THE INSTITUTION'S SCORE
Capital acts as a buffer against losses and affords protection for account holders when a bank is struggling financially. Therefore, when it comes to measuring an a bank's financial fortitude, capital is valuable. From a safety and soundness perspective, the more capital, the better.
San Luis Valley Federal Bank scored 24 out of a possible 30 points on our test to measure the adequacy of a bank's capital, exceeding the national average of 13.13.
One way to measure this buffer is looking at a bank's Tier 1 capital ratio. San Luis Valley Federal Bank's Tier 1 capital ratio was 24.65 percent, exceeding the 6 percent level regulators consider adequate, 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 financial difficulties.
Overall, San Luis Valley Federal Bank held equity amounting to 16.14 percent of its assets, which exceeded the national average of 12.03 percent.