Why "healthiest" matters — and what it doesn't mean
A bank's financial health is a measure of how well-positioned it is to absorb loan losses, keep deposits safe, and continue serving its customers through economic ups and downs. The institutions on this list are statistically the strongest small banks in the country, but it's important to be clear about what that means and what it doesn't.
Every bank in this list is FDIC-insured, which protects customer deposits up to $250,000 per ownership category. That insurance applies whether a bank is at the top of this list or not. A high or low Texas Ratio doesn't change the fundamental safety of insured deposits.
What this list does identify is institutions running with very low levels of non-performing loans relative to their available capital — a hallmark of conservative underwriting, disciplined risk management, and stable communities. These are banks that have, in recent quarters, made very few bad loans relative to their reserves.
Three measures of health, side-by-side
Every bank on this ranking is presented with three signals of financial strength:
- Texas Ratio — the primary ranking metric. Lower is healthier. It compares non-performing loans and other real estate owned to net worth and loan-loss reserves. Industry analysts have used 100% as a warning threshold; every institution on this list is well under 1%.
- MonitorBankRates Star Rating — our proprietary 1-to-5 score combining Texas Ratio, capitalization, and customer feedback. A 5.0 indicates the strongest tier of overall health.
- MBR Health Grade — a 0–100 letter grade derived from the star rating and Texas Ratio that translates the financial signals into an at-a-glance label, A+ down through F.
Together these three give a fuller picture than any single number. A bank ranked highly here is healthy across all three.
What this list does and doesn't tell you
A ranking like this is most useful when readers understand exactly what's being measured. The Texas Ratio captures one important dimension of institutional health: the relationship between loans that have gone bad and the capital available to absorb those losses. It's a backward-looking measure based on what's already on the books, not a prediction of future performance.
What a high ranking does suggest. A bank near the top of this list has, in recent quarters, made very few problem loans relative to its capital reserves. That generally reflects conservative underwriting, stable customer base, careful loan portfolio management, and adequate capitalization. These institutions tend to weather economic downturns better than their peers and have more flexibility to maintain rates and services through difficult periods.
What it doesn't measure. Texas Ratio says nothing about a bank's operational efficiency, technology investment, customer service quality, branch convenience, ATM network, or rate competitiveness on deposits and loans. A 5.0-star institution with a perfect Texas Ratio could still have a clunky mobile app, limited branch hours, or middling rates compared to competitors. Financial health is necessary but not sufficient for being the right bank for a given customer.
What it especially doesn't measure: deposit safety. Deposits at every bank on this list are FDIC-insured up to $250,000 per ownership category. That insurance applies identically at the #1-ranked institution, the #100-ranked institution, and at banks that didn't make the list at all. Texas Ratio is a quality indicator for the institution, not a safety threshold for the depositor.
Why we rank by Texas Ratio rather than the Star Rating. Our Star Rating combines Texas Ratio with capitalization and customer reviews; the Health Grade compounds star and Texas Ratio. Among small healthy banks, almost all earn 5.0 stars and an A+ grade — those measures don't differentiate the strongest from the merely strong. Texas Ratio at this end of the spectrum spreads from 0.01% to roughly 0.15%, which is enough variation to produce a meaningful ranking. We use the more granular metric to rank, and show the others alongside for cross-reference.
Tier 1: Exceptional Health (Top 25)
Texas Ratio at or below 0.03%. The strongest of the strong.
Tier 2: Outstanding Health (Ranks 26-100)
The next 75 strongest small banks.
