Heritage Bank, Inc.: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 4.97% (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: 4.97% (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 11.86% +5.36 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 | $180.4M | 180,429 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.52B | 1,521,736 | RCOAA223 |
| Recomputed ratio | 11.86% | numerator / denominator | |
| Filed ratio | 11.86% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +5.36 pp | $81.5M | capital that could be lost first |
Tier 1 risk-based capital ratio 11.86% +3.86 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 | $180.4M | 180,429 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.52B | 1,521,736 | RCOAA223 |
| Recomputed ratio | 11.86% | numerator / denominator | |
| Filed ratio | 11.86% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +3.86 pp | $58.7M | capital that could be lost first |
Total risk-based capital ratio 12.97% +2.97 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 | $197.4M | 197,384 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.52B | 1,521,736 | RCOAA223 |
| Recomputed ratio | 12.97% | numerator / denominator | |
| Filed ratio | 12.97% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +2.97 pp | $45.2M | capital that could be lost first |
Tier 1 leverage ratio 9.01% +4.01 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 | $180.4M | 180,429 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $2.00B | 2,002,076 | RCOAA224 |
| Recomputed ratio | 9.01% | numerator / denominator | |
| Filed ratio | 9.01% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +4.01 pp | $80.3M | 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 | 84,947 | 84,947 | 84,947 | 84,947 | 84,947 | 84,947 | RCOAP742 |
| Retained earnings | 95,482 | 90,796 | 85,685 | 81,158 | 76,106 | 71,412 | RCOAKW00 |
| Accumulated other comprehensive income | (36,275) | (39,306) | (36,427) | (41,038) | (47,370) | (47,561) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 144,154 | 136,437 | 134,205 | 125,067 | 113,683 | 108,798 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 36,275 | 39,306 | 36,427 | 41,038 | 47,370 | 47,561 | P859 - P840 |
| Common equity Tier 1 capital | 180,429 | 175,743 | 170,632 | 166,105 | 161,053 | 156,359 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 180,429 | 175,743 | 170,632 | 166,105 | 161,053 | 156,359 | RCOA8274 |
| Tier 2 capital | 16,955 | 16,350 | 15,632 | 15,358 | 14,860 | 14,171 | RCOA5311 |
| Allowance includable in Tier 2 capital | 16,955 | 16,350 | 15,632 | 15,358 | 14,860 | 14,171 | RCOA5310 |
| Total capital | 197,384 | 192,093 | 186,264 | 181,463 | 175,913 | 170,530 | RCOA3792 |
| Total risk-weighted assets | 1,521,736 | 1,528,460 | 1,522,510 | 1,543,502 | 1,490,416 | 1,439,988 | RCOAA223 |
| Average total assets for the leverage ratio | 2,002,076 | 2,047,600 | 2,034,860 | 1,899,961 | 1,878,372 | 1,834,943 | 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 | $222.4M | $3.9M | 1.77% | 0.26% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $480.0M | $113.9M | 23.74% | 7.49% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $15.1M | $3.0M | 20.00% | 0.20% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $288.4M | $188.1M | 65.23% | 12.36% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $4.3M | $6.5M | 150.00% | 0.43% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $5.5M | $8.3M | 150.00% | 0.54% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $940.5M | $935.3M | 99.45% | 61.46% | RC-R Part II, item 4.d, 5.d |
| All other assets | $94.6M | $96.1M | 101.58% | 6.32% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $157.3M | $157.3M | 100.00% | 10.33% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $2.9M | $2.9M | 100.00% | 0.19% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $6.4M | NA | 0.42% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $1.52B | does not tie to item 31 ($1.52B) |
|---|---|---|
| Risk-weighted assets before deductions | $1.52B | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $1.52B | 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 | 11.86% | 11.86% | 12.97% | 9.01% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 11.50% | 11.50% | 12.57% | 8.58% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 11.21% | 11.21% | 12.23% | 8.39% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 10.76% | 10.76% | 11.76% | 8.74% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 10.81% | 10.81% | 11.80% | 8.57% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 10.86% | 10.86% | 11.84% | 8.52% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 10.60% | 10.60% | 11.54% | 8.01% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 10.57% | 10.57% | 11.52% | 8.23% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 10.47% | 10.47% | 11.40% | 8.01% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 10.84% | 10.84% | 11.78% | 7.80% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 10.64% | 10.64% | 11.70% | 7.81% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 10.50% | 10.50% | 11.54% | 8.18% | 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, Inc. (this bank) | Risk-based | 11.86% | 11.86% | 12.97% | 9.01% | |
| Yakima Federal Savings and Loan Association | $2.00B | CBLR | NA | NA | NA | 28.14% |
| The Conway National Bank | $2.00B | Risk-based | 19.18% | 19.18% | 20.12% | 10.23% |
| Bank of Springfield | $2.00B | Risk-based | 10.72% | 10.72% | 11.81% | 9.22% |
| Oak Valley Community Bank | $2.00B | Risk-based | 15.72% | 15.72% | 16.53% | 11.48% |
| South Atlantic Bank | $1.98B | Risk-based | 11.27% | 11.27% | 12.21% | 9.42% |
| Mission Bank | $2.01B | CBLR | NA | NA | NA | 12.22% |
| Florence Bank | $2.01B | CBLR | NA | NA | NA | 12.23% |
| The Farmers & Merchants Bank | $2.02B | CBLR | NA | NA | NA | 9.79% |
| Trunorth Bank | $2.02B | Risk-based | 12.06% | 12.06% | 13.23% | 9.82% |
| Montecito Bank & Trust | $2.02B | CBLR | NA | NA | NA | 11.29% |
| Peer 25th percentile | 11.27% | 11.27% | 12.21% | 9.80% | ||
| Peer median | 12.06% | 12.06% | 13.23% | 10.76% | ||
| Peer 75th percentile | 15.72% | 15.72% | 16.53% | 12.03% | ||
| This bank's percentile | 40 | 40 | 40 | 0 |
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/1469677/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.