Farmers and Merchants Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 4.75% (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: 4.75% (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 12.09% +5.59 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 | $85.4M | 85,415 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $706.6M | 706,649 | RCOAA223 |
| Recomputed ratio | 12.09% | numerator / denominator | |
| Filed ratio | 12.09% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +5.59 pp | $39.5M | capital that could be lost first |
Tier 1 risk-based capital ratio 12.09% +4.09 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 | $85.4M | 85,415 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $706.6M | 706,649 | RCOAA223 |
| Recomputed ratio | 12.09% | numerator / denominator | |
| Filed ratio | 12.09% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +4.09 pp | $28.9M | capital that could be lost first |
Total risk-based capital ratio 12.75% +2.75 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 | $90.1M | 90,107 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $706.6M | 706,649 | RCOAA223 |
| Recomputed ratio | 12.75% | numerator / denominator | |
| Filed ratio | 12.75% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +2.75 pp | $19.4M | capital that could be lost first |
Tier 1 leverage ratio 9.98% +4.98 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 | $85.4M | 85,415 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $855.7M | 855,703 | RCOAA224 |
| Recomputed ratio | 9.98% | numerator / denominator | |
| Filed ratio | 9.98% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +4.98 pp | $42.6M | 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 | 58,308 | 58,308 | 58,308 | 57,708 | 57,708 | 57,708 | RCOAP742 |
| Retained earnings | 34,121 | 32,272 | 30,218 | 27,958 | 26,682 | 26,525 | RCOAKW00 |
| Accumulated other comprehensive income | (12,940) | (13,219) | (12,729) | (13,189) | (15,061) | (15,555) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 79,489 | 77,361 | 75,797 | 72,477 | 69,329 | 68,678 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 5,926 | 6,203 | 5,711 | 6,169 | 8,039 | 8,531 | P859 - P840 |
| Common equity Tier 1 capital | 85,415 | 83,564 | 81,508 | 78,646 | 77,368 | 77,209 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 85,415 | 83,564 | 81,508 | 78,646 | 77,368 | 77,209 | RCOA8274 |
| Tier 2 capital | 4,692 | 4,640 | 4,633 | 4,530 | 4,487 | 4,594 | RCOA5311 |
| Allowance includable in Tier 2 capital | 4,692 | 4,640 | 4,633 | 4,530 | 4,487 | 4,594 | RCOA5310 |
| Total capital | 90,107 | 88,204 | 86,141 | 83,176 | 81,855 | 81,803 | RCOA3792 |
| Total risk-weighted assets | 706,649 | 697,626 | 699,364 | 699,072 | 689,207 | 669,008 | RCOAA223 |
| Average total assets for the leverage ratio | 855,703 | 858,888 | 869,360 | 846,722 | 820,334 | 814,242 | 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 | $56.9M | $730K | 1.28% | 0.10% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $148.5M | $33.1M | 22.28% | 4.68% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $11.2M | $6.6M | 59.19% | 0.94% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $110.1M | $61.5M | 55.88% | 8.71% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $4.1M | $6.1M | 150.00% | 0.86% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $4K | $6K | 150.00% | 0.00% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $527.6M | $525.6M | 99.63% | 74.38% | RC-R Part II, item 4.d, 5.d |
| All other assets | $35.1M | $32.1M | 91.19% | 4.54% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $33.7M | $32.9M | 97.81% | 4.66% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $8.0M | NA | 1.13% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $698.6M | does not tie to item 31 ($699.1M) |
|---|---|---|
| Risk-weighted assets before deductions | $706.6M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $706.6M | 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 | 12.09% | 12.09% | 12.75% | 9.98% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 11.98% | 11.98% | 12.64% | 9.73% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 11.65% | 11.65% | 12.32% | 9.38% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 11.25% | 11.25% | 11.90% | 9.29% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 11.23% | 11.23% | 11.88% | 9.43% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 11.54% | 11.54% | 12.23% | 9.48% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 11.67% | 11.67% | 12.37% | 9.12% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 11.81% | 11.81% | 12.49% | 9.42% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 12.18% | 12.18% | 12.88% | 9.58% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 12.47% | 12.47% | 13.22% | 9.39% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 12.69% | 12.69% | 13.45% | 9.42% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 12.11% | 12.11% | 12.86% | 9.91% | 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 | 12.09% | 12.09% | 12.75% | 9.98% | |
| KS Bank, Inc. | $874.5M | CBLR | NA | NA | NA | 9.01% |
| First Independence Bank | $875.3M | CBLR | NA | NA | NA | 10.82% |
| First Liberty Bank | $873.2M | Risk-based | 15.76% | 15.76% | 16.98% | 10.11% |
| Falcon National Bank | $872.3M | CBLR | NA | NA | NA | 10.24% |
| Farmers & Merchants Union Bank | $872.1M | CBLR | NA | NA | NA | 9.97% |
| Bogota Savings Bank | $871.8M | CBLR | NA | NA | NA | 15.54% |
| Unified Bank | $871.7M | Risk-based | 12.53% | 12.53% | 13.22% | 8.99% |
| Hawaii National Bank | $871.7M | Risk-based | 17.74% | 17.74% | 18.99% | 11.02% |
| Points West Community Bank | $877.6M | CBLR | NA | NA | NA | 9.22% |
| Bayvanguard Bank | $868.7M | Risk-based | 22.40% | 22.40% | 23.34% | 17.13% |
| Peer 25th percentile | 14.95% | 14.95% | 16.04% | 9.41% | ||
| Peer median | 16.75% | 16.75% | 17.99% | 10.18% | ||
| Peer 75th percentile | 18.90% | 18.90% | 20.08% | 10.97% | ||
| This bank's percentile | 0 | 0 | 0 | 40 |
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/891226/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.