Mercantile Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 5.54% (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: 5.54% (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 12.59% +6.09 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 | $729.2M | 729,188 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $5.79B | 5,791,323 | RCOAA223 |
| Recomputed ratio | 12.59% | numerator / denominator | |
| Filed ratio | 12.59% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +6.09 pp | $352.7M | capital that could be lost first |
Tier 1 risk-based capital ratio 12.59% +4.59 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 | $729.2M | 729,188 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $5.79B | 5,791,323 | RCOAA223 |
| Recomputed ratio | 12.59% | numerator / denominator | |
| Filed ratio | 12.59% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +4.59 pp | $265.9M | capital that could be lost first |
Total risk-based capital ratio 13.54% +3.54 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 | $784.3M | 784,315 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $5.79B | 5,791,323 | RCOAA223 |
| Recomputed ratio | 13.54% | numerator / denominator | |
| Filed ratio | 13.54% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +3.54 pp | $205.2M | capital that could be lost first |
Tier 1 leverage ratio 11.61% +6.61 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 | $729.2M | 729,188 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $6.28B | 6,278,745 | RCOAA224 |
| Recomputed ratio | 11.61% | numerator / denominator | |
| Filed ratio | 11.61% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +6.61 pp | $415.3M | 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 | 405,638 | 405,638 | 405,638 | 405,638 | 405,638 | 405,638 | RCOAP742 |
| Retained earnings | 355,721 | 348,476 | 344,152 | 358,822 | 346,546 | 331,720 | RCOAKW00 |
| Accumulated other comprehensive income | (29,991) | (28,283) | (23,995) | (28,512) | (35,766) | (40,667) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 731,368 | 725,831 | 725,795 | 735,948 | 716,418 | 696,691 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (2,180) | (3,888) | (8,176) | (3,659) | 3,595 | 8,496 | P859 - P840 |
| Common equity Tier 1 capital | 729,188 | 721,943 | 717,619 | 732,289 | 720,013 | 705,187 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 729,188 | 721,943 | 717,619 | 732,289 | 720,013 | 705,187 | RCOA8274 |
| Tier 2 capital | 55,127 | 57,182 | 58,045 | 60,252 | 59,242 | 56,948 | RCOA5311 |
| Allowance includable in Tier 2 capital | 55,127 | 57,182 | 58,045 | 60,252 | 59,242 | 56,948 | RCOA5310 |
| Total capital | 784,315 | 779,125 | 775,664 | 792,541 | 779,255 | 762,135 | RCOA3792 |
| Total risk-weighted assets | 5,791,323 | 5,650,401 | 5,619,370 | 5,560,382 | 5,614,756 | 5,448,763 | RCOAA223 |
| Average total assets for the leverage ratio | 6,278,745 | 6,239,554 | 6,218,293 | 6,233,436 | 6,011,497 | 5,982,830 | 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 | $285.0M | $14.0M | 4.91% | 0.24% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $984.4M | $208.2M | 21.15% | 3.59% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $3.5M | $700K | 20.00% | 0.01% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $764.1M | $467.1M | 61.13% | 8.06% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $49.0M | $73.5M | 150.00% | 1.27% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $863K | $1.3M | 150.00% | 0.02% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $3.94B | $3.91B | 99.36% | 67.57% | RC-R Part II, item 4.d, 5.d |
| All other assets | $243.1M | $258.5M | 106.35% | 4.46% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $903.9M | $837.6M | 92.67% | 14.46% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $29.4M | $14.3M | 48.70% | 0.25% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $2.8M | NA | 0.05% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $5.79B | ties to item 31 ($5.79B) |
|---|---|---|
| Risk-weighted assets before deductions | $5.79B | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $5.79B | 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 | 12.59% | 12.59% | 13.54% | 11.61% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 12.78% | 12.78% | 13.79% | 11.57% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 12.77% | 12.77% | 13.80% | 11.54% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 13.17% | 13.17% | 14.25% | 11.75% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 12.82% | 12.82% | 13.88% | 11.98% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 12.94% | 12.94% | 13.99% | 11.79% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 12.92% | 12.92% | 13.94% | 11.86% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 12.82% | 12.82% | 13.89% | 11.99% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 12.80% | 12.80% | 13.86% | 12.22% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 12.78% | 12.78% | 13.79% | 12.28% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 12.43% | 12.43% | 13.42% | 12.23% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 12.73% | 12.73% | 13.70% | 12.04% | 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 |
|---|---|---|---|---|---|---|
| Mercantile Bank (this bank) | Risk-based | 12.59% | 12.59% | 13.54% | 11.61% | |
| Five Star Bank | $6.29B | Risk-based | 12.72% | 12.72% | 13.69% | 10.87% |
| First International Bank and Trust | $6.18B | Risk-based | 10.68% | 10.68% | 11.71% | 9.06% |
| First Financial Bank, N.A. | $6.17B | Risk-based | 12.62% | 12.62% | 13.63% | 10.36% |
| Middlesex Savings Bank | $6.15B | Risk-based | 18.24% | 18.24% | 19.01% | 13.44% |
| Shore United Bank, N.A. | $6.15B | Risk-based | 12.31% | 12.31% | 13.56% | 10.00% |
| CFG Bank | $6.12B | Risk-based | 12.50% | 12.50% | 13.71% | 11.29% |
| Northbrook Bank & Trust Company, N.A. | $6.37B | Risk-based | 11.16% | 11.16% | 11.84% | 9.38% |
| SmartBank | $6.11B | Risk-based | 11.38% | 11.38% | 12.30% | 9.86% |
| Bradesco Bank | $6.10B | Risk-based | 13.93% | 13.93% | 14.95% | 10.09% |
| Peer 25th percentile | 11.38% | 11.38% | 12.30% | 9.86% | ||
| Peer median | 12.50% | 12.50% | 13.63% | 10.09% | ||
| Peer 75th percentile | 12.72% | 12.72% | 13.71% | 10.87% | ||
| This bank's percentile | 56 | 56 | 33 | 89 |
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/2608754/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.