Measure Definitions & Denominators

This measure INCLUDES owner-occupied nonfarm nonresidential loans. The 2006 interagency guidance on CRE concentrations excludes owner-occupied properties from its supervisory screening criteria, so the BankAtlas measure is deliberately broader than that regulatory test and is not comparable to it. It also includes farmland, which some market definitions exclude. 1-4 family residential construction is NOT included.

Other real estate owned (OREO) is EXCLUDED; foreclosed property is no longer a loan. A separate BankAtlas measure, the Texas ratio, adds OREO back. Loans 30-89 days past due are excluded from this measure. Where the reported totals are absent for a filer, the totals are summed from the fourteen loan-category components of the same schedule rather than dropped.

READ THIS MEASURE NARROWLY. It is cash and Treasuries only. It EXCLUDES agency and government-sponsored-enterprise mortgage-backed securities, agency debentures, municipal securities, federal funds sold, and securities purchased under agreements to resell. Because most community-bank securities portfolios are concentrated in agency MBS and municipals, the measure runs far below any Basel-style high-quality-liquid-assets figure and below most market definitions of liquidity: the 2026Q2 median is roughly 1.9% of assets, against total securities of roughly 17.5% of assets. It is a deliberately conservative same-definition-across-time comparison, NOT a regulatory liquidity ratio and NOT an estimate of liquidity adequacy.

PROVENANCE DIFFERS FROM EVERY OTHER MEASURE ON THIS EXHIBIT. This ratio is taken as published in the supervisory reporting framework rather than computed by BankAtlas from underlying detail. That definition is set by the regulator and has changed over time; BankAtlas does not restate prior periods to a single vintage of it. Both the numerator and the denominator are internal to the published concept, so the ratio is consumed whole.

DENOMINATOR. Total bank equity capital includes perpetual preferred stock, so this is tangible equity, NOT tangible common equity. Intangible assets are taken as the combined reported line and include goodwill. The choice of denominator is material for larger banks, where intangibles are a median 16.9% of equity: at >$100B the 2026Q2 median is -12.45% of tangible equity against -9.43% of total equity. It is immaterial below $10B, where the median bank carries no intangibles.

NUMERATOR. The available-for-sale component is already recognized in accumulated other comprehensive income and so is already reflected in the denominator; the held-to-maturity component is not recognized on the balance sheet at all. The measure deliberately combines a recognized and an unrecognized amount to show total mark-to-market exposure, which is why it is not equal to any single reported capital or equity line.

This row uses TOTAL equity, undeducted. The unrealized-securities-losses row on the same exhibit uses TANGIBLE equity. The two denominators are deliberately different and the rows are not directly comparable: this measure answers how much equity funds the balance sheet, while the securities measure answers how large the mark is relative to loss-absorbing equity that survives a write-off of intangibles.

This is a leverage measure computed from the balance sheet. It is NOT a regulatory capital ratio: it is not risk-weighted, and it is neither CET1 nor the community bank leverage ratio.

SUPPLEMENTAL, NOT CORE. Reporting of the uninsured-deposit estimate is not uniform across the filer population, so this row is shown for context and is held to the same coverage gate as every other row: its <$1B cell FAILED that gate for 2026Q2 and is not claimed. The figure is an institution's own estimate, not a measured amount.