Additional Factors: Institutions with a small asset base or a short operating history can represent an instability risk beyond what their financial ratios indicate. Holyoke Community Credit Union 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 Holyoke Community Credit Union had $234,000 in non-current loans and owned real-estate with $2.8 million in equity and loan loss allowances on hand to cover it. This gives Holyoke Community Credit Union a Texas Ratio of 8.37% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Holyoke Community Credit Union experienced no significant changes from 9.09% as of March 31, 2013 to 8.37% as of March 31, 2014, resulting in a positive change of 7.87%.This indicates that the balance sheet and financial strength for Holyoke Community Credit Union has had no significant changes in recent periods.
In the past year, Holyoke Community Credit Union has decreased its total deposits by $-521,000, resulting in -1.73% 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 Holyoke Community Credit Union has shown is 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. Holyoke Community Credit Union has $32.2 million in assets with $2.8 million in equity, resulting in a capitalization level of 8.68%, which is average.