The Farmers & Merchants Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 6.01% (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: 6.01% (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 12.76% +6.26 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 | $96.9M | 96,874 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $759.4M | 759,381 | RCOAA223 |
| Recomputed ratio | 12.76% | numerator / denominator | |
| Filed ratio | 12.76% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +6.26 pp | $47.5M | capital that could be lost first |
Tier 1 risk-based capital ratio 12.76% +4.76 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 | $96.9M | 96,874 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $759.4M | 759,381 | RCOAA223 |
| Recomputed ratio | 12.76% | numerator / denominator | |
| Filed ratio | 12.76% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +4.76 pp | $36.1M | capital that could be lost first |
Total risk-based capital ratio 14.01% +4.01 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 | $106.4M | 106,384 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $759.4M | 759,381 | RCOAA223 |
| Recomputed ratio | 14.01% | numerator / denominator | |
| Filed ratio | 14.01% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +4.01 pp | $30.4M | capital that could be lost first |
Tier 1 leverage ratio 10.02% +5.02 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 | $96.9M | 96,874 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $966.6M | 966,634 | RCOAA224 |
| Recomputed ratio | 10.02% | numerator / denominator | |
| Filed ratio | 10.02% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +5.02 pp | $48.5M | 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 | 18,546 | 18,546 | 18,546 | 18,546 | 18,546 | 18,546 | RCOAP742 |
| Retained earnings | 78,328 | 75,471 | 72,692 | 71,155 | 69,301 | 65,821 | RCOAKW00 |
| Accumulated other comprehensive income | (9,781) | (13,798) | (11,430) | (12,725) | (16,448) | (13,776) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 87,093 | 80,219 | 79,808 | 76,976 | 71,399 | 70,591 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 9,781 | 13,798 | 11,430 | 12,725 | 16,448 | 13,776 | P859 - P840 |
| Common equity Tier 1 capital | 96,874 | 94,017 | 91,238 | 89,701 | 87,847 | 84,367 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 96,874 | 94,017 | 91,238 | 89,701 | 87,847 | 84,367 | RCOA8274 |
| Tier 2 capital | 9,510 | 9,387 | 9,277 | 9,148 | 8,759 | 8,226 | RCOA5311 |
| Allowance includable in Tier 2 capital | 9,510 | 9,387 | 9,277 | 9,148 | 8,759 | 8,226 | RCOA5310 |
| Total capital | 106,384 | 103,404 | 100,515 | 98,849 | 96,606 | 92,593 | RCOA3792 |
| Total risk-weighted assets | 759,381 | 749,683 | 740,937 | 731,320 | 738,281 | 729,229 | RCOAA223 |
| Average total assets for the leverage ratio | 966,634 | 954,766 | 967,431 | 968,609 | 952,641 | 939,525 | 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 | $15.7M | $381K | 2.43% | 0.05% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $176.7M | $44.0M | 24.90% | 5.78% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $258.0M | $157.8M | 61.17% | 20.74% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $11.6M | $17.5M | 150.00% | 2.29% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $11.4M | $17.1M | 150.00% | 2.24% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $459.9M | $459.7M | 99.96% | 60.42% | RC-R Part II, item 4.d, 5.d |
| All other assets | $32.7M | $26.3M | 80.67% | 3.46% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $34.8M | $35.4M | 101.64% | 4.65% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $2.7M | $2.7M | 100.00% | 0.36% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $700 | 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 | $760.8M | ties to item 31 ($760.8M) |
|---|---|---|
| Risk-weighted assets before deductions | $760.8M | RCONB704 |
| Less: excess allowance for credit losses | $1.4M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $759.4M | 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 | 12.76% | 12.76% | 14.01% | 10.02% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 12.54% | 12.54% | 13.79% | 9.85% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 12.31% | 12.31% | 13.57% | 9.43% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 12.27% | 12.27% | 13.52% | 9.26% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 11.90% | 11.90% | 13.09% | 9.22% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 11.57% | 11.57% | 12.70% | 8.98% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 11.09% | 11.09% | 12.25% | 8.81% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 11.43% | 11.43% | 12.59% | 8.99% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 11.31% | 11.31% | 12.54% | 8.85% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 10.95% | 10.95% | 12.08% | 8.82% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 11.09% | 11.09% | 12.26% | 8.91% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 11.57% | 11.57% | 12.72% | 9.28% | 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 |
|---|---|---|---|---|---|---|
| The Farmers & Merchants Bank (this bank) | Risk-based | 12.76% | 12.76% | 14.01% | 10.02% | |
| C3BANK, N.A. | $949.3M | Risk-based | 16.57% | 16.57% | 17.83% | 10.59% |
| Midwest Regional Bank | $949.0M | Risk-based | 11.40% | 11.40% | 12.67% | 10.23% |
| First National Bank of Oklahoma | $949.9M | Risk-based | 13.23% | 13.23% | 14.48% | 10.46% |
| U.S. Bank Trust N.A. | $948.9M | Risk-based | 488.44% | 488.44% | 488.44% | 99.77% |
| American Bank of Freedom | $948.3M | Risk-based | 13.55% | 13.55% | 14.80% | 10.01% |
| Stone Bank | $950.7M | Risk-based | 10.40% | 10.40% | 11.65% | 8.37% |
| First State Bank | $951.5M | CBLR | NA | NA | NA | 10.67% |
| Western Bank | $947.2M | CBLR | NA | NA | NA | 9.77% |
| Winchester Co-Operative Bank | $946.9M | CBLR | NA | NA | NA | 11.80% |
| Peer 25th percentile | 11.86% | 11.86% | 13.12% | 10.01% | ||
| Peer median | 13.39% | 13.39% | 14.64% | 10.46% | ||
| Peer 75th percentile | 15.82% | 15.82% | 17.07% | 10.67% | ||
| This bank's percentile | 33 | 33 | 33 | 33 |
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/574949/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.