what consumers knew from their savings, CDs or checking accounts at the time.

Today, everyone understands that MMAs require a higher initial deposit, higher minimum balance and a limited number for monthly withdrawals or transfers. Some MMAs have more flexibility than in the past and in today’s economic climate finding the right MMA with the right terms is essential to keeping your fees low and your interest income high. One important feature of MMAs is that they continue to enjoy coverage under the FDIC program to insure depositor’s money in the event that the bank fails. FDIC coverage is currently $250,000 per depositor, per account category for each bank.

Most MMAs requires an initial opening deposit of $ 1,000 to $5,000 or more. The best rates come with more money and the so-called jumbo MMAs usually start at $ 100,000 and go up from there. Once you’ve funded the account you need to maintain a minimum balance to avoid fees and to earn the interest that presumably attracted you to open the MMA. The banks and financial services firms are happy to help you maintain your balance by not allowing you to write more than three checks per month or to transfer funds out of the account more than three times per month. This restriction is driven by banking rules issued and updated periodically by the Federal Reserve and Office of the Comptroller of Currency (OCC), which play a big role in how MMAs are marketed and operated by banks. The rule requires banks and financial firms to “discourage” withdrawals or going below the account minimum by imposing fees and penalty interest on accountholders.

The final factor in determining what MMA is best for you is the interest rate that is payable on the account. In the low-rate environment that we now find ourselves in, it is especially important to know what kind of rate you are getting. Is it a promotional rate that expires at some point? Is it a tiered rate that may increase or decrease (more likely) if certain events occur like exceeding the maximum number of monthly withdrawals or dropping below the minimum balance? Is it a floating rate that is tied to an index? Read the fine print and ask questions when researching what MMA is best suited for you. Current rates have a wide range that is based upon the factors we’ve reviewed here – initial deposit, maintaining a minimum balance and limiting your withdrawals. Today’s MMAs are usually no-frills, deposit your money and let it sit while the bank lends it to someone else. At least in the old days you might get a toaster or calendar for opening an MMA.

As Bank of America prepares to undergo yet another round of “stress tests” as mandated by the Federal Reserve Bank, questions continue to be raised regarding its ability to weather the slow-paced economic recovery that at times remains stalled. The Fed’s stress-tests, more formally known as the Comprehensive Capital Analysis and Review (CCAR) program, recently announced the next evaluation will require banks to submit their plan by January 9^th to the Fed. Banks with assets of $ 50 billion or more must comply with the requirement.

In early 2011 19 banks participated in CCAR, the Fed expects an additional 12 banks to comply in the current review cycle. A feature in the New York Times described the most likely stress-test scenario as “a sizable shortfall in U.S. economic activity and employment, accompanied by a notable decline in global activity.” Obviously, the proposed scenario is not much different than the reality of yesterday, today, or tomorrow for that matter.

Concern about BofA stems from its long list of troubles with mortgage write-offs, home foreclosures, their debit card fee fiasco, and new fees for free checking accounts. Old problems returning to the forefront include the acquisition of Countrywide Mortgage and an ongoing investigation that 60 Minutes reported on recently. Previously, the bank set aside nearly $ 13 billion to settle legal claims from clients and investors. Add to this a new $ 315 million settlement on behalf of BofA’s Merrill Lynch division for their involvement in mortgage-backed investments and you can see why Brian Moynihan, CEO of BofA, is probably not getting much sleep these days.

The Occupy Wall Street (OWS) movement is setting their sights on banks and has BofA in their crosshairs. Whether OWS has any valid claim is an open question, but the bank needs more distraction from OWS like it needs another hole in its $2.2 trillion balance sheet. Despite an announcement of cutting 30,000 jobs and reducing expenses $ 5 billion by 2014, BofA’s share price continues to trade in a narrow range of $ 5 to $7. It’s lost 2/3 of its share price in 2011, starting in January at $ 15.25 and dropping to $ 5.08 in late November.

Consumers must decide if they’re willing do business with a bank that has so many critical issues to deal with while serving their customers. The huge backlog of bad loans and the overhang of litigation makes for a challenging environment for bank executives to function in, let alone to attract new customers and retain existing customers. Despite 30-year mortgage rates near lows, BofA is finding it difficult to write loans to qualified borrowers. The continued decline in home values and home prices while foreclosures begin to rise again, present a scenario that may very well be a real-time stress-test for Bank of America and the banking industry. Again.