Live Oak Banking Company: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 3.72% (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: 3.72% (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 10.46% +3.96 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 | $1.23B | 1,230,412 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $11.76B | 11,757,670 | RCOAA223 |
| Recomputed ratio | 10.46% | numerator / denominator | |
| Filed ratio | 10.46% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +3.96 pp | $466.2M | capital that could be lost first |
Tier 1 risk-based capital ratio 10.46% +2.46 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 | $1.23B | 1,230,412 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $11.76B | 11,757,670 | RCOAA223 |
| Recomputed ratio | 10.46% | numerator / denominator | |
| Filed ratio | 10.46% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +2.46 pp | $289.8M | capital that could be lost first |
Total risk-based capital ratio 11.72% +1.72 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 | $1.38B | 1,378,183 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $11.76B | 11,757,670 | RCOAA223 |
| Recomputed ratio | 11.72% | numerator / denominator | |
| Filed ratio | 11.72% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +1.72 pp | $202.4M | capital that could be lost first |
Tier 1 leverage ratio 7.99% +2.99 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 | $1.23B | 1,230,412 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $15.39B | 15,394,931 | RCOAA224 |
| Recomputed ratio | 7.99% | numerator / denominator | |
| Filed ratio | 7.99% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +2.99 pp | $460.7M | 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 | 370,971 | 364,074 | 361,354 | 356,899 | 353,155 | 346,629 | RCOAP742 |
| Retained earnings | 894,880 | 854,611 | 820,966 | 778,731 | 749,045 | 722,871 | RCOAKW00 |
| Accumulated other comprehensive income | (52,555) | (47,352) | (44,672) | (52,151) | (61,514) | (67,698) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 1,213,296 | 1,171,333 | 1,137,648 | 1,083,479 | 1,040,686 | 1,001,802 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 17,116 | 11,927 | 9,485 | 16,590 | 26,078 | 34,746 | P859 - P840 |
| Common equity Tier 1 capital | 1,230,412 | 1,183,260 | 1,147,133 | 1,100,069 | 1,066,764 | 1,036,548 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 1,230,412 | 1,183,260 | 1,147,133 | 1,100,069 | 1,066,764 | 1,036,548 | RCOA8274 |
| Tier 2 capital | 147,771 | 140,259 | 137,996 | 132,055 | 126,087 | 122,807 | RCOA5311 |
| Allowance includable in Tier 2 capital | 147,771 | 140,259 | 137,996 | 132,055 | 126,087 | 122,807 | RCOA5310 |
| Total capital | 1,378,183 | 1,323,519 | 1,285,129 | 1,232,124 | 1,192,851 | 1,159,355 | RCOA3792 |
| Total risk-weighted assets | 11,757,670 | 11,150,792 | 10,969,038 | 10,495,949 | 10,017,908 | 9,744,069 | RCOAA223 |
| Average total assets for the leverage ratio | 15,394,931 | 15,141,742 | 14,766,657 | 14,082,662 | 13,696,945 | 13,127,964 | 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 | $926.7M | $23.6M | 2.55% | 0.20% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $1.54B | $247.2M | 16.08% | 2.09% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $256.7M | $154.6M | 60.25% | 1.31% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $700.6M | $540.3M | 77.12% | 4.57% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $527.6M | $272.5M | 51.64% | 2.30% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $11.16B | $8.87B | 79.54% | 75.07% | RC-R Part II, item 4.d, 5.d |
| All other assets | $578.5M | $544.7M | 94.15% | 4.61% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $1.27B | $1.02B | 80.63% | 8.65% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $3.5M | $3.5M | 100.00% | 0.03% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $137.4M | NA | 1.16% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $11.68B | ties to item 31 ($11.68B) |
|---|---|---|
| Risk-weighted assets before deductions | $11.82B | RCONB704 |
| Less: excess allowance for credit losses | $64.0M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $11.76B | 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 | 10.46% | 10.46% | 11.72% | 7.99% | 12.98% | 12.99% | 14.14% | 10.25% |
| 1Q26 | Risk-based | 10.61% | 10.61% | 11.87% | 7.81% | 13.06% | 13.07% | 14.31% | 10.26% |
| 4Q25 | Risk-based | 10.46% | 10.46% | 11.72% | 7.77% | 13.15% | 13.20% | 14.60% | 10.03% |
| 3Q25 | Risk-based | 10.48% | 10.48% | 11.74% | 7.81% | 13.29% | 13.29% | 14.49% | 10.31% |
| 2Q25 | Risk-based | 10.65% | 10.65% | 11.91% | 7.79% | 13.11% | 13.11% | 14.41% | 10.16% |
| 1Q25 | Risk-based | 10.64% | 10.64% | 11.90% | 7.90% | 13.16% | 13.16% | 14.34% | 10.10% |
| 4Q24 | Risk-based | 10.96% | 10.96% | 12.22% | 8.04% | 13.15% | 13.15% | 14.49% | 10.29% |
| 3Q24 | Risk-based | 11.17% | 11.17% | 12.43% | 8.39% | 13.25% | 13.25% | 14.44% | 10.08% |
| 2Q24 | Risk-based | 11.84% | 11.84% | 13.09% | 8.48% | 13.08% | 13.08% | 14.24% | 10.10% |
| 1Q24 | Risk-based | 11.86% | 11.86% | 13.12% | 8.42% | 12.76% | 12.76% | 13.98% | 9.86% |
| 4Q23 | Risk-based | 10.40% | 10.40% | 11.65% | 7.41% | 12.58% | 12.58% | 13.79% | 9.79% |
| 3Q23 | Risk-based | 10.25% | 10.25% | 11.51% | 7.35% | 12.66% | 12.67% | 13.78% | 9.78% |
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 |
|---|---|---|---|---|---|---|
| Live Oak Banking Company (this bank) | Risk-based | 10.46% | 10.46% | 11.72% | 7.99% | |
| NBT Bank, N.A. | $16.09B | Risk-based | 11.80% | 11.80% | 12.89% | 9.49% |
| Safra National Bank of New York | $15.69B | Risk-based | 23.40% | 23.40% | 24.08% | 8.56% |
| Sunflower Bank, N.A. | $15.65B | Risk-based | 12.98% | 12.98% | 13.69% | 10.27% |
| Nicolet National Bank | $15.39B | Risk-based | 11.08% | 11.08% | 12.20% | 9.64% |
| Banner Bank | $16.59B | Risk-based | 12.71% | 12.71% | 13.95% | 11.15% |
| First United Bank and Trust Company | $16.59B | Risk-based | 12.28% | 12.31% | 13.36% | 9.80% |
| First Financial Bank | $15.23B | Risk-based | 18.36% | 18.36% | 19.59% | 11.61% |
| Bell Bank | $15.18B | Risk-based | 11.33% | 11.33% | 12.42% | 9.98% |
| FirstBank | $16.76B | Risk-based | 11.29% | 11.29% | 12.54% | 10.35% |
| Peer 25th percentile | 11.33% | 11.33% | 12.54% | 9.64% | ||
| Peer median | 12.28% | 12.31% | 13.36% | 9.98% | ||
| Peer 75th percentile | 12.98% | 12.98% | 13.95% | 10.35% | ||
| 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/3650808/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.