Farmers & Merchants Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 9.87% (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: 9.87% (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 17.02% +10.52 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 | $39.1M | 39,133 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $229.9M | 229,904 | RCOAA223 |
| Recomputed ratio | 17.02% | numerator / denominator | |
| Filed ratio | 17.02% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +10.52 pp | $24.2M | capital that could be lost first |
Tier 1 risk-based capital ratio 17.02% +9.02 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 | $39.1M | 39,133 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $229.9M | 229,904 | RCOAA223 |
| Recomputed ratio | 17.02% | numerator / denominator | |
| Filed ratio | 17.02% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +9.02 pp | $20.7M | capital that could be lost first |
Total risk-based capital ratio 17.87% +7.87 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 | $41.1M | 41,086 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $229.9M | 229,904 | RCOAA223 |
| Recomputed ratio | 17.87% | numerator / denominator | |
| Filed ratio | 17.87% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +7.87 pp | $18.1M | capital that could be lost first |
Tier 1 leverage ratio 12.73% +7.73 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 | $39.1M | 39,133 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $307.5M | 307,479 | RCOAA224 |
| Recomputed ratio | 12.73% | numerator / denominator | |
| Filed ratio | 12.73% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +7.73 pp | $23.8M | 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 | 401 | 401 | 401 | 401 | 401 | 401 | RCOAP742 |
| Retained earnings | 38,732 | 38,268 | 37,813 | 37,518 | 37,252 | 36,874 | RCOAKW00 |
| Accumulated other comprehensive income | (7,141) | (6,465) | (6,329) | (6,864) | (9,371) | (9,170) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 31,992 | 32,204 | 31,885 | 31,055 | 28,282 | 28,105 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 7,141 | 6,465 | 6,329 | 6,864 | 9,371 | 9,170 | P859 - P840 |
| Common equity Tier 1 capital | 39,133 | 38,669 | 38,214 | 37,919 | 37,653 | 37,275 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 39,133 | 38,669 | 38,214 | 37,919 | 37,653 | 37,275 | RCOA8274 |
| Tier 2 capital | 1,953 | 2,025 | 2,028 | 2,010 | 2,006 | 2,007 | RCOA5311 |
| Allowance includable in Tier 2 capital | 1,953 | 2,025 | 2,028 | 2,010 | 2,006 | 2,007 | RCOA5310 |
| Total capital | 41,086 | 40,694 | 40,242 | 39,929 | 39,659 | 39,282 | RCOA3792 |
| Total risk-weighted assets | 229,904 | 219,656 | 219,269 | 219,451 | 220,513 | 209,346 | RCOAA223 |
| Average total assets for the leverage ratio | 307,479 | 311,122 | 310,143 | 310,946 | 310,192 | 297,131 | 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 | $9.3M | $977K | 10.54% | 0.42% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $136.4M | $45.2M | 33.15% | 19.66% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $172K | $34K | 20.00% | 0.01% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $52.5M | $35.6M | 67.75% | 15.47% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $3.0M | $4.6M | 150.00% | 1.99% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $1.2M | $1.8M | 150.00% | 0.77% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $96.5M | $96.5M | 100.00% | 41.99% | RC-R Part II, item 4.d, 5.d |
| All other assets | $20.1M | $20.1M | 100.00% | 8.76% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $23.0M | $23.0M | 100.00% | 10.02% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $2.1M | NA | 0.89% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $227.8M | does not tie to item 31 ($229.9M) |
|---|---|---|
| Risk-weighted assets before deductions | $229.9M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $229.9M | 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 | 17.02% | 17.02% | 17.87% | 12.73% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 17.60% | 17.60% | 18.53% | 12.43% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 17.43% | 17.43% | 18.35% | 12.32% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 17.28% | 17.28% | 18.20% | 12.19% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 17.08% | 17.08% | 17.98% | 12.14% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 17.81% | 17.81% | 18.76% | 12.54% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 17.69% | 17.69% | 18.67% | 12.53% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 16.56% | 16.56% | 17.53% | 12.70% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 17.74% | 17.74% | 18.79% | 12.70% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 16.95% | 16.95% | 17.96% | 12.36% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 16.59% | 16.59% | 17.61% | 12.13% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 17.45% | 17.45% | 18.44% | 12.75% | 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 & Merchants Bank (this bank) | Risk-based | 17.02% | 17.02% | 17.87% | 12.73% | |
| United National Bank | $308.7M | Risk-based | 21.05% | 21.05% | 22.32% | 14.77% |
| First State Bank | $308.8M | Risk-based | 17.14% | 17.14% | 18.08% | 10.08% |
| Bank of Montana | $308.6M | Risk-based | 35.70% | 35.70% | 36.22% | 8.89% |
| Washington State Bank | $309.2M | Risk-based | 14.96% | 14.96% | 15.91% | 10.81% |
| Prinsbank | $308.3M | Risk-based | 17.59% | 17.59% | 18.89% | 11.99% |
| The Pecos County State Bank | $309.4M | CBLR | NA | NA | NA | 11.57% |
| First National Bank of South Carolina | $309.7M | Risk-based | 24.80% | 24.80% | 26.01% | 12.42% |
| The Stock Exchange Bank | $309.7M | CBLR | NA | NA | NA | 18.02% |
| The First National Bank of Bellevue | $309.7M | CBLR | NA | NA | NA | 9.39% |
| Citizens Bank | $309.8M | CBLR | NA | NA | NA | 10.07% |
| Peer 25th percentile | 17.25% | 17.25% | 18.28% | 10.07% | ||
| Peer median | 19.32% | 19.32% | 20.60% | 11.19% | ||
| Peer 75th percentile | 23.86% | 23.86% | 25.09% | 12.31% | ||
| This bank's percentile | 17 | 17 | 17 | 80 |
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/434539/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.