Redwood Capital Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 7.66% (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: 7.66% (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 14.41% +7.91 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 | $60.5M | 60,524 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $420.0M | 420,014 | RCOAA223 |
| Recomputed ratio | 14.41% | numerator / denominator | |
| Filed ratio | 14.41% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +7.91 pp | $33.2M | capital that could be lost first |
Tier 1 risk-based capital ratio 14.41% +6.41 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 | $60.5M | 60,524 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $420.0M | 420,014 | RCOAA223 |
| Recomputed ratio | 14.41% | numerator / denominator | |
| Filed ratio | 14.41% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +6.41 pp | $26.9M | capital that could be lost first |
Total risk-based capital ratio 15.66% +5.66 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 | $65.8M | 65,789 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $420.0M | 420,014 | RCOAA223 |
| Recomputed ratio | 15.66% | numerator / denominator | |
| Filed ratio | 15.66% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +5.66 pp | $23.8M | capital that could be lost first |
Tier 1 leverage ratio 10.96% +5.96 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 | $60.5M | 60,524 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $552.3M | 552,304 | RCOAA224 |
| Recomputed ratio | 10.96% | numerator / denominator | |
| Filed ratio | 10.96% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +5.96 pp | $32.9M | 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 | 18,911 | 18,911 | 18,911 | 18,911 | 18,911 | 18,911 | RCOAP742 |
| Retained earnings | 41,613 | 40,354 | 39,828 | 39,367 | 43,805 | 43,973 | RCOAKW00 |
| Accumulated other comprehensive income | (4,353) | (4,494) | (4,137) | (4,631) | (5,274) | (5,668) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 56,171 | 54,771 | 54,602 | 53,647 | 57,442 | 57,216 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 4,353 | 4,494 | 4,137 | 4,631 | 5,274 | 5,668 | P859 - P840 |
| Common equity Tier 1 capital | 60,524 | 59,265 | 58,739 | 58,278 | 62,716 | 62,884 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 60,524 | 59,265 | 58,739 | 58,278 | 62,716 | 62,884 | RCOA8274 |
| Tier 2 capital | 5,265 | 5,076 | 5,008 | 5,118 | 5,119 | 4,994 | RCOA5311 |
| Allowance includable in Tier 2 capital | 5,265 | 5,076 | 5,008 | 5,118 | 5,119 | 4,994 | RCOA5310 |
| Total capital | 65,789 | 64,341 | 63,747 | 63,396 | 67,835 | 67,878 | RCOA3792 |
| Total risk-weighted assets | 420,014 | 404,812 | 399,436 | 408,188 | 408,292 | 398,072 | RCOAA223 |
| Average total assets for the leverage ratio | 552,304 | 542,171 | 540,713 | 551,551 | 534,301 | 535,191 | 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 | $24.0M | $2.2M | 9.06% | 0.52% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $81.5M | $9.9M | 12.09% | 2.34% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $35.6M | $7.1M | 20.00% | 1.69% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $51.2M | $29.8M | 58.12% | 7.07% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $510K | $510K | 100.00% | 0.12% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $350.6M | $336.5M | 95.99% | 79.89% | RC-R Part II, item 4.d, 5.d |
| All other assets | $35.1M | $35.2M | 100.15% | 8.35% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $75K | $75K | 100.00% | 0.02% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $700 | NA | 0.00% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $421.2M | ties to item 31 ($421.2M) |
|---|---|---|
| Risk-weighted assets before deductions | $421.2M | RCONB704 |
| Less: excess allowance for credit losses | $1.2M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $420.0M | 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 | 14.41% | 14.41% | 15.66% | 10.96% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 14.64% | 14.64% | 15.89% | 10.93% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 14.71% | 14.71% | 15.96% | 10.86% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 14.28% | 14.28% | 15.53% | 10.57% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 15.36% | 15.36% | 16.61% | 11.74% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 15.80% | 15.80% | 17.05% | 11.75% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 15.35% | 15.35% | 16.61% | 11.49% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 16.46% | 16.46% | 17.71% | 12.36% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 16.03% | 16.03% | 17.29% | 12.34% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 15.88% | 15.88% | 17.13% | 12.19% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 15.44% | 15.44% | 16.69% | 12.09% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 15.46% | 15.46% | 16.72% | 11.69% | 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 |
|---|---|---|---|---|---|---|
| Redwood Capital Bank (this bank) | Risk-based | 14.41% | 14.41% | 15.66% | 10.96% | |
| Jefferson Security Bank | $566.1M | Risk-based | 12.97% | 12.97% | 14.22% | 8.39% |
| First Commercial Bank, N.A. | $565.9M | Risk-based | 19.05% | 19.05% | 20.30% | 10.25% |
| Century Bank | $566.2M | CBLR | NA | NA | NA | 10.12% |
| Farmers and Merchants Bank | $565.8M | CBLR | NA | NA | NA | 14.19% |
| Citizens Bank & Trust Company | $566.4M | CBLR | NA | NA | NA | 11.78% |
| Farmers Bank of Northern Missouri | $566.5M | CBLR | NA | NA | NA | 12.71% |
| South Ottumwa Savings Bank | $565.4M | Risk-based | 18.33% | 18.33% | 19.24% | 13.00% |
| Capitol Bank | $565.3M | Risk-based | 15.76% | 15.76% | 17.01% | 12.42% |
| Peoples Bank of Kentucky, Inc. | $564.9M | Risk-based | 16.27% | 16.27% | 17.54% | 11.13% |
| International Bank of Commerce | $567.8M | Risk-based | 32.79% | 32.79% | 33.83% | 13.60% |
| Peer 25th percentile | 15.88% | 15.88% | 17.14% | 10.47% | ||
| Peer median | 17.30% | 17.30% | 18.39% | 12.10% | ||
| Peer 75th percentile | 18.87% | 18.87% | 20.04% | 12.93% | ||
| This bank's percentile | 17 | 17 | 17 | 30 |
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/3247589/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.