THE INSTITUTION'S SCORE
Capital works as a buffer against losses and provides protection for account holders when a bank is experiencing financial instability. Therefore, when it comes to measuring an an institution's financial stability, capital is key. From a safety and soundness perspective, the higher the capital, the better.
On our test to measure capital adequacy, Fort Hood National Bank received a score of 8 out of a possible 30 points, lower than the national average of 13.13.
One important measure of this buffer is a bank's Tier 1 capital ratio. Fort Hood National Bank's Tier 1 capital ratio was 39.77 percent, higher than the 6 percent level regulators consider adequate, and exceeding the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to stand up to financial headwinds.
Overall, Fort Hood National Bank held equity amounting to 8.10 percent of its assets, which was lower than the national average of 12.03 percent.