Southwest Heritage Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 8.26% (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: 8.26% (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 15.11% +8.61 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 | $121.6M | 121,558 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $804.7M | 804,710 | RCOAA223 |
| Recomputed ratio | 15.11% | numerator / denominator | |
| Filed ratio | 15.11% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +8.61 pp | $69.3M | capital that could be lost first |
Tier 1 risk-based capital ratio 15.11% +7.11 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 | $121.6M | 121,558 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $804.7M | 804,710 | RCOAA223 |
| Recomputed ratio | 15.11% | numerator / denominator | |
| Filed ratio | 15.11% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +7.11 pp | $57.2M | capital that could be lost first |
Total risk-based capital ratio 16.25% +6.25 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 | $130.8M | 130,806 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $804.7M | 804,710 | RCOAA223 |
| Recomputed ratio | 16.25% | numerator / denominator | |
| Filed ratio | 16.25% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +6.25 pp | $50.3M | capital that could be lost first |
Tier 1 leverage ratio 13.36% +8.36 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 | $121.6M | 121,558 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $909.6M | 909,591 | RCOAA224 |
| Recomputed ratio | 13.36% | numerator / denominator | |
| Filed ratio | 13.36% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +8.36 pp | $76.1M | 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 | 85,071 | 84,863 | 84,735 | 84,603 | 83,045 | 82,912 | RCOAP742 |
| Retained earnings | 41,087 | 38,959 | 37,033 | 35,200 | 33,223 | 30,701 | RCOAKW00 |
| Accumulated other comprehensive income | (3,886) | (3,843) | (3,374) | (3,656) | (4,849) | (4,572) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 122,272 | 119,979 | 118,394 | 116,147 | 111,419 | 109,041 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (714) | (2,018) | (2,847) | (2,552) | (1,741) | (6,050) | P859 - P840 |
| Common equity Tier 1 capital | 121,558 | 117,961 | 115,547 | 113,595 | 109,678 | 102,991 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 121,558 | 117,961 | 115,547 | 113,595 | 109,678 | 102,991 | RCOA8274 |
| Tier 2 capital | 9,248 | 9,796 | 10,196 | 9,944 | 9,684 | 9,512 | RCOA5311 |
| Allowance includable in Tier 2 capital | 9,248 | 9,796 | 10,196 | 9,944 | 9,684 | 9,512 | RCOA5310 |
| Total capital | 130,806 | 127,757 | 125,743 | 123,539 | 119,362 | 112,503 | RCOA3792 |
| Total risk-weighted assets | 804,710 | 801,818 | 815,614 | 795,038 | 773,261 | 759,635 | RCOAA223 |
| Average total assets for the leverage ratio | 909,591 | 896,549 | 895,696 | 926,315 | 924,620 | 927,952 | 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 | $41.9M | $268K | 0.64% | 0.03% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $101.1M | $40.3M | 39.84% | 5.01% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $5.5M | $1.1M | 20.00% | 0.14% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $63.7M | $36.4M | 57.14% | 4.53% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $3.7M | $5.6M | 150.00% | 0.69% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $639.7M | $639.7M | 100.00% | 79.49% | RC-R Part II, item 4.d, 5.d |
| All other assets | $40.6M | $34.4M | 84.75% | 4.27% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $44.1M | $44.1M | 100.00% | 5.47% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $305K | $0 | 0.00% | 0.00% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $2.9M | NA | 0.36% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $801.8M | ties to item 31 ($801.8M) |
|---|---|---|
| Risk-weighted assets before deductions | $804.7M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $804.7M | 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 | 15.11% | 15.11% | 16.25% | 13.36% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 14.71% | 14.71% | 15.93% | 13.16% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 14.17% | 14.17% | 15.42% | 12.90% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 14.29% | 14.29% | 15.54% | 12.26% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 14.18% | 14.18% | 15.44% | 11.86% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 13.56% | 13.56% | 14.81% | 11.10% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 13.74% | 13.74% | 15.00% | 11.06% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 13.03% | 13.03% | 14.28% | 10.98% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 12.36% | 12.36% | 13.61% | 10.58% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 10.40% | 10.40% | 11.65% | 8.78% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 13.57% | 13.57% | 14.79% | 11.66% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 14.00% | 14.00% | 15.26% | 11.80% | 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 |
|---|---|---|---|---|---|---|
| Southwest Heritage Bank (this bank) | Risk-based | 15.11% | 15.11% | 16.25% | 13.36% | |
| United Bank & Trust | $892.9M | CBLR | NA | NA | NA | 11.51% |
| First Southern State Bank | $893.5M | CBLR | NA | NA | NA | 10.59% |
| Seattle Bank | $891.4M | Risk-based | 13.25% | 13.25% | 14.51% | 10.29% |
| The Savings Bank | $891.0M | CBLR | NA | NA | NA | 9.45% |
| Traditions Bank | $890.9M | Risk-based | 13.60% | 13.60% | 14.85% | 10.50% |
| 21st Century Bank | $894.8M | Risk-based | 14.71% | 14.71% | 15.70% | 10.66% |
| Central State Bank | $890.7M | CBLR | NA | NA | NA | 8.98% |
| The First State Bank | $895.2M | CBLR | NA | NA | NA | 10.58% |
| Titan Bank, N.A. | $895.2M | Risk-based | 35.50% | 35.50% | 36.75% | 9.48% |
| Peer 25th percentile | 13.51% | 13.51% | 14.77% | 9.48% | ||
| Peer median | 14.16% | 14.16% | 15.28% | 10.50% | ||
| Peer 75th percentile | 19.91% | 19.91% | 20.96% | 10.59% | ||
| This bank's percentile | 75 | 75 | 75 | 100 |
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/955977/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.