THE INSTITUTION'S SCORE
Capital works as a buffer against losses and provides protection for account holders during times of financial trouble for the bank. Therefore, a bank's level of capital is an important measurement of a bank's financial fortitude. When it comes to safety and soundness, the more capital, the better.
On our test to measure capital adequacy, Brentwood Bank received a score of 12 out of a possible 30 points, failing to reach the national average of 13.13.
A bank's Tier 1 capital ratio is a widely used measure of this buffer. Brentwood Bank's Tier 1 capital ratio was 13.21 percent, above the 6 percent level regulators consider adequate, but under the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to weather financial challenges.
Overall, Brentwood Bank held equity amounting to 10.73 percent of its assets, which was lower than the national average of 12.03 percent.