Heritage Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 5.23% (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: 5.23% (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 12.34% +5.84 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 | $834.1M | 834,082 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $6.76B | 6,760,783 | RCOAA223 |
| Recomputed ratio | 12.34% | numerator / denominator | |
| Filed ratio | 12.34% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +5.84 pp | $394.6M | capital that could be lost first |
Tier 1 risk-based capital ratio 12.34% +4.34 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 | $834.1M | 834,082 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $6.76B | 6,760,783 | RCOAA223 |
| Recomputed ratio | 12.34% | numerator / denominator | |
| Filed ratio | 12.34% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +4.34 pp | $293.2M | capital that could be lost first |
Total risk-based capital ratio 13.23% +3.23 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 | $894.6M | 894,624 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $6.76B | 6,760,783 | RCOAA223 |
| Recomputed ratio | 13.23% | numerator / denominator | |
| Filed ratio | 13.23% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +3.23 pp | $218.5M | capital that could be lost first |
Tier 1 leverage ratio 10.23% +5.23 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 | $834.1M | 834,082 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $8.15B | 8,150,469 | RCOAA224 |
| Recomputed ratio | 10.23% | numerator / denominator | |
| Filed ratio | 10.23% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +5.23 pp | $426.6M | 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 | 872,081 | 872,081 | 688,140 | 688,140 | 688,140 | 688,140 | RCOAP742 |
| Retained earnings | 287,978 | 283,476 | 276,227 | 261,155 | 252,849 | 250,804 | RCOAKW00 |
| Accumulated other comprehensive income | (37,996) | (32,996) | (31,215) | (33,446) | (37,189) | (43,346) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 1,122,063 | 1,122,561 | 933,152 | 915,849 | 903,800 | 895,598 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (287,981) | (295,938) | (211,382) | (209,291) | (205,833) | (199,978) | P859 - P840 |
| Common equity Tier 1 capital | 834,082 | 826,623 | 721,770 | 706,558 | 697,967 | 695,620 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 834,082 | 826,623 | 721,770 | 706,558 | 697,967 | 695,620 | RCOA8274 |
| Tier 2 capital | 60,542 | 61,697 | 53,584 | 54,876 | 53,219 | 52,755 | RCOA5311 |
| Allowance includable in Tier 2 capital | 60,542 | 61,697 | 53,584 | 54,876 | 53,219 | 52,755 | RCOA5310 |
| Total capital | 894,624 | 888,320 | 775,354 | 761,434 | 751,186 | 748,375 | RCOA3792 |
| Total risk-weighted assets | 6,760,783 | 6,711,205 | 5,571,874 | 5,576,175 | 5,574,160 | 5,573,394 | RCOAA223 |
| Average total assets for the leverage ratio | 8,150,469 | 8,187,000 | 6,746,969 | 6,806,660 | 6,857,285 | 6,926,065 | 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 | $204.4M | $16.0M | 7.81% | 0.24% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $1.67B | $307.8M | 18.44% | 4.55% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $705.6M | $415.9M | 58.94% | 6.15% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $41.9M | $62.8M | 150.00% | 0.93% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $15.5M | $17.8M | 114.44% | 0.26% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $4.98B | $4.93B | 98.84% | 72.88% | RC-R Part II, item 4.d, 5.d |
| All other assets | $473.0M | $457.4M | 96.72% | 6.77% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $391.3M | $398.8M | 101.90% | 5.90% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $21.9M | $8.8M | 40.24% | 0.13% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $148.4M | NA | 2.19% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $6.61B | ties to item 31 ($6.61B) |
|---|---|---|
| Risk-weighted assets before deductions | $6.76B | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $6.76B | 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 | 12.34% | 12.34% | 13.23% | 10.23% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 12.32% | 12.32% | 13.24% | 10.10% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 12.95% | 12.95% | 13.92% | 10.70% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 12.67% | 12.67% | 13.66% | 10.38% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 12.52% | 12.52% | 13.48% | 10.18% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 12.48% | 12.48% | 13.43% | 10.04% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 12.28% | 12.28% | 13.20% | 9.91% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 12.59% | 12.59% | 13.50% | 9.86% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 12.83% | 12.83% | 13.76% | 9.95% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 12.93% | 12.93% | 13.84% | 9.95% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 12.92% | 12.92% | 13.79% | 9.75% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 12.94% | 12.94% | 13.79% | 9.68% | 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 |
|---|---|---|---|---|---|---|
| Heritage Bank (this bank) | Risk-based | 12.34% | 12.34% | 13.23% | 10.23% | |
| German American Bank | $8.43B | Risk-based | 13.31% | 13.31% | 14.24% | 11.19% |
| CNB Bank | $8.41B | Risk-based | 13.09% | 13.21% | 14.05% | 10.17% |
| BankPlus | $8.38B | CBLR | NA | NA | NA | 10.84% |
| Forbright Bank | $8.48B | CBLR | NA | NA | NA | 11.24% |
| Cross River Bank | $8.53B | CBLR | NA | NA | NA | 11.78% |
| Poppy Bank | $8.32B | Risk-based | 12.82% | 12.82% | 14.07% | 9.71% |
| First Security Bank | $8.58B | Risk-based | 20.73% | 20.73% | 21.99% | 15.60% |
| First American Bank | $8.63B | Risk-based | 13.77% | 13.77% | 14.80% | 7.58% |
| Univest Bank and Trust Co. | $8.17B | Risk-based | 10.76% | 10.76% | 12.01% | 9.73% |
| Southside Bank | $8.76B | Risk-based | 16.28% | 16.28% | 17.10% | 11.43% |
| Peer 25th percentile | 12.95% | 13.01% | 14.06% | 9.84% | ||
| Peer median | 13.31% | 13.31% | 14.24% | 11.01% | ||
| Peer 75th percentile | 15.03% | 15.03% | 15.95% | 11.38% | ||
| This bank's percentile | 14 | 14 | 14 | 40 |
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/881478/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.