| # | Bank | State | Assets | Texas Ratio | MBR Star | Health Grade | |
|---|---|---|---|---|---|---|---|
| #26 |
|
Lcsb | KS | $213.6M | 0.03% | 5.0 | A+ |
| #27 |
|
Frontier Bank Lamar, CO | CO | $424.9M | 0.04% | 5.0 | A+ |
| #28 |
|
Lewis & Clark Bank | OR | $353.4M | 0.04% | 5.0 | A+ |
| #29 |
|
F&M Bank of St. Clair | MO | $335.9M | 0.04% | 5.0 | A+ |
| #30 |
|
First FSB of Mascoutah | IL | $198.9M | 0.04% | 5.0 | A+ |
| #31 |
|
Twin Valley Bank | OH | $145.6M | 0.04% | 4.8 | A+ |
| #32 |
|
Blissfield State Bank | MI | $118.9M | 0.04% | 5.0 | A+ |
| #33 |
|
Bank of Commerce Chanute, KS | KS | $484.2M | 0.05% | 5.0 | A+ |
| #34 |
|
The First National Bank of Stanton | TX | $436.4M | 0.05% | 5.0 | A+ |
| #35 |
|
North Star Bank | MN | $406.8M | 0.05% | 5.0 | A+ |
| #36 |
|
Century Bank and Trust GA | GA | $363.8M | 0.05% | 5.0 | A+ |
| #37 |
|
F&M State Bank Winterset, IA | IA | $267.6M | 0.05% | 5.0 | A+ |
| #38 |
|
Liberty Bank Liberty, IL | IL | $186.5M | 0.05% | 5.0 | A+ |
| #39 |
|
Bank of Hydro | OK | $167.8M | 0.05% | 5.0 | A+ |
| #40 |
|
Platte Valley Bank North Bend, NE | NE | $105.0M | 0.05% | 5.0 | A+ |
| #41 |
|
Strasburg State Bank | ND | $99.6M | 0.05% | 5.0 | A+ |
| #42 |
|
Independence State Bank | WI | $88.4M | 0.05% | 5.0 | A+ |
| #43 |
|
First Heritage Bank Shenandoah, IA | IA | $69.9M | 0.05% | 5.0 | A+ |
| #44 |
|
FSB of Blue Mound | KS | $52.7M | 0.05% | 5.0 | A+ |
| #45 |
|
New Albin Savings Bank | IA | $343.9M | 0.06% | 5.0 | A+ |
| #46 |
|
Farmers State Bank Parkston, SD | SD | $250.7M | 0.06% | 4.4 | A |
| #47 |
|
FSB of Shelby | MT | $164.4M | 0.06% | 5.0 | A+ |
| #48 |
|
KSB Overbrook, KS | KS | $99.3M | 0.06% | 5.0 | A+ |
| #49 |
|
Premier Bank Omaha, NE | NE | $336.8M | 0.07% | 5.0 | A+ |
| #50 |
|
Heritage Community Bank Greeneville, TN | TN | $178.8M | 0.07% | 5.0 | A+ |
| #51 |
|
Farmers and Merchants State Bank | ND | $150.3M | 0.07% | 5.0 | A+ |
| #52 |
|
Adams State Bank | NE | $69.6M | 0.07% | 5.0 | A+ |
| #53 |
|
Honor Bank | MI | $416.8M | 0.08% | 5.0 | A+ |
| #54 |
|
Premier Bank Dubuque, IA | IA | $364.7M | 0.08% | 5.0 | A+ |
| #55 |
|
Profile Bank | NH | $314.2M | 0.08% | 5.0 | A+ |
| #56 |
|
Valor Bank | OK | $286.6M | 0.08% | 5.0 | A+ |
| #57 |
|
Currency Bank | LA | $241.7M | 0.08% | 5.0 | A+ |
| #58 |
|
Branson Bank | MO | $405.8M | 0.09% | 5.0 | A+ |
| #59 |
|
FNB in Port Lavaca | TX | $381.3M | 0.09% | 5.0 | A+ |
| #60 |
|
American Continental Bank | CA | $378.2M | 0.09% | 5.0 | A+ |
| #61 |
|
First State Bank of Odem | TX | $201.3M | 0.09% | 5.0 | A+ |
| #62 |
|
Templeton Savings Bank | IA | $160.3M | 0.09% | 5.0 | A+ |
| #63 |
|
First Western FSB | SD | $66.7M | 0.09% | 5.0 | A+ |
| #64 |
|
Tri-County B&T Co. | IN | $295.7M | 0.10% | 5.0 | A+ |
| #65 |
|
Center National Bank | MN | $232.7M | 0.10% | 5.0 | A+ |
| #66 |
|
First State Bank Socorro, NM | NM | $208.7M | 0.10% | 5.0 | A+ |
| #67 |
|
Community Bank Topeka, KS | KS | $188.1M | 0.10% | 5.0 | A+ |
| #68 |
|
St. Clair State Bank Inc. | MN | $131.2M | 0.10% | 5.0 | A+ |
| #69 |
|
First Community Bank Newell, IA | IA | $116.9M | 0.10% | 5.0 | A+ |
| #70 |
|
Solutions Bank North | KS | $471.8M | 0.11% | 5.0 | A+ |
| #71 |
|
Anchor D Bank | OK | $395.2M | 0.11% | 5.0 | A+ |
| #72 |
|
City Bank & Trust Co. Natchitoches, LA | LA | $381.8M | 0.11% | 5.0 | A+ |
| #73 |
|
