Farmers and Merchants Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 18.72% (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: 18.72% (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 25.46% +18.96 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 | $151.4M | 151,394 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $594.6M | 594,633 | RCOAA223 |
| Recomputed ratio | 25.46% | numerator / denominator | |
| Filed ratio | 25.46% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +18.96 pp | $112.7M | capital that could be lost first |
Tier 1 risk-based capital ratio 25.46% +17.46 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 | $151.4M | 151,394 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $594.6M | 594,633 | RCOAA223 |
| Recomputed ratio | 25.46% | numerator / denominator | |
| Filed ratio | 25.46% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +17.46 pp | $103.8M | capital that could be lost first |
Total risk-based capital ratio 26.72% +16.72 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 | $158.9M | 158,871 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $594.6M | 594,633 | RCOAA223 |
| Recomputed ratio | 26.72% | numerator / denominator | |
| Filed ratio | 26.72% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +16.72 pp | $99.4M | capital that could be lost first |
Tier 1 leverage ratio 15.25% +10.25 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 | $151.4M | 151,394 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $992.7M | 992,719 | RCOAA224 |
| Recomputed ratio | 15.25% | numerator / denominator | |
| Filed ratio | 15.25% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +10.25 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 | 1,650 | 2,529 | 2,485 | 2,442 | 2,397 | 3,165 | RCOAP742 |
| Retained earnings | 149,850 | 145,219 | 140,658 | 136,569 | 132,357 | 128,667 | RCOAKW00 |
| Accumulated other comprehensive income | (2,079) | (1,529) | 855 | 1,060 | (1,779) | (1,018) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 149,421 | 146,219 | 143,998 | 140,071 | 132,975 | 130,814 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 1,973 | 1,370 | (1,067) | (1,333) | 1,473 | 680 | P859 - P840 |
| Common equity Tier 1 capital | 151,394 | 147,589 | 142,931 | 138,738 | 134,448 | 131,494 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 151,394 | 147,589 | 142,931 | 138,738 | 134,448 | 131,494 | RCOA8274 |
| Tier 2 capital | 7,477 | 7,290 | 7,318 | 7,139 | 7,158 | 7,057 | RCOA5311 |
| Allowance includable in Tier 2 capital | 7,477 | 7,290 | 7,318 | 7,139 | 7,158 | 7,057 | RCOA5310 |
| Total capital | 158,871 | 154,879 | 150,249 | 145,877 | 141,606 | 138,551 | RCOA3792 |
| Total risk-weighted assets | 594,633 | 579,491 | 581,734 | 567,022 | 568,566 | 560,337 | RCOAA223 |
| Average total assets for the leverage ratio | 992,719 | 972,750 | 959,790 | 937,207 | 929,685 | 902,893 | 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 | $121.3M | $894K | 0.74% | 0.15% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $309.0M | $41.6M | 13.47% | 6.96% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $139.0M | $84.2M | 60.62% | 14.08% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $324K | $486K | 150.00% | 0.08% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $3.2M | $4.8M | 150.00% | 0.80% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $398.6M | $398.6M | 100.00% | 66.63% | RC-R Part II, item 4.d, 5.d |
| All other assets | $39.2M | $38.6M | 98.58% | 6.46% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $28.7M | $28.7M | 100.00% | 4.80% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $244K | NA | 0.04% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $598.0M | ties to item 31 ($598.0M) |
|---|---|---|
| Risk-weighted assets before deductions | $598.2M | RCONB704 |
| Less: excess allowance for credit losses | $3.6M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $594.6M | 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 | 25.46% | 25.46% | 26.72% | 15.25% | 15.12% | 15.13% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 25.47% | 25.47% | 26.73% | 15.17% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 24.57% | 24.57% | 25.83% | 14.89% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 24.47% | 24.47% | 25.73% | 14.80% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 23.65% | 23.65% | 24.91% | 14.46% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 23.47% | 23.47% | 24.73% | 14.56% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 22.60% | 22.60% | 23.86% | 14.00% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 21.75% | 21.75% | 23.01% | 13.90% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 21.01% | 21.01% | 22.27% | 13.47% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 20.40% | 20.40% | 21.66% | 13.03% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 19.73% | 19.73% | 20.99% | 12.23% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 19.33% | 19.33% | 20.59% | 11.50% | 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 |
|---|---|---|---|---|---|---|
| Farmers and Merchants Bank (this bank) | Risk-based | 25.46% | 25.46% | 26.72% | 15.25% | |
| HCN Bank | $998.4M | CBLR | NA | NA | NA | 11.70% |
| Vision Bank | $999.6M | Risk-based | 13.13% | 13.13% | 14.38% | 9.20% |
| The Bank of Old Monroe | $994.6M | CBLR | NA | NA | NA | 10.55% |
| First Federal Community Bank, N.A. | $994.6M | Risk-based | 12.74% | 12.74% | 13.82% | 9.40% |
| Peoples State Bank | $993.0M | Risk-based | 16.02% | 16.02% | 17.27% | 11.54% |
| Ciera Bank | $992.9M | Risk-based | 13.36% | 13.36% | 14.62% | 11.13% |
| First Federal Bank of Kansas City | $992.5M | CBLR | NA | NA | NA | 11.32% |
| Tennessee State Bank | $990.8M | Risk-based | 12.63% | 12.63% | 13.85% | 9.31% |
| Hometown Bank, N.A. | $990.4M | Risk-based | 14.29% | 14.29% | 15.23% | 11.33% |
| The Farmers National Bank of Danville | $989.8M | Risk-based | 13.52% | 13.52% | 14.78% | 10.58% |
| Peer 25th percentile | 12.93% | 12.93% | 14.12% | 9.69% | ||
| Peer median | 13.36% | 13.36% | 14.62% | 10.86% | ||
| Peer 75th percentile | 13.91% | 13.91% | 15.00% | 11.33% | ||
| This bank's percentile | 100 | 100 | 100 | 100 |
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/348720/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.