Farmers and Merchants Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 13.45% (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: 13.45% (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 21.26% +14.76 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 | $109.1M | 109,069 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $513.0M | 512,965 | RCOAA223 |
| Recomputed ratio | 21.26% | numerator / denominator | |
| Filed ratio | 21.26% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +14.76 pp | $75.7M | capital that could be lost first |
Tier 1 risk-based capital ratio 21.26% +13.26 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 | $109.1M | 109,069 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $513.0M | 512,965 | RCOAA223 |
| Recomputed ratio | 21.26% | numerator / denominator | |
| Filed ratio | 21.26% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +13.26 pp | $68.0M | capital that could be lost first |
Total risk-based capital ratio 21.45% +11.45 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 | $110.0M | 110,036 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $513.0M | 512,965 | RCOAA223 |
| Recomputed ratio | 21.45% | numerator / denominator | |
| Filed ratio | 21.45% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +11.45 pp | $58.7M | capital that could be lost first |
Tier 1 leverage ratio 10.64% +5.64 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 | $109.1M | 109,069 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $1.03B | 1,025,122 | RCOAA224 |
| Recomputed ratio | 10.64% | numerator / denominator | |
| Filed ratio | 10.64% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +5.64 pp | $57.8M | 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 | 48,000 | 48,000 | 48,000 | 48,000 | 48,000 | 48,000 | RCOAP742 |
| Retained earnings | 75,200 | 72,838 | 70,623 | 68,884 | 66,797 | 64,424 | RCOAKW00 |
| Accumulated other comprehensive income | (35,189) | (36,571) | (34,624) | (38,471) | (46,350) | (42,412) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 88,011 | 84,267 | 83,999 | 78,413 | 68,447 | 70,012 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 21,058 | 22,440 | 20,493 | 24,341 | 32,219 | 28,281 | P859 - P840 |
| Common equity Tier 1 capital | 109,069 | 106,707 | 104,492 | 102,754 | 100,666 | 98,293 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 109,069 | 106,707 | 104,492 | 102,754 | 100,666 | 98,293 | RCOA8274 |
| Tier 2 capital | 967 | 966 | 966 | 965 | 965 | 964 | RCOA5311 |
| Allowance includable in Tier 2 capital | 967 | 966 | 966 | 965 | 965 | 964 | RCOA5310 |
| Total capital | 110,036 | 107,673 | 105,458 | 103,719 | 101,631 | 99,257 | RCOA3792 |
| Total risk-weighted assets | 512,965 | 452,134 | 470,844 | 475,861 | 454,916 | 484,635 | RCOAA223 |
| Average total assets for the leverage ratio | 1,025,122 | 993,518 | 937,026 | 933,146 | 938,469 | 1,036,008 | 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 | $32.6M | $1.2M | 3.54% | 0.23% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $432.4M | $169.2M | 39.13% | 32.99% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $3.1M | $0 | 0.00% | 0.00% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $18.1M | $9.0M | 50.00% | 1.76% | RC-R Part II, item 4.a, 5.a |
| Loans: all other | $241.2M | $238.2M | 98.77% | 46.43% | RC-R Part II, item 4.d, 5.d |
| All other assets | $13.8M | $9.9M | 71.41% | 1.93% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $977K | $977K | 100.00% | 0.19% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $27.0M | $5.4M | 20.00% | 1.05% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $79.1M | NA | 15.42% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $433.9M | ties to item 31 ($433.9M) |
|---|---|---|
| Risk-weighted assets before deductions | $513.0M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $513.0M | 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 | 21.26% | 21.26% | 21.45% | 10.64% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 23.60% | 23.60% | 23.81% | 10.74% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 22.19% | 22.19% | 22.40% | 11.15% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 21.59% | 21.59% | 21.80% | 11.01% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 22.13% | 22.13% | 22.34% | 10.73% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 20.28% | 20.28% | 20.48% | 9.49% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 21.24% | 21.24% | 21.44% | 10.97% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 20.82% | 20.82% | 21.11% | 10.05% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 21.26% | 21.26% | 21.56% | 9.96% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 21.41% | 21.41% | 21.72% | 10.10% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 22.85% | 22.85% | 23.16% | 10.76% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 20.24% | 20.24% | 20.52% | 10.37% | 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 |
|---|---|---|---|---|---|---|
| Farmers and Merchants Bank (this bank) | Risk-based | 21.26% | 21.26% | 21.45% | 10.64% | |
| Farmers Bank & Trust | $1.05B | Risk-based | 24.28% | 24.28% | 24.86% | 23.97% |
| United Texas Bank, N.A. | $1.05B | CBLR | NA | NA | NA | 16.02% |
| Gnbank, N.A. dba Gnbank, N.A. | $1.05B | CBLR | NA | NA | NA | 11.56% |
| Onelocal Bank | $1.05B | CBLR | NA | NA | NA | 13.68% |
| Bank CMG | $1.06B | Risk-based | 11.87% | 11.87% | 12.92% | 9.61% |
| United Bankers' Bank | $1.05B | Risk-based | 17.12% | 17.12% | 18.37% | 14.46% |
| Belmont Bank & Trust Company | $1.05B | Risk-based | 15.68% | 15.68% | 16.86% | 11.87% |
| Border Bank | $1.06B | Risk-based | 10.54% | 10.54% | 11.79% | 9.07% |
| Cornhusker Bank | $1.05B | Risk-based | 12.68% | 12.68% | 13.94% | 10.12% |
| Firstier Bank | $1.05B | Risk-based | 13.34% | 13.34% | 14.60% | 11.43% |
| Peer 25th percentile | 12.28% | 12.28% | 13.43% | 10.45% | ||
| Peer median | 13.34% | 13.34% | 14.60% | 11.71% | ||
| Peer 75th percentile | 16.40% | 16.40% | 17.62% | 14.26% | ||
| This bank's percentile | 86 | 86 | 86 | 30 |
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/455552/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.