Additional Factors: Institutions with a small asset base or a short operating history can represent an instability risk beyond what their financial ratios indicate. Tri-Cities Community 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 Tri-Cities Community Credit Union had $152,000 in non-current loans and owned real-estate with $2.66 million in equity and loan loss allowances on hand to cover it. This gives Tri-Cities Community Credit Union a Texas Ratio of 5.70% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Tri-Cities Community Credit Union experienced no significant changes from 3.33% as of March 31, 2013 to 5.70% as of March 31, 2014, resulting in a negative change of 71.49%. This indicates that the balance sheet and financial strength for Tri-Cities Community Credit Union has had no significant changes in recent periods.
In the past year, Tri-Cities Community Credit Union has decreased its total deposits by $-167,000, resulting in -0.69% 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 Tri-Cities Community 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. Tri-Cities Community Credit Union has $27.04 million in assets with $2.66 million in equity, resulting in a capitalization level of 9.86%, which is above average.