THE INSTITUTION'S SCORE
Capital works as a cushion against losses and affords protection for account holders when a bank is struggling financially. Therefore, when it comes to measuring an an institution's financial stability, capital is valuable. From a safety and soundness perspective, the more capital, the better.
Security State Bank, Wishek, North Dakota did better than the national average of 13.13 points on our test to measure the adequacy of a bank's capital, racking up 14 out of a possible 30 points.
One way to measure this buffer is looking at a bank's Tier 1 capital ratio. Security State Bank, Wishek, North Dakota's Tier 1 capital ratio was 17.99 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 weather economic challenges.
Overall, Security State Bank, Wishek, North Dakota held equity amounting to 11.69 percent of its assets, which was lower than the national average of 12.03 percent.