THE INSTITUTION'S SCORE
Capital acts as a buffer against losses and as protection for account holders when a bank is struggling financially. Therefore, when it comes to measuring an an institution's financial strength, capital is essential. When it comes to safety and soundness, the more capital, the better.
On our test to measure the adequacy of a bank's capital, The Citizens Bank of Philadelphia, Mississippi received a score of 8 out of a possible 30 points, failing to reach the national average of 13.13.
A bank's Tier 1 capital ratio is a widely followed measure of this buffer. The Citizens Bank of Philadelphia, Mississippi's Tier 1 capital ratio was 17.42 percent, above the 6 percent level considered adequate by regulators, but lower than the national average of 25.65 percent. A higher capital ratio means the bank will be better able to stand up to economic headwinds.
Overall, The Citizens Bank of Philadelphia, Mississippi held equity amounting to 8.64 percent of its assets, which was lower than the national average of 12.03 percent.