Additional Factors: Institutions with a small asset base or a short operating history can represent an instability risk beyond what their financial ratios indicate. Tombstone Credit Union has a very 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 Tombstone Credit Union had $443,000 in non-current loans and owned real-estate with $312,000 in equity and loan loss allowances on hand to cover it. This gives Tombstone Credit Union a Texas Ratio of 141.99% which is poor. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Tombstone Credit Union increased slightly from 57.14% as of December 31, 2012 to 141.99% as of December 31, 2013, resulting in a negative change of 148.48%. This indicates that the balance sheet and financial strength for Tombstone Credit Union has declined slightly in recent periods.
In the past year, Tombstone Credit Union has decreased its total deposits by -$2.11 million, resulting in -21.98% 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 Tombstone 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. Tombstone Credit Union has $8.26 million in assets with $312,000 in equity, resulting in a capitalization level of 3.78%, which is poor.