Sound Banking Company: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 8.52% (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: 8.52% (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 15.27% +8.77 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 | $5.4M | 5,430 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $35.6M | 35,563 | RCOAA223 |
| Recomputed ratio | 15.27% | numerator / denominator | |
| Filed ratio | 15.27% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +8.77 pp | $3.1M | capital that could be lost first |
Tier 1 risk-based capital ratio 15.27% +7.27 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 | $5.4M | 5,430 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $35.6M | 35,563 | RCOAA223 |
| Recomputed ratio | 15.27% | numerator / denominator | |
| Filed ratio | 15.27% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +7.27 pp | $2.6M | capital that could be lost first |
Total risk-based capital ratio 16.52% +6.52 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 | $5.9M | 5,876 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $35.6M | 35,563 | RCOAA223 |
| Recomputed ratio | 16.52% | numerator / denominator | |
| Filed ratio | 16.52% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +6.52 pp | $2.3M | capital that could be lost first |
Tier 1 leverage ratio 12.08% +7.08 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 | $5.4M | 5,430 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $44.9M | 44,942 | RCOAA224 |
| Recomputed ratio | 12.08% | numerator / denominator | |
| Filed ratio | 12.08% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +7.08 pp | $3.2M | 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 | 2,435 | 2,435 | 2,435 | 2,435 | 2,435 | 2,435 | RCOAP742 |
| Retained earnings | 2,995 | 3,377 | 3,120 | 3,285 | 2,968 | 3,241 | RCOAKW00 |
| Accumulated other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 5,430 | 5,812 | 5,555 | 5,720 | 5,403 | 5,676 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 0 | 0 | 0 | 0 | 0 | 0 | P859 - P840 |
| Common equity Tier 1 capital | 5,430 | 5,812 | 5,555 | 5,720 | 5,403 | 5,676 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 5,430 | 5,812 | 5,555 | 5,720 | 5,403 | 5,676 | RCOA8274 |
| Tier 2 capital | 446 | 433 | 493 | 508 | 491 | 481 | RCOA5311 |
| Allowance includable in Tier 2 capital | 446 | 433 | 493 | 508 | 491 | 481 | RCOA5310 |
| Total capital | 5,876 | 6,245 | 6,048 | 6,228 | 5,894 | 6,157 | RCOA3792 |
| Total risk-weighted assets | 35,563 | 34,508 | 39,317 | 40,573 | 39,140 | 38,386 | RCOAA223 |
| Average total assets for the leverage ratio | 44,942 | 44,502 | 46,509 | 47,368 | 47,806 | 48,594 | 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 | $2.0M | $28K | 1.42% | 0.08% | RC-R Part II, item 1 |
| Loans: residential mortgage | $20.1M | $10.3M | 51.30% | 28.88% | RC-R Part II, item 4.a, 5.a |
| Loans: all other | $18.7M | $18.7M | 100.00% | 52.36% | RC-R Part II, item 4.d, 5.d |
| All other assets | $5.0M | $5.0M | 99.42% | 13.88% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $1.7M | $1.7M | 100.00% | 4.79% | 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 | $35.7M | ties to item 31 ($35.7M) |
|---|---|---|
| Risk-weighted assets before deductions | $35.7M | RCONB704 |
| Less: excess allowance for credit losses | $185K | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $35.6M | 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 | 15.27% | 15.27% | 16.52% | 12.08% | 22.08% | 22.08% | 23.06% | 13.06% |
| 1Q26 | Risk-based | 16.84% | 16.84% | 18.10% | 13.06% | 22.52% | 22.52% | 23.43% | 13.02% |
| 4Q25 | Risk-based | 14.13% | 14.13% | 15.38% | 11.94% | 21.73% | 21.73% | 22.73% | 13.18% |
| 3Q25 | Risk-based | 14.10% | 14.10% | 15.35% | 12.08% | 21.77% | 21.77% | 22.80% | 13.28% |
| 2Q25 | Risk-based | 13.80% | 13.80% | 15.06% | 11.30% | 22.20% | 22.20% | 23.15% | 13.00% |
| 1Q25 | Risk-based | 14.79% | 14.79% | 16.04% | 11.68% | 21.99% | 21.99% | 22.93% | 12.89% |
| 4Q24 | Risk-based | 14.25% | 14.25% | 15.51% | 10.54% | 21.43% | 21.43% | 22.37% | 12.92% |
| 3Q24 | Risk-based | 14.02% | 14.02% | 15.28% | 11.44% | 21.38% | 21.38% | 22.41% | 12.89% |
| 2Q24 | Risk-based | 13.56% | 13.56% | 14.82% | 12.17% | 20.76% | 20.76% | 21.89% | 12.82% |
| 1Q24 | Risk-based | 15.19% | 15.19% | 16.45% | 13.17% | 20.90% | 20.90% | 22.17% | 12.66% |
| 4Q23 | Risk-based | 14.39% | 14.39% | 15.65% | 12.00% | 20.52% | 20.52% | 21.59% | 12.60% |
| 3Q23 | Risk-based | 16.28% | 16.28% | 17.53% | 12.34% | 20.70% | 20.70% | 21.86% | 12.73% |
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 |
|---|---|---|---|---|---|---|
| Sound Banking Company (this bank) | Risk-based | 15.27% | 15.27% | 16.52% | 12.08% | |
| Its Bank | $45.2M | CBLR | NA | NA | NA | 97.51% |
| 1st Bank in Hominy | $45.3M | CBLR | NA | NA | NA | 9.47% |
| Home Savings Bank of Wapakoneta | $45.3M | CBLR | NA | NA | NA | 12.40% |
| Marshall County State Bank | $45.4M | Risk-based | 60.73% | 60.73% | 62.00% | 15.81% |
| Gala Bank | $44.9M | Risk-based | 29.51% | 29.51% | 30.06% | 22.07% |
| Highland State Bank | $44.9M | CBLR | NA | NA | NA | 11.98% |
| Portrait Bank | $44.7M | CBLR | NA | NA | NA | 99.23% |
| Ninnescah Valley Bank | $44.6M | CBLR | NA | NA | NA | 12.04% |
| Peer 25th percentile | 37.31% | 37.31% | 38.04% | 12.03% | ||
| Peer median | 45.12% | 45.12% | 46.03% | 14.10% | ||
| Peer 75th percentile | 52.93% | 52.93% | 54.01% | 40.93% | ||
| This bank's percentile | 0 | 0 | 0 | 38 |
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/1494482/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.