Morton Community Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 6.59% (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: 6.59% (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 13.59% +7.09 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 | $567.2M | 567,183 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $4.17B | 4,174,482 | RCOAA223 |
| Recomputed ratio | 13.59% | numerator / denominator | |
| Filed ratio | 13.59% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +7.09 pp | $295.8M | capital that could be lost first |
Tier 1 risk-based capital ratio 13.59% +5.59 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 | $567.2M | 567,183 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $4.17B | 4,174,482 | RCOAA223 |
| Recomputed ratio | 13.59% | numerator / denominator | |
| Filed ratio | 13.59% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +5.59 pp | $233.2M | capital that could be lost first |
Total risk-based capital ratio 14.59% +4.59 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 | $609.0M | 608,969 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $4.17B | 4,174,482 | RCOAA223 |
| Recomputed ratio | 14.59% | numerator / denominator | |
| Filed ratio | 14.59% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +4.59 pp | $191.5M | capital that could be lost first |
Tier 1 leverage ratio 10.62% +5.62 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 | $567.2M | 567,183 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $5.34B | 5,341,950 | RCOAA224 |
| Recomputed ratio | 10.62% | numerator / denominator | |
| Filed ratio | 10.62% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +5.62 pp | $300.1M | 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 | 356,380 | 356,380 | 356,380 | 356,380 | 356,380 | 356,380 | RCOAP742 |
| Retained earnings | 287,069 | 298,399 | 305,884 | 287,953 | 270,535 | 281,901 | RCOAKW00 |
| Accumulated other comprehensive income | (141,435) | (140,387) | (130,950) | (138,066) | (173,316) | (173,175) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 502,014 | 514,392 | 531,314 | 506,267 | 453,599 | 465,106 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 65,169 | 62,650 | 51,673 | 57,248 | 90,958 | 89,206 | P859 - P840 |
| Common equity Tier 1 capital | 567,183 | 577,042 | 582,987 | 563,515 | 544,557 | 554,312 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 567,183 | 577,042 | 582,987 | 563,515 | 544,557 | 554,312 | RCOA8274 |
| Tier 2 capital | 41,786 | 40,722 | 44,059 | 42,505 | 42,487 | 42,153 | RCOA5311 |
| Allowance includable in Tier 2 capital | 41,786 | 40,722 | 44,059 | 42,505 | 42,487 | 42,153 | RCOA5310 |
| Total capital | 608,969 | 617,764 | 627,046 | 606,020 | 587,044 | 596,465 | RCOA3792 |
| Total risk-weighted assets | 4,174,482 | 4,104,321 | 4,184,257 | 4,189,453 | 4,211,295 | 4,139,897 | RCOAA223 |
| Average total assets for the leverage ratio | 5,341,950 | 5,339,794 | 5,401,916 | 5,462,943 | 5,492,417 | 5,486,268 | 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 | $212.4M | $6.1M | 2.88% | 0.15% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $1.56B | $296.9M | 19.03% | 7.11% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $2.7M | $545K | 20.00% | 0.01% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $626.1M | $374.9M | 59.89% | 8.98% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $172.4M | $258.6M | 150.00% | 6.20% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $24.0M | $36.0M | 150.00% | 0.86% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $2.72B | $2.72B | 100.00% | 65.11% | RC-R Part II, item 4.d, 5.d |
| All other assets | $123.8M | $126.5M | 102.16% | 3.03% | RC-R Part II, item 8 |
| Securitization exposures at 1250% | $419K | $5.2M | 1250.00% | 0.13% | RC-R Part II, item 9, 10 |
| Off-balance-sheet commitments and letters of credit | $297.9M | $333.0M | 111.78% | 7.98% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $3.0M | $3.0M | 100.00% | 0.07% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $15.4M | NA | 0.37% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $4.16B | ties to item 31 ($4.16B) |
|---|---|---|
| Risk-weighted assets before deductions | $4.17B | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $4.17B | 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 | 13.59% | 13.59% | 14.59% | 10.62% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 14.06% | 14.06% | 15.05% | 10.81% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 13.93% | 13.93% | 14.99% | 10.79% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 13.45% | 13.45% | 14.47% | 10.32% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 12.93% | 12.93% | 13.94% | 9.91% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 13.39% | 13.39% | 14.41% | 10.10% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 12.81% | 12.81% | 13.80% | 9.76% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 12.53% | 12.53% | 13.48% | 9.52% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 12.12% | 12.12% | 13.08% | 9.20% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 12.20% | 12.20% | 13.15% | 9.33% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 11.93% | 11.93% | 12.89% | 9.11% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 11.78% | 11.78% | 12.71% | 8.79% | 12.78% | 12.79% | 13.93% | 10.03% |
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 |
|---|---|---|---|---|---|---|
| Morton Community Bank (this bank) | Risk-based | 13.59% | 13.59% | 14.59% | 10.62% | |
| Celtic Bank Corporation | $5.33B | CBLR | NA | NA | NA | 18.04% |
| Interbank | $5.33B | CBLR | NA | NA | NA | 11.06% |
| Five Star Bank | $5.38B | Risk-based | 11.11% | 11.11% | 12.12% | 10.25% |
| Bridgewater Bank | $5.38B | Risk-based | 12.73% | 12.73% | 13.98% | 11.65% |
| City Bank | $5.39B | Risk-based | 13.39% | 13.39% | 14.50% | 10.79% |
| Southern Bank and Trust Company | $5.30B | Risk-based | 12.68% | 12.68% | 13.63% | 9.63% |
| The Canandaigua National Bank and Trust Company | $5.41B | Risk-based | 12.34% | 12.34% | 13.38% | 9.01% |
| Leader Bank, N.A. | $5.28B | Risk-based | 19.80% | 19.80% | 21.06% | 11.58% |
| Stride Bank, N.A. | $5.42B | Risk-based | 18.76% | 18.76% | 19.84% | 8.37% |
| Broadway National Bank | $5.42B | Risk-based | 16.72% | 16.72% | 17.73% | 10.93% |
| Peer 25th percentile | 12.59% | 12.59% | 13.56% | 9.79% | ||
| Peer median | 13.06% | 13.06% | 14.24% | 10.86% | ||
| Peer 75th percentile | 17.23% | 17.23% | 18.26% | 11.45% | ||
| This bank's percentile | 62 | 62 | 62 | 40 |
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/825146/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.