Additional Factors: Institutions with a small asset base or a short operating history can represent an instability risk beyond what their financial ratios indicate. Educational Community CU (MO) has a relatively low asset base.
The Texas Ratio is an indicator of how much capital a bank has available compared to the total value of loans considered at risk. As of March 31, 2014 Educational Community CU (MO) had $324,000 in non-current loans and owned real-estate with $4 million in equity and loan loss allowances on hand to cover it. This gives Educational Community CU (MO) a Texas Ratio of 8.09% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Educational Community CU (MO) experienced no significant changes from 5.19% as of March 31, 2013 to 8.09% as of March 31, 2014, resulting in a negative change of 55.80%. This indicates that the balance sheet and financial strength for Educational Community CU (MO) has had no significant changes in recent periods.
In the past year, Educational Community CU (MO) has increased its total deposits by $3.53 million, resulting in 7.25% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth Educational Community CU (MO) has shown is excellent.
Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. Educational Community CU (MO) has $56.5 million in assets with $4 million in equity, resulting in a capitalization level of 7.09%, which is below average.