First Merchants Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 4.75% (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: 4.75% (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 11.50% +5.00 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 | $2.05B | 2,047,527 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $17.80B | 17,801,556 | RCOAA223 |
| Recomputed ratio | 11.50% | numerator / denominator | |
| Filed ratio | 11.50% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +5.00 pp | $890.4M | capital that could be lost first |
Tier 1 risk-based capital ratio 11.50% +3.50 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 | $2.05B | 2,047,527 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $17.80B | 17,801,556 | RCOAA223 |
| Recomputed ratio | 11.50% | numerator / denominator | |
| Filed ratio | 11.50% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +3.50 pp | $623.4M | capital that could be lost first |
Total risk-based capital ratio 12.75% +2.75 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 | $2.27B | 2,270,446 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $17.80B | 17,801,556 | RCOAA223 |
| Recomputed ratio | 12.75% | numerator / denominator | |
| Filed ratio | 12.75% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +2.75 pp | $490.3M | capital that could be lost first |
Tier 1 leverage ratio 9.96% +4.96 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 | $2.05B | 2,047,527 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $20.55B | 20,551,004 | RCOAA224 |
| Recomputed ratio | 9.96% | numerator / denominator | |
| Filed ratio | 9.96% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +4.96 pp | $1.02B | 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 | 1,967,943 | 1,966,767 | 1,698,555 | 1,696,930 | 1,695,768 | 1,694,766 | RCOAP742 |
| Retained earnings | 898,350 | 891,883 | 898,603 | 859,768 | 825,321 | 826,166 | RCOAKW00 |
| Accumulated other comprehensive income | (131,706) | (146,974) | (128,247) | (153,987) | (188,098) | (188,434) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 2,734,587 | 2,711,676 | 2,468,911 | 2,402,711 | 2,332,991 | 2,332,498 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (687,060) | (669,187) | (592,094) | (567,812) | (534,957) | (535,944) | P859 - P840 |
| Common equity Tier 1 capital | 2,047,527 | 2,042,489 | 1,876,817 | 1,834,899 | 1,798,034 | 1,796,554 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 2,047,527 | 2,042,489 | 1,876,817 | 1,834,899 | 1,798,034 | 1,796,554 | RCOA8274 |
| Tier 2 capital | 222,919 | 220,650 | 197,973 | 201,037 | 197,494 | 192,953 | RCOA5311 |
| Allowance includable in Tier 2 capital | 222,919 | 220,650 | 197,973 | 201,037 | 197,494 | 192,953 | RCOA5310 |
| Total capital | 2,270,446 | 2,263,139 | 2,074,790 | 2,035,936 | 1,995,528 | 1,989,507 | RCOA3792 |
| Total risk-weighted assets | 17,801,556 | 17,642,021 | 15,824,187 | 16,072,217 | 15,784,092 | 15,420,021 | RCOAA223 |
| Average total assets for the leverage ratio | 20,551,004 | 19,695,335 | 18,442,484 | 18,092,119 | 17,966,979 | 17,780,468 | 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 | $616.1M | $9.8M | 1.59% | 0.05% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $3.46B | $1.02B | 29.43% | 5.72% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $103.3M | $20.7M | 20.00% | 0.12% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $4.30B | $2.97B | 69.06% | 16.67% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $32.7M | $40.8M | 124.91% | 0.23% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $90.4M | $132.7M | 146.70% | 0.74% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $11.18B | $10.74B | 96.04% | 60.21% | RC-R Part II, item 4.d, 5.d |
| All other assets | $1.13B | $1.26B | 111.44% | 7.09% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $1.58B | $1.58B | 99.88% | 8.87% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $24.4M | $14.6M | 60.00% | 0.08% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $37.9M | NA | 0.21% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $17.80B | ties to item 31 ($17.80B) |
|---|---|---|
| Risk-weighted assets before deductions | $17.83B | RCONB704 |
| Less: excess allowance for credit losses | $32.0M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $17.80B | 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 | 11.50% | 11.50% | 12.75% | 9.96% | 12.98% | 12.99% | 14.14% | 10.25% |
| 1Q26 | Risk-based | 11.58% | 11.58% | 12.83% | 10.37% | 13.06% | 13.07% | 14.31% | 10.26% |
| 4Q25 | Risk-based | 11.86% | 11.86% | 13.11% | 10.18% | 13.15% | 13.20% | 14.60% | 10.03% |
| 3Q25 | Risk-based | 11.42% | 11.42% | 12.67% | 10.14% | 13.29% | 13.29% | 14.49% | 10.31% |
| 2Q25 | Risk-based | 11.39% | 11.39% | 12.64% | 10.01% | 13.11% | 13.11% | 14.41% | 10.16% |
| 1Q25 | Risk-based | 11.65% | 11.65% | 12.90% | 10.10% | 13.16% | 13.16% | 14.34% | 10.10% |
| 4Q24 | Risk-based | 11.64% | 11.64% | 12.89% | 9.92% | 13.15% | 13.15% | 14.49% | 10.29% |
| 3Q24 | Risk-based | 11.41% | 11.41% | 12.66% | 9.70% | 13.25% | 13.25% | 14.44% | 10.08% |
| 2Q24 | Risk-based | 11.32% | 11.32% | 12.57% | 9.64% | 13.08% | 13.08% | 14.24% | 10.10% |
| 1Q24 | Risk-based | 11.62% | 11.62% | 12.87% | 9.74% | 12.76% | 12.76% | 13.98% | 9.86% |
| 4Q23 | Risk-based | 11.80% | 11.80% | 13.06% | 9.89% | 12.58% | 12.58% | 13.79% | 9.79% |
| 3Q23 | Risk-based | 11.76% | 11.76% | 13.01% | 9.92% | 12.66% | 12.67% | 13.78% | 9.78% |
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 |
|---|---|---|---|---|---|---|
| First Merchants Bank (this bank) | Risk-based | 11.50% | 11.50% | 12.75% | 9.96% | |
| Seacoast National Bank | $21.34B | Risk-based | 13.55% | 13.55% | 14.80% | 9.84% |
| Mechanics Bank | $21.25B | Risk-based | 15.48% | 15.48% | 16.74% | 9.38% |
| Optum Bank, Inc. | $21.43B | Risk-based | 17.86% | 17.86% | 18.66% | 13.22% |
| Citizens Business Bank, N.A. | $21.18B | Risk-based | 14.33% | 14.33% | 14.94% | 11.41% |
| Merchants Bank of Indiana | $21.17B | Risk-based | 11.76% | 11.76% | 12.18% | 11.28% |
| Beacon Bank & Trust | $22.20B | Risk-based | 11.77% | 11.77% | 12.86% | 9.83% |
| The Central Trust Bank | $20.31B | Risk-based | 12.69% | 12.69% | 13.89% | 7.94% |
| First Financial Bank | $22.35B | Risk-based | 12.77% | 12.78% | 14.05% | 9.78% |
| Wilmington Savings Fund Society, FSB | $22.57B | Risk-based | 13.77% | 13.77% | 14.94% | 10.36% |
| TowneBank | $22.62B | Risk-based | 12.16% | 12.20% | 14.63% | 10.00% |
| Peer 25th percentile | 12.29% | 12.32% | 13.93% | 9.79% | ||
| Peer median | 13.16% | 13.16% | 14.72% | 9.92% | ||
| Peer 75th percentile | 14.19% | 14.19% | 14.94% | 11.05% | ||
| This bank's percentile | 0 | 0 | 10 | 50 |
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/17147/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.