Bank of Grand Lake | OK | $235.5M | 0.11% | 5.0 | A+ |
| #74 |
|
Security State Bank of Marine | MN | $232.1M | 0.11% | 5.0 | A+ |
| #75 |
|
FSB of Ben Wheeler, Texas | TX | $184.3M | 0.11% | 5.0 | A+ |
| #76 |
|
Elk State Bank | KS | $138.9M | 0.11% | 5.0 | A+ |
| #77 |
|
FCNB of St. Paris | OH | $98.2M | 0.11% | 5.0 | A+ |
| #78 |
|
RHBT Rolling Hills B&T | IA | $472.3M | 0.12% | 5.0 | A+ |
| #79 |
|
First Jackson Bank | AL | $449.3M | 0.12% | 5.0 | A+ |
| #80 |
|
BankFlorida | FL | $429.6M | 0.12% | 5.0 | A+ |
| #81 |
|
River City Bank Rome, GA | GA | $398.0M | 0.12% | 5.0 | A+ |
| #82 |
|
Community 1st Bank Las Vegas | NM | $292.1M | 0.12% | 5.0 | A+ |
| #83 |
|
Bank of Columbia | KY | $230.0M | 0.12% | 5.0 | A+ |
| #84 |
|
Security Savings Bank Gowrie, IA | IA | $194.2M | 0.12% | 5.0 | A+ |
| #85 |
|
FSB Columbus, TX | TX | $153.3M | 0.12% | 5.0 | A+ |
| #86 |
|
Agility Bank | TX | $130.4M | 0.12% | 5.0 | A+ |
| #87 |
|
Dalhart Federal S&LA, SSB | TX | $128.8M | 0.12% | 5.0 | A+ |
| #88 |
|
Community Bank of Memphis | MO | $63.4M | 0.12% | 5.0 | A+ |
| #89 |
|
Lakeside Bank | LA | $385.7M | 0.13% | 5.0 | A+ |
| #90 |
|
5Star Bank | CO | $376.7M | 0.13% | 5.0 | A+ |
| #91 |
|
Fidelity State B&T Co. | KS | $203.1M | 0.13% | 5.0 | A+ |
| #92 |
|
Oakwood Bank Pigeon Falls, WI | WI | $148.0M | 0.13% | 5.0 | A+ |
| #93 |
|
Fayette Savings Bank, SSB | TX | $496.0M | 0.14% | 5.0 | A+ |
| #94 |
|
Stafford Savings Bank | CT | $475.4M | 0.14% | 5.0 | A+ |
| #95 |
|
Sentry Bank | MN | $374.6M | 0.14% | 5.0 | A+ |
| #96 |
|
CedarStone Bank | TN | $369.2M | 0.14% | 5.0 | A+ |
| #97 |
|
Security First Bank of North Dakota | ND | $284.6M | 0.14% | 5.0 | A+ |
| #98 |
|
Citizens State Bank Sheldon, IA | IA | $198.8M | 0.14% | 5.0 | A+ |
| #99 |
|
Scottsburg Building and Loan Association | IN | $76.5M | 0.14% | 5.0 | A+ |
| #100 |
|
Shamrock Bank | OK | $486.1M | 0.15% | 5.0 | A+ |
How to evaluate a small bank before opening an account
Financial health is the foundation, but it's only one of several factors that determine whether a particular bank is right for you. Once you've narrowed your shortlist to institutions with strong Texas Ratios and high Star Ratings, here's a practical framework for evaluating which one to actually open an account with.
1. Geographic reach & account access
Most small community banks limit personal account openings to customers within their footprint — typically a single state, region, or metropolitan area. Before applying, confirm the bank serves your location either through branches or full online/mobile account opening. Some community banks now offer accounts nationwide via online applications, but many still require in-person verification or a local address. Check the bank's "Open an Account" page for current eligibility and service area.
2. Branch and ATM access
Small banks typically operate anywhere from one to a few dozen physical branches concentrated in a region. If in-person banking matters to you, the branch network is a real constraint. The flip side: many small banks participate in ATM surcharge-free networks like Allpoint, MoneyPass, or STAR that give customers access to tens of thousands of ATMs nationwide. Some are also part of branch-sharing programs through their bankers' associations. Ask each institution about their network memberships.
