Watermark Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 7.36% (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: 7.36% (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 14.11% +7.61 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 | $57.3M | 57,281 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $405.9M | 405,858 | RCOAA223 |
| Recomputed ratio | 14.11% | numerator / denominator | |
| Filed ratio | 14.11% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +7.61 pp | $30.9M | capital that could be lost first |
Tier 1 risk-based capital ratio 14.11% +6.11 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 | $57.3M | 57,281 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $405.9M | 405,858 | RCOAA223 |
| Recomputed ratio | 14.11% | numerator / denominator | |
| Filed ratio | 14.11% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +6.11 pp | $24.8M | capital that could be lost first |
Total risk-based capital ratio 15.36% +5.36 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 | $62.3M | 62,340 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $405.9M | 405,858 | RCOAA223 |
| Recomputed ratio | 15.36% | numerator / denominator | |
| Filed ratio | 15.36% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +5.36 pp | $21.8M | capital that could be lost first |
Tier 1 leverage ratio 13.29% +8.29 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 | $57.3M | 57,281 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $430.9M | 430,933 | RCOAA224 |
| Recomputed ratio | 13.29% | numerator / denominator | |
| Filed ratio | 13.29% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +8.29 pp | $35.7M | 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 | 40,287 | 40,183 | 40,079 | 39,965 | 39,849 | 39,697 | RCOAP742 |
| Retained earnings | 16,994 | 15,387 | 14,126 | 12,935 | 11,683 | 10,649 | RCOAKW00 |
| Accumulated other comprehensive income | (316) | (331) | (349) | (423) | (538) | (595) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 56,965 | 55,239 | 53,856 | 52,477 | 50,994 | 49,751 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 316 | 331 | 349 | 423 | 538 | 595 | P859 - P840 |
| Common equity Tier 1 capital | 57,281 | 55,570 | 54,205 | 52,900 | 51,532 | 50,346 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 57,281 | 55,570 | 54,205 | 52,900 | 51,532 | 50,346 | RCOA8274 |
| Tier 2 capital | 5,059 | 4,772 | 4,550 | 4,367 | 4,093 | 3,948 | RCOA5311 |
| Allowance includable in Tier 2 capital | 5,059 | 4,772 | 4,550 | 4,367 | 4,093 | 3,948 | RCOA5310 |
| Total capital | 62,340 | 60,342 | 58,755 | 57,267 | 55,625 | 54,294 | RCOA3792 |
| Total risk-weighted assets | 405,858 | 381,774 | 363,871 | 355,996 | 327,437 | 331,539 | RCOAA223 |
| Average total assets for the leverage ratio | 430,933 | 420,205 | 417,245 | 384,040 | 352,800 | 367,668 | 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 | $14.8M | $2.0M | 13.60% | 0.50% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $9.7M | $5.3M | 54.45% | 1.30% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $40.4M | $8.1M | 20.00% | 1.99% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $62.9M | $34.6M | 55.05% | 8.53% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $839K | $1.3M | 150.00% | 0.31% | RC-R Part II, item 4.b, 5.b |
| Loans: all other | $317.3M | $317.3M | 100.00% | 78.17% | RC-R Part II, item 4.d, 5.d |
| All other assets | $9.9M | $9.6M | 96.20% | 2.35% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $27.8M | $27.8M | 100.00% | 6.86% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $100 | 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 | $405.9M | ties to item 31 ($405.9M) |
|---|---|---|
| Risk-weighted assets before deductions | $405.9M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $405.9M | 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 | 14.11% | 14.11% | 15.36% | 13.29% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 14.56% | 14.56% | 15.81% | 13.22% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 14.90% | 14.90% | 16.15% | 12.99% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 14.86% | 14.86% | 16.09% | 13.77% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 15.74% | 15.74% | 16.99% | 14.61% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 15.19% | 15.19% | 16.38% | 13.69% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 15.29% | 15.29% | 16.52% | 12.89% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 14.19% | 14.19% | 15.35% | 12.90% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 14.77% | 14.77% | 15.87% | 14.52% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 15.41% | 15.41% | 16.66% | 14.00% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 15.38% | 15.38% | 16.64% | 14.00% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 14.02% | 14.02% | 15.27% | 14.27% | 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 |
|---|---|---|---|---|---|---|
| Watermark Bank (this bank) | Risk-based | 14.11% | 14.11% | 15.36% | 13.29% | |
| The Citizens State Bank | $450.6M | CBLR | NA | NA | NA | 14.45% |
| Greatamerica Bank N.A. | $450.0M | CBLR | NA | NA | NA | 61.62% |
| Patriot Bank | $451.2M | Risk-based | 12.39% | 12.39% | 13.12% | 9.89% |
| Welch State Bank of Welch, Okla. | $449.8M | CBLR | NA | NA | NA | 10.20% |
| Pittsfield Co-Operative Bank | $451.5M | Risk-based | 18.63% | 18.63% | 19.36% | 13.41% |
| First Peoples Bank | $449.4M | Risk-based | 14.48% | 14.48% | 15.73% | 12.84% |
| Security State Bank | $449.1M | Risk-based | 16.19% | 16.19% | 17.37% | 10.44% |
| The Liberty National Bank in Paris | $452.1M | CBLR | NA | NA | NA | 12.76% |
| North Brookfield Savings Bank | $448.7M | CBLR | NA | NA | NA | 10.92% |
| The City National Bank of Colorado City | $452.4M | CBLR | NA | NA | NA | 10.97% |
| Peer 25th percentile | 13.95% | 13.95% | 15.08% | 10.56% | ||
| Peer median | 15.33% | 15.33% | 16.55% | 11.86% | ||
| Peer 75th percentile | 16.80% | 16.80% | 17.87% | 13.27% | ||
| This bank's percentile | 25 | 25 | 25 | 70 |
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/5313312/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.