Question: Lawrence State Bank has Tier 1 capital to risk weighted assets of 7 . 7 5 % , total capital ( Tier 1 & 2

Lawrence State Bank has Tier 1 capital to risk weighted assets of 7.75%,total capital (Tier 1 &2)to risk weighted assets of 9.75%,common equity to risk weighted asets of 6.45%, and a Tier 1 capitalto total assets ratio of 4.95%.What type of bank is this under the new or updated U.S.Prompt Corrective Action (PCA)standards?
Sound bank category
Well capitalized
Adequately capitalized
Undercapitalized
Significantly undercapitalized

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