Additional Factors: Institutions with a small asset base or a short operating history can represent an instability risk beyond what their financial ratios indicate. Sperry Marine Credit Union has a 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 Sperry Marine Credit Union had $537,000 in non-current loans and owned real-estate with $1.24 million in equity and loan loss allowances on hand to cover it. This gives Sperry Marine Credit Union a Texas Ratio of 43.45% which is average. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Sperry Marine Credit Union increased slightly from 21.09% as of December 31, 2012 to 43.45% as of December 31, 2013, resulting in a negative change of 106.00%. This indicates that the balance sheet and financial strength for Sperry Marine Credit Union has declined slightly in recent periods.
In the past year, Sperry Marine Credit Union has decreased its total deposits by $-428,000, resulting in -2.43% 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 Sperry Marine 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. Sperry Marine Credit Union has $18.35 million in assets with $1.24 million in equity, resulting in a capitalization level of 6.74%, which is below average.