Sterling State Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 5.98% (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: 5.98% (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 12.80% +6.30 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 | $40.1M | 40,076 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $313.2M | 313,208 | RCOAA223 |
| Recomputed ratio | 12.80% | numerator / denominator | |
| Filed ratio | 12.80% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +6.30 pp | $19.7M | capital that could be lost first |
Tier 1 risk-based capital ratio 12.80% +4.80 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 | $40.1M | 40,076 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $313.2M | 313,208 | RCOAA223 |
| Recomputed ratio | 12.80% | numerator / denominator | |
| Filed ratio | 12.80% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +4.80 pp | $15.0M | capital that could be lost first |
Total risk-based capital ratio 13.98% +3.98 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 | $43.8M | 43,786 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $313.2M | 313,208 | RCOAA223 |
| Recomputed ratio | 13.98% | numerator / denominator | |
| Filed ratio | 13.98% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +3.98 pp | $12.5M | capital that could be lost first |
Tier 1 leverage ratio 8.54% +3.54 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 | $40.1M | 40,076 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $469.0M | 469,022 | RCOAA224 |
| Recomputed ratio | 8.54% | numerator / denominator | |
| Filed ratio | 8.54% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +3.54 pp | $16.6M | 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 | 33,000 | 33,000 | 33,000 | 33,000 | 33,000 | 31,127 | RCOAP742 |
| Retained earnings | 7,076 | 6,725 | 6,196 | 5,634 | 4,893 | 6,305 | RCOAKW00 |
| Accumulated other comprehensive income | (8,300) | (8,291) | (7,728) | (8,627) | (10,592) | (12,506) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 31,776 | 31,434 | 31,468 | 30,007 | 27,301 | 24,926 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 8,300 | 8,291 | 7,728 | 8,627 | 10,592 | 12,506 | P859 - P840 |
| Common equity Tier 1 capital | 40,076 | 39,725 | 39,196 | 38,634 | 37,893 | 37,432 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 40,076 | 39,725 | 39,196 | 38,634 | 37,893 | 37,432 | RCOA8274 |
| Tier 2 capital | 3,710 | 3,710 | 3,709 | 3,406 | 3,406 | 3,407 | RCOA5311 |
| Allowance includable in Tier 2 capital | 3,710 | 3,710 | 3,709 | 3,406 | 3,406 | 3,407 | RCOA5310 |
| Total capital | 43,786 | 43,435 | 42,905 | 42,040 | 41,299 | 40,839 | RCOA3792 |
| Total risk-weighted assets | 313,208 | 317,283 | 317,042 | 305,159 | 307,123 | 305,660 | RCOAA223 |
| Average total assets for the leverage ratio | 469,022 | 465,807 | 482,218 | 516,843 | 524,872 | 528,208 | 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 | $14.6M | $1.0M | 6.96% | 0.33% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $134.1M | $4.0M | 2.96% | 1.27% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $66.5M | $0 | 0.00% | 0.00% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $47.0M | $25.5M | 54.42% | 8.16% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $7.0M | $10.5M | 150.00% | 3.35% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $1.2M | $1.9M | 150.00% | 0.59% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $253.3M | $253.3M | 100.00% | 80.88% | RC-R Part II, item 4.d, 5.d |
| All other assets | $16.6M | $15.9M | 96.29% | 5.09% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $1.3M | $1.1M | 81.96% | 0.34% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $1K | 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 | $313.2M | ties to item 31 ($313.2M) |
|---|---|---|
| Risk-weighted assets before deductions | $313.2M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $313.2M | 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 | 12.80% | 12.80% | 13.98% | 8.54% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 12.52% | 12.52% | 13.69% | 8.53% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 12.36% | 12.36% | 13.53% | 8.13% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 12.66% | 12.66% | 13.78% | 7.47% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 12.34% | 12.34% | 13.45% | 7.22% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 12.25% | 12.25% | 13.36% | 7.09% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 12.26% | 12.26% | 13.39% | 6.95% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 12.30% | 12.30% | 13.44% | 6.98% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 12.42% | 12.42% | 13.57% | 7.02% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 12.41% | 12.41% | 13.58% | 6.59% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 12.52% | 12.52% | 13.70% | 6.70% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 12.77% | 12.77% | 13.98% | 6.92% | 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 |
|---|---|---|---|---|---|---|
| Sterling State Bank (this bank) | Risk-based | 12.80% | 12.80% | 13.98% | 8.54% | |
| Northeast Security Bank | $461.9M | Risk-based | 15.42% | 15.42% | 16.67% | 10.77% |
| The Bank | $462.0M | CBLR | NA | NA | NA | 12.76% |
| The Missouri Bank | $461.5M | CBLR | NA | NA | NA | 12.57% |
| Farmers Savings Bank | $461.2M | Risk-based | 20.06% | 20.06% | 21.07% | 11.24% |
| Robertson Banking Company | $462.7M | Risk-based | 14.86% | 14.86% | 16.11% | 11.26% |
| NSB Bank | $460.8M | Risk-based | 10.94% | 10.94% | 12.00% | 8.49% |
| Alden State Bank | $463.1M | Risk-based | 22.56% | 22.56% | 23.65% | 15.18% |
| Local Bank | $463.1M | Risk-based | 13.13% | 13.13% | 13.75% | 11.35% |
| United Savings Bank | $460.6M | CBLR | NA | NA | NA | 17.44% |
| Peer 25th percentile | 13.56% | 13.56% | 14.34% | 11.24% | ||
| Peer median | 15.14% | 15.14% | 16.39% | 11.35% | ||
| Peer 75th percentile | 18.90% | 18.90% | 19.97% | 12.76% | ||
| This bank's percentile | 17 | 17 | 33 | 11 |
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/144155/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.