THE INSTITUTION'S SCORE
Capital acts as a buffer against losses and affords protection for depositors when a bank is struggling financially. Therefore, when it comes to measuring an a bank's financial stability, capital is valuable. When it comes to safety and soundness, the higher the capital, the better.
On our test to measure capital adequacy, Century Bank received a score of 12 out of a possible 30 points, below the national average of 13.13.
One widely used measure of this buffer is a bank's Tier 1 capital ratio. Century Bank's Tier 1 capital ratio was 14.19 percent, higher than 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 economic downturns.
Overall, Century Bank held equity amounting to 10.29 percent of its assets, which was lower than the national average of 12.03 percent.