Heritage Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 6.24% (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: 6.24% (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 12.99% +6.49 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 | $30.9M | 30,859 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $237.6M | 237,627 | RCOAA223 |
| Recomputed ratio | 12.99% | numerator / denominator | |
| Filed ratio | 12.99% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +6.49 pp | $15.4M | capital that could be lost first |
Tier 1 risk-based capital ratio 12.99% +4.99 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 | $30.9M | 30,859 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $237.6M | 237,627 | RCOAA223 |
| Recomputed ratio | 12.99% | numerator / denominator | |
| Filed ratio | 12.99% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +4.99 pp | $11.8M | capital that could be lost first |
Total risk-based capital ratio 14.24% +4.24 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 | $33.8M | 33,834 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $237.6M | 237,627 | RCOAA223 |
| Recomputed ratio | 14.24% | numerator / denominator | |
| Filed ratio | 14.24% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +4.24 pp | $10.1M | capital that could be lost first |
Tier 1 leverage ratio 9.94% +4.94 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 | $30.9M | 30,859 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $310.3M | 310,322 | RCOAA224 |
| Recomputed ratio | 9.94% | numerator / denominator | |
| Filed ratio | 9.94% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +4.94 pp | $15.3M | 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 | 27,526 | 27,526 | 27,526 | 27,526 | 8,595 | 8,595 | RCOAP742 |
| Retained earnings | 8,768 | 7,785 | 6,524 | 6,186 | 5,710 | 5,110 | RCOAKW00 |
| Accumulated other comprehensive income | (166) | (157) | 88 | (8) | 23 | 15 | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 36,128 | 35,154 | 34,138 | 33,704 | 14,328 | 13,720 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (5,269) | (5,382) | (5,731) | (5,738) | (23) | (15) | P859 - P840 |
| Common equity Tier 1 capital | 30,859 | 29,772 | 28,407 | 27,966 | 14,305 | 13,705 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 30,859 | 29,772 | 28,407 | 27,966 | 14,305 | 13,705 | RCOA8274 |
| Tier 2 capital | 2,975 | 3,134 | 3,003 | 2,353 | 1,715 | 1,593 | RCOA5311 |
| Allowance includable in Tier 2 capital | 2,975 | 3,134 | 3,003 | 2,353 | 1,715 | 1,593 | RCOA5310 |
| Total capital | 33,834 | 32,906 | 31,410 | 30,319 | 16,020 | 15,298 | RCOA3792 |
| Total risk-weighted assets | 237,627 | 266,063 | 253,729 | 235,573 | 137,193 | 127,405 | RCOAA223 |
| Average total assets for the leverage ratio | 310,322 | 299,761 | 290,568 | 202,001 | 148,481 | 141,486 | 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 | $32.2M | $1.9M | 5.75% | 0.78% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $45.7M | $310K | 0.68% | 0.13% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $10.5M | $9.7M | 92.35% | 4.08% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $76.9M | $44.6M | 58.06% | 18.76% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $2.9M | $4.4M | 150.00% | 1.83% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $158.2M | $158.2M | 100.00% | 66.49% | RC-R Part II, item 4.d, 5.d |
| All other assets | $5.9M | $4.2M | 70.77% | 1.77% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $14.6M | $14.6M | 100.00% | 6.16% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $900 | 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 | $237.9M | ties to item 31 ($237.9M) |
|---|---|---|
| Risk-weighted assets before deductions | $237.9M | RCONB704 |
| Less: excess allowance for credit losses | $270K | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $237.6M | 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 | 12.99% | 12.99% | 14.24% | 9.94% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 11.19% | 11.19% | 12.37% | 9.93% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 11.20% | 11.20% | 12.38% | 9.78% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 11.87% | 11.87% | 12.87% | 13.84% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 10.43% | 10.43% | 11.68% | 9.63% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 10.76% | 10.76% | 12.01% | 9.69% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 10.86% | 10.86% | 12.11% | 9.88% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 11.70% | 11.70% | 12.91% | 10.01% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 11.40% | 11.40% | 12.54% | 10.65% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 12.07% | 12.07% | 13.25% | 11.10% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 12.38% | 12.38% | 13.51% | 11.41% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 12.28% | 12.28% | 13.33% | 11.48% | 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 |
|---|---|---|---|---|---|---|
| Heritage Bank (this bank) | Risk-based | 12.99% | 12.99% | 14.24% | 9.94% | |
| FMS Bank | $324.8M | Risk-based | 10.79% | 10.79% | 12.04% | 9.85% |
| The First National Bank of River Falls | $325.3M | Risk-based | 16.79% | 16.79% | 18.04% | 10.06% |
| The First National Bank in Amboy | $324.5M | CBLR | NA | NA | NA | 10.67% |
| Pinnacle Bank | $324.4M | Risk-based | 18.22% | 18.22% | 19.17% | 14.66% |
| American Bank and Trust Company | $324.4M | CBLR | NA | NA | NA | 15.32% |
| Decatur County Bank | $325.6M | Risk-based | 11.01% | 11.01% | 12.00% | 9.03% |
| First State Bank of Burnet | $325.8M | CBLR | NA | NA | NA | 12.53% |
| Western Bank | $325.9M | Risk-based | 32.97% | 32.97% | 34.21% | 12.21% |
| Peer 25th percentile | 11.01% | 11.01% | 12.04% | 10.01% | ||
| Peer median | 16.79% | 16.79% | 18.04% | 11.44% | ||
| Peer 75th percentile | 18.22% | 18.22% | 19.17% | 13.06% | ||
| This bank's percentile | 40 | 40 | 40 | 25 |
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/3120897/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.