Additional Factors: Institutions with a small asset base or a short operating history can represent an instability risk beyond what their financial ratios indicate. Sears Spokane Employees Credit Union has a very 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 Sears Spokane Employees Credit Union had $16,000 in non-current loans and owned real-estate with $479,000 in equity and loan loss allowances on hand to cover it. This gives Sears Spokane Employees Credit Union a Texas Ratio of 3.34% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Sears Spokane Employees Credit Union decreased dramatically from 10.95% as of March 31, 2013 to 3.34% as of March 31, 2014, resulting in a positive change of 69.49%.This indicates that the balance sheet and financial strength for Sears Spokane Employees Credit Union has improved dramatically in recent periods.
In the past year, Sears Spokane Employees Credit Union has decreased its total deposits by $-699,000, resulting in -13.74% 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 Sears Spokane Employees Credit Union 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. Sears Spokane Employees Credit Union has $4.84 million in assets with $479,000 in equity, resulting in a capitalization level of 9.89%, which is above average.