Bank Analysis School eBook

Internal Use Only

Internal Use Only

Capital Components

Tier 2 ACL (up to 1.25% RWA)

Additional Tier 1 Preferred stock & related surplus (rare)

Common Equity Tier 1

• Common stock and surplus • Retained earnings

• AOCI (rare – most banks opted out) • Less: Goodwill and other intangibles • Less: Deferred tax assets • Less: Various other threshold deductions (rare)

UBPR Page 11A