THE INSTITUTION'S SCORE
Capital acts as a cushion against losses and as protection for account holders when a bank is experiencing economic trouble. Therefore, when it comes to measuring an a bank's financial resilience, capital is important. When looking at safety and soundness, the more capital, the better.
On our test to measure capital adequacy, Fox River State Bank received a score of 12 out of a possible 30 points, falling short of the national average of 13.13.
A bank's Tier 1 capital ratio is a widely followed measure of this buffer. Fox River State Bank's Tier 1 capital ratio was 12.66 percent, above the 6 percent level regulators consider adequate, but below the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to weather financial difficulties.
Overall, Fox River State Bank held equity amounting to 11.47 percent of its assets, which was lower than the national average of 12.03 percent.