First Business Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 4.18% (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: 4.18% (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 11.17% +4.67 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 | $445.3M | 445,313 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $3.99B | 3,985,217 | RCOAA223 |
| Recomputed ratio | 11.17% | numerator / denominator | |
| Filed ratio | 11.17% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +4.67 pp | $186.3M | capital that could be lost first |
Tier 1 risk-based capital ratio 11.17% +3.17 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 | $445.3M | 445,313 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $3.99B | 3,985,217 | RCOAA223 |
| Recomputed ratio | 11.17% | numerator / denominator | |
| Filed ratio | 11.17% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +3.17 pp | $126.5M | capital that could be lost first |
Total risk-based capital ratio 12.18% +2.18 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 | $485.2M | 485,212 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $3.99B | 3,985,217 | RCOAA223 |
| Recomputed ratio | 12.18% | numerator / denominator | |
| Filed ratio | 12.18% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +2.18 pp | $86.7M | capital that could be lost first |
Tier 1 leverage ratio 10.37% +5.37 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 | $445.3M | 445,313 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $4.29B | 4,294,361 | RCOAA224 |
| Recomputed ratio | 10.37% | numerator / denominator | |
| Filed ratio | 10.37% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +5.37 pp | $230.6M | 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 | 124,104 | 123,517 | 123,183 | 122,865 | 122,571 | 121,992 | RCOAP742 |
| Retained earnings | 331,991 | 317,503 | 310,260 | 300,100 | 288,024 | 279,625 | RCOAKW00 |
| Accumulated other comprehensive income | (7,446) | (10,196) | (9,740) | (11,650) | (12,804) | (12,371) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 448,649 | 430,824 | 423,703 | 411,315 | 397,791 | 389,246 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (3,336) | (663) | (1,136) | 752 | 1,900 | 1,459 | P859 - P840 |
| Common equity Tier 1 capital | 445,313 | 430,161 | 422,567 | 412,067 | 399,691 | 390,705 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 445,313 | 430,161 | 422,567 | 412,067 | 399,691 | 390,705 | RCOA8274 |
| Tier 2 capital | 39,899 | 38,986 | 37,856 | 38,546 | 38,380 | 36,776 | RCOA5311 |
| Allowance includable in Tier 2 capital | 39,899 | 38,986 | 37,856 | 38,546 | 38,380 | 36,776 | RCOA5310 |
| Total capital | 485,212 | 469,147 | 460,423 | 450,613 | 438,071 | 427,481 | RCOA3792 |
| Total risk-weighted assets | 3,985,217 | 3,895,711 | 3,786,612 | 3,718,526 | 3,594,335 | 3,519,753 | RCOAA223 |
| Average total assets for the leverage ratio | 4,294,361 | 4,235,575 | 4,180,927 | 4,047,381 | 3,934,225 | 3,851,171 | 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 | $163.4M | $6.3M | 3.84% | 0.16% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $431.0M | $54.6M | 12.66% | 1.37% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $67.2M | $48.7M | 72.45% | 1.22% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $38.1M | $56.6M | 148.61% | 1.42% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $3.48B | $3.26B | 93.76% | 81.88% | RC-R Part II, item 4.d, 5.d |
| All other assets | $227.2M | $215.5M | 94.85% | 5.41% | RC-R Part II, item 8 |
| Securitization exposures at 1250% | $1K | $12K | 1250.00% | 0.00% | RC-R Part II, item 9, 10 |
| Off-balance-sheet commitments and letters of credit | $329.7M | $327.7M | 99.40% | 8.22% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $65.8M | $12.6M | 19.15% | 0.32% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $1K | 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 | $3.99B | ties to item 31 ($3.99B) |
|---|---|---|
| Risk-weighted assets before deductions | $3.99B | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $3.99B | 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 | 11.17% | 11.17% | 12.18% | 10.37% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 11.04% | 11.04% | 12.04% | 10.16% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 11.16% | 11.16% | 12.16% | 10.11% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 11.08% | 11.08% | 12.12% | 10.18% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 11.12% | 11.12% | 12.19% | 10.16% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 11.10% | 11.10% | 12.15% | 10.15% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 10.91% | 10.91% | 11.97% | 10.14% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 10.54% | 10.54% | 11.57% | 10.05% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 10.44% | 10.44% | 11.46% | 9.89% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 10.34% | 10.34% | 11.37% | 9.86% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 10.23% | 10.23% | 11.21% | 9.87% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 10.27% | 10.27% | 11.22% | 10.16% | 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 |
|---|---|---|---|---|---|---|
| First Business Bank (this bank) | Risk-based | 11.17% | 11.17% | 12.18% | 10.37% | |
| Sunwest Bank | $4.41B | Risk-based | 10.40% | 10.40% | 11.66% | 9.71% |
| American Business Bank | $4.42B | Risk-based | 12.35% | 12.35% | 13.24% | 11.01% |
| HomeTrust Bank | $4.44B | Risk-based | 13.74% | 13.74% | 14.84% | 12.91% |
| Capital City Bank | $4.45B | Risk-based | 18.18% | 18.18% | 19.43% | 10.29% |
| ChoiceOne Bank | $4.45B | Risk-based | 11.81% | 11.81% | 12.92% | 9.30% |
| Arrow Bank N.A. | $4.46B | Risk-based | 12.71% | 12.71% | 13.87% | 9.33% |
| Metro City Bank | $4.47B | Risk-based | 17.14% | 17.14% | 18.04% | 11.08% |
| Texas Bank and Trust Company | $4.34B | Risk-based | 15.85% | 15.85% | 17.10% | 13.10% |
| Primis Bank | $4.34B | Risk-based | 10.63% | 10.63% | 11.88% | 9.51% |
| First Federal Bank | $4.49B | Risk-based | 20.56% | 20.56% | 21.06% | 10.83% |
| Peer 25th percentile | 11.94% | 11.94% | 13.00% | 9.56% | ||
| Peer median | 13.22% | 13.23% | 14.35% | 10.56% | ||
| Peer 75th percentile | 16.82% | 16.82% | 17.81% | 11.06% | ||
| This bank's percentile | 20 | 20 | 20 | 50 |
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/537449/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.