Square Financial Services, Inc.: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 89.31% (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: 89.31% (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 95.99% +89.49 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 | $1.35B | 1,353,924 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.41B | 1,410,535 | RCOAA223 |
| Recomputed ratio | 95.99% | numerator / denominator | |
| Filed ratio | 95.99% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +89.49 pp | $1.26B | capital that could be lost first |
Tier 1 risk-based capital ratio 95.99% +87.99 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 | $1.35B | 1,353,924 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.41B | 1,410,535 | RCOAA223 |
| Recomputed ratio | 95.99% | numerator / denominator | |
| Filed ratio | 95.99% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +87.99 pp | $1.24B | capital that could be lost first |
Total risk-based capital ratio 97.31% +87.31 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 | $1.37B | 1,372,646 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $1.41B | 1,410,535 | RCOAA223 |
| Recomputed ratio | 97.31% | numerator / denominator | |
| Filed ratio | 97.31% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +87.31 pp | $1.23B | capital that could be lost first |
Tier 1 leverage ratio 65.19% +60.19 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 | $1.35B | 1,353,924 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $2.08B | 2,076,996 | RCOAA224 |
| Recomputed ratio | 65.19% | numerator / denominator | |
| Filed ratio | 65.19% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +60.19 pp | $1.25B | 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 | 164,972 | 153,859 | 152,890 | 151,200 | 147,501 | 143,840 | RCOAP742 |
| Retained earnings | 1,188,952 | 1,008,024 | 838,489 | 693,923 | 573,640 | 503,076 | RCOAKW00 |
| Accumulated other comprehensive income | (304) | (156) | (156) | (63) | (132) | (72) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 1,353,620 | 1,161,727 | 991,223 | 845,060 | 721,009 | 646,844 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 304 | 156 | 156 | 63 | 132 | 72 | P859 - P840 |
| Common equity Tier 1 capital | 1,353,924 | 1,161,883 | 991,379 | 845,123 | 721,141 | 646,916 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 1,353,924 | 1,161,883 | 991,379 | 845,123 | 721,141 | 646,916 | RCOA8274 |
| Tier 2 capital | 18,722 | 15,393 | 13,689 | 10,994 | 8,645 | 6,916 | RCOA5311 |
| Allowance includable in Tier 2 capital | 18,722 | 15,393 | 13,689 | 10,994 | 8,645 | 6,916 | RCOA5310 |
| Total capital | 1,372,646 | 1,177,276 | 1,005,068 | 856,117 | 729,786 | 653,832 | RCOA3792 |
| Total risk-weighted assets | 1,410,535 | 1,163,760 | 1,042,406 | 851,292 | 671,153 | 533,708 | RCOAA223 |
| Average total assets for the leverage ratio | 2,076,996 | 1,888,011 | 1,636,412 | 1,370,947 | 1,155,850 | 962,624 | 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 | $704.6M | $24.5M | 3.47% | 1.63% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $9.9M | $5.0M | 50.00% | 0.33% | RC-R Part II, item 2.a, 2.b |
| Loans: past due and nonaccrual | $9.3M | $14.0M | 150.00% | 0.93% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $1.38B | $1.38B | 100.00% | 92.36% | RC-R Part II, item 4.d, 5.d |
| All other assets | $69.6M | $69.2M | 99.43% | 4.62% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $1.9M | $1.9M | 100.00% | 0.13% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $400 | 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 | $1.50B | ties to item 31 ($1.50B) |
|---|---|---|
| Risk-weighted assets before deductions | $1.50B | RCONB704 |
| Less: excess allowance for credit losses | $87.2M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $1.41B | 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 | 95.99% | 95.99% | 97.31% | 65.19% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 99.84% | 99.84% | 101.16% | 61.54% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 95.10% | 95.10% | 96.42% | 60.58% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 99.28% | 99.28% | 100.57% | 61.65% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 107.45% | 107.45% | 108.74% | 62.39% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 121.21% | 121.21% | 122.51% | 67.20% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | NA | NA | NA | 64.75% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | NA | NA | NA | 66.20% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | NA | NA | NA | 67.49% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | NA | NA | NA | 67.32% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | NA | NA | NA | 64.75% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | NA | NA | NA | 61.59% | 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 |
|---|---|---|---|---|---|---|
| Square Financial Services, Inc. (this bank) | Risk-based | 95.99% | 95.99% | 97.31% | 65.19% | |
| First United Bank & Trust | $2.05B | Risk-based | 13.96% | 13.96% | 15.22% | 11.56% |
| Timberland Bank | $2.06B | Risk-based | 19.54% | 19.54% | 20.80% | 12.85% |
| Gateway First Bank | $2.06B | Risk-based | 15.45% | 15.45% | 16.16% | 14.14% |
| One Florida Bank | $2.07B | Risk-based | 10.99% | 10.99% | 11.71% | 9.93% |
| The Village Bank | $2.07B | Risk-based | 14.74% | 14.74% | 15.43% | 9.50% |
| Signature Bank | $2.07B | Risk-based | 16.08% | 16.08% | 16.98% | 12.42% |
| American Commercial Bank & Trust, N.A. | $2.07B | CBLR | NA | NA | NA | 9.34% |
| First Bank | $2.07B | Risk-based | 12.87% | 12.87% | 13.91% | 9.44% |
| Peoples Bank | $2.04B | Risk-based | 11.81% | 11.81% | 13.03% | 9.31% |
| Peer 25th percentile | 12.61% | 12.61% | 13.69% | 9.44% | ||
| Peer median | 14.35% | 14.35% | 15.32% | 9.93% | ||
| Peer 75th percentile | 15.61% | 15.61% | 16.36% | 12.42% | ||
| This bank's percentile | 100 | 100 | 100 | 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/5582846/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.