Transparency
How the Sonar Score works
No black box. The score is a transparent, weighted blend of four public FDIC metrics, each normalized against published regulatory thresholds.
| Component | Weight | FDIC source |
|---|---|---|
Capital adequacy The single best public predictor of a bank's ability to absorb losses. | 40% | Tier-1 risk-based capital ratio (RBCT1J) |
Profitability Whether the bank earns money on the assets it holds. | 30% | Return on assets (ROA) |
Return on equity How efficiently it uses shareholder capital. | 15% | Return on equity (ROE) |
Scale & stability Larger balance sheets tend to be more diversified — though not always. | 15% | Total assets (log-scaled) |
Bands
- Strong (80–100): well-capitalized with solid earnings.
- Stable (65–79): healthy on the public metrics.
- Watch (50–64): mixed signals worth a closer look.
- Caution (below 50): one or more metrics are weak.
What it deliberately does not do
The Sonar Score uses only quarterly public data and a fixed formula. It does not incorporate non-public information, forward-looking risk, deposit concentration, or interest-rate exposure — factors that mattered in some recent bank failures. A high score is not a guarantee of safety, and a low score is not a prediction of failure.
Most importantly: the score has no effect on your FDIC insurance. Insured deposits up to the limit are protected regardless of any score we show. Read Bank Safety 101 →
This is information, not advice
BankSonar is an independent informational tool. Nothing here is financial, investment, legal, or tax advice, and we are not a fiduciary. Always do your own research and consult a qualified professional before making financial decisions. See our full disclaimer.