Additional Factors: Institutions with a small asset base or a short operating history can represent an instability risk beyond what their financial ratios indicate. Flora Bank & Trust (IL) has a relatively low asset base.
The Texas Ratio is an indicator of how much funds a bank has available compared to the total value of loans considered at risk. As of December 31, 2013 Flora Bank & Trust (IL) had $32,000 in non-current loans and owned real-estate with $7.05 million in equity and loan loss allowances on hand to cover it. This gives Flora Bank & Trust (IL) a Texas Ratio of 0.45% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Flora Bank & Trust (IL) decreased slightly from 0.57% as of December 31, 2012 to 0.45% as of December 31, 2013, resulting in a positive change of 19.87%.This indicates that the balance sheet and financial strength for Flora Bank & Trust (IL) has improved slightly in recent periods.
In the past year, Flora Bank & Trust (IL) has increased its total deposits by $2.24 million, resulting in 3.74% 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 Flora Bank & Trust (IL) 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. Flora Bank & Trust (IL) has $69.11 million in assets with $7.05 million in equity, resulting in a capitalization level of 10.20%, which is above average.