Additional Factors: Institutions with a small asset base or a short operating history can represent an instability risk beyond what their financial ratios indicate. Kauai Teachers 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 Kauai Teachers Credit Union had $321,000 in non-current loans and owned real-estate with $2.3 million in equity and loan loss allowances on hand to cover it. This gives Kauai Teachers Credit Union a Texas Ratio of 13.94% which is above average. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Kauai Teachers Credit Union decreased dramatically from 41.50% as of March 31, 2013 to 13.94% as of March 31, 2014, resulting in a positive change of 66.41%.This indicates that the balance sheet and financial strength for Kauai Teachers Credit Union has improved dramatically in recent periods.
In the past year, Kauai Teachers Credit Union has decreased its total deposits by -$1.46 million, resulting in -4.82% 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 Kauai Teachers Credit Union 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. Kauai Teachers Credit Union has $31.27 million in assets with $2.3 million in equity, resulting in a capitalization level of 7.37%, which is below average.