THE INSTITUTION'S SCORE
Capital works as a bulwark against losses and provides protection for depositors when a bank is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is essential. When it comes to safety and soundness, the higher the capital, the better.
On our test to measure capital adequacy, Mission National Bank received a score of 10 out of a possible 30 points, coming in below the national average of 13.13.
A bank's Tier 1 capital ratio is a commonly used measure of this buffer. Mission National Bank's Tier 1 capital ratio was 13.85 percent, exceeding the 6 percent level considered adequate by regulators, but less than the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to stand up to economic difficulties.
Overall, Mission National Bank held equity amounting to 9.75 percent of its assets, which was lower than the national average of 12.03 percent.