THE INSTITUTION'S SCORE
Capital acts as a bulwark against losses and provides protection for depositors when a bank is struggling financially. Therefore, when it comes to measuring an a bank's financial stability, capital is important. From a safety and soundness perspective, the more capital, the better.
On our test to measure capital adequacy, HomePride Bank received a score of 8 out of a possible 30 points, less than the national average of 13.13.
One essential measure of this buffer is a bank's Tier 1 capital ratio. HomePride Bank's Tier 1 capital ratio was 12.39 percent, higher than the 6 percent level regulators consider adequate, but lower than the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to weather financial difficulties.
Overall, HomePride Bank held equity amounting to 8.60 percent of its assets, which was lower than the national average of 12.03 percent.