Farmers State Bank of Underwood: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 4.78% (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: 4.78% (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 11.53% +5.03 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 | $9.7M | 9,728 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $84.3M | 84,347 | RCOAA223 |
| Recomputed ratio | 11.53% | numerator / denominator | |
| Filed ratio | 11.53% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +5.03 pp | $4.2M | capital that could be lost first |
Tier 1 risk-based capital ratio 11.53% +3.53 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 | $9.7M | 9,728 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $84.3M | 84,347 | RCOAA223 |
| Recomputed ratio | 11.53% | numerator / denominator | |
| Filed ratio | 11.53% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +3.53 pp | $3.0M | capital that could be lost first |
Total risk-based capital ratio 12.78% +2.78 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 | $10.8M | 10,782 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $84.3M | 84,347 | RCOAA223 |
| Recomputed ratio | 12.78% | numerator / denominator | |
| Filed ratio | 12.78% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +2.78 pp | $2.3M | capital that could be lost first |
Tier 1 leverage ratio 8.62% +3.62 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 | $9.7M | 9,728 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $112.9M | 112,888 | RCOAA224 |
| Recomputed ratio | 8.62% | numerator / denominator | |
| Filed ratio | 8.62% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +3.62 pp | $4.1M | 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 | 7,000 | 7,000 | 7,000 | 7,000 | 7,000 | 6,500 | RCOAP742 |
| Retained earnings | 2,728 | 2,499 | 2,527 | 2,131 | 1,753 | 2,219 | RCOAKW00 |
| Accumulated other comprehensive income | (742) | (801) | (725) | (863) | (1,006) | (1,204) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 8,986 | 8,698 | 8,802 | 8,268 | 7,747 | 7,515 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 742 | 801 | 725 | 863 | 1,006 | 1,204 | P859 - P840 |
| Common equity Tier 1 capital | 9,728 | 9,499 | 9,527 | 9,131 | 8,753 | 8,719 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 9,728 | 9,499 | 9,527 | 9,131 | 8,753 | 8,719 | RCOA8274 |
| Tier 2 capital | 1,054 | 1,020 | 1,042 | 992 | 982 | 931 | RCOA5311 |
| Allowance includable in Tier 2 capital | 1,054 | 1,020 | 1,042 | 992 | 982 | 931 | RCOA5310 |
| Total capital | 10,782 | 10,519 | 10,569 | 10,123 | 9,735 | 9,650 | RCOA3792 |
| Total risk-weighted assets | 84,347 | 81,566 | 83,361 | 79,336 | 78,554 | 74,398 | RCOAA223 |
| Average total assets for the leverage ratio | 112,888 | 107,871 | 109,616 | 107,755 | 104,376 | 104,058 | 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 | $10.1M | $1.7M | 17.20% | 2.06% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $14.0M | $1.6M | 11.46% | 1.90% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $1.4M | $285K | 20.00% | 0.34% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $28.3M | $16.9M | 59.77% | 20.05% | RC-R Part II, item 4.a, 5.a |
| Loans: all other | $57.4M | $57.4M | 100.00% | 68.02% | RC-R Part II, item 4.d, 5.d |
| All other assets | $4.3M | $4.2M | 96.55% | 4.97% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $5.2M | $2.2M | 43.59% | 2.66% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | -$200 | NA | 0.00% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $84.4M | ties to item 31 ($84.4M) |
|---|---|---|
| Risk-weighted assets before deductions | $84.4M | RCONB704 |
| Less: excess allowance for credit losses | $38K | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $84.3M | 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 | 11.53% | 11.53% | 12.78% | 8.62% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 11.65% | 11.65% | 12.90% | 8.81% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 11.43% | 11.43% | 12.68% | 8.69% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 11.51% | 11.51% | 12.76% | 8.47% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 11.14% | 11.14% | 12.39% | 8.39% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 11.72% | 11.72% | 12.97% | 8.38% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 11.56% | 11.56% | 12.81% | 8.21% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 11.32% | 11.32% | 12.57% | 8.05% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 10.48% | 10.48% | 11.73% | 7.81% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 10.57% | 10.57% | 11.82% | 7.83% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 10.87% | 10.87% | 12.12% | 7.96% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 11.12% | 11.12% | 12.37% | 8.01% | 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 |
|---|---|---|---|---|---|---|
| Farmers State Bank of Underwood (this bank) | Risk-based | 11.53% | 11.53% | 12.78% | 8.62% | |
| Great Nations Bank | $113.8M | CBLR | NA | NA | NA | 10.27% |
| Farmers and Mechanics Federal Savings Bank | $113.6M | Risk-based | 11.76% | 11.76% | 12.17% | 6.79% |
| Spring Valley Bank | $113.6M | CBLR | NA | NA | NA | 34.07% |
| Monroe Savings Bank | $114.0M | Risk-based | 24.75% | 24.75% | 26.01% | 14.02% |
| Richland County Bank | $114.1M | CBLR | NA | NA | NA | 17.77% |
| Turtle Mountain State Bank | $114.1M | CBLR | NA | NA | NA | 12.85% |
| Morganton Savings Bank, S.S.B. | $114.4M | CBLR | NA | NA | NA | 25.43% |
| Security State Bank of Aitkin | $114.5M | CBLR | NA | NA | NA | 10.79% |
| The Peoples Bank | $113.1M | CBLR | NA | NA | NA | 10.62% |
| The First National Bank of Sparta | $114.6M | Risk-based | 25.89% | 25.89% | 26.98% | 12.64% |
| Peer 25th percentile | 18.26% | 18.26% | 19.09% | 10.66% | ||
| Peer median | 24.75% | 24.75% | 26.01% | 12.75% | ||
| Peer 75th percentile | 25.32% | 25.32% | 26.49% | 16.83% | ||
| This bank's percentile | 0 | 0 | 33 | 10 |
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/865852/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.