Mechanics Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 7.90% (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: 7.90% (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 14.65% +8.15 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 | $74.8M | 74,832 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $510.7M | 510,739 | RCOAA223 |
| Recomputed ratio | 14.65% | numerator / denominator | |
| Filed ratio | 14.65% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +8.15 pp | $41.6M | capital that could be lost first |
Tier 1 risk-based capital ratio 14.65% +6.65 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 | $74.8M | 74,832 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $510.7M | 510,739 | RCOAA223 |
| Recomputed ratio | 14.65% | numerator / denominator | |
| Filed ratio | 14.65% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +6.65 pp | $34.0M | capital that could be lost first |
Total risk-based capital ratio 15.90% +5.90 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 | $81.2M | 81,230 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $510.7M | 510,739 | RCOAA223 |
| Recomputed ratio | 15.90% | numerator / denominator | |
| Filed ratio | 15.90% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +5.90 pp | $30.2M | capital that could be lost first |
Tier 1 leverage ratio 8.44% +3.44 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 | $74.8M | 74,832 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $886.2M | 886,216 | RCOAA224 |
| Recomputed ratio | 8.44% | numerator / denominator | |
| Filed ratio | 8.44% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +3.44 pp | $30.5M | 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 | 6,979 | 8,269 | 6,989 | 6,989 | 7,389 | 8,269 | RCOAP742 |
| Retained earnings | 67,853 | 66,443 | 66,689 | 65,281 | 64,296 | 63,257 | RCOAKW00 |
| Accumulated other comprehensive income | (4,755) | (4,702) | (4,744) | (5,355) | (6,021) | (6,677) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 70,077 | 70,010 | 68,934 | 66,915 | 65,664 | 64,849 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 4,755 | 4,702 | 4,744 | 5,355 | 6,021 | 6,677 | P859 - P840 |
| Common equity Tier 1 capital | 74,832 | 74,712 | 73,678 | 72,270 | 71,685 | 71,526 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 74,832 | 74,712 | 73,678 | 72,270 | 71,685 | 71,526 | RCOA8274 |
| Tier 2 capital | 6,398 | 6,233 | 6,127 | 5,966 | 5,835 | 5,719 | RCOA5311 |
| Allowance includable in Tier 2 capital | 6,398 | 6,233 | 6,127 | 5,966 | 5,835 | 5,719 | RCOA5310 |
| Total capital | 81,230 | 80,945 | 79,805 | 78,236 | 77,520 | 77,245 | RCOA3792 |
| Total risk-weighted assets | 510,739 | 497,603 | 489,283 | 476,345 | 465,800 | 456,529 | RCOAA223 |
| Average total assets for the leverage ratio | 886,216 | 872,578 | 858,817 | 841,610 | 830,872 | 826,736 | 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 | $39.2M | $1.0M | 2.63% | 0.20% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $85.4M | $17.5M | 20.50% | 3.42% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $725K | $145K | 20.00% | 0.03% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $638.9M | $327.3M | 51.23% | 63.95% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $3.1M | $3.1M | 100.00% | 0.61% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $99.2M | $98.5M | 99.34% | 19.24% | RC-R Part II, item 4.d, 5.d |
| All other assets | $43.5M | $41.1M | 94.61% | 8.03% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $32.9M | $23.1M | 70.30% | 4.52% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $300 | 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 | $511.9M | ties to item 31 ($511.9M) |
|---|---|---|
| Risk-weighted assets before deductions | $511.9M | RCONB704 |
| Less: excess allowance for credit losses | $1.1M | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $510.7M | 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 | 14.65% | 14.65% | 15.90% | 8.44% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 15.01% | 15.01% | 16.27% | 8.56% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 15.06% | 15.06% | 16.31% | 8.58% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 15.17% | 15.17% | 16.42% | 8.59% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 15.39% | 15.39% | 16.64% | 8.63% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 15.67% | 15.67% | 16.92% | 8.65% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 15.60% | 15.60% | 16.86% | 8.63% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 15.79% | 15.79% | 17.04% | 8.56% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 16.01% | 16.01% | 17.27% | 8.59% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 16.21% | 16.21% | 17.46% | 8.52% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 16.23% | 16.23% | 17.48% | 8.57% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 16.05% | 16.05% | 17.31% | 8.65% | 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 |
|---|---|---|---|---|---|---|
| Mechanics Bank (this bank) | Risk-based | 14.65% | 14.65% | 15.90% | 8.44% | |
| Mountain Pacific Bank | $896.4M | Risk-based | 13.07% | 13.07% | 14.33% | 11.52% |
| Visionbank of Iowa | $896.1M | Risk-based | 10.95% | 10.95% | 12.04% | 9.43% |
| Fortress Bank | $897.2M | Risk-based | 9.66% | 10.80% | 12.04% | 9.12% |
| Farmers National Bank | $895.7M | CBLR | NA | NA | NA | 15.03% |
| Windsor Federal Bank | $895.4M | CBLR | NA | NA | NA | 9.91% |
| Titan Bank, N.A. | $895.2M | Risk-based | 35.50% | 35.50% | 36.75% | 9.48% |
| The First State Bank | $895.2M | CBLR | NA | NA | NA | 10.58% |
| Terrabank, N.A. | $897.7M | Risk-based | 10.40% | 14.78% | 16.03% | 9.82% |
| 21st Century Bank | $894.8M | Risk-based | 14.71% | 14.71% | 15.70% | 10.66% |
| Peer 25th percentile | 10.53% | 11.48% | 12.62% | 9.48% | ||
| Peer median | 12.01% | 13.89% | 15.02% | 9.91% | ||
| Peer 75th percentile | 14.30% | 14.76% | 15.95% | 10.66% | ||
| This bank's percentile | 67 | 50 | 67 | 0 |
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/943675/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.