Additional Factors: Institutions with a small asset base or a short operating history can represent an instability risk beyond what their financial ratios indicate. Roanoke Rapids Savings Bank, SSB 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 Roanoke Rapids Savings Bank, SSB had $758,000 in non-current loans and owned real-estate with $8.83 million in equity and loan loss allowances on hand to cover it. This gives Roanoke Rapids Savings Bank, SSB a Texas Ratio of 8.59% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Roanoke Rapids Savings Bank, SSB decreased dramatically from 12.82% as of December 31, 2012 to 8.59% as of December 31, 2013, resulting in a positive change of 33.03%.This indicates that the balance sheet and financial strength for Roanoke Rapids Savings Bank, SSB has improved dramatically in recent periods.
In the past year, Roanoke Rapids Savings Bank, SSB has decreased its total deposits by $-792,000, resulting in -1.7% 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 Roanoke Rapids Savings Bank, SSB 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. Roanoke Rapids Savings Bank, SSB has $59.21 million in assets with $8.83 million in equity, resulting in a capitalization level of 14.91%, which is excellent.