Bank of Ann Arbor: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 7.42% (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: 7.42% (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 14.27% +7.77 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 | $434.7M | 434,705 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $3.05B | 3,045,380 | RCOAA223 |
| Recomputed ratio | 14.27% | numerator / denominator | |
| Filed ratio | 14.27% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +7.77 pp | $236.8M | capital that could be lost first |
Tier 1 risk-based capital ratio 14.27% +6.27 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 | $434.7M | 434,705 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $3.05B | 3,045,380 | RCOAA223 |
| Recomputed ratio | 14.27% | numerator / denominator | |
| Filed ratio | 14.27% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +6.27 pp | $191.1M | capital that could be lost first |
Total risk-based capital ratio 15.42% +5.42 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 | $469.7M | 469,730 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $3.05B | 3,045,380 | RCOAA223 |
| Recomputed ratio | 15.42% | numerator / denominator | |
| Filed ratio | 15.42% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +5.42 pp | $165.2M | capital that could be lost first |
Tier 1 leverage ratio 13.17% +8.17 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 | $434.7M | 434,705 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $3.30B | 3,301,554 | RCOAA224 |
| Recomputed ratio | 13.17% | numerator / denominator | |
| Filed ratio | 13.17% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +8.17 pp | $269.6M | capital 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.
| Line | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | Source |
|---|---|---|---|---|---|---|---|
| Common stock plus related surplus, net of treasury stock | 272,916 | 247,676 | 247,351 | 247,099 | 246,933 | 246,636 | RCOAP742 |
| Retained earnings | 233,297 | 240,647 | 234,873 | 222,306 | 213,597 | 199,144 | RCOAKW00 |
| Accumulated other comprehensive income | (7,255) | (7,285) | (6,556) | (6,589) | (8,117) | (8,459) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 498,958 | 481,038 | 475,668 | 462,816 | 452,413 | 437,321 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (64,253) | (64,300) | (65,211) | (64,941) | (63,594) | (63,435) | P859 - P840 |
| Common equity Tier 1 capital | 434,705 | 416,738 | 410,457 | 397,875 | 388,819 | 373,886 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 434,705 | 416,738 | 410,457 | 397,875 | 388,819 | 373,886 | RCOA8274 |
| Tier 2 capital | 35,025 | 35,422 | 33,929 | 34,760 | 34,860 | 33,735 | RCOA5311 |
| Allowance includable in Tier 2 capital | 35,025 | 35,422 | 33,929 | 34,760 | 34,860 | 33,735 | RCOA5310 |
| Total capital | 469,730 | 452,160 | 444,386 | 432,635 | 423,679 | 407,621 | RCOA3792 |
| Total risk-weighted assets | 3,045,380 | 3,078,436 | 3,101,701 | 3,058,546 | 3,098,631 | 2,981,735 | RCOAA223 |
| Average total assets for the leverage ratio | 3,301,554 | 3,240,518 | 3,178,953 | 3,256,306 | 3,171,307 | 3,144,757 | RCOAA224 |
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.
| Category | Exposure | Risk-weighted | Avg weight | Share of RWA | Source |
|---|---|---|---|---|---|
| Cash and balances due | $351.7M | $6.3M | 1.79% | 0.21% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $242.7M | $56.6M | 23.33% | 1.86% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $26.1M | $729K | 2.80% | 0.02% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $496.0M | $382.7M | 77.16% | 12.57% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $16.2M | $24.4M | 150.00% | 0.80% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $7.3M | $10.7M | 145.43% | 0.35% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $2.15B | $2.15B | 100.00% | 70.48% | RC-R Part II, item 4.d, 5.d |
| All other assets | $201.0M | $214.9M | 106.90% | 7.06% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $205.7M | $200.2M | 97.35% | 6.57% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $44K | $22K | 50.00% | 0.00% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $2.6M | NA | 0.08% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $3.04B | ties to item 31 ($3.04B) |
|---|---|---|
| Risk-weighted assets before deductions | $3.05B | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $3.05B | RCONG641, ties |
12 quarters against the asset-tier median
| Quarter | Framework | CET1 | Tier 1 | Total capital | Leverage | Tier median CET1 | Tier median Tier 1 | Tier median Total capital | Tier median Leverage |
|---|---|---|---|---|---|---|---|---|---|
| 2Q26 | Risk-based | 14.27% | 14.27% | 15.42% | 13.17% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 13.54% | 13.54% | 14.69% | 12.86% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 13.23% | 13.23% | 14.33% | 12.91% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 13.01% | 13.01% | 14.15% | 12.22% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 12.55% | 12.55% | 13.67% | 12.26% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 12.54% | 12.54% | 13.67% | 11.89% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 12.37% | 12.37% | 13.46% | 12.05% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 12.19% | 12.19% | 13.26% | 11.70% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 11.68% | 11.68% | 12.73% | 11.63% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 11.80% | 11.80% | 12.84% | 11.40% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 11.84% | 11.84% | 12.87% | 11.23% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 11.59% | 11.59% | 12.84% | 10.79% | 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
| Bank | Assets | Framework | CET1 | Tier 1 | Total capital | Leverage |
|---|---|---|---|---|---|---|
| Bank of Ann Arbor (this bank) | Risk-based | 14.27% | 14.27% | 15.42% | 13.17% | |
| MVB Bank, Inc. | $3.50B | CBLR | NA | NA | NA | 10.27% |
| First Farmers Bank & Trust Co. | $3.50B | Risk-based | 12.82% | 12.82% | 14.07% | 10.06% |
| The Farmers & Merchants State Bank | $3.49B | Risk-based | 11.84% | 11.84% | 12.91% | 9.44% |
| Cache Valley Bank | $3.49B | Risk-based | 12.04% | 12.04% | 13.19% | 10.68% |
| Ponce Bank, N.A. | $3.49B | Risk-based | 17.87% | 17.87% | 18.88% | 15.81% |
| Banco do Brasil Americas | $3.47B | Risk-based | 23.30% | 23.30% | 24.56% | 10.90% |
| PCB Bank | $3.47B | Risk-based | 13.35% | 13.35% | 14.58% | 11.54% |
| Bankwell Bank | $3.47B | Risk-based | 11.67% | 11.67% | 12.70% | 10.39% |
| Old Plank Trail Community Bank, N.A. | $3.53B | Risk-based | 10.81% | 10.81% | 11.46% | 8.82% |
| Peer 25th percentile | 11.80% | 11.80% | 12.86% | 10.06% | ||
| Peer median | 12.43% | 12.43% | 13.63% | 10.39% | ||
| Peer 75th percentile | 14.48% | 14.48% | 15.65% | 10.90% | ||
| This bank's percentile | 75 | 75 | 75 | 89 |
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/2390929/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.