THE INSTITUTION'S SCORE
Capital acts as a buffer against losses and affords protection for depositors when a bank is experiencing financial instability. Therefore, when it comes to measuring an a bank's financial resilience, capital is key. When it comes to safety and soundness, the more capital, the better.
Community Bank of Elmhurst received a score of 8 out of a possible 30 points on our test to measure the adequacy of a bank's capital, falling short of the national average of 13.13.
One important measure of this buffer is a bank's Tier 1 capital ratio. Community Bank of Elmhurst's Tier 1 capital ratio was 15.53 percent, higher than 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 economic difficulties.
Overall, Community Bank of Elmhurst held equity amounting to 8.62 percent of its assets, which was lower than the national average of 12.03 percent.