Capital Ratios

Capital Strength
Capital strength is by far the most important measure of a bank's financial condition. Bank regulators define three measures of capital adequacy. The Leverage Ratio is a measurement of capital to assets. The Tier 1 Risk Based Capital and Total Risk Based Capital Ratios are two measurements of capital compared to the risk profile of the bank's assets.

According to banking regulations, a Well Capitalized bank must maintain the following ratios:

• Leverage Ratio at least 5%
• Tier 1 Risk Based Capital Ratio at least 6%
• Total Risk Based Capital Ratio at least 10%
  
   

First Associations Bank's Ratios as of 6-30-10 are:
 

• Leverage Ratio 11%
• Tier 1 Risk Based Capital Ratio 53%
• Total Risk Based Capital Ratio 53%