Potomac Bank, Inc.: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 6.06% (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: 6.06% (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 12.97% +6.47 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 | $99.7M | 99,745 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $769.3M | 769,304 | RCOAA223 |
| Recomputed ratio | 12.97% | numerator / denominator | |
| Filed ratio | 12.97% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +6.47 pp | $49.7M | capital that could be lost first |
Tier 1 risk-based capital ratio 12.97% +4.97 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 | $99.7M | 99,745 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $769.3M | 769,304 | RCOAA223 |
| Recomputed ratio | 12.97% | numerator / denominator | |
| Filed ratio | 12.97% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +4.97 pp | $38.2M | capital that could be lost first |
Total risk-based capital ratio 14.06% +4.06 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 | $108.2M | 108,159 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $769.3M | 769,304 | RCOAA223 |
| Recomputed ratio | 14.06% | numerator / denominator | |
| Filed ratio | 14.06% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +4.06 pp | $31.2M | capital that could be lost first |
Tier 1 leverage ratio 9.85% +4.85 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 | $99.7M | 99,745 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $1.01B | 1,012,615 | RCOAA224 |
| Recomputed ratio | 9.85% | numerator / denominator | |
| Filed ratio | 9.85% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +4.85 pp | $49.1M | 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 | 24,175 | 24,175 | 24,175 | 24,175 | 24,175 | 24,175 | RCOAP742 |
| Retained earnings | 75,570 | 72,912 | 70,487 | 68,746 | 67,115 | 65,499 | RCOAKW00 |
| Accumulated other comprehensive income | (4,494) | (4,063) | (3,752) | (4,002) | (5,089) | (4,994) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 95,251 | 93,024 | 90,910 | 88,919 | 86,201 | 84,680 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 4,494 | 4,063 | 3,752 | 4,002 | 5,089 | 4,994 | P859 - P840 |
| Common equity Tier 1 capital | 99,745 | 97,087 | 94,662 | 92,921 | 91,290 | 89,674 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 99,745 | 97,087 | 94,662 | 92,921 | 91,290 | 89,674 | RCOA8274 |
| Tier 2 capital | 8,414 | 8,408 | 8,226 | 7,994 | 7,807 | 7,628 | RCOA5311 |
| Allowance includable in Tier 2 capital | 8,414 | 8,408 | 8,226 | 7,994 | 7,807 | 7,628 | RCOA5310 |
| Total capital | 108,159 | 105,495 | 102,888 | 100,915 | 99,097 | 97,302 | RCOA3792 |
| Total risk-weighted assets | 769,304 | 754,412 | 748,336 | 734,225 | 736,357 | 714,778 | RCOAA223 |
| Average total assets for the leverage ratio | 1,012,615 | 968,535 | 974,414 | 943,890 | 921,475 | 891,020 | 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 | $79.8M | $5K | 0.01% | 0.00% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $102.4M | $19.0M | 18.58% | 2.47% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $239.2M | $119.6M | 50.00% | 15.55% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $13.9M | $20.9M | 150.00% | 2.72% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $128K | $128K | 100.00% | 0.02% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $521.8M | $521.9M | 100.04% | 67.85% | RC-R Part II, item 4.d, 5.d |
| All other assets | $39.2M | $33.9M | 86.56% | 4.41% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $50.4M | $51.8M | 102.83% | 6.73% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $2.0M | NA | 0.25% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $767.3M | ties to item 31 ($767.3M) |
|---|---|---|
| Risk-weighted assets before deductions | $769.3M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $769.3M | 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 | 12.97% | 12.97% | 14.06% | 9.85% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 12.87% | 12.87% | 13.98% | 10.02% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 12.65% | 12.65% | 13.75% | 9.71% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 12.66% | 12.66% | 13.74% | 9.84% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 12.40% | 12.40% | 13.46% | 9.91% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 12.55% | 12.55% | 13.61% | 10.06% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 12.52% | 12.52% | 13.57% | 9.92% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 12.69% | 12.69% | 13.79% | 9.67% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 12.87% | 12.87% | 13.96% | 9.99% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 12.88% | 12.88% | 13.97% | 9.98% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 12.89% | 12.89% | 13.97% | 9.77% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 12.63% | 12.63% | 13.72% | 9.93% | 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 |
|---|---|---|---|---|---|---|
| Potomac Bank, Inc. (this bank) | Risk-based | 12.97% | 12.97% | 14.06% | 9.85% | |
| Community First Bank of Indiana | $980.3M | Risk-based | 9.85% | 9.85% | 11.56% | 9.92% |
| Resource Bank | $980.7M | CBLR | NA | NA | NA | 12.80% |
| Tolleson Private Bank | $982.0M | Risk-based | 13.77% | 13.77% | 15.02% | 9.37% |
| BTG Pactual Bank, N.A. | $978.3M | Risk-based | 111.63% | 111.63% | 112.79% | 48.10% |
| Beacon Community Bank | $982.3M | Risk-based | 10.82% | 10.82% | 12.02% | 8.46% |
| First Northern Bank of Wyoming | $982.6M | Risk-based | 10.79% | 10.79% | 11.83% | 7.93% |
| International Bank of Chicago | $982.7M | Risk-based | 19.69% | 19.69% | 20.95% | 12.54% |
| First National Bankers Bank | $983.0M | CBLR | NA | NA | NA | 16.14% |
| Coastal Heritage Bank | $983.6M | CBLR | NA | NA | NA | 11.54% |
| First Security Bank | $976.5M | Risk-based | 13.62% | 13.62% | 14.87% | 9.28% |
| Peer 25th percentile | 10.80% | 10.80% | 11.92% | 9.30% | ||
| Peer median | 13.62% | 13.62% | 14.87% | 10.73% | ||
| Peer 75th percentile | 16.73% | 16.73% | 17.99% | 12.74% | ||
| This bank's percentile | 43 | 43 | 43 | 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/1014125/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.