THE INSTITUTION'S SCORE
Capital acts as a bulwark against losses and as protection for depositors when a bank is struggling financially. Therefore, when it comes to measuring an a bank's financial fortitude, capital is useful. From a safety and soundness perspective, the higher the capital, the better.
On our test to measure the adequacy of a bank's capital, Colonial Savings, F.A. received a score of 2 out of a possible 30 points, below the national average of 13.13.
One way to measure this buffer is looking at a bank's Tier 1 capital ratio. Colonial Savings, F.A.'s Tier 1 capital ratio was 26.31 percent, exceeding the 6 percent level regulators consider adequate, and exceeding the national average of 25.65 percent. A higher capital ratio means the bank will be better able to stand up to economic difficulties.
Overall, Colonial Savings, F.A. held equity amounting to 25.19 percent of its assets, which exceeded the national average of 12.03 percent.