THE INSTITUTION'S SCORE
Capital acts as a bulwark against losses and as protection for account holders when a bank is struggling financially. It follows then that when it comes to measuring an a bank's financial stability, capital is key. From a safety and soundness perspective, the more capital, the better.
First National Bank, Ames, Iowa finished below the national average of 13.13 on our test to measure the adequacy of a bank's capital, receiving a score of 10 out of a possible 30 points.
One way to measure this buffer is looking at a bank's Tier 1 capital ratio. First National Bank, Ames, Iowa's Tier 1 capital ratio was 14.39 percent, above the 6 percent level considered adequate by regulators, 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 headwinds.
Overall, First National Bank, Ames, Iowa held equity amounting to 10.13 percent of its assets, which was lower than the national average of 12.03 percent.