Additional Factors: Institutions with a small asset base or a short operating history can represent an instability risk beyond what their financial ratios indicate. Grand Timber Bank has a 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 Grand Timber Bank had $2.1 million in non-current loans and owned real-estate with $7.07 million in equity and loan loss allowances on hand to cover it. This gives Grand Timber Bank a Texas Ratio of 29.72% which is average. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Grand Timber Bank decreased dramatically from 47.16% as of March 31, 2013 to 29.72% as of March 31, 2014, resulting in a positive change of 36.99%.This indicates that the balance sheet and financial strength for Grand Timber Bank has improved dramatically in recent periods.
In the past year, Grand Timber Bank has decreased its total deposits by -$3.96 million, resulting in -10.45% 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 Grand Timber Bank has shown is poor.
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. Grand Timber Bank has $39.94 million in assets with $7.07 million in equity, resulting in a capitalization level of 17.71%, which is excellent.