Liberty Bank Minnesota: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 18.78% (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: 18.78% (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 25.85% +19.35 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 | $39.1M | 39,077 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $151.2M | 151,166 | RCOAA223 |
| Recomputed ratio | 25.85% | numerator / denominator | |
| Filed ratio | 25.85% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +19.35 pp | $29.3M | capital that could be lost first |
Tier 1 risk-based capital ratio 25.85% +17.85 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 | $39.1M | 39,077 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $151.2M | 151,166 | RCOAA223 |
| Recomputed ratio | 25.85% | numerator / denominator | |
| Filed ratio | 25.85% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +17.85 pp | $27.0M | capital that could be lost first |
Total risk-based capital ratio 26.78% +16.78 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 | $40.5M | 40,481 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $151.2M | 151,166 | RCOAA223 |
| Recomputed ratio | 26.78% | numerator / denominator | |
| Filed ratio | 26.78% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +16.78 pp | $25.4M | capital that could be lost first |
Tier 1 leverage ratio 12.90% +7.90 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 | $39.1M | 39,077 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $302.8M | 302,826 | RCOAA224 |
| Recomputed ratio | 12.90% | numerator / denominator | |
| Filed ratio | 12.90% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +7.90 pp | $23.9M | 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 | 22,019 | 22,019 | 22,019 | 22,019 | 22,019 | 22,019 | RCOAP742 |
| Retained earnings | 17,058 | 17,025 | 17,323 | 16,862 | 16,207 | 15,794 | RCOAKW00 |
| Accumulated other comprehensive income | (12,220) | (12,064) | (11,201) | (11,896) | (13,811) | (14,706) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 26,857 | 26,980 | 28,141 | 26,985 | 24,415 | 23,107 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 12,220 | 12,064 | 11,201 | 11,896 | 13,811 | 14,706 | P859 - P840 |
| Common equity Tier 1 capital | 39,077 | 39,044 | 39,342 | 38,881 | 38,226 | 37,813 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 39,077 | 39,044 | 39,342 | 38,881 | 38,226 | 37,813 | RCOA8274 |
| Tier 2 capital | 1,404 | 1,413 | 1,416 | 1,415 | 1,419 | 1,417 | RCOA5311 |
| Allowance includable in Tier 2 capital | 1,404 | 1,413 | 1,416 | 1,415 | 1,419 | 1,417 | RCOA5310 |
| Total capital | 40,481 | 40,457 | 40,758 | 40,296 | 39,645 | 39,230 | RCOA3792 |
| Total risk-weighted assets | 151,166 | 151,398 | 151,809 | 151,746 | 153,237 | 152,594 | RCOAA223 |
| Average total assets for the leverage ratio | 302,826 | 300,243 | 289,304 | 289,140 | 288,619 | 286,913 | 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 | $45.4M | $6.5M | 14.26% | 4.29% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $101.2M | $18.1M | 17.86% | 11.96% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $127.7M | $79.2M | 62.02% | 52.39% | RC-R Part II, item 4.a, 5.a |
| Loans: all other | $9.6M | $7.8M | 81.49% | 5.16% | RC-R Part II, item 4.d, 5.d |
| All other assets | $19.9M | $31.4M | 157.89% | 20.80% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $8.5M | $7.6M | 88.75% | 5.00% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $104K | $104K | 100.00% | 0.07% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $517K | NA | 0.34% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $150.6M | ties to item 31 ($150.6M) |
|---|---|---|
| Risk-weighted assets before deductions | $151.2M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $151.2M | 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 | 25.85% | 25.85% | 26.78% | 12.90% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 25.79% | 25.79% | 26.72% | 13.00% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 25.92% | 25.92% | 26.85% | 13.60% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 25.62% | 25.62% | 26.55% | 13.45% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 24.95% | 24.95% | 25.87% | 13.24% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 24.78% | 24.78% | 25.71% | 13.18% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 25.09% | 25.09% | 26.03% | 13.40% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 24.76% | 24.76% | 25.70% | 13.18% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 24.58% | 24.58% | 25.52% | 13.95% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 24.86% | 24.86% | 25.82% | 13.85% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 25.49% | 25.49% | 26.45% | 14.19% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 25.34% | 25.34% | 26.23% | 13.77% | 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 |
|---|---|---|---|---|---|---|
| Liberty Bank Minnesota (this bank) | Risk-based | 25.85% | 25.85% | 26.78% | 12.90% | |
| United State Bank | $290.1M | Risk-based | 13.85% | 13.85% | 15.10% | 10.50% |
| One World Bank | $290.1M | CBLR | NA | NA | NA | 13.24% |
| United Community Bank | $290.0M | Risk-based | 11.41% | 11.41% | 12.66% | 8.45% |
| Somerville Bank | $290.6M | CBLR | NA | NA | NA | 9.54% |
| Georgia First Bank | $290.8M | Risk-based | 13.65% | 13.65% | 14.91% | 9.52% |
| Farmers & Merchants Bank | $289.6M | Risk-based | 18.51% | 18.51% | 19.76% | 11.20% |
| Sundance State Bank | $290.9M | Risk-based | 15.07% | 15.07% | 16.32% | 11.90% |
| Citizens State Bank of Roseau | $290.9M | CBLR | NA | NA | NA | 13.30% |
| Bank of Dickson | $291.0M | CBLR | NA | NA | NA | 11.53% |
| First Colony Bank of Florida | $291.1M | Risk-based | 13.32% | 13.32% | 14.58% | 9.94% |
| Peer 25th percentile | 13.41% | 13.41% | 14.66% | 9.64% | ||
| Peer median | 13.75% | 13.75% | 15.01% | 10.85% | ||
| Peer 75th percentile | 14.77% | 14.77% | 16.02% | 11.81% | ||
| This bank's percentile | 100 | 100 | 100 | 80 |
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/1387203/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.