Better Banks: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 6.61% (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: 6.61% (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 13.36% +6.86 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 | $41.2M | 41,216 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $308.6M | 308,595 | RCOAA223 |
| Recomputed ratio | 13.36% | numerator / denominator | |
| Filed ratio | 13.36% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +6.86 pp | $21.2M | capital that could be lost first |
Tier 1 risk-based capital ratio 13.36% +5.36 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 | $41.2M | 41,216 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $308.6M | 308,595 | RCOAA223 |
| Recomputed ratio | 13.36% | numerator / denominator | |
| Filed ratio | 13.36% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +5.36 pp | $16.5M | capital that could be lost first |
Total risk-based capital ratio 14.61% +4.61 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 | $45.1M | 45,077 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $308.6M | 308,595 | RCOAA223 |
| Recomputed ratio | 14.61% | numerator / denominator | |
| Filed ratio | 14.61% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +4.61 pp | $14.2M | capital that could be lost first |
Tier 1 leverage ratio 9.43% +4.43 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 | $41.2M | 41,216 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $437.0M | 437,017 | RCOAA224 |
| Recomputed ratio | 9.43% | numerator / denominator | |
| Filed ratio | 9.43% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +4.43 pp | $19.4M | 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 | 9,080 | 9,080 | 9,080 | 9,080 | 9,080 | 9,080 | RCOAP742 |
| Retained earnings | 33,905 | 33,499 | 33,685 | 33,115 | 32,647 | 32,750 | RCOAKW00 |
| Accumulated other comprehensive income | (7,488) | (8,207) | (7,729) | (8,859) | (10,243) | (11,199) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 35,497 | 34,372 | 35,036 | 33,336 | 31,484 | 30,631 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 5,719 | 6,428 | 5,941 | 7,061 | 8,437 | 9,384 | P859 - P840 |
| Common equity Tier 1 capital | 41,216 | 40,800 | 40,977 | 40,397 | 39,921 | 40,015 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 41,216 | 40,800 | 40,977 | 40,397 | 39,921 | 40,015 | RCOA8274 |
| Tier 2 capital | 3,861 | 3,817 | 3,837 | 3,837 | 3,801 | 3,748 | RCOA5311 |
| Allowance includable in Tier 2 capital | 3,861 | 3,817 | 3,837 | 3,837 | 3,801 | 3,748 | RCOA5310 |
| Total capital | 45,077 | 44,617 | 44,814 | 44,234 | 43,722 | 43,763 | RCOA3792 |
| Total risk-weighted assets | 308,595 | 305,122 | 306,852 | 306,920 | 304,029 | 299,848 | RCOAA223 |
| Average total assets for the leverage ratio | 437,017 | 434,165 | 438,159 | 441,314 | 437,446 | 445,567 | 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 | $24.1M | $62K | 0.26% | 0.02% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $119.8M | $19.9M | 16.61% | 6.44% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $99.7M | $57.5M | 57.65% | 18.62% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $4.5M | $6.7M | 150.00% | 2.18% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $196.2M | $188.7M | 96.16% | 61.09% | RC-R Part II, item 4.d, 5.d |
| All other assets | $11.1M | $9.9M | 89.65% | 3.22% | RC-R Part II, item 8 |
| Securitization exposures at 1250% | $1.1M | $14.2M | 1250.00% | 4.59% | RC-R Part II, item 9, 10 |
| Off-balance-sheet commitments and letters of credit | $11.9M | $11.9M | 100.00% | 3.84% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $308.9M | ties to item 31 ($308.9M) |
|---|---|---|
| Risk-weighted assets before deductions | $308.9M | RCONB704 |
| Less: excess allowance for credit losses | $301K | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $308.6M | 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 | 13.36% | 13.36% | 14.61% | 9.43% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 13.37% | 13.37% | 14.62% | 9.40% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 13.35% | 13.35% | 14.60% | 9.35% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 13.16% | 13.16% | 14.41% | 9.15% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 13.13% | 13.13% | 14.38% | 9.13% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 13.35% | 13.35% | 14.60% | 8.98% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 13.34% | 13.34% | 14.59% | 9.01% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 12.93% | 12.93% | 14.18% | 8.60% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 12.67% | 12.67% | 13.92% | 8.44% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 12.45% | 12.45% | 13.70% | 8.22% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 12.21% | 12.21% | 13.46% | 8.18% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 12.28% | 12.28% | 13.53% | 8.17% | 14.65% | 14.67% | 15.79% | 10.60% |
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 |
|---|---|---|---|---|---|---|
| Better Banks (this bank) | Risk-based | 13.36% | 13.36% | 14.61% | 9.43% | |
| Star Bank | $445.8M | Risk-based | 10.73% | 10.73% | 11.75% | 9.29% |
| Bank of the Plains | $445.6M | Risk-based | 11.85% | 11.85% | 13.10% | 9.30% |
| The Bank of Vernon | $445.4M | CBLR | NA | NA | NA | 16.60% |
| Peoples Bank | $445.3M | Risk-based | 14.35% | 14.35% | 15.26% | 12.72% |
| The City National Bank and Trust Company of Lawton, Oklahoma | $446.2M | CBLR | NA | NA | NA | 13.87% |
| Lexicon Bank | $446.2M | Risk-based | 20.96% | 20.96% | 22.22% | 9.77% |
| Oregon Coast Bank | $446.3M | CBLR | NA | NA | NA | 10.43% |
| Riverhills Bank | $445.2M | CBLR | NA | NA | NA | 12.54% |
| Community Bank and Trust | $445.1M | Risk-based | 27.64% | 27.64% | 28.89% | 8.37% |
| National Grand Bank of Marblehead | $444.8M | CBLR | NA | NA | NA | 10.31% |
| Peer 25th percentile | 11.85% | 11.85% | 13.10% | 9.42% | ||
| Peer median | 14.35% | 14.35% | 15.26% | 10.37% | ||
| Peer 75th percentile | 20.96% | 20.96% | 22.22% | 12.67% | ||
| This bank's percentile | 40 | 40 | 40 | 30 |
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/851631/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.