How Safe Is Alliance Bank?
A One of the most important measures of the strength and safety of any bank is its level of capital (equity). Each FDIC insured institution is assigned to one of three capital groups which are based solely on the level of an institutions capital. They are well capitalized, adequately capitalized and undercapitalized. Alliance Bank is currently classified as well capitalized and maintains a capital level well in excess of all minimum requirements. The FDIC requires that banks meet a risk based capital standard expressed as a percent of risk weighted capital. Assets are risk weighted from 0% to 100%. There are two risk weighted ratios known as Tier 1 and Tier 2 capital ratios. The minimum required risk based capital ratios for banks are 4% for Tier 1 capital and 8% for Tier 2 capital. Alliance Banks risk weighted capital ratios at September 30, 2009 (our most recent reporting date) are 16.23% for Tier 1 and 17.35% for Tier 2. We hold MORE THAN FOUR TIMES the minimum requirement for Tier
A One of the most important measures of the strength and safety of any bank is its level of capital (equity). Each FDIC insured institution is assigned to one of three capital groups which are based solely on the level of an institutions capital. They are well capitalized, adequately capitalized and undercapitalized. Alliance Bank is currently classified as well capitalized and maintains a capital level well in excess of all minimum requirements. The FDIC requires that banks meet a risk based capital standard expressed as a percent of risk weighted capital. Assets are risk weighted from 0% to 100%. There are two risk weighted ratios known as Tier 1 and Tier 2 capital ratios. The minimum required risk based capital ratios for banks are 4% for Tier 1 capital and 8% for Tier 2 capital. Alliance Banks risk weighted capital ratios at December 31, 2009 are 15.97% for Tier 1 and 17.17% for Tier 2. We hold FOUR TIMES the minimum requirement for Tier 1 capital and MORE THAN DOUBLE the minimum r
