THE INSTITUTION'S SCORE
Capital acts as a cushion against losses and as protection for account holders during periods of economic trouble for the bank. Therefore, when it comes to measuring an a bank's financial strength, capital is useful. From a safety and soundness perspective, the more capital, the better.
On our test to measure the adequacy of a bank's capital, Winter Hill Bank, FSB received a score of 8 out of a possible 30 points, less than the national average of 13.13.
One important measure of this buffer is a bank's Tier 1 capital ratio. Winter Hill Bank, FSB's Tier 1 capital ratio was 13.48 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 financial headwinds.
Overall, Winter Hill Bank, FSB held equity amounting to 9.05 percent of its assets, which was lower than the national average of 12.03 percent.