3. Mobile and online banking
A high-quality mobile app and online banking platform increasingly defines day-to-day banking experience. Small banks vary widely here — some have invested in modern, polished apps; others use older platforms that lag behind what regional and national banks offer. Before opening an account, search for the institution's mobile app on the App Store or Google Play and check the rating, recent reviews, and feature set. Look for mobile check deposit, real-time transaction alerts, peer-to-peer transfers like Zelle, card lock/unlock controls, and biometric login.
4. Rate competitiveness
Small community banks often compete on relationship and service rather than headline rates, so deposit rates can lag online-only banks. But that's not universal — some small banks offer competitive rates on CDs and money market accounts to fund local lending. Compare current rates on the products you actually use: high-yield savings or money market accounts, CDs, checking account interest if applicable, and any loans you might need (auto, mortgage, personal). Each institution's profile page on MonitorBankRates.com lists current rates compared against our database average for that product.
5. Account fees
Read the fee schedule before opening. Common items to check: monthly maintenance fees on checking and savings (many small banks waive these with direct deposit or minimum balances), overdraft and non-sufficient funds fees, ATM surcharges for out-of-network withdrawals, wire transfer fees, and minimum balance requirements. Small banks sometimes have lower headline fees than national banks but stricter conditions; it's worth knowing the full picture.
6. Customer service quality
One of the genuine advantages of small community banks is personal service — the institution often knows its customers by name, lending and underwriting decisions can be made locally, and customer service tends to be more responsive than at large national banks. To gauge this before opening, look at recent customer reviews on Google, the bank's own website, or third-party review sites. Pay particular attention to how the institution responds to negative reviews and whether complaints get resolved. Friendly tellers matter, but how the institution handles problems matters more.
7. Service breadth
Smaller institutions sometimes don't offer the full range of banking products you might need. Common gaps: limited mortgage options (especially jumbo or non-conforming loans), thin business banking offerings, no investment or trust services, no international wire transfers, no foreign currency. If you anticipate needing one of these, ask before opening. Many small banks partner with correspondent banks or third-party services to fill gaps, but the experience can feel different than dealing with a single full-service institution.
8. Long-term commitment to customers
Small banks regularly merge into larger ones, which can be good (more services, better technology) or bad (loss of local character, branch closures, fee changes). Look at recent merger activity and any communications about the institution's future direction. The best small banks have stable leadership, strong customer retention, growing deposits, and a clear sense of who they exist to serve.
Methodology & Data Sources
Texas Ratio
The Texas Ratio compares a financial institution's non-performing loans and other real estate owned to its total available capital and reserves. It was developed by analysts at RBC Capital Markets in the 1980s after observing patterns in failed Texas banks. A lower Texas Ratio indicates a stronger ability to absorb loan losses without impairing the institution's capital base.
For banks, we calculate Texas Ratio as:
(Non-Accrual Loans + Other Real Estate Owned + Loans 90+ Days Past Due) ÷ (Equity Capital + Loan Loss Reserves) × 100
Source data is each bank's FFIEC Call Report (Form 031, 041, or 051) filed quarterly with federal regulators.
MonitorBankRates Star Rating
Our proprietary 1-to-5 star rating evaluates each bank's overall financial stability and combines it with customer feedback. The base score begins at 5.0 and is reduced for elevated Texas Ratio (deductions begin once the ratio exceeds 15%) and below-target capitalization (the regulatory well-capitalized threshold for banks is a Tier 1 leverage ratio of 5.0% or higher).
Where the institution has received user reviews on MonitorBankRates.com, the financial component is weighted at 70% and customer-review average at 30%, producing the published star rating. Where no customer reviews exist yet, the star rating is the financial-health score alone.
A 5.0 star rating is described on our institution profile pages as "Exceptional"; 4.0–4.7 as "Excellent"; 3.5–3.9 as "Very Good"; 3.0–3.4 as "Good"; 2.5–2.9 as "Fair"; 2.0–2.4 as "Average"; and below 2.0 as "Weak".
MBR Health Grade
The MBR Health Grade is a 0–100 score and corresponding letter grade designed to give an at-a-glance read on overall institutional health. It blends the star rating and Texas Ratio into a single compact signal.
Health Score = 100 − ((5.0 − Star Rating) × 10) − (Texas Ratio × 0.5), bounded between 0 and 100.
Letter grade thresholds: A+ (97-100), A (93-96), A- (90-92), B+ (87-89), B (83-86), B- (80-82), C+ (77-79), C (73-76), C- (70-72), D+ (67-69), D (63-66), D- (60-62), F (below 60). Every bank on this Top 100 list earns an A+ Health Grade.
Inclusion criteria
To be eligible for this list, a bank must:
- Be FDIC-insured and reporting to federal regulators (FDIC, OCC, or Federal Reserve)
- Have total assets between $50 million and $500 million
- Have a published institution profile on MonitorBankRates.com
- Report at least one quarter of underlying call-report data sufficient to calculate a non-zero Texas Ratio
Ranking and tiering
Banks are ranked by Texas Ratio, ascending (lower is healthier). When two banks have the same Texas Ratio, the larger institution by total assets ranks higher as a tiebreaker. The top 25 by this ranking are designated Tier 1: Exceptional Health; ranks 26 through 100 are Tier 2: Outstanding Health.
Glossary of terms
Plain-language definitions of the financial and regulatory terms used throughout this ranking.
Call Report (FFIEC Form 031, 041, or 051)
The quarterly financial statement that every FDIC-insured bank is required to file with federal regulators. It includes detailed balance sheet, income statement, and loan portfolio data — including non-accrual loans, charge-offs, and equity capital — that becomes the source data for analyses like this one. Call reports are public and downloadable from the FFIEC's website.
Bank
A for-profit financial institution chartered by federal or state regulators to accept deposits, make loans, and provide other financial services. The U.S. has approximately 4,500 FDIC-insured commercial and savings banks holding over $24 trillion in customer deposits collectively. This ranking covers banks with $50M-$500M in total assets (commonly referred to as community banks).
Delinquent Loans
Loans on which the borrower has fallen behind on scheduled payments. FDIC call reports break out non-accrual loans and loans 90+ days past due, both of which we use in the Texas Ratio calculation. Higher delinquency relative to the loan portfolio is generally a warning sign.
Loan Loss Reserves (Allowance for Loan and Lease Losses)
Money a bank has set aside specifically to cover anticipated loan losses. Together with equity capital, loan loss reserves form the denominator of the Texas Ratio — the total cushion available to absorb non-performing assets without impairing the institution.
MBR Health Grade
MonitorBankRates' 0–100 institutional health score and corresponding letter grade (A+ down to F), derived from the Star Rating and Texas Ratio. Designed for at-a-glance comparison. Every institution on this Top 100 list earns A+.
MonitorBankRates Star Rating
Our proprietary 1-to-5 health rating combining a bank's Texas Ratio, capitalization, and aggregated customer reviews on monitorbankrates.com. The financial component starts at 5.0 and is reduced for elevated Texas Ratio and below-target capitalization. Where reviews exist, financial score weighs 70% and reviews 30%.
FDIC (Federal Deposit Insurance Corporation)
The independent federal agency that insures customer deposits at U.S. banks and savings institutions up to $250,000 per depositor, per ownership category. The FDIC also supervises and examines banks for safety and soundness. The FDIC is funded by insurance premiums paid by member banks, not taxpayer dollars.
Equity Capital
A bank's shareholders' equity plus retained earnings — the primary cushion that absorbs loan losses before depositor funds are at risk. Federal regulations require a minimum Tier 1 leverage ratio of 5.0% to be considered "well capitalized," and a Total Capital Ratio of 10.0% or higher.
Other Real Estate Owned (OREO)
Real estate a bank has acquired through foreclosure on defaulted loans. OREO ties up capital that would otherwise support lending, and is typically sold at a loss relative to the original loan balance. OREO is part of the Texas Ratio numerator.
FDIC Insurance
The FDIC insures customer deposits at FDIC-member banks up to $250,000 per depositor, per insured bank, per ownership category. FDIC insurance is backed by the full faith and credit of the United States government. Every bank on this ranking is FDIC-insured.
Texas Ratio
A measure of financial institution health that compares non-performing assets (delinquent loans plus other real estate owned) to available capital (net worth plus loan loss reserves). Lower is healthier. Developed by RBC Capital Markets analysts in the 1980s. Industry analysts have historically used 100% as a warning threshold; institutions on this list are at or under 0.36%.
