THE INSTITUTION'S SCORE
Capital acts as a bulwark against losses and as protection for depositors when a bank is experiencing economic instability. Therefore, when it comes to measuring an a bank's financial fortitude, capital is essential. When looking at safety and soundness, the more capital, the better.
On our test to measure capital adequacy, Texan Bank, National Association racked up 20 out of a possible 30 points, exceeding the national average of 13.13.
A bank's Tier 1 capital ratio is a widely followed measure of this buffer. Texan Bank, National Association's Tier 1 capital ratio was 17.79 percent, higher than the 6 percent level considered adequate by regulators, but below the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to stand up to financial challenges.
Overall, Texan Bank, National Association held equity amounting to 16.09 percent of its assets, which exceeded the national average of 12.03 percent.