THE INSTITUTION'S SCORE
Capital acts as a buffer against losses and as protection for account holders when a bank is experiencing economic trouble. Therefore, when it comes to measuring an an institution's financial strength, capital is essential. When looking at safety and soundness, the higher the capital, the better.
On our test to measure the adequacy of a bank's capital, Catskill Hudson Bank received a score of 6 out of a possible 30 points, coming in below the national average of 13.13.
A bank's Tier 1 capital ratio is an important measure of this buffer. Catskill Hudson Bank's Tier 1 capital ratio was 11.48 percent, exceeding the 6 percent level regulators consider adequate, but lower than the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to weather financial headwinds.
Overall, Catskill Hudson Bank held equity amounting to 7.55 percent of its assets, which was lower than the national average of 12.03 percent.