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Capital conservation buffer: 5.87% (2Q26), against the 2.50% a bank must hold above each risk-based minimum to pay dividends and discretionary bonuses without limits. The buffer is the smallest of the three cushions over the minimums; here the binding ratio is Total capital. The bank clears the requirement. Filed figure: 5.87% (RCOAH311).

What each ratio is made of, 2Q26

Open a ratio to see its numerator and denominator as filed, our recomputation, and how far it sits above each regulatory line.

Common equity Tier 1 ratio 12.71% +6.21 pp over well capitalized

Common equity Tier 1 is the loss-absorbing core: common stock, retained earnings and most of accumulated other comprehensive income, less goodwill, intangibles and other deductions. It is measured against risk-weighted assets.

Common equity Tier 1 capital$409.6M409,627RCOAP859
Divided by total risk-weighted assets$3.22B3,223,685RCOAA223
Recomputed ratio12.71%numerator / denominator
Filed ratio12.71%RCOAP793
Regulatory minimum4.50%
Minimum plus conservation buffer7.00%
Well-capitalized level6.50%
Cushion over that level+6.21 pp$200.1Mcapital that could be lost first
Tier 1 risk-based capital ratio 12.71% +4.71 pp over well capitalized

Tier 1 adds additional Tier 1 instruments, such as qualifying noncumulative perpetual preferred stock, to common equity Tier 1. Measured against risk-weighted assets.

Tier 1 capital$409.7M409,678RCOA8274
Divided by total risk-weighted assets$3.22B3,223,685RCOAA223
Recomputed ratio12.71%numerator / denominator
Filed ratio12.71%RCOA7206
Regulatory minimum6.00%
Minimum plus conservation buffer8.50%
Well-capitalized level8.00%
Cushion over that level+4.71 pp$151.8Mcapital that could be lost first
Total risk-based capital ratio 13.87% +3.87 pp over well capitalized

Total capital adds Tier 2, mostly qualifying subordinated debt and the allowance for credit losses up to 1.25% of risk-weighted assets, to Tier 1. Measured against risk-weighted assets.

Total capital$447.1M447,081RCOA3792
Divided by total risk-weighted assets$3.22B3,223,685RCOAA223
Recomputed ratio13.87%numerator / denominator
Filed ratio13.87%RCOA7205
Regulatory minimum8.00%
Minimum plus conservation buffer10.50%
Well-capitalized level10.00%
Cushion over that level+3.87 pp$124.7Mcapital that could be lost first
Tier 1 leverage ratio 9.33% +4.33 pp over well capitalized

Tier 1 capital over average total assets for the quarter, with no risk weighting. It caps how far a bank can grow on low-risk-weight assets.

Tier 1 capital$409.7M409,678RCOA8274
Divided by average total assets for the leverage ratio$4.39B4,392,386RCOAA224
Recomputed ratio9.33%numerator / denominator
Filed ratio9.33%RCOA7204
Regulatory minimum4.00%
Well-capitalized level5.00%
Cushion over that level+4.33 pp$190.1Mcapital that could be lost first

Amounts in the middle column are thousands of dollars as filed. Ratios are the standardized column of Schedule RC-R Part I.

The capital stack, $ thousands

From common equity to total capital, then the denominators the ratios divide by. Negatives in parentheses.

Line2Q261Q264Q253Q252Q251Q25Source
Common stock plus related surplus, net of treasury stock41,14340,91540,73140,62840,53540,307RCOAP742
Retained earnings390,210404,022395,442386,366381,619380,740RCOAKW00
Accumulated other comprehensive income(8,159)(7,477)(6,746)(11,357)(13,738)(16,575)RCOAB530
Common equity Tier 1 minority interest000000RCOAP839
Common equity Tier 1 capital before adjustments and deductions423,194437,460429,427415,637408,416404,472RCOAP840
Adjustments and deductions from common equity Tier 1(13,567)(14,306)(15,094)(10,544)(8,225)(5,455)P859 - P840
Common equity Tier 1 capital409,627423,154414,333405,093400,191399,017RCOAP859
Additional Tier 1 capital515151525252RCOAP865
Tier 1 capital409,678423,205414,384405,145400,243399,069RCOA8274
Tier 2 capital37,40335,19835,57435,51635,47639,093RCOA5311
Allowance includable in Tier 2 capital37,40335,19835,57435,51635,47639,093RCOA5310
Total capital447,081458,403449,958440,661435,719438,162RCOA3792
Total risk-weighted assets3,223,6853,154,7833,152,8103,078,8383,107,5883,129,465RCOAA223
Average total assets for the leverage ratio4,392,3864,400,8284,473,0454,384,2934,320,4484,318,812RCOAA224

Risk-weighted assets by exposure category, 2Q26

Each category's exposure is filed across the risk-weight columns of Schedule RC-R Part II; its risk-weighted assets are each allocation times its weight. The average risk weight says how much capital a dollar of that exposure consumes.

