Waterfall Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 6.27% (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: 6.27% (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 13.45% +6.95 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 | $52.9M | 52,898 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $393.2M | 393,181 | RCOAA223 |
| Recomputed ratio | 13.45% | numerator / denominator | |
| Filed ratio | 13.45% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +6.95 pp | $27.3M | capital that could be lost first |
Tier 1 risk-based capital ratio 13.45% +5.45 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 | $52.9M | 52,898 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $393.2M | 393,181 | RCOAA223 |
| Recomputed ratio | 13.45% | numerator / denominator | |
| Filed ratio | 13.45% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +5.45 pp | $21.4M | capital that could be lost first |
Total risk-based capital ratio 14.27% +4.27 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 | $56.1M | 56,098 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $393.2M | 393,181 | RCOAA223 |
| Recomputed ratio | 14.27% | numerator / denominator | |
| Filed ratio | 14.27% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +4.27 pp | $16.8M | capital that could be lost first |
Tier 1 leverage ratio 12.64% +7.64 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 | $52.9M | 52,898 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $418.3M | 418,344 | RCOAA224 |
| Recomputed ratio | 12.64% | numerator / denominator | |
| Filed ratio | 12.64% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +7.64 pp | $32.0M | 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 | 55,349 | 55,333 | 55,316 | 55,297 | 45,280 | 45,261 | RCOAP742 |
| Retained earnings | (1,778) | (1,818) | (1,708) | (1,952) | (2,108) | (2,424) | RCOAKW00 |
| Accumulated other comprehensive income | (743) | (737) | (689) | (762) | (903) | (994) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 52,828 | 52,778 | 52,919 | 52,583 | 42,269 | 41,843 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 70 | 48 | 22 | 57 | 142 | 137 | P859 - P840 |
| Common equity Tier 1 capital | 52,898 | 52,826 | 52,941 | 52,640 | 42,411 | 41,980 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 52,898 | 52,826 | 52,941 | 52,640 | 42,411 | 41,980 | RCOA8274 |
| Tier 2 capital | 3,200 | 3,317 | 3,094 | 2,850 | 2,359 | 2,180 | RCOA5311 |
| Allowance includable in Tier 2 capital | 3,200 | 3,317 | 3,094 | 2,850 | 2,359 | 2,180 | RCOA5310 |
| Total capital | 56,098 | 56,143 | 56,035 | 55,490 | 44,770 | 44,160 | RCOA3792 |
| Total risk-weighted assets | 393,181 | 405,080 | 384,754 | 347,756 | 313,204 | 279,298 | RCOAA223 |
| Average total assets for the leverage ratio | 418,344 | 408,457 | 381,089 | 357,658 | 324,083 | 301,169 | 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 | $12.5M | $429K | 3.44% | 0.11% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $10.5M | $3.0M | 28.59% | 0.76% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $28.1M | $19.1M | 67.99% | 4.86% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $6.6M | $9.9M | 150.00% | 2.52% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $100K | $150K | 150.00% | 0.04% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $345.3M | $345.3M | 100.00% | 87.81% | RC-R Part II, item 4.d, 5.d |
| All other assets | $10.3M | $9.1M | 88.41% | 2.32% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $6.2M | $6.2M | 100.00% | 1.57% | 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 | $393.2M | ties to item 31 ($393.2M) |
|---|---|---|
| Risk-weighted assets before deductions | $393.2M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $393.2M | 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 | 13.45% | 13.45% | 14.27% | 12.64% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 13.04% | 13.04% | 13.86% | 12.93% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 13.76% | 13.76% | 14.56% | 13.89% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 15.14% | 15.14% | 15.96% | 14.72% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 13.54% | 13.54% | 14.29% | 13.09% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 15.03% | 15.03% | 15.81% | 13.94% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 15.65% | 15.65% | 16.31% | 15.31% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 17.19% | 17.19% | 17.88% | 17.19% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 20.13% | 20.13% | 20.87% | 19.07% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 22.22% | 22.22% | 22.98% | 21.08% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 22.65% | 22.65% | 23.38% | 23.65% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 28.54% | 28.54% | 29.39% | 25.68% | 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 |
|---|---|---|---|---|---|---|
| Waterfall Bank (this bank) | Risk-based | 13.45% | 13.45% | 14.27% | 12.64% | |
| First State Bank Southwest | $409.9M | Risk-based | 16.28% | 16.28% | 17.53% | 9.69% |
| Community Savings Bank | $410.2M | CBLR | NA | NA | NA | 13.50% |
| Central Bank of Kansas City | $410.2M | CBLR | NA | NA | NA | 11.95% |
| Exchange Bank | $410.3M | CBLR | NA | NA | NA | 11.93% |
| Commercial Banking Company | $409.5M | Risk-based | 14.43% | 14.43% | 15.68% | 10.32% |
| Bank of Lexington, Inc. | $410.8M | Risk-based | 16.25% | 16.25% | 16.88% | 11.50% |
| Pike National Bank | $408.8M | CBLR | NA | NA | NA | 11.73% |
| Village Bank | $411.9M | Risk-based | 12.43% | 12.43% | 13.58% | 8.98% |
| Winter Hill Bank, FSB | $407.9M | Risk-based | 16.87% | 16.87% | 17.63% | 10.04% |
| Southern Bank | $407.9M | CBLR | NA | NA | NA | 8.18% |
| Peer 25th percentile | 14.43% | 14.43% | 15.68% | 9.78% | ||
| Peer median | 16.25% | 16.25% | 16.88% | 10.91% | ||
| Peer 75th percentile | 16.28% | 16.28% | 17.53% | 11.88% | ||
| This bank's percentile | 20 | 20 | 20 | 90 |
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/5650923/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.