Merchants Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 7.03% (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: 7.03% (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 13.87% +7.37 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 | $27.0M | 27,019 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $194.8M | 194,764 | RCOAA223 |
| Recomputed ratio | 13.87% | numerator / denominator | |
| Filed ratio | 13.87% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +7.37 pp | $14.4M | capital that could be lost first |
Tier 1 risk-based capital ratio 13.87% +5.87 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 | $27.0M | 27,019 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $194.8M | 194,764 | RCOAA223 |
| Recomputed ratio | 13.87% | numerator / denominator | |
| Filed ratio | 13.87% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +5.87 pp | $11.4M | capital that could be lost first |
Total risk-based capital ratio 15.03% +5.03 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 | $29.3M | 29,276 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $194.8M | 194,764 | RCOAA223 |
| Recomputed ratio | 15.03% | numerator / denominator | |
| Filed ratio | 15.03% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +5.03 pp | $9.8M | capital that could be lost first |
Tier 1 leverage ratio 10.56% +5.56 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 | $27.0M | 27,019 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $255.8M | 255,816 | RCOAA224 |
| Recomputed ratio | 10.56% | numerator / denominator | |
| Filed ratio | 10.56% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +5.56 pp | $14.2M | 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 | 10,278 | 10,278 | 10,278 | 10,278 | 10,278 | 10,278 | RCOAP742 |
| Retained earnings | 16,881 | 16,228 | 15,781 | 15,459 | 14,746 | 14,008 | RCOAKW00 |
| Accumulated other comprehensive income | (633) | (652) | (584) | (794) | (1,034) | (1,293) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 26,526 | 25,854 | 25,475 | 24,943 | 23,990 | 22,993 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 493 | 453 | 325 | 504 | 715 | 944 | P859 - P840 |
| Common equity Tier 1 capital | 27,019 | 26,307 | 25,800 | 25,447 | 24,705 | 23,937 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 27,019 | 26,307 | 25,800 | 25,447 | 24,705 | 23,937 | RCOA8274 |
| Tier 2 capital | 2,257 | 2,205 | 2,236 | 2,136 | 2,132 | 2,031 | RCOA5311 |
| Allowance includable in Tier 2 capital | 2,257 | 2,205 | 2,236 | 2,136 | 2,132 | 2,031 | RCOA5310 |
| Total capital | 29,276 | 28,512 | 28,036 | 27,583 | 26,837 | 25,968 | RCOA3792 |
| Total risk-weighted assets | 194,764 | 176,381 | 200,129 | 200,463 | 204,607 | 187,944 | RCOAA223 |
| Average total assets for the leverage ratio | 255,816 | 258,693 | 256,676 | 248,599 | 246,702 | 246,988 | 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 | $14.0M | $151K | 1.08% | 0.08% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $46.9M | $4.0M | 8.60% | 2.07% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $8.5M | $4.2M | 50.00% | 2.17% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $2.4M | $3.6M | 150.00% | 1.83% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $179.8M | $171.7M | 95.50% | 88.15% | RC-R Part II, item 4.d, 5.d |
| All other assets | $5.7M | $4.8M | 83.31% | 2.45% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $6.3M | $6.3M | 100.00% | 3.25% | 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 | $194.8M | ties to item 31 ($194.8M) |
|---|---|---|
| Risk-weighted assets before deductions | $194.8M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $194.8M | 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 | 13.87% | 13.87% | 15.03% | 10.56% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 14.91% | 14.91% | 16.16% | 10.17% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 12.89% | 12.89% | 14.01% | 10.05% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 12.69% | 12.69% | 13.76% | 10.24% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 12.07% | 12.07% | 13.12% | 10.01% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 12.74% | 12.74% | 13.82% | 9.69% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 11.45% | 11.45% | 12.44% | 9.59% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 10.44% | 10.44% | 11.36% | 9.30% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 10.89% | 10.89% | 11.84% | 9.56% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 11.46% | 11.46% | 12.43