The Farmers & Merchants State Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 4.91% (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: 4.91% (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 11.84% +5.34 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 | $325.0M | 324,999 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $2.74B | 2,743,867 | RCOAA223 |
| Recomputed ratio | 11.84% | numerator / denominator | |
| Filed ratio | 11.84% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +5.34 pp | $146.6M | capital that could be lost first |
Tier 1 risk-based capital ratio 11.84% +3.84 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 | $325.0M | 324,999 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $2.74B | 2,743,867 | RCOAA223 |
| Recomputed ratio | 11.84% | numerator / denominator | |
| Filed ratio | 11.84% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +3.84 pp | $105.5M | capital that could be lost first |
Total risk-based capital ratio 12.91% +2.91 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 | $354.1M | 354,129 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $2.74B | 2,743,867 | RCOAA223 |
| Recomputed ratio | 12.91% | numerator / denominator | |
| Filed ratio | 12.91% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +2.91 pp | $79.7M | capital that could be lost first |
Tier 1 leverage ratio 9.44% +4.44 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 | $325.0M | 324,999 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $3.44B | 3,441,837 | RCOAA224 |
| Recomputed ratio | 9.44% | numerator / denominator | |
| Filed ratio | 9.44% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +4.44 pp | $152.9M | 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 | 213,464 | 213,464 | 213,464 | 213,464 | 213,464 | 213,464 | RCOAP742 |
| Retained earnings | 201,273 | 195,017 | 191,892 | 185,268 | 179,454 | 174,540 | RCOAKW00 |
| Accumulated other comprehensive income | (13,926) | (13,496) | (11,859) | (13,965) | (19,156) | (20,059) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 400,811 | 394,985 | 393,497 | 384,767 | 373,762 | 367,945 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (75,812) | (76,547) | (78,488) | (76,827) | (72,081) | (71,623) | P859 - P840 |
| Common equity Tier 1 capital | 324,999 | 318,438 | 315,009 | 307,940 | 301,681 | 296,322 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 324,999 | 318,438 | 315,009 | 307,940 | 301,681 | 296,322 | RCOA8274 |
| Tier 2 capital | 29,130 | 28,871 | 27,880 | 27,668 | 27,442 | 26,790 | RCOA5311 |
| Allowance includable in Tier 2 capital | 29,130 | 28,871 | 27,880 | 27,668 | 27,442 | 26,790 | RCOA5310 |
| Total capital | 354,129 | 347,309 | 342,889 | 335,608 | 329,123 | 323,112 | RCOA3792 |
| Total risk-weighted assets | 2,743,867 | 2,711,288 | 2,737,240 | 2,675,109 | 2,648,735 | 2,606,648 | RCOAA223 |
| Average total assets for the leverage ratio | 3,441,837 | 3,327,515 | 3,327,976 | 3,271,876 | 3,294,893 | 3,257,317 | 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 | $147.5M | $20.4M | 13.83% | 0.74% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $458.5M | $71.4M | 15.57% | 2.60% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $15.3M | $14.9M | 97.33% | 0.54% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $559.0M | $286.9M | 51.32% | 10.46% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $38.0M | $57.0M | 150.00% | 2.08% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $4.8M | $4.8M | 100.00% | 0.17% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $2.11B | $2.10B | 99.90% | 76.68% | RC-R Part II, item 4.d, 5.d |
| All other assets | $126.0M | $122.8M | 97.47% | 4.48% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $58.2M | $58.2M | 100.00% | 2.12% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $250K | $0 | 0.00% | 0.00% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $3.5M | NA | 0.13% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $2.74B | ties to item 31 ($2.74B) |
|---|---|---|
| Risk-weighted assets before deductions | $2.74B | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $2.74B | 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 | 11.84% | 11.84% | 12.91% | 9.44% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 11.74% | 11.74% | 12.81% | 9.57% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 11.51% | 11.51% | 12.53% | 9.47% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 11.51% | 11.51% | 12.55% | 9.41% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 11.39% | 11.39% | 12.43% | 9.16% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 11.37% | 11.37% | 12.40% | 9.10% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 11.40% | 11.40% | 12.40% | 8.81% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 11.28% | 11.28% | 12.28% | 8.74% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 11.04% | 11.04% | 12.04% | 8.70% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 10.95% | 10.95% | 11.93% | 8.75% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 10.77% | 10.77% | 11.73% | 8.66% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 10.87% | 10.87% | 11.85% | 8.80% | 12.78% | 12.79% | 13.93% | 10.03% |
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 State Bank (this bank) | Risk-based | 11.84% | 11.84% | 12.91% | 9.44% | |
| Cache Valley Bank | $3.49B | Risk-based | 12.04% | 12.04% | 13.19% | 10.68% |
| First Farmers Bank & Trust Co. | $3.50B | Risk-based | 12.82% | 12.82% | 14.07% | 10.06% |
| Ponce Bank, N.A. | $3.49B | Risk-based | 17.87% | 17.87% | 18.88% | 15.81% |
| Bank of Ann Arbor | $3.50B | Risk-based | 14.27% | 14.27% | 15.42% | 13.17% |
| MVB Bank, Inc. | $3.50B | CBLR | NA | NA | NA | 10.27% |
| Banco do Brasil Americas | $3.47B | Risk-based | 23.30% | 23.30% | 24.56% | 10.90% |
| PCB Bank | $3.47B | Risk-based | 13.35% | 13.35% | 14.58% | 11.54% |
| Bankwell Bank | $3.47B | Risk-based | 11.67% | 11.67% | 12.70% | 10.39% |
| Old Plank Trail Community Bank, N.A. | $3.53B | Risk-based | 10.81% | 10.81% | 11.46% | 8.82% |
| First Carolina Bank | $3.41B | Risk-based | 12.88% | 12.88% | 13.72% | 11.36% |
| Peer 25th percentile | 12.04% | 12.04% | 13.19% | 10.30% | ||
| Peer median | 12.88% | 12.88% | 14.07% | 10.79% | ||
| Peer 75th percentile | 14.27% | 14.27% | 15.42% | 11.50% | ||
| This bank's percentile | 22 | 22 | 22 | 10 |
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/214414/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.