Farmers & Merchants Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 11.76% (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: 11.76% (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 18.51% +12.01 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 | $34.0M | 33,968 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $183.5M | 183,540 | RCOAA223 |
| Recomputed ratio | 18.51% | numerator / denominator | |
| Filed ratio | 18.51% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +12.01 pp | $22.0M | capital that could be lost first |
Tier 1 risk-based capital ratio 18.51% +10.51 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 | $34.0M | 33,968 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $183.5M | 183,540 | RCOAA223 |
| Recomputed ratio | 18.51% | numerator / denominator | |
| Filed ratio | 18.51% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +10.51 pp | $19.3M | capital that could be lost first |
Total risk-based capital ratio 19.76% +9.76 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 | $36.3M | 36,269 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $183.5M | 183,540 | RCOAA223 |
| Recomputed ratio | 19.76% | numerator / denominator | |
| Filed ratio | 19.76% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +9.76 pp | $17.9M | capital that could be lost first |
Tier 1 leverage ratio 11.20% +6.20 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 | $34.0M | 33,968 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $303.2M | 303,205 | RCOAA224 |
| Recomputed ratio | 11.20% | numerator / denominator | |
| Filed ratio | 11.20% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +6.20 pp | $18.8M | 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 | 24,050 | 24,050 | 24,050 | 24,050 | 24,050 | 24,050 | RCOAP742 |
| Retained earnings | 9,918 | 9,378 | 8,543 | 8,051 | 7,504 | 6,758 | RCOAKW00 |
| Accumulated other comprehensive income | (5,253) | (4,830) | (4,815) | (5,308) | (6,926) | (7,361) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 28,715 | 28,598 | 27,778 | 26,793 | 24,628 | 23,447 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 5,253 | 4,830 | 4,815 | 5,308 | 6,926 | 7,361 | P859 - P840 |
| Common equity Tier 1 capital | 33,968 | 33,428 | 32,593 | 32,101 | 31,554 | 30,808 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 33,968 | 33,428 | 32,593 | 32,101 | 31,554 | 30,808 | RCOA8274 |
| Tier 2 capital | 2,301 | 2,087 | 2,010 | 2,017 | 2,060 | 2,229 | RCOA5311 |
| Allowance includable in Tier 2 capital | 2,301 | 2,087 | 2,010 | 2,017 | 2,060 | 2,229 | RCOA5310 |
| Total capital | 36,269 | 35,515 | 34,603 | 34,118 | 33,614 | 33,037 | RCOA3792 |
| Total risk-weighted assets | 183,540 | 166,315 | 160,214 | 160,857 | 164,444 | 178,196 | RCOAA223 |
| Average total assets for the leverage ratio | 303,205 | 307,691 | 303,537 | 317,707 | 334,444 | 342,937 | 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 | $37.6M | $6.1M | 16.18% | 3.30% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $113.4M | $25.7M | 22.63% | 13.94% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $17.3M | $8.8M | 50.84% | 4.77% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $928K | $1.4M | 150.00% | 0.76% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $124.4M | $124.4M | 100.00% | 67.59% | RC-R Part II, item 4.d, 5.d |
| All other assets | $5.2M | $4.6M | 89.27% | 2.51% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $13.1M | $13.1M | 100.00% | 7.13% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $400 | NA | 0.00% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $184.1M | ties to item 31 ($184.1M) |
|---|---|---|
| Risk-weighted assets before deductions | $184.1M | RCONB704 |
| Less: excess allowance for credit losses | $574K | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $183.5M | 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 | 18.51% | 18.51% | 19.76% | 11.20% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 20.10% | 20.10% | 21.35% | 10.86% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 20.34% | 20.34% | 21.60% | 10.74% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 19.96% | 19.96% | 21.21% | 10.10% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 19.19% | 19.19% | 20.44% | 9.43% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 17.29% | 17.29% | 18.54% | 8.98% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 17.46% | 17.46% | 18.71% | 9.35% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 17.31% | 17.31% | 18.56% | 10.03% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 17.64% | 17.64% | 18.89% | 10.75% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 18.84% | 18.84% | 20.09% | 10.69% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 18.53% | 18.53% | 19.78% | 10.50% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 18.02% | 18.02% | 19.27% | 10.48% | 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 | 18.51% | 18.51% | 19.76% | 11.20% | |
| United Community Bank | $290.0M | Risk-based | 11.41% | 11.41% | 12.66% | 8.45% |
| One World Bank | $290.1M | CBLR | NA | NA | NA | 13.24% |
| United State Bank | $290.1M | Risk-based | 13.85% | 13.85% | 15.10% | 10.50% |
| Liberty Bank Minnesota | $290.2M | Risk-based | 25.85% | 25.85% | 26.78% | 12.90% |
| Nantahala Bank & Trust Company | $288.8M | Risk-based | 14.38% | 14.93% | 16.00% | 9.43% |
| Farmers Bank | $288.7M | CBLR | NA | NA | NA | 16.23% |
| Somerville Bank | $290.6M | CBLR | NA | NA | NA | 9.54% |
| Vintage Bank Kansas | $288.6M | CBLR | NA | NA | NA | 11.56% |
| Georgia First Bank | $290.8M | Risk-based | 13.65% | 13.65% | 14.91% | 9.52% |
| Interstate Bank | $288.4M | CBLR | NA | NA | NA | 9.36% |
| Peer 25th percentile | 13.65% | 13.65% | 14.91% | 9.45% | ||
| Peer median | 13.85% | 13.85% | 15.10% | 10.02% | ||
| Peer 75th percentile | 14.38% | 14.93% | 16.00% | 12.57% | ||
| This bank's percentile | 80 | 80 | 80 | 60 |
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/64730/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.