Hanover Community Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 6.84% (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: 6.84% (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 13.59% +7.09 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 | $215.7M | 215,650 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.59B | 1,587,055 | RCOAA223 |
| Recomputed ratio | 13.59% | numerator / denominator | |
| Filed ratio | 13.59% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +7.09 pp | $112.5M | capital that could be lost first |
Tier 1 risk-based capital ratio 13.59% +5.59 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 | $215.7M | 215,650 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.59B | 1,587,055 | RCOAA223 |
| Recomputed ratio | 13.59% | numerator / denominator | |
| Filed ratio | 13.59% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +5.59 pp | $88.7M | capital that could be lost first |
Total risk-based capital ratio 14.84% +4.84 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 | $235.4M | 235,444 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.59B | 1,587,055 | RCOAA223 |
| Recomputed ratio | 14.84% | numerator / denominator | |
| Filed ratio | 14.84% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +4.84 pp | $76.7M | capital that could be lost first |
Tier 1 leverage ratio 9.76% +4.76 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 | $215.7M | 215,650 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $2.21B | 2,210,085 | RCOAA224 |
| Recomputed ratio | 9.76% | numerator / denominator | |
| Filed ratio | 9.76% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +4.76 pp | $105.1M | 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 | 157,417 | 156,975 | 150,618 | 150,255 | 149,932 | 149,540 | RCOAP742 |
| Retained earnings | 79,056 | 74,151 | 74,735 | 76,220 | 74,423 | 73,379 | RCOAKW00 |
| Accumulated other comprehensive income | (571) | (664) | (680) | (778) | (1,227) | (1,396) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 235,902 | 230,462 | 224,673 | 225,697 | 223,128 | 221,523 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (20,252) | (20,240) | (20,242) | (20,263) | (19,846) | (19,598) | P859 - P840 |
| Common equity Tier 1 capital | 215,650 | 210,222 | 204,431 | 205,434 | 203,282 | 201,925 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 215,650 | 210,222 | 204,431 | 205,434 | 203,282 | 201,925 | RCOA8274 |
| Tier 2 capital | 19,794 | 19,727 | 19,808 | 19,582 | 19,337 | 18,926 | RCOA5311 |
| Allowance includable in Tier 2 capital | 19,794 | 19,727 | 19,808 | 19,582 | 19,337 | 18,926 | RCOA5310 |
| Total capital | 235,444 | 229,949 | 224,239 | 225,016 | 222,619 | 220,851 | RCOA3792 |
| Total risk-weighted assets | 1,587,055 | 1,578,094 | 1,584,619 | 1,564,341 | 1,545,228 | 1,510,717 | RCOAA223 |
| Average total assets for the leverage ratio | 2,210,085 | 2,285,360 | 2,259,946 | 2,246,320 | 2,187,716 | 2,256,087 | 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 | $141.2M | $2.9M | 2.06% | 0.18% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $136.6M | $63.4M | 46.39% | 3.99% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $806.0M | $410.8M | 50.97% | 25.89% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $25.8M | $31.2M | 121.21% | 1.97% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $1.17B | $977.6M | 83.62% | 61.60% | RC-R Part II, item 4.d, 5.d |
| All other assets | $55.2M | $55.5M | 100.49% | 3.49% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $46.7M | $45.7M | 97.76% | 2.88% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $11K | $0 | 0.00% | 0.00% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $400 | 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 | $1.59B | ties to item 31 ($1.59B) |
|---|---|---|
| Risk-weighted assets before deductions | $1.59B | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $1.59B | 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 | 13.59% | 13.59% | 14.84% | 9.76% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 13.32% | 13.32% | 14.57% | 9.20% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 12.90% | 12.90% | 14.15% | 9.05% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 13.13% | 13.13% | 14.38% | 9.15% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 13.16% | 13.16% | 14.41% | 9.29% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 13.37% | 13.37% | 14.62% | 8.95% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 13.32% | 13.32% | 14.58% | 9.13% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 12.99% | 12.99% | 14.24% | 8.85% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 12.78% | 12.78% | 14.21% | 8.89% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 12.99% | 12.99% | 14.19% | 8.90% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 13.17% | 13.17% | 14.31% | 9.08% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 13.55% | 13.55% | 14.60% | 9.16% | 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 |
|---|---|---|---|---|---|---|
| Hanover Community Bank (this bank) | Risk-based | 13.59% | 13.59% | 14.84% | 9.76% | |
| First Bank of the Lake | $2.34B | Risk-based | 15.90% | 15.90% | 17.16% | 7.08% |
| Crews Bank & Trust | $2.33B | CBLR | NA | NA | NA | 10.69% |
| Farmers and Merchants Trust Company of Chambersburg | $2.34B | Risk-based | 12.47% | 12.47% | 13.73% | 8.83% |
| Pioneer Bank, N.A. | $2.34B | Risk-based | 13.22% | 13.22% | 14.48% | 9.97% |
| Luana Savings Bank | $2.34B | CBLR | NA | NA | NA | 9.70% |
| The Bank of Commerce | $2.34B | Risk-based | 19.09% | 19.09% | 20.35% | 15.69% |
| Texas First Bank | $2.35B | CBLR | NA | NA | NA | 9.96% |
| Security First Bank | $2.32B | Risk-based | 11.03% | 11.03% | 12.25% | 8.30% |
| Bank Iowa | $2.35B | Risk-based | 10.87% | 10.87% | 12.10% | 8.94% |
| Cashmere Valley Bank | $2.32B | CBLR | NA | NA | NA | 12.50% |
| Peer 25th percentile | 11.39% | 11.39% | 12.62% | 8.86% | ||
| Peer median | 12.85% | 12.85% | 14.10% | 9.83% | ||
| Peer 75th percentile | 15.23% | 15.23% | 16.49% | 10.51% | ||
| This bank's percentile | 67 | 67 | 67 | 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/3793714/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.