The Business Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 7.70% (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: 7.70% (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 14.74% +8.24 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 | $40.1M | 40,100 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $272.0M | 272,048 | RCOAA223 |
| Recomputed ratio | 14.74% | numerator / denominator | |
| Filed ratio | 14.74% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +8.24 pp | $22.4M | capital that could be lost first |
Tier 1 risk-based capital ratio 14.74% +6.74 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 | $40.1M | 40,100 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $272.0M | 272,048 | RCOAA223 |
| Recomputed ratio | 14.74% | numerator / denominator | |
| Filed ratio | 14.74% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +6.74 pp | $18.3M | capital that could be lost first |
Total risk-based capital ratio 15.70% +5.70 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 | $42.7M | 42,716 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $272.0M | 272,048 | RCOAA223 |
| Recomputed ratio | 15.70% | numerator / denominator | |
| Filed ratio | 15.70% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +5.70 pp | $15.5M | capital that could be lost first |
Tier 1 leverage ratio 12.40% +7.40 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 | $40.1M | 40,100 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $323.3M | 323,272 | RCOAA224 |
| Recomputed ratio | 12.40% | numerator / denominator | |
| Filed ratio | 12.40% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +7.40 pp | $23.9M | 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 | 47,693 | 42,884 | 41,299 | 32,652 | 32,510 | 31,293 | RCOAP742 |
| Retained earnings | (7,593) | (7,198) | (7,088) | (6,295) | (6,110) | (6,202) | RCOAKW00 |
| Accumulated other comprehensive income | (857) | (671) | (204) | 632 | (562) | (164) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 39,243 | 35,015 | 34,007 | 26,989 | 25,838 | 24,927 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 857 | 671 | 204 | (632) | 562 | 164 | P859 - P840 |
| Common equity Tier 1 capital | 40,100 | 35,686 | 34,211 | 26,357 | 26,400 | 25,091 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 40,100 | 35,686 | 34,211 | 26,357 | 26,400 | 25,091 | RCOA8274 |
| Tier 2 capital | 2,616 | 2,197 | 2,104 | 1,581 | 1,386 | 1,245 | RCOA5311 |
| Allowance includable in Tier 2 capital | 2,616 | 2,197 | 2,104 | 1,581 | 1,386 | 1,245 | RCOA5310 |
| Total capital | 42,716 | 37,883 | 36,315 | 27,938 | 27,786 | 26,336 | RCOA3792 |
| Total risk-weighted assets | 272,048 | 229,213 | 182,641 | 177,201 | 164,629 | 147,716 | RCOAA223 |
| Average total assets for the leverage ratio | 323,272 | 286,714 | 301,141 | 282,906 | 264,391 | 270,887 | 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 | $68.0M | $11.2M | 16.48% | 4.12% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $46.2M | $105K | 0.23% | 0.04% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $21.0M | $11.0M | 52.54% | 4.06% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $211K | $316K | 150.00% | 0.12% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $216.1M | $216.1M | 100.00% | 79.43% | RC-R Part II, item 4.d, 5.d |
| All other assets | $4.0M | $3.5M | 87.08% | 1.27% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $29.4M | $29.4M | 100.00% | 10.83% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $401K | NA | 0.15% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $271.6M | does not tie to item 31 ($272.0M) |
|---|---|---|
| Risk-weighted assets before deductions | $272.0M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $272.0M | 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 | 14.74% | 14.74% | 15.70% | 12.40% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 15.57% | 15.57% | 16.53% | 12.45% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 18.73% | 18.73% | 19.88% | 11.36% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 14.87% | 14.87% | 15.77% | 9.32% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 16.04% | 16.04% | 16.88% | 9.99% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 16.99% | 16.99% | 17.83% | 9.26% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 16.78% | 16.78% | 17.58% | 9.77% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | CBLR | NA | NA | NA | 10.91% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | CBLR | NA | NA | NA | 13.45% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | CBLR | NA | NA | NA | 16.41% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | CBLR | NA | NA | NA | 18.46% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | CBLR | NA | NA | NA | 20.46% | 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 |
|---|---|---|---|---|---|---|
| The Business Bank (this bank) | Risk-based | 14.74% | 14.74% | 15.70% | 12.40% | |
| Iowa State Bank and Trust Company | $352.1M | Risk-based | 10.90% | 10.90% | 11.97% | 8.01% |
| Sterling Bank | $352.4M | Risk-based | 13.52% | 13.52% | 14.52% | 9.37% |
| Citizens Community Bank | $352.6M | CBLR | NA | NA | NA | 14.58% |
| 1st Trust Bank, Inc. | $351.7M | CBLR | NA | NA | NA | 9.65% |
| Glenwood State Bank | $352.9M | CBLR | NA | NA | NA | 12.45% |
| Mutual Savings Bank | $352.9M | Risk-based | 13.05% | 13.05% | 14.27% | 10.22% |
| Kirkwood Bank and Trust Company | $351.3M | CBLR | NA | NA | NA | 9.91% |
| Granite Bank | $353.2M | Risk-based | 9.91% | 9.91% | 10.62% | 8.53% |
| Sherburne Bank | $351.1M | Risk-based | 10.24% | 10.24% | 11.49% | 9.46% |
| Peer 25th percentile | 10.24% | 10.24% | 11.49% | 9.37% | ||
| Peer median | 10.90% | 10.90% | 11.97% | 9.65% | ||
| Peer 75th percentile | 13.05% | 13.05% | 14.27% | 10.22% | ||
| This bank's percentile | 100 | 100 | 100 | 78 |
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/5760662/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.