Hawthorn Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 6.49% (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: 6.49% (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 13.23% +6.73 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 | $204.3M | 204,278 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.54B | 1,543,507 | RCOAA223 |
| Recomputed ratio | 13.23% | numerator / denominator | |
| Filed ratio | 13.23% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +6.73 pp | $104.0M | capital that could be lost first |
Tier 1 risk-based capital ratio 13.23% +5.23 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 | $204.3M | 204,278 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.54B | 1,543,507 | RCOAA223 |
| Recomputed ratio | 13.23% | numerator / denominator | |
| Filed ratio | 13.23% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +5.23 pp | $80.8M | capital that could be lost first |
Total risk-based capital ratio 14.49% +4.49 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 | $223.6M | 223,609 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.54B | 1,543,507 | RCOAA223 |
| Recomputed ratio | 14.49% | numerator / denominator | |
| Filed ratio | 14.49% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +4.49 pp | $69.3M | capital that could be lost first |
Tier 1 leverage ratio 11.26% +6.26 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 | $204.3M | 204,278 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $1.81B | 1,813,441 | RCOAA224 |
| Recomputed ratio | 11.26% | numerator / denominator | |
| Filed ratio | 11.26% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +6.26 pp | $113.6M | 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 | 99,905 | 99,905 | 99,905 | 99,905 | 99,905 | 99,905 | RCOAP742 |
| Retained earnings | 104,373 | 102,276 | 103,192 | 102,704 | 101,766 | 104,938 | RCOAKW00 |
| Accumulated other comprehensive income | (17,422) | (19,067) | (16,455) | (19,371) | (23,194) | (23,857) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 186,856 | 183,114 | 186,642 | 183,238 | 178,477 | 180,986 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 17,422 | 19,067 | 16,455 | 19,371 | 23,194 | 23,857 | P859 - P840 |
| Common equity Tier 1 capital | 204,278 | 202,181 | 203,097 | 202,609 | 201,671 | 204,843 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 204,278 | 202,181 | 203,097 | 202,609 | 201,671 | 204,843 | RCOA8274 |
| Tier 2 capital | 19,331 | 19,559 | 19,790 | 20,254 | 19,508 | 19,478 | RCOA5311 |
| Allowance includable in Tier 2 capital | 19,331 | 19,559 | 19,790 | 20,254 | 19,508 | 19,478 | RCOA5310 |
| Total capital | 223,609 | 221,740 | 222,887 | 222,863 | 221,179 | 224,321 | RCOA3792 |
| Total risk-weighted assets | 1,543,507 | 1,562,102 | 1,582,562 | 1,619,407 | 1,559,330 | 1,556,718 | RCOAA223 |
| Average total assets for the leverage ratio | 1,813,441 | 1,849,088 | 1,863,657 | 1,848,673 | 1,823,214 | 1,832,285 | 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 | $33.7M | $3.9M | 11.55% | 0.25% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $254.3M | $87.3M | 34.33% | 5.64% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $379.3M | $211.6M | 55.78% | 13.68% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $2.0M | $3.0M | 150.00% | 0.19% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $6.7M | $9.9M | 150.00% | 0.65% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $1.03B | $1.02B | 99.26% | 66.03% | RC-R Part II, item 4.d, 5.d |
| All other assets | $75.4M | $71.6M | 94.86% | 4.63% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $128.8M | $123.3M | 95.76% | 7.97% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $499K | $298K | 59.76% | 0.02% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $14.5M | NA | 0.94% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $1.53B | ties to item 31 ($1.53B) |
|---|---|---|
| Risk-weighted assets before deductions | $1.55B | RCONB704 |
| Less: excess allowance for credit losses | $2.9M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $1.54B | 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 | 13.23% | 13.23% | 14.49% | 11.26% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 12.94% | 12.94% | 14.20% | 10.93% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 12.83% | 12.83% | 14.08% | 10.90% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 12.51% | 12.51% | 13.76% | 10.96% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 12.93% | 12.93% | 14.18% | 11.06% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 13.16% | 13.16% | 14.41% | 11.18% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 12.85% | 12.85% | 14.10% | 10.83% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 12.89% | 12.89% | 14.14% | 10.84% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 12.68% | 12.68% | 13.92% | 10.73% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 12.43% | 12.43% | 13.68% | 10.65% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 12.67% | 12.67% | 13.91% | 10.31% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 12.79% | 12.79% | 13.92% | 10.63% | 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 |
|---|---|---|---|---|---|---|
| Hawthorn Bank (this bank) | Risk-based | 13.23% | 13.23% | 14.49% | 11.26% | |
| First Farmers and Merchants Bank | $1.76B | Risk-based | 17.56% | 17.56% | 18.33% | 11.19% |
| Androscoggin Savings Bank | $1.76B | Risk-based | 13.15% | 13.15% | 14.19% | 10.76% |
| Peoples Bank | $1.76B | Risk-based | 14.55% | 14.55% | 15.42% | 11.50% |
| Chelsea Groton Bank | $1.75B | Risk-based | 21.99% | 21.99% | 22.93% | 16.73% |
| Column N.A. | $1.77B | Risk-based | 25.03% | 25.03% | 25.37% | 8.43% |
| Waterford Bank, N.A. | $1.77B | Risk-based | 11.43% | 11.43% | 12.61% | 10.45% |
| Community State Bank | $1.75B | Risk-based | 11.89% | 11.89% | 12.74% | 11.67% |
| First National Bank of Central Texas | $1.77B | Risk-based | 14.55% | 14.55% | 15.80% | 10.83% |
| Sutton Bank | $1.74B | Risk-based | 30.34% | 30.34% | 31.12% | 10.01% |
| Peer 25th percentile | 13.15% | 13.15% | 14.19% | 10.45% | ||
| Peer median | 14.55% | 14.55% | 15.80% | 10.83% | ||
| Peer 75th percentile | 21.99% | 21.99% | 22.93% | 11.50% | ||
| This bank's percentile | 33 | 33 | 33 | 67 |
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/508346/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.