Banks headquartered within the 12th Federal Reserve District continued to recover from severe recession as reflected in improved profitability, capital adequacy and asset quality. CAMELS ratings assigned by bank examiners reflect these improvements with the average rating for all District banks down to 2.8 from a record high 3.0 in early 2011 (lower is better). In good times, CAMELS ratings average at or below the “satisfactory” threshold of “2”.