Monday, June 1, 2009 - Page updated at 02:35 p.m.

Year-end report card for Washington banks

To create a fair sample of Washington state's nearly 100 banks and thrifts, The Seattle Times examined all banks whose parent companies are publicly traded and all banks that have received money through the federal Troubled Asset Relief Program (indicated with an asterisk next to the bank name), and then added a geographically diverse mix of other significant institutions. All data is as of Dec. 31.

Comprehensive risk ratio: Total noncurrent and nonperforming assets (loans past due more than 30 days, nonaccrual loans, foreclosed real estate) divided by the sum of tangible equity capital and loan loss reserves. The higher the ratio, the weaker the bank's position.

NPA/total assets ratio: Total noncurrent and nonperforming assets, as defined above, divided by total assets. The higher the ratio, the more credit issues the bank has to deal with.

Coverage ratio: Loan-loss allowance divided by total noncurrent and nonperforming loans (past due more than 30 days and nonaccrual). The lower the ratio, the less cushion the bank has to deal with problem assets. Puget Sound Bank had no nonperforming assets in 2008, so its field is blank.

Total risk-based capital ratio: Capital divided by assets, both weighted to reflect varying degrees of riskiness according to regulatory guidelines. Banks with ratios above 10 are considered "well capitalized," so long as they meet other capital-ratio thresholds; however, that doesn't reflect all the issues a bank may face.

Net charge-offs, year over year: Total loans charged off less any recoveries, fourth-quarter 2008 versus fourth-quarter 2007. As the economy slumps, most banks are showing a substantial increase in charge-offs. Banks with blank fields had no net chargeoffs in either the 2007 or 2008 period.

Source: Seattle Times analysis of call/thrift reports and Uniform Bank Performance Reports by business reporter Drew DeSilver.