THE INSTITUTION'S SCORE
Capital acts as a buffer against losses and as protection for depositors when a bank is experiencing financial trouble. Therefore, when it comes to measuring an an institution's financial stability, capital is useful. When it comes to safety and soundness, the higher the capital, the better.
On our test to measure the adequacy of a bank's capital, Oconee Federal Savings and Loan Association racked up 22 out of a possible 30 points, beating the national average of 13.13.
A bank's Tier 1 capital ratio is a widely followed measure of this buffer. Oconee Federal Savings and Loan Association's Tier 1 capital ratio was 31.35 percent, higher than the 6 percent level regulators consider adequate, and above the national average of 25.65 percent. A higher capital ratio means the bank will be better able to weather economic challenges.
Overall, Oconee Federal Savings and Loan Association held equity amounting to 16.61 percent of its assets, which exceeded the national average of 12.03 percent.