Merchants and Farmers Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 5.58% (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: 5.58% (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 12.33% +5.83 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 | $30.0M | 30,026 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $243.5M | 243,478 | RCOAA223 |
| Recomputed ratio | 12.33% | numerator / denominator | |
| Filed ratio | 12.33% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +5.83 pp | $14.2M | capital that could be lost first |
Tier 1 risk-based capital ratio 12.33% +4.33 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 | $30.0M | 30,026 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $243.5M | 243,478 | RCOAA223 |
| Recomputed ratio | 12.33% | numerator / denominator | |
| Filed ratio | 12.33% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +4.33 pp | $10.5M | capital that could be lost first |
Total risk-based capital ratio 13.58% +3.58 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 | $33.1M | 33,072 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $243.5M | 243,478 | RCOAA223 |
| Recomputed ratio | 13.58% | numerator / denominator | |
| Filed ratio | 13.58% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +3.58 pp | $8.7M | capital that could be lost first |
Tier 1 leverage ratio 10.74% +5.74 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 | $30.0M | 30,026 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $279.7M | 279,697 | RCOAA224 |
| Recomputed ratio | 10.74% | numerator / denominator | |
| Filed ratio | 10.74% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +5.74 pp | $16.0M | 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 | 10,500 | 10,500 | 10,500 | 10,500 | 10,500 | 10,500 | RCOAP742 |
| Retained earnings | 19,526 | 18,599 | 17,790 | 19,373 | 18,421 | 17,331 | RCOAKW00 |
| Accumulated other comprehensive income | (687) | (585) | (541) | (565) | (927) | (885) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 29,339 | 28,514 | 27,749 | 29,308 | 27,994 | 26,946 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 687 | 585 | 541 | 565 | 927 | 885 | P859 - P840 |
| Common equity Tier 1 capital | 30,026 | 29,099 | 28,290 | 29,873 | 28,921 | 27,831 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 30,026 | 29,099 | 28,290 | 29,873 | 28,921 | 27,831 | RCOA8274 |
| Tier 2 capital | 3,046 | 2,951 | 2,803 | 2,891 | 2,801 | 2,699 | RCOA5311 |
| Allowance includable in Tier 2 capital | 3,046 | 2,951 | 2,803 | 2,891 | 2,801 | 2,699 | RCOA5310 |
| Total capital | 33,072 | 32,050 | 31,093 | 32,764 | 31,722 | 30,530 | RCOA3792 |
| Total risk-weighted assets | 243,478 | 235,737 | 223,773 | 230,926 | 223,641 | 215,453 | RCOAA223 |
| Average total assets for the leverage ratio | 279,697 | 273,891 | 277,443 | 276,813 | 264,900 | 258,688 | 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 | $6.1M | $727K | 11.94% | 0.30% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $20.6M | $3.7M | 18.18% | 1.54% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $23.4M | $4.7M | 20.00% | 1.92% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $51.0M | $26.1M | 51.17% | 10.70% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $276K | $414K | 150.00% | 0.17% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $4.4M | $6.6M | 150.00% | 2.72% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $178.3M | $173.8M | 97.48% | 71.31% | RC-R Part II, item 4.d, 5.d |
| All other assets | $16.6M | $15.9M | 95.50% | 6.52% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $11.0M | $11.0M | 100.00% | 4.50% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Market risk and other approaches | NA | $804K | NA | 0.33% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $242.9M | ties to item 31 ($242.9M) |
|---|---|---|
| Risk-weighted assets before deductions | $243.7M | RCONB704 |
| Less: excess allowance for credit losses | $212K | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $243.5M | 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 | 12.33% | 12.33% | 13.58% | 10.74% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 12.34% | 12.34% | 13.60% | 10.62% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 12.64% | 12.64% | 13.89% | 10.20% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 12.94% | 12.94% | 14.19% | 10.79% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 12.93% | 12.93% | 14.18% | 10.92% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 12.92% | 12.92% | 14.17% | 10.76% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 12.75% | 12.75% | 14.00% | 10.45% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 13.08% | 13.08% | 14.33% | 11.01% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 13.07% | 13.07% | 14.33% | 10.92% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 12.74% | 12.74% | 13.96% | 11.18% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 13.75% | 13.75% | 15.00% | 10.42% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 12.52% | 12.52% | 13.77% | 11.00% | 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 |
|---|---|---|---|---|---|---|
| Merchants and Farmers Bank (this bank) | Risk-based | 12.33% | 12.33% | 13.58% | 10.74% | |
| First Security Bank of Nevada | $297.7M | CBLR | NA | NA | NA | 26.27% |
| Farmers Bank | $297.3M | CBLR | NA | NA | NA | 13.02% |
| Community Banking Company | $297.3M | CBLR | NA | NA | NA | 11.26% |
| St. Johns Bank & Trust Company | $297.1M | CBLR | NA | NA | NA | 12.27% |
| Redstone Bank | $298.2M | CBLR | NA | NA | NA | 11.98% |
| Leighton State Bank | $298.2M | CBLR | NA | NA | NA | 10.99% |
| SSB Community Bank | $296.8M | Risk-based | 9.58% | 9.58% | 10.66% | 7.36% |
| Grant County Bank | $298.4M | CBLR | NA | NA | NA | 13.34% |
| Minnesota National Bank | $298.4M | Risk-based | 11.55% | 11.55% | 12.61% | 9.77% |
| First National Bank of Commerce | $296.6M | CBLR | NA | NA | NA | 10.65% |
| Peer 25th percentile | 10.07% | 10.07% | 11.15% | 10.73% | ||
| Peer median | 10.57% | 10.57% | 11.64% | 11.62% | ||
| Peer 75th percentile | 11.06% | 11.06% | 12.12% | 12.83% | ||
| This bank's percentile | 100 | 100 | 100 | 30 |
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/644842/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.