CategoryExposureRisk-weightedAvg weightShare of RWASource
Cash and balances due$186.8M$3.9M2.08% 0.12%RC-R Part II, item 1
Securities (HTM and AFS)$588.3M$125.4M21.32% 3.89%RC-R Part II, item 2.a, 2.b
Loans: residential mortgage$1.41B$703.5M50.00% 21.82%RC-R Part II, item 4.a, 5.a
Loans: high-volatility commercial real estate$9.9M$14.9M150.00% 0.46%RC-R Part II, item 4.b, 5.b
Loans: past due and nonaccrual$5.3M$7.9M150.00% 0.24%RC-R Part II, item 4.c, 5.c
Loans: all other$2.07B$2.07B99.58% 64.08%RC-R Part II, item 4.d, 5.d
All other assets$207.5M$188.6M90.88% 5.85%RC-R Part II, item 8
Off-balance-sheet commitments and letters of credit$109.2M$103.0M94.33% 3.19%RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b
Derivatives (over the counter and centrally cleared)$1.8M$591K33.00% 0.02%RC-R Part II, item 20, 21
Market risk and other approachesNA$10.3MNA 0.32%RC-R Part II, item 27

How the categories add up to total risk-weighted assets

Categories above, excluding market risk and other approaches$3.21Bties to item 31 ($3.21B)
Risk-weighted assets before deductions$3.22BRCONB704
Less: excess allowance for credit losses$0A222
Less: allocated transfer risk reserve$03128
Total risk-weighted assets$3.22BRCONG641, ties

12 quarters against the asset-tier median

Common equity Tier 1 ratio: this bank (solid) and the asset-tier median (dashed)
12.5%13.1%13.8% 3Q23: 13.44%4Q23: 13.24%1Q24: 13.03%2Q24: 13.13%3Q24: 12.97%4Q24: 12.86%1Q25: 12.75%2Q25: 12.88%3Q25: 13.16%4Q25: 13.14%1Q26: 13.41%2Q26: 12.71% 3Q231Q252Q26
Tier 1 leverage ratio: this bank (solid) and the asset-tier median (dashed)
8.5%9.6%10.8% 3Q23: 9.28%4Q23: 9.16%1Q24: 8.76%2Q24: 8.79%3Q24: 8.75%4Q24: 9.22%1Q25: 9.24%2Q25: 9.26%3Q25: 9.24%4Q25: 9.26%1Q26: 9.62%2Q26: 9.33% 3Q231Q252Q26
QuarterFrameworkCET1Tier 1Total capitalLeverageTier median CET1Tier median Tier 1Tier median Total capitalTier median Leverage
2Q26Risk-based12.71%12.71%13.87%9.33%13.52%13.55%14.66%10.52%
1Q26Risk-based13.41%13.41%14.53%9.62%13.45%13.46%14.59%10.46%
4Q25Risk-based13.14%13.14%14.27%9.26%13.36%13.37%14.44%10.38%
3Q25Risk-based13.16%13.16%14.31%9.24%13.38%13.39%14.51%10.37%
2Q25Risk-based12.88%12.88%14.02%9.26%13.21%13.21%14.27%10.30%
1Q25Risk-based12.75%12.75%14.00%9.24%13.15%13.17%14.26%10.24%
4Q24Risk-based12.86%12.86%13.99%9.22%13.02%13.05%14.10%10.07%
3Q24Risk-based12.97%12.97%13.94%8.75%12.97%13.02%14.13%10.12%
2Q24Risk-based13.13%13.14%14.12%8.79%12.93%12.94%14.06%10.10%
1Q24Risk-based13.03%13.03%14.02%8.76%12.90%12.91%14.02%10.06%
4Q23Risk-based13.24%13.24%14.25%9.16%12.81%12.82%13.92%10.01%
3Q23Risk-based13.44%13.44%14.49%9.28%12.78%12.79%13.93%10.03%

NA means not filed for that quarter: a community bank leverage ratio filer files no risk-based ratios. Tier medians are the served benchmark for banks in the same asset tier.

Against similar banks, 2Q26

BankAssetsFrameworkCET1Tier 1Total capitalLeverage
Arrow Bank N.A. (this bank)Risk-based12.71%12.71%13.87%9.33%
ChoiceOne Bank$4.45BRisk-based11.81%11.81%12.92%9.30%
Metro City Bank$4.47BRisk-based17.14%17.14%18.04%11.08%
Capital City Bank$4.45BRisk-based18.18%18.18%19.43%10.29%
HomeTrust Bank$4.44BRisk-based13.74%13.74%14.84%12.91%
First Federal Bank$4.49BRisk-based20.56%20.56%21.06%10.83%
Texas Exchange Bank$4.49BRisk-based30.06%30.06%30.82%12.44%
American Business Bank$4.42BRisk-based12.35%12.35%13.24%11.01%
First Business Bank$4.41BRisk-based11.17%11.17%12.18%10.37%
Sunwest Bank$4.41BRisk-based10.40%10.40%11.66%9.71%
First State Community Bank$4.51BRisk-based14.35%14.35%15.43%11.68%
Peer 25th percentile11.94%11.94%13.00%10.31%
Peer median14.04%14.04%15.13%10.92%
Peer 75th percentile17.92%17.92%19.08%11.53%
This bank's percentile40404010

Peer ratios use the same basis as this bank: the standardized column of Schedule RC-R where served, the filed summary otherwise. Similar banks are the nearest banks by size in the same asset tier.

Source: FFIEC Call Report Schedule RC-R, Parts I and II, as filed. Well capitalized means at least 6.5% CET1, 8% Tier 1, 10% total capital and 5% leverage under the prompt corrective action rules; a community bank leverage ratio filer must instead hold the leverage ratio its framework requires. The same figures are in the API at /api/v1/banks/866000/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.