Farmers & Merchants State Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 9.04% (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: 9.04% (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 16.13% +9.63 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 | $28.3M | 28,325 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $175.6M | 175,583 | RCOAA223 |
| Recomputed ratio | 16.13% | numerator / denominator | |
| Filed ratio | 16.13% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +9.63 pp | $16.9M | capital that could be lost first |
Tier 1 risk-based capital ratio 16.13% +8.13 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 | $28.3M | 28,325 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $175.6M | 175,583 | RCOAA223 |
| Recomputed ratio | 16.13% | numerator / denominator | |
| Filed ratio | 16.13% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +8.13 pp | $14.3M | capital that could be lost first |
Total risk-based capital ratio 17.04% +7.04 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 | $29.9M | 29,915 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $175.6M | 175,583 | RCOAA223 |
| Recomputed ratio | 17.04% | numerator / denominator | |
| Filed ratio | 17.04% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +7.04 pp | $12.4M | capital that could be lost first |
Tier 1 leverage ratio 10.68% +5.68 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 | $28.3M | 28,325 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $265.2M | 265,156 | RCOAA224 |
| Recomputed ratio | 10.68% | numerator / denominator | |
| Filed ratio | 10.68% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +5.68 pp | $15.1M | 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 | 2,434 | 2,434 | 2,434 | 2,434 | 2,434 | 2,434 | RCOAP742 |
| Retained earnings | 25,891 | 25,308 | 24,648 | 24,438 | 23,915 | 23,534 | RCOAKW00 |
| Accumulated other comprehensive income | (1,463) | (1,634) | (1,062) | (1,285) | (1,722) | (2,160) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 26,862 | 26,108 | 26,020 | 25,587 | 24,627 | 23,808 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 1,463 | 1,634 | 1,062 | 1,285 | 1,722 | 2,160 | P859 - P840 |
| Common equity Tier 1 capital | 28,325 | 27,742 | 27,082 | 26,872 | 26,349 | 25,968 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 28,325 | 27,742 | 27,082 | 26,872 | 26,349 | 25,968 | RCOA8274 |
| Tier 2 capital | 1,590 | 1,590 | 1,592 | 1,422 | 1,422 | 1,397 | RCOA5311 |
| Allowance includable in Tier 2 capital | 1,590 | 1,590 | 1,592 | 1,422 | 1,422 | 1,397 | RCOA5310 |
| Total capital | 29,915 | 29,332 | 28,674 | 28,294 | 27,771 | 27,365 | RCOA3792 |
| Total risk-weighted assets | 175,583 | 175,920 | 174,615 | 176,410 | 168,293 | 164,835 | RCOAA223 |
| Average total assets for the leverage ratio | 265,156 | 265,992 | 262,127 | 257,816 | 261,029 | 261,524 | 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 | $26.2M | $770K | 2.94% | 0.44% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $75.2M | $14.3M | 18.97% | 8.13% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $2.6M | $1.7M | 63.35% | 0.94% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $40.1M | $21.7M | 54.05% | 12.35% | RC-R Part II, item 4.a, 5.a |
| Loans: all other | $125.9M | $125.9M | 100.00% | 71.72% | RC-R Part II, item 4.d, 5.d |
| All other assets | $7.8M | $7.4M | 94.51% | 4.19% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $3.9M | $3.9M | 100.00% | 2.23% | 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 | $175.6M | ties to item 31 ($175.6M) |
|---|---|---|
| Risk-weighted assets before deductions | $175.6M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $175.6M | 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 | 16.13% | 16.13% | 17.04% | 10.68% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 15.77% | 15.77% | 16.67% | 10.43% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 15.51% | 15.51% | 16.42% | 10.33% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 15.23% | 15.23% | 16.04% | 10.42% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 15.66% | 15.66% | 16.50% | 10.09% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 15.75% | 15.75% | 16.60% | 9.93% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 15.56% | 15.56% | 16.40% | 10.01% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 15.63% | 15.63% | 16.49% | 10.41% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 15.03% | 15.03% | 15.87% | 10.49% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 14.96% | 14.96% | 15.81% | 10.31% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 14.45% | 14.45% | 15.31% | 10.17% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 15.15% | 15.15% | 16.01% | 10.33% | 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 State Bank (this bank) | Risk-based | 16.13% | 16.13% | 17.04% | 10.68% | |
| Cherokee State Bank | $271.1M | CBLR | NA | NA | NA | 13.03% |
| The Apple Creek Banking Company | $270.6M | CBLR | NA | NA | NA | 9.17% |
| The Farmers and Merchants National Bank of Nashville | $270.3M | Risk-based | 15.26% | 15.26% | 16.15% | 11.60% |
| Citizens Bank and Trust Company of Grainger County | $273.2M | CBLR | NA | NA | NA | 14.22% |
| FNB Bank | $270.3M | Risk-based | 14.21% | 14.21% | 15.46% | 10.21% |
| North Shore Trust and Savings | $270.3M | CBLR | NA | NA | NA | 25.24% |
| Citizens State Bank | $270.1M | CBLR | NA | NA | NA | 10.74% |
| Mediapolis Savings Bank | $269.9M | CBLR | NA | NA | NA | 10.20% |
| South Coast Bank & Trust | $269.8M | CBLR | NA | NA | NA | 9.90% |
| Peer 25th percentile | 14.47% | 14.47% | 15.64% | 10.20% | ||
| Peer median | 14.73% | 14.73% | 15.81% | 10.74% | ||
| Peer 75th percentile | 15.00% | 15.00% | 15.98% | 13.03% | ||
| This bank's percentile | 100 | 100 | 100 | 44 |
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/145741/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.