Mechanics Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 8.74% (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: 8.74% (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 15.48% +8.98 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 | $1.92B | 1,915,024 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $12.37B | 12,367,116 | RCOAA223 |
| Recomputed ratio | 15.48% | numerator / denominator | |
| Filed ratio | 15.48% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +8.98 pp | $1.11B | capital that could be lost first |
Tier 1 risk-based capital ratio 15.48% +7.48 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 | $1.92B | 1,915,024 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $12.37B | 12,367,116 | RCOAA223 |
| Recomputed ratio | 15.48% | numerator / denominator | |
| Filed ratio | 15.48% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +7.48 pp | $925.7M | capital that could be lost first |
Total risk-based capital ratio 16.74% +6.74 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 | $2.07B | 2,069,655 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $12.37B | 12,367,116 | RCOAA223 |
| Recomputed ratio | 16.74% | numerator / denominator | |
| Filed ratio | 16.74% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +6.74 pp | $832.9M | capital that could be lost first |
Tier 1 leverage ratio 9.38% +4.38 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 | $1.92B | 1,915,024 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $20.42B | 20,420,883 | RCOAA224 |
| Recomputed ratio | 9.38% | numerator / denominator | |
| Filed ratio | 9.38% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +4.38 pp | $894.0M | 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 | 2,604,133 | 2,602,093 | 2,600,446 | 2,599,133 | 2,122,374 | 2,122,117 | RCOAP742 |
| Retained earnings | 240,525 | 344,853 | 469,154 | 393,059 | 336,289 | 293,803 | RCOAKW00 |
| Accumulated other comprehensive income | (18,060) | (19,489) | 3,482 | (8,809) | (31,550) | (31,335) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 2,826,598 | 2,927,457 | 3,073,082 | 2,983,383 | 2,427,113 | 2,384,585 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (911,574) | (991,360) | (1,018,733) | (956,372) | (835,566) | (837,610) | P859 - P840 |
| Common equity Tier 1 capital | 1,915,024 | 1,936,097 | 2,054,349 | 2,027,011 | 1,591,547 | 1,546,975 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 1,915,024 | 1,936,097 | 2,054,349 | 2,027,011 | 1,591,547 | 1,546,975 | RCOA8274 |
| Tier 2 capital | 154,631 | 161,843 | 160,434 | 170,425 | 72,068 | 79,975 | RCOA5311 |
| Allowance includable in Tier 2 capital | 154,631 | 161,843 | 160,434 | 170,425 | 72,068 | 79,975 | RCOA5310 |
| Total capital | 2,069,655 | 2,097,940 | 2,214,783 | 2,197,436 | 1,663,615 | 1,626,950 | RCOA3792 |
| Total risk-weighted assets | 12,367,116 | 12,945,172 | 13,173,958 | 13,627,046 | 8,711,800 | 9,156,549 | RCOAA223 |
| Average total assets for the leverage ratio | 20,420,883 | 20,803,688 | 21,439,009 | 17,684,947 | 15,661,446 | 15,610,632 | 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 | $553.9M | $29.4M | 5.31% | 0.24% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $5.20B | $1.11B | 21.31% | 8.96% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $8.30B | $4.39B | 52.88% | 35.49% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $35.5M | $49.7M | 139.95% | 0.40% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $5.25B | $5.23B | 99.65% | 42.26% | RC-R Part II, item 4.d, 5.d |
| Trading assets | $46.6M | $0 | 0.00% | 0.00% | RC-R Part II, item 7 |
| All other assets | $745.8M | $808.5M | 108.40% | 6.54% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $626.1M | $625.8M | 99.96% | 5.06% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $4.7M | $1.8M | 38.61% | 0.01% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $129.3M | NA | 1.05% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $12.24B | ties to item 31 ($12.24B) |
|---|---|---|
| Risk-weighted assets before deductions | $12.37B | RCONB704 |
| Less: excess allowance for credit losses | $3.4M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $12.37B | 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 | 15.48% | 15.48% | 16.74% | 9.38% | 12.98% | 12.99% | 14.14% | 10.25% |
| 1Q26 | Risk-based | 14.96% | 14.96% | 16.21% | 9.31% | 13.06% | 13.07% | 14.31% | 10.26% |
| 4Q25 | Risk-based | 15.59% | 15.59% | 16.81% | 9.58% | 13.15% | 13.20% | 14.60% | 10.03% |
| 3Q25 | Risk-based | 14.87% | 14.87% | 16.13% | 11.46% | 13.29% | 13.29% | 14.49% | 10.31% |
| 2Q25 | Risk-based | 18.27% | 18.27% | 19.10% | 10.16% | 13.11% | 13.11% | 14.41% | 10.16% |
| 1Q25 | Risk-based | 16.89% | 16.89% | 17.77% | 9.91% | 13.16% | 13.16% | 14.34% | 10.10% |
| 4Q24 | Risk-based | 16.14% | 16.14% | 17.14% | 9.66% | 13.15% | 13.15% | 14.49% | 10.29% |
| 3Q24 | Risk-based | 15.29% | 15.29% | 16.42% | 8.93% | 13.25% | 13.25% | 14.44% | 10.08% |
| 2Q24 | Risk-based | 14.65% | 14.65% | 15.79% | 8.78% | 13.08% | 13.08% | 14.24% | 10.10% |
| 1Q24 | Risk-based | 13.69% | 13.69% | 14.94% | 8.39% | 12.76% | 12.76% | 13.98% | 9.86% |
| 4Q23 | Risk-based | 14.83% | 14.83% | 16.17% | 9.32% | 12.58% | 12.58% | 13.79% | 9.79% |
| 3Q23 | Risk-based | 14.03% | 14.03% | 15.38% | 8.78% | 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 |
|---|---|---|---|---|---|---|
| Mechanics Bank (this bank) | Risk-based | 15.48% | 15.48% | 16.74% | 9.38% | |
| 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% |
| First Merchants Bank | $21.32B | 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% |
| Optum Bank, Inc. | $21.43B | Risk-based | 17.86% | 17.86% | 18.66% | 13.22% |
| The Central Trust Bank | $20.31B | Risk-based | 12.69% | 12.69% | 13.89% | 7.94% |
| Beacon Bank & Trust | $22.20B | Risk-based | 11.77% | 11.77% | 12.86% | 9.83% |
| 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% |
| Apple Bank | $19.89B | Risk-based | 11.68% | 11.68% | 12.12% | 7.74% |
| Peer 25th percentile | 11.76% | 11.76% | 12.78% | 9.79% | ||
| Peer median | 12.73% | 12.73% | 13.97% | 9.90% | ||
| Peer 75th percentile | 13.72% | 13.72% | 14.91% | 11.05% | ||
| This bank's percentile | 90 | 90 | 90 | 20 |
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/936462/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.