Watertown Savings Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 20.71% (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: 20.71% (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 28.39% +21.89 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 | $174.1M | 174,110 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $613.2M | 613,216 | RCOAA223 |
| Recomputed ratio | 28.39% | numerator / denominator | |
| Filed ratio | 28.39% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +21.89 pp | $134.3M | capital that could be lost first |
Tier 1 risk-based capital ratio 28.39% +20.39 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 | $174.1M | 174,110 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $613.2M | 613,216 | RCOAA223 |
| Recomputed ratio | 28.39% | numerator / denominator | |
| Filed ratio | 28.39% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +20.39 pp | $125.1M | capital that could be lost first |
Total risk-based capital ratio 28.71% +18.71 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 | $176.0M | 176,028 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $613.2M | 613,216 | RCOAA223 |
| Recomputed ratio | 28.71% | numerator / denominator | |
| Filed ratio | 28.71% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +18.71 pp | $114.7M | capital that could be lost first |
Tier 1 leverage ratio 12.03% +7.03 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 | $174.1M | 174,110 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $1.45B | 1,446,887 | RCOAA224 |
| Recomputed ratio | 12.03% | numerator / denominator | |
| Filed ratio | 12.03% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +7.03 pp | $101.8M | 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 | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP742 |
| Retained earnings | 174,110 | 170,991 | 168,485 | 166,271 | 163,891 | 161,448 | RCOAKW00 |
| Accumulated other comprehensive income | (6,512) | (5,026) | (3,247) | (4,488) | (5,945) | (7,809) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 167,598 | 165,965 | 165,238 | 161,783 | 157,946 | 153,639 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 6,512 | 5,026 | 3,247 | 4,488 | 5,945 | 7,809 | P859 - P840 |
| Common equity Tier 1 capital | 174,110 | 170,991 | 168,485 | 166,271 | 163,891 | 161,448 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 174,110 | 170,991 | 168,485 | 166,271 | 163,891 | 161,448 | RCOA8274 |
| Tier 2 capital | 1,918 | 1,917 | 1,914 | 1,915 | 1,920 | 1,923 | RCOA5311 |
| Allowance includable in Tier 2 capital | 1,918 | 1,917 | 1,914 | 1,915 | 1,920 | 1,923 | RCOA5310 |
| Total capital | 176,028 | 172,908 | 170,399 | 168,186 | 165,811 | 163,371 | RCOA3792 |
| Total risk-weighted assets | 613,216 | 591,333 | 586,248 | 587,514 | 587,914 | 586,148 | RCOAA223 |
| Average total assets for the leverage ratio | 1,446,887 | 1,439,263 | 1,453,272 | 1,478,685 | 1,487,736 | 1,493,216 | 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 | $69.9M | $1.2M | 1.72% | 0.20% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $636.5M | $107.1M | 16.83% | 17.47% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $584.9M | $315.5M | 53.95% | 51.46% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $22.2M | $33.3M | 150.00% | 5.43% | RC-R Part II, item 4.b, 5.b |
| Loans: all other | $51.9M | $50.4M | 97.00% | 8.21% | RC-R Part II, item 4.d, 5.d |
| All other assets | $89.0M | $80.9M | 90.94% | 13.20% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $27.5M | $24.2M | 87.90% | 3.94% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $601K | NA | 0.10% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $612.6M | ties to item 31 ($612.6M) |
|---|---|---|
| Risk-weighted assets before deductions | $613.2M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $613.2M | 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 | 28.39% | 28.39% | 28.71% | 12.03% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 28.92% | 28.92% | 29.24% | 11.88% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 28.74% | 28.74% | 29.07% | 11.59% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 28.30% | 28.30% | 28.63% | 11.24% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 27.88% | 27.88% | 28.20% | 11.02% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 27.54% | 27.54% | 27.87% | 10.81% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 27.33% | 27.33% | 27.67% | 11.16% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 27.63% | 27.63% | 27.97% | 10.72% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 27.24% | 27.24% | 27.58% | 10.57% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 27.13% | 27.13% | 27.47% | 10.88% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 26.91% | 26.91% | 27.25% | 10.81% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 26.01% | 26.01% | 26.72% | 10.62% | 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 |
|---|---|---|---|---|---|---|
| Watertown Savings Bank (this bank) | Risk-based | 28.39% | 28.39% | 28.71% | 12.03% | |
| Citizens Alliance Bank | $1.44B | Risk-based | 12.58% | 12.58% | 13.60% | 9.81% |
| Marquette Savings Bank | $1.44B | CBLR | NA | NA | NA | 13.58% |
| American Riviera Bank | $1.44B | Risk-based | 12.40% | 12.40% | 13.56% | 11.25% |
| Washington Financial Bank | $1.44B | CBLR | NA | NA | NA | 14.75% |
| The Union Bank Company | $1.44B | Risk-based | 15.13% | 15.13% | 16.12% | 10.78% |
| Relyance Bank | $1.43B | Risk-based | 14.69% | 14.69% | 15.77% | 13.27% |
| American State Bank | $1.45B | Risk-based | 11.78% | 11.78% | 13.03% | 10.81% |
| Malaga Bank, FSB | $1.45B | Risk-based | 27.47% | 27.47% | 27.91% | 16.76% |
| Peer 25th percentile | 12.44% | 12.44% | 13.57% | 10.80% | ||
| Peer median | 13.64% | 13.64% | 14.69% | 12.26% | ||
| Peer 75th percentile | 15.02% | 15.02% | 16.04% | 13.87% | ||
| This bank's percentile | 100 | 100 | 100 | 50 |
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/886204/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.