What is a capital ratio?
A capital ratio is a measurement of the amount of net worth divided by our overall asset size. As of June 30, 2010 Arrowhead’s net worth declined to 3 percent. Net worth can be thought of as a “savings account” for troubled times. The goal is to increase our savings to a “well capitalized” position and along with our increase in allowance for loan loss reserves, will put us in a better position.
