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 capital a bank has available compared to the total value of loans considered at risk. As of March 31, 2014 Flora Bank & Trust (IL) had $25,000 in non-current loans and owned real-estate with $7.11 million in equity and loan loss allowances on hand to cover it. This gives Flora Bank & Trust (IL) a Texas Ratio of 0.35% 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 dramatically from 2.23% as of March 31, 2013 to 0.35% as of March 31, 2014, resulting in a positive change of 84.21%.This indicates that the balance sheet and financial strength for Flora Bank & Trust (IL) has improved dramatically in recent periods.
In the past year, Flora Bank & Trust (IL) has decreased its total deposits by -$2.43 million, resulting in -3.83% 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 below average.
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 $67.9 million in assets with $7.11 million in equity, resulting in a capitalization level of 10.47%, which is above average.