Texas Ratio The Texas Ratio is an ind
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Posted On: 07/23/2013 10:01:42 PM
| Texas Ratio |  |
| 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 March 31, 2013 Idaho Banking Company had $12.64 million in non-current loans and owned real-estate with $7.99 million in equity and loan loss allowances on hand to cover it. This gives Idaho Banking Company a Texas Ratio of 158.19% which is poor. Any bank with a Texas Ratio near or greater than 100% is considered at risk. | |
| Texas Ratio Trend |  |
| The Texas Ratio for Idaho Banking Company decreased slightly from 198.17% as of March 31, 2012 to 158.19% as of March 31, 2013, resulting in a positive change of 20.17%.This indicates that the balance sheet and financial strength for Idaho Banking Company has improved slightly in recent periods. | |
| Deposit Growth | |
| In the past year, Idaho Banking Company has decreased its total deposits by -$10.67 million, resulting in -9.68% 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 Idaho Banking Company has shown is poor. | |
| Capitalization |  |
| 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. Idaho Banking Company has $106.72 million in assets with $7.99 million in equity, resulting in a capitalization level of 7.49%, which is below average. | |
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