Highland Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 3.36% (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: 3.36% (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 10.10% +3.60 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 | $66.5M | 66,495 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $658.3M | 658,338 | RCOAA223 |
| Recomputed ratio | 10.10% | numerator / denominator | |
| Filed ratio | 10.10% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +3.60 pp | $23.7M | capital that could be lost first |
Tier 1 risk-based capital ratio 10.10% +2.10 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 | $66.5M | 66,495 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $658.3M | 658,338 | RCOAA223 |
| Recomputed ratio | 10.10% | numerator / denominator | |
| Filed ratio | 10.10% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +2.10 pp | $13.8M | capital that could be lost first |
Total risk-based capital ratio 11.36% +1.36 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 | $74.8M | 74,809 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $658.3M | 658,338 | RCOAA223 |
| Recomputed ratio | 11.36% | numerator / denominator | |
| Filed ratio | 11.36% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +1.36 pp | $9.0M | capital that could be lost first |
Tier 1 leverage ratio 8.58% +3.58 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 | $66.5M | 66,495 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $774.8M | 774,805 | RCOAA224 |
| Recomputed ratio | 8.58% | numerator / denominator | |
| Filed ratio | 8.58% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +3.58 pp | $27.8M | 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 | 65,703 | 65,703 | 65,703 | 65,703 | 65,703 | 65,703 | RCOAP742 |
| Retained earnings | 2,740 | 3,149 | 2,581 | 5,248 | 5,006 | 6,017 | RCOAKW00 |
| Accumulated other comprehensive income | (11,344) | (11,619) | (10,860) | (12,115) | (14,418) | (14,687) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 57,099 | 57,233 | 57,424 | 58,836 | 56,291 | 57,033 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 9,396 | 9,598 | 8,770 | 9,933 | 12,165 | 12,359 | P859 - P840 |
| Common equity Tier 1 capital | 66,495 | 66,831 | 66,194 | 68,769 | 68,456 | 69,392 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 66,495 | 66,831 | 66,194 | 68,769 | 68,456 | 69,392 | RCOA8274 |
| Tier 2 capital | 8,314 | 8,224 | 7,995 | 8,769 | 8,378 | 8,262 | RCOA5311 |
| Allowance includable in Tier 2 capital | 8,314 | 8,224 | 7,995 | 8,769 | 8,378 | 8,262 | RCOA5310 |
| Total capital | 74,809 | 75,055 | 74,189 | 77,538 | 76,834 | 77,654 | RCOA3792 |
| Total risk-weighted assets | 658,338 | 651,560 | 634,047 | 697,937 | 666,555 | 659,470 | RCOAA223 |
| Average total assets for the leverage ratio | 774,805 | 772,486 | 785,297 | 790,319 | 791,957 | 787,600 | 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 | $15.3M | $1.2M | 8.06% | 0.19% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $166.0M | $54.6M | 32.88% | 8.21% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $32.5M | $16.3M | 50.00% | 2.45% | RC-R Part II, item 4.a, 5.a |
| Loans: all other | $530.6M | $516.0M | 97.24% | 77.58% | RC-R Part II, item 4.d, 5.d |
| All other assets | $21.5M | $19.2M | 88.95% | 2.88% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $33.9M | $33.9M | 100.00% | 5.09% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $185K | $0 | 0.00% | 0.00% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $24.0M | NA | 3.61% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $641.1M | ties to item 31 ($641.1M) |
|---|---|---|
| Risk-weighted assets before deductions | $665.1M | RCONB704 |
| Less: excess allowance for credit losses | $6.8M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $658.3M | 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 | 10.10% | 10.10% | 11.36% | 8.58% | 15.12% | 15.13% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 10.26% | 10.26% | 11.52% | 8.65% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 10.44% | 10.44% | 11.70% | 8.43% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 9.85% | 9.85% | 11.11% | 8.70% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 10.27% | 10.27% | 11.53% | 8.64% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 10.52% | 10.52% | 11.78% | 8.81% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 10.55% | 10.55% | 11.80% | 8.74% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 10.54% | 10.54% | 11.79% | 8.64% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 10.67% | 10.67% | 11.92% | 8.81% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 10.87% | 10.87% | 12.13% | 8.60% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 10.67% | 10.67% | 11.92% | 8.51% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 10.27% | 10.27% | 11.53% | 8.27% | 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 |
|---|---|---|---|---|---|---|
| Highland Bank (this bank) | Risk-based | 10.10% | 10.10% | 11.36% | 8.58% | |
| Home State BANK/N.A. | $776.0M | Risk-based | 17.60% | 17.60% | 18.85% | 11.79% |
| Harford Bank | $776.6M | Risk-based | 13.05% | 13.05% | 14.30% | 9.95% |
| People's Bank of Commerce | $776.7M | CBLR | NA | NA | NA | 15.33% |
| Industrial Bank | $774.2M | Risk-based | 25.63% | 25.63% | 26.89% | 15.23% |
| American Bank, N.A. | $773.8M | CBLR | NA | NA | NA | 10.75% |
| Cfsbank | $773.4M | Risk-based | 19.55% | 19.55% | 20.10% | 10.96% |
| Citizens Bank of West Virginia, Inc. | $772.5M | CBLR | NA | NA | NA | 10.00% |
| First Central State Bank | $772.4M | CBLR | NA | NA | NA | 13.39% |
| Wilmington Trust, N.A. | $772.1M | Risk-based | 274.44% | 274.44% | 274.58% | 86.89% |
| Westbury Bank | $771.9M | Risk-based | 11.76% | 11.76% | 12.80% | 9.20% |
| Peer 25th percentile | 14.19% | 14.19% | 15.44% | 10.19% | ||
| Peer median | 18.57% | 18.57% | 19.48% | 11.37% | ||
| Peer 75th percentile | 24.11% | 24.11% | 25.20% | 14.77% | ||
| 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/764058/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.