Bank Safety Analysis
Is Farmers & Merchants Bank & Trust Safe?
Farmers & Merchants Bank & Trust meets regulatory minimums but is on the watch band for 2 of 5 safety dimensions. Analysis based on the Q2 2026 call report.
Compared with Q1 2026, net interest margin rose 0.19 percentage points in Q2 2026 to 3.61%, the biggest move on this page. Within Iowa, Farmers & Merchants Bank & Trust is 21st of 114 on CET1 ratio, 17.22% as of Q2 2026, above the middle of the field. The median for banks in the $100M-1B asset tier is 15.07% on CET1 ratio. Farmers & Merchants Bank & Trust sits 2.15 points higher, at 17.22% (Q2 2026). From Q3 2023 to Q2 2026, Farmers & Merchants Bank & Trust's CET1 ratio ranged between 15.56% (Q3 2023) and 17.40% (Q1 2026) and its Texas ratio ranged between 1.21% (Q4 2024) and 23.16% (Q3 2023). Compared with Q2 2025, Farmers & Merchants Bank & Trust's CET1 ratio from 16.64% to 17.22%, noncurrent loans to total loans from 0.79% to 1.66%, Texas ratio from 8.92% to 10.94%, return on assets from 0.50% to 0.85% in Q2 2026.
Data as of · sourced from FFIEC call reports. How we update
A relative risk score, not a calibrated probability: it ranks this bank against every other filer. Model AUC 0.988 (v20261005_114304). Trained on credit-driven community-bank failures, it carries little signal for interest-rate or deposit-flight risk, and its accuracy above roughly $10B in assets is not established, so a low score is not evidence of safety. See the methodology. This is not investment advice or a credit rating.
Scorecard by dimension
Peer cohort: banks with $100M to $1B in assets (2,672 banks) · Industry averages as of Q2 2026.
CET1 of 17.22% sits comfortably above the 6.5% well-capitalized threshold under Prompt Corrective Action and the 7.0% level required once the capital conservation buffer is included.
Tier 1 leverage of 10.73% is above the 5% well-capitalized threshold.
Nonperforming loans at 1.66% are elevated; merits closer attention.
Texas Ratio of 10.9% is well below the 100% historical failure threshold.
Efficiency ratio of 78.5% is elevated, suggesting cost-to-revenue pressure.
Risk screens
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Trigger | Result |
|---|---|---|---|
| CET1 capital ratio supervisory threshold | 17.22% | Flags below 7% | Within range |
| Texas ratio BankRegReports band | 10.94% | Watch at 50%, concern at 100% | Within range |
| Non-performing loan ratio BankRegReports band | 1.66% | Flags at 3% or above | Within range |
| Uninsured deposit share BankRegReports band | — | Watch at 50%, concern at 70% | Not reported |
| Loan-to-deposit ratio BankRegReports band | 68.80% | Flags at 100% or above | Within range |
| Commercial real estate to capital supervisory threshold | 102.90% | Watch at 200%, concern at 300% | Within range |
| Held-to-maturity unrealized loss to equity BankRegReports band | 0.00% | Watch at 10%, concern at 25% | Within range |
Capital ratio: last 12 quarters
| Quarter | CET1 (%) |
|---|---|
| Q2 2026 | 17.22% |
| Q1 2026 | 17.40% |
| Q4 2025 | 16.75% |
| Q3 2025 | 16.74% |
| Q2 2025 | 16.64% |
| Q1 2025 | 16.90% |
| Q4 2024 | 16.34% |
| Q3 2024 | 16.09% |
| Q2 2024 | 16.11% |
| Q1 2024 | 16.06% |
| Q4 2023 | 15.59% |
| Q3 2023 | 15.56% |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 10.94% |
| Q1 2026 | 11.50% |
| Q4 2025 | 6.54% |
| Q3 2025 | 8.47% |
| Q2 2025 | 8.92% |
| Q1 2025 | 2.58% |
| Q4 2024 | 1.21% |
| Q3 2024 | 1.60% |
| Q2 2024 | 17.34% |
| Q1 2024 | 18.56% |
| Q4 2023 | 21.05% |
| Q3 2023 | 23.16% |
Farmers & Merchants Bank & Trust by quarter
| Quarter end | CET1 | Noncurrent loans | Texas ratio | ROA |
|---|---|---|---|---|
| Jun 30, 2026 | 17.22% | 1.66% | 10.94% | 0.85% |
| Mar 31, 2026 | 17.40% | 1.75% | 11.50% | 0.99% |
| Dec 31, 2025 | 16.75% | 0.96% | 6.54% | 0.72% |
| Sep 30, 2025 | 16.74% | 0.77% | 8.47% | 0.61% |
| Jun 30, 2025 | 16.64% | 0.79% | 8.92% | 0.50% |
| Mar 31, 2025 | 16.90% | 0.27% | 2.58% | 0.53% |
| Dec 31, 2024 | 16.34% | 0.07% | 1.21% | 0.08% |
| Sep 30, 2024 | 16.09% | 0.21% | 1.60% | 0.63% |
| Jun 30, 2024 | 16.11% | 1.89% | 17.34% | 0.43% |
| Mar 31, 2024 | 16.06% | 1.95% | 18.56% | 0.35% |
| Dec 31, 2023 | 15.59% | 2.14% | 21.05% | 0.26% |
| Sep 30, 2023 | 15.56% | 1.90% | 23.16% | -0.39% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Farmers & Merchants Bank & Trust FDIC insured?
Yes. Farmers & Merchants Bank & Trust is an FDIC-insured commercial bank (FDIC Certificate #13737). Customer deposits are protected up to the standard FDIC insurance limit of $250,000 per depositor, per ownership category.
Is Farmers & Merchants Bank & Trust well capitalized?
Yes. Farmers & Merchants Bank & Trust reports a CET1 Ratio of 17.22%, comfortably above the regulatory well-capitalized threshold that its primary federal regulator, the FDIC, applies under Prompt Corrective Action.
What is Farmers & Merchants Bank & Trust's nonperforming loan ratio?
As of the most recent call report, Farmers & Merchants Bank & Trust's nonperforming loan ratio is 1.66%. Nonperforming loans at 1.66% are elevated; merits closer attention.
What is Farmers & Merchants Bank & Trust's Texas Ratio?
Farmers & Merchants Bank & Trust's Texas Ratio is 10.94%. It compares nonperforming assets with tangible equity plus reserves; above 100% has historically signaled elevated failure risk.
How safe is my money at any FDIC-insured bank?
FDIC insurance covers up to $250,000 per depositor, per insured bank, per ownership category. If an insured bank fails, the FDIC typically pays insured depositors within one business day.
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Methodology & disclaimer
Based on the latest FFIEC call report. Model output is an estimate, not a credit rating, and this page is not investment advice. FDIC insurance covers deposits up to $250,000 per depositor per ownership category at any FDIC-insured bank, whatever its safety profile. See the methodology and full profile.
Regulator records: FDIC BankFind (cert 13737) · FFIEC NIC profile (RSSD 888141)
Explore: Full Farmers & Merchants Bank & Trust profile · Other banks in IA · Metric glossary · How the call report works