Heritage Bank Minnesota: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 3.04% (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: 3.04% (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 9.98% +3.48 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 | $9.1M | 9,109 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $91.3M | 91,317 | RCOAA223 |
| Recomputed ratio | 9.98% | numerator / denominator | |
| Filed ratio | 9.98% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +3.48 pp | $3.2M | capital that could be lost first |
Tier 1 risk-based capital ratio 9.98% +1.98 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 | $9.1M | 9,109 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $91.3M | 91,317 | RCOAA223 |
| Recomputed ratio | 9.98% | numerator / denominator | |
| Filed ratio | 9.98% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +1.98 pp | $1.8M | capital that could be lost first |
Total risk-based capital ratio 11.04% +1.04 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 | $10.1M | 10,086 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $91.3M | 91,317 | RCOAA223 |
| Recomputed ratio | 11.04% | numerator / denominator | |
| Filed ratio | 11.04% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +1.04 pp | $954K | capital that could be lost first |
Tier 1 leverage ratio 7.27% +2.27 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 | $9.1M | 9,109 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $125.2M | 125,215 | RCOAA224 |
| Recomputed ratio | 7.27% | numerator / denominator | |
| Filed ratio | 7.27% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +2.27 pp | $2.8M | 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 | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 | 7,000 | RCOAP742 |
| Retained earnings | 1,609 | 1,336 | 1,118 | 1,115 | 914 | 1,330 | RCOAKW00 |
| Accumulated other comprehensive income | (1,330) | (1,445) | (1,347) | (1,485) | (1,824) | (1,724) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 7,779 | 7,391 | 7,271 | 7,130 | 6,590 | 6,606 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 1,330 | 1,445 | 1,347 | 1,485 | 1,824 | 1,724 | P859 - P840 |
| Common equity Tier 1 capital | 9,109 | 8,836 | 8,618 | 8,615 | 8,414 | 8,330 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 9,109 | 8,836 | 8,618 | 8,615 | 8,414 | 8,330 | RCOA8274 |
| Tier 2 capital | 977 | 950 | 911 | 871 | 844 | 812 | RCOA5311 |
| Allowance includable in Tier 2 capital | 977 | 950 | 911 | 871 | 844 | 812 | RCOA5310 |
| Total capital | 10,086 | 9,786 | 9,529 | 9,486 | 9,258 | 9,142 | RCOA3792 |
| Total risk-weighted assets | 91,317 | 85,787 | 88,049 | 86,477 | 83,078 | 79,177 | RCOAA223 |
| Average total assets for the leverage ratio | 125,215 | 121,547 | 117,733 | 113,240 | 107,849 | 105,141 | 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 | $5.4M | $264K | 4.88% | 0.29% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $11.8M | $3.1M | 26.57% | 3.44% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $58.9M | $38.2M | 64.73% | 41.78% | RC-R Part II, item 4.a, 5.a |
| Loans: all other | $39.8M | $39.2M | 98.33% | 42.90% | RC-R Part II, item 4.d, 5.d |
| All other assets | $6.0M | $5.6M | 92.92% | 6.12% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $1.8M | $1.8M | 100.00% | 1.94% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $3.2M | NA | 3.53% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $88.1M | ties to item 31 ($88.1M) |
|---|---|---|
| Risk-weighted assets before deductions | $91.3M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $91.3M | 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 | 9.98% | 9.98% | 11.04% | 7.27% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 10.30% | 10.30% | 11.41% | 7.27% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 9.79% | 9.79% | 10.82% | 7.32% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 9.96% | 9.96% | 10.97% | 7.61% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 10.13% | 10.13% | 11.14% | 7.80% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 10.52% | 10.52% | 11.55% | 7.92% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 10.57% | 10.57% | 11.52% | 7.91% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 10.86% | 10.86% | 11.85% | 7.96% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 10.90% | 10.90% | 11.90% | 7.78% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 11.63% | 11.63% | 12.63% | 7.80% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 10.74% | 10.74% | 11.64% | 7.94% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 12.54% | 12.54% | 13.53% | 8.13% | 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 Minnesota (this bank) | Risk-based | 9.98% | 9.98% | 11.04% | 7.27% | |
| Logan County Bank | $120.8M | Risk-based | 29.84% | 29.84% | 31.09% | 16.89% |
| California International Bank, N.A. | $120.9M | CBLR | NA | NA | NA | 13.51% |
| Custer Federal State Bank | $120.7M | CBLR | NA | NA | NA | 11.99% |
| Key Community Bank | $121.0M | CBLR | NA | NA | NA | 10.66% |
| The First State Bank | $121.4M | Risk-based | 15.85% | 15.85% | 16.92% | 13.46% |
| The First National Bank of Williamson | $120.3M | CBLR | NA | NA | NA | 20.13% |
| United Bank & Trust Co. | $120.1M | Risk-based | 16.47% | 16.47% | 17.70% | 10.46% |
| Global Innovations Bank | $120.1M | Risk-based | 11.57% | 11.57% | 12.48% | 8.47% |
| Centrebank | $120.0M | CBLR | NA | NA | NA | 17.16% |
| Peer 25th percentile | 14.78% | 14.78% | 15.81% | 10.66% | ||
| Peer median | 16.16% | 16.16% | 17.31% | 13.46% | ||
| Peer 75th percentile | 19.82% | 19.82% | 21.05% | 16.89% | ||
| This bank's percentile | 0 | 0 | 0 | 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/777254/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.