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For the Texas Ratio calculation, a bank's available capital is the sum total of its equity capital and its loan loss reserves. Equity capital is essentially the book value of the bank -- its total assets minus its liabilities.
Using the square milage you gave for Texas: 1 square mile = 5280 x 5280 square feet = 27,878,400 square feet. So 268,581 square miles = 7,487,608,550,400. For simplicity say 7.5 x 10^12. That divided by 7 x 10^9 is indeed over 1000 square feet per person.