Heritage Bank & Trust: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 3.50% (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: 3.50% (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 10.24% +3.74 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 | $35.9M | 35,903 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $350.6M | 350,620 | RCOAA223 |
| Recomputed ratio | 10.24% | numerator / denominator | |
| Filed ratio | 10.24% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +3.74 pp | $13.1M | capital that could be lost first |
Tier 1 risk-based capital ratio 10.24% +2.24 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 | $35.9M | 35,903 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $350.6M | 350,620 | RCOAA223 |
| Recomputed ratio | 10.24% | numerator / denominator | |
| Filed ratio | 10.24% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +2.24 pp | $7.9M | capital that could be lost first |
Total risk-based capital ratio 11.50% +1.50 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 | $40.3M | 40,304 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $350.6M | 350,620 | RCOAA223 |
| Recomputed ratio | 11.50% | numerator / denominator | |
| Filed ratio | 11.50% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +1.50 pp | $5.2M | capital that could be lost first |
Tier 1 leverage ratio 8.48% +3.48 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 | $35.9M | 35,903 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $423.4M | 423,436 | RCOAA224 |
| Recomputed ratio | 8.48% | numerator / denominator | |
| Filed ratio | 8.48% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +3.48 pp | $14.7M | 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 | 21,152 | 21,114 | 21,086 | 21,058 | 21,031 | 21,012 | RCOAP742 |
| Retained earnings | 14,751 | 13,963 | 13,048 | 11,939 | 10,898 | 10,723 | RCOAKW00 |
| Accumulated other comprehensive income | (2,460) | (2,531) | (2,393) | (2,555) | (3,018) | (3,155) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 33,443 | 32,546 | 31,741 | 30,442 | 28,911 | 28,580 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 2,460 | 2,531 | 2,393 | 2,555 | 3,018 | 3,155 | P859 - P840 |
| Common equity Tier 1 capital | 35,903 | 35,077 | 34,134 | 32,997 | 31,929 | 31,735 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 35,903 | 35,077 | 34,134 | 32,997 | 31,929 | 31,735 | RCOA8274 |
| Tier 2 capital | 4,401 | 4,352 | 4,307 | 4,077 | 3,930 | 3,882 | RCOA5311 |
| Allowance includable in Tier 2 capital | 4,401 | 4,352 | 4,307 | 4,077 | 3,930 | 3,882 | RCOA5310 |
| Total capital | 40,304 | 39,429 | 38,441 | 37,074 | 35,859 | 35,617 | RCOA3792 |
| Total risk-weighted assets | 350,620 | 346,657 | 342,997 | 324,543 | 312,790 | 308,814 | RCOAA223 |
| Average total assets for the leverage ratio | 423,436 | 416,823 | 410,922 | 396,324 | 380,982 | 373,387 | 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 | $9.9M | $395K | 3.97% | 0.11% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $34.1M | $6.6M | 19.21% | 1.86% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $1.7M | $334K | 20.00% | 0.09% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $176.5M | $102.5M | 58.07% | 29.11% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $31.9M | $47.9M | 150.00% | 13.61% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $1.3M | $1.6M | 123.72% | 0.45% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $149.6M | $148.2M | 99.04% | 42.08% | RC-R Part II, item 4.d, 5.d |
| All other assets | $21.8M | $20.5M | 94.31% | 5.83% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $30.4M | $24.0M | 79.12% | 6.83% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $162K | $81K | 50.00% | 0.02% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $1K | 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 | $352.1M | ties to item 31 ($352.1M) |
|---|---|---|
| Risk-weighted assets before deductions | $352.1M | RCONB704 |
| Less: excess allowance for credit losses | $1.5M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $350.6M | 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 | 10.24% | 10.24% | 11.50% | 8.48% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 10.12% | 10.12% | 11.37% | 8.42% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 9.95% | 9.95% | 11.21% | 8.31% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 10.17% | 10.17% | 11.42% | 8.33% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 10.21% | 10.21% | 11.46% | 8.38% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 10.28% | 10.28% | 11.53% | 8.50% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 10.44% | 10.44% | 11.70% | 8.51% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 10.71% | 10.71% | 11.97% | 8.43% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 11.17% | 11.17% | 12.43% | 8.77% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 10.70% | 10.70% | 11.96% | 8.50% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 10.54% | 10.54% | 11.80% | 8.53% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 10.91% | 10.91% | 12.17% | 8.57% | 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 & Trust (this bank) | Risk-based | 10.24% | 10.24% | 11.50% | 8.48% | |
| LSB Community Bank | $418.1M | Risk-based | 34.73% | 34.73% | 35.99% | 14.97% |
| Ma Bank | $417.3M | CBLR | NA | NA | NA | 9.54% |
| The Bank of Landisburg | $417.1M | CBLR | NA | NA | NA | 16.97% |
| Partners Bank | $417.1M | Risk-based | 15.70% | 15.70% | 16.96% | 13.73% |
| First National Bank | $418.5M | Risk-based | 16.70% | 16.70% | 17.96% | 9.50% |
| Devon Bank | $418.6M | Risk-based | 9.96% | 9.96% | 10.65% | 6.27% |
| Touchmark National Bank | $416.9M | Risk-based | 44.24% | 44.24% | 45.50% | 13.11% |
| Dakota Heritage Bank | $416.8M | CBLR | NA | NA | NA | 9.83% |
| First National Bank in Deridder | $419.0M | Risk-based | 17.24% | 17.24% | 18.36% | 9.84% |
| Chelsea State Bank | $416.5M | Risk-based | 19.50% | 19.50% | 20.76% | 12.76% |
| Peer 25th percentile | 16.20% | 16.20% | 17.46% | 9.61% | ||
| Peer median | 17.24% | 17.24% | 18.36% | 11.30% | ||
| Peer 75th percentile | 27.12% | 27.12% | 28.37% | 13.57% | ||
| This bank's percentile | 14 | 14 | 14 | 10 |
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/3429219/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.