Mechanics & Farmers Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 17.97% (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: 17.97% (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 24.72% +18.22 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 | $73.8M | 73,761 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $298.4M | 298,429 | RCOAA223 |
| Recomputed ratio | 24.72% | numerator / denominator | |
| Filed ratio | 24.72% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +18.22 pp | $54.4M | capital that could be lost first |
Tier 1 risk-based capital ratio 24.72% +16.72 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 | $73.8M | 73,761 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $298.4M | 298,429 | RCOAA223 |
| Recomputed ratio | 24.72% | numerator / denominator | |
| Filed ratio | 24.72% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +16.72 pp | $49.9M | capital that could be lost first |
Total risk-based capital ratio 25.97% +15.97 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 | $77.5M | 77,498 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $298.4M | 298,429 | RCOAA223 |
| Recomputed ratio | 25.97% | numerator / denominator | |
| Filed ratio | 25.97% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +15.97 pp | $47.7M | capital that could be lost first |
Tier 1 leverage ratio 15.10% +10.10 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 | $73.8M | 73,761 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $488.4M | 488,398 | RCOAA224 |
| Recomputed ratio | 15.10% | numerator / denominator | |
| Filed ratio | 15.10% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +10.10 pp | $49.3M | 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 | 48,307 | 48,307 | 48,307 | 48,307 | 48,307 | 48,307 | RCOAP742 |
| Retained earnings | 25,544 | 25,184 | 24,877 | 24,922 | 24,011 | 23,670 | RCOAKW00 |
| Accumulated other comprehensive income | (6,047) | (5,643) | (4,998) | (5,727) | (6,585) | (7,409) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 67,804 | 67,848 | 68,186 | 67,502 | 65,733 | 64,568 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 5,957 | 5,548 | 4,916 | 5,642 | 6,515 | 7,342 | P859 - P840 |
| Common equity Tier 1 capital | 73,761 | 73,396 | 73,102 | 73,144 | 72,248 | 71,910 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 73,761 | 73,396 | 73,102 | 73,144 | 72,248 | 71,910 | RCOA8274 |
| Tier 2 capital | 3,737 | 3,734 | 3,723 | 3,703 | 3,739 | 3,813 | RCOA5311 |
| Allowance includable in Tier 2 capital | 3,737 | 3,734 | 3,723 | 3,703 | 3,739 | 3,813 | RCOA5310 |
| Total capital | 77,498 | 77,130 | 76,825 | 76,847 | 75,987 | 75,723 | RCOA3792 |
| Total risk-weighted assets | 298,429 | 298,303 | 296,758 | 295,737 | 298,260 | 304,547 | RCOAA223 |
| Average total assets for the leverage ratio | 488,398 | 493,527 | 493,082 | 500,892 | 503,604 | 509,815 | 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 | $20.5M | $17K | 0.08% | 0.01% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $164.9M | $28.6M | 17.37% | 9.58% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $57.2M | $37.1M | 64.88% | 12.41% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $5.1M | $7.6M | 150.00% | 2.54% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $214.1M | $195.5M | 91.29% | 65.38% | RC-R Part II, item 4.d, 5.d |
| All other assets | $25.7M | $25.1M | 97.80% | 8.40% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $5.0M | $5.0M | 100.00% | 1.69% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $1K | 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 | $299.0M | ties to item 31 ($299.0M) |
|---|---|---|
| Risk-weighted assets before deductions | $299.0M | RCONB704 |
| Less: excess allowance for credit losses | $560K | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $298.4M | 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 | 24.72% | 24.72% | 25.97% | 15.10% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 24.60% | 24.60% | 25.86% | 14.87% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 24.63% | 24.63% | 25.89% | 14.83% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 24.73% | 24.73% | 25.98% | 14.60% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 24.22% | 24.22% | 25.48% | 14.35% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 23.61% | 23.61% | 24.86% | 14.11% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 23.75% | 23.75% | 25.00% | 14.09% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 24.10% | 24.10% | 25.35% | 14.72% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 24.56% | 24.56% | 25.81% | 15.16% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 24.63% | 24.63% | 25.88% | 15.84% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 24.52% | 24.52% | 25.78% | 15.96% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 25.12% | 25.12% | 26.37% | 16.20% | 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 & Farmers Bank (this bank) | Risk-based | 24.72% | 24.72% | 25.97% | 15.10% | |
| BLC Community Bank | $475.5M | Risk-based | 12.28% | 12.28% | 13.35% | 10.22% |
| The First National Bank of Russell Springs | $475.2M | CBLR | NA | NA | NA | 10.52% |
| Ameristate Bank | $477.7M | CBLR | NA | NA | NA | 9.55% |
| First National Bank | $477.8M | Risk-based | 20.47% | 22.81% | 24.12% | 18.41% |
| Louisiana National Bank | $474.0M | CBLR | NA | NA | NA | 10.49% |
| First State Bank | $478.1M | Risk-based | 13.39% | 13.39% | 14.64% | 9.48% |
| FSNB, N.A. | $478.3M | CBLR | NA | NA | NA | 17.51% |
| Seamens Bank | $478.5M | CBLR | NA | NA | NA | 12.57% |
| Community State Bank of Orbisonia | $473.5M | CBLR | NA | NA | NA | 9.99% |
| PBT Bancorp | $473.2M | Risk-based | 9.35% | 9.35% | 10.49% | 8.15% |
| Peer 25th percentile | 11.55% | 11.55% | 12.64% | 9.66% | ||
| Peer median | 12.84% | 12.84% | 14.00% | 10.36% | ||
| Peer 75th percentile | 15.16% | 15.74% | 17.01% | 12.06% | ||
| This bank's percentile | 100 | 100 | 100 | 80 |
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/332224/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.