Farmers & Merchants Bank & Trust: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 9.35% (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: 9.35% (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 16.26% +9.76 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 | $20.4M | 20,362 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $125.2M | 125,216 | RCOAA223 |
| Recomputed ratio | 16.26% | numerator / denominator | |
| Filed ratio | 16.26% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +9.76 pp | $12.2M | capital that could be lost first |
Tier 1 risk-based capital ratio 16.26% +8.26 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 | $20.4M | 20,362 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $125.2M | 125,216 | RCOAA223 |
| Recomputed ratio | 16.26% | numerator / denominator | |
| Filed ratio | 16.26% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +8.26 pp | $10.3M | capital that could be lost first |
Total risk-based capital ratio 17.35% +7.35 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 | $21.7M | 21,731 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $125.2M | 125,216 | RCOAA223 |
| Recomputed ratio | 17.35% | numerator / denominator | |
| Filed ratio | 17.35% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +7.35 pp | $9.2M | capital that could be lost first |
Tier 1 leverage ratio 11.36% +6.36 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 | $20.4M | 20,362 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $179.3M | 179,314 | RCOAA224 |
| Recomputed ratio | 11.36% | numerator / denominator | |
| Filed ratio | 11.36% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +6.36 pp | $11.4M | 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 | 5,555 | 5,555 | 5,555 | 5,555 | 5,555 | 5,555 | RCOAP742 |
| Retained earnings | 14,434 | 14,261 | 13,763 | 13,872 | 13,680 | 13,535 | RCOAKW00 |
| Accumulated other comprehensive income | (3,525) | (3,433) | (3,239) | (3,537) | (4,034) | (4,393) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 16,464 | 16,383 | 16,079 | 15,890 | 15,201 | 14,697 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 3,898 | 3,816 | 3,628 | 3,932 | 4,034 | 4,393 | P859 - P840 |
| Common equity Tier 1 capital | 20,362 | 20,199 | 19,707 | 19,822 | 19,235 | 19,090 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 20,362 | 20,199 | 19,707 | 19,822 | 19,235 | 19,090 | RCOA8274 |
| Tier 2 capital | 1,369 | 1,344 | 1,294 | 1,137 | 993 | 892 | RCOA5311 |
| Allowance includable in Tier 2 capital | 1,369 | 1,344 | 1,294 | 1,137 | 993 | 892 | RCOA5310 |
| Total capital | 21,731 | 21,543 | 21,001 | 20,959 | 20,228 | 19,982 | RCOA3792 |
| Total risk-weighted assets | 125,216 | 120,823 | 120,146 | 113,777 | 116,982 | 114,136 | RCOAA223 |
| Average total assets for the leverage ratio | 179,314 | 177,683 | 177,340 | 176,433 | 175,089 | 177,340 | 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 | $3.2M | $273K | 8.41% | 0.22% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $47.4M | $11.1M | 23.42% | 8.87% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $733K | $147K | 20.00% | 0.12% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $48.7M | $27.1M | 55.65% | 21.66% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $967K | $1.5M | 150.00% | 1.16% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $75.2M | $74.2M | 98.66% | 59.23% | RC-R Part II, item 4.d, 5.d |
| All other assets | $5.0M | $4.5M | 89.11% | 3.57% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $6.5M | $6.5M | 100.00% | 5.18% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $300 | 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 | $125.2M | ties to item 31 ($125.2M) |
|---|---|---|
| Risk-weighted assets before deductions | $125.2M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $125.2M | 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 | 16.26% | 16.26% | 17.35% | 11.36% | 15.12% | 15.13% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 16.72% | 16.72% | 17.83% | 11.37% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 16.40% | 16.40% | 17.48% | 11.11% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 17.42% | 17.42% | 18.42% | 11.23% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 16.44% | 16.44% | 17.29% | 10.99% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 16.73% | 16.73% | 17.51% | 10.76% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 16.18% | 16.18% | 16.94% | 10.82% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 16.18% | 16.18% | 16.94% | 10.94% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 15.81% | 15.81% | 16.89% | 10.94% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 15.75% | 15.75% | 16.84% | 10.86% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 16.32% | 16.32% | 17.42% | 10.97% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 15.95% | 15.95% | 17.03% | 10.65% | 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 & Trust (this bank) | Risk-based | 16.26% | 16.26% | 17.35% | 11.36% | |
| Central State Bank | $175.1M | CBLR | NA | NA | NA | 17.92% |
| Cedar Rapids State Bank | $174.9M | Risk-based | 12.48% | 12.48% | 13.51% | 9.55% |
| Farmers State Bank & Trust Company | $174.7M | CBLR | NA | NA | NA | 9.10% |
| PBK Bank, Inc | $175.6M | CBLR | NA | NA | NA | 15.17% |
| Bank of South Texas | $174.5M | CBLR | NA | NA | NA | 16.63% |
| Brunswick State Bank | $175.6M | CBLR | NA | NA | NA | 9.39% |
| The First State Bank of Shelby | $175.6M | CBLR | NA | NA | NA | 19.38% |
| Iroquois Farmers State Bank | $174.5M | CBLR | NA | NA | NA | 9.10% |
| Bank of Prairie Village | $175.7M | CBLR | NA | NA | NA | 10.22% |
| New Frontier Bank | $175.7M | CBLR | NA | NA | NA | 9.25% |
| Peer 25th percentile | NA | NA | NA | 9.29% | ||
| Peer median | 12.48% | 12.48% | 13.51% | 9.89% | ||
| Peer 75th percentile | NA | NA | NA | 16.26% | ||
| This bank's percentile | NA | NA | NA | 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/672247/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.