Bank Safety Analysis
Is Farmers & Merchants Savings Bank Safe?
Farmers & Merchants Savings Bank meets regulatory minimums but is on the watch band for 1 of 5 safety dimensions. Analysis based on the Q2 2026 call report.
The standout move of Q2 2026 was in CET1 ratio: 1.87 percentage points lower than in Q1 2026, at 13.66%. Farmers & Merchants Savings Bank ranks 58th of 114 Iowa banks on CET1 ratio, in the lower half at 13.66% (Q2 2026). Farmers & Merchants Savings Bank reported 13.66% on CET1 ratio for Q2 2026, 1.41 points below the 15.07% median for banks in the $100M-1B asset tier. From Q3 2023 to Q2 2026, Farmers & Merchants Savings Bank's CET1 ratio ranged between 13.66% (Q2 2026) and 17.27% (Q3 2023) and its Texas ratio ranged between 1.88% (Q4 2025) and 13.61% (Q4 2023). Compared with Q2 2025, Farmers & Merchants Savings Bank's CET1 ratio from 15.90% to 13.66%, noncurrent loans to total loans from 1.83% to 1.63%, Texas ratio from 10.48% to 9.27%, return on assets from 1.30% to 1.18% 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 (2,603 banks) · Industry averages as of Q2 2026.
CET1 of 13.66% 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 12.41% is above the 5% well-capitalized threshold.
Nonperforming loans at 1.63% are elevated; merits closer attention.
Texas Ratio of 9.3% is well below the 100% historical failure threshold.
Efficiency ratio of 47.4% reflects competitive operating costs (lower is better).
Risk screens
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Trigger | Result |
|---|---|---|---|
| CET1 capital ratio supervisory threshold | 13.66% | Flags below 7% | Within range |
| Texas ratio BankRegReports band | 9.27% | Watch at 50%, concern at 100% | Within range |
| Non-performing loan ratio BankRegReports band | 1.63% | 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 | 89.37% | Flags at 100% or above | Within range |
| Commercial real estate to capital supervisory threshold | 94.72% | 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 | 13.66% |
| Q1 2026 | 15.53% |
| Q4 2025 | 14.04% |
| Q3 2025 | 15.10% |
| Q2 2025 | 15.90% |
| Q1 2025 | 16.08% |
| Q4 2024 | 14.18% |
| Q3 2024 | 15.25% |
| Q2 2024 | 13.93% |
| Q1 2024 | 14.63% |
| Q4 2023 | 14.15% |
| Q3 2023 | 17.27% |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 9.27% |
| Q1 2026 | 8.47% |
| Q4 2025 | 1.88% |
| Q3 2025 | 4.00% |
| Q2 2025 | 10.48% |
| Q1 2025 | 8.23% |
| Q4 2024 | 9.73% |
| Q3 2024 | 10.68% |
| Q2 2024 | 11.61% |
| Q1 2024 | 12.33% |
| Q4 2023 | 13.61% |
| Q3 2023 | 7.21% |
Farmers & Merchants Savings Bank by quarter
| Quarter end | CET1 | Noncurrent loans | Texas ratio | ROA |
|---|---|---|---|---|
| Jun 30, 2026 | 13.66% | 1.63% | 9.27% | 1.18% |
| Mar 31, 2026 | 15.53% | 1.53% | 8.47% | 1.10% |
| Dec 31, 2025 | 14.04% | 0.32% | 1.88% | 1.07% |
| Sep 30, 2025 | 15.10% | 0.35% | 4.00% | -0.80% |
| Jun 30, 2025 | 15.90% | 1.83% | 10.48% | 1.30% |
| Mar 31, 2025 | 16.08% | 1.62% | 8.23% | 1.30% |
| Dec 31, 2024 | 14.18% | 1.78% | 9.73% | 1.37% |
| Sep 30, 2024 | 15.25% | 2.09% | 10.68% | 1.23% |
| Jun 30, 2024 | 13.93% | 2.14% | 11.61% | 0.31% |
| Mar 31, 2024 | 14.63% | 2.22% | 12.33% | 1.31% |
| Dec 31, 2023 | 14.15% | 2.40% | 13.61% | 0.41% |
| Sep 30, 2023 | 17.27% | 1.40% | 7.21% | 1.60% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Farmers & Merchants Savings Bank FDIC insured?
Yes. Farmers & Merchants Savings Bank is an FDIC-insured commercial bank (FDIC Certificate #9298). Customer deposits are protected up to the standard FDIC insurance limit of $250,000 per depositor, per ownership category.
Is Farmers & Merchants Savings Bank well capitalized?
Yes. Farmers & Merchants Savings Bank reports a CET1 Ratio of 13.66%, comfortably above the regulatory well-capitalized threshold that its primary federal regulator, the Federal Reserve, applies under Prompt Corrective Action.
What is Farmers & Merchants Savings Bank's nonperforming loan ratio?
As of the most recent call report, Farmers & Merchants Savings Bank's nonperforming loan ratio is 1.63%. Nonperforming loans at 1.63% are elevated; merits closer attention.
What is Farmers & Merchants Savings Bank's Texas Ratio?
Farmers & Merchants Savings Bank's Texas Ratio is 9.27%. 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 9298) · FFIEC NIC profile (RSSD 863746)
Explore: Full Farmers & Merchants Savings Bank profile · Other banks in IA · Metric glossary · How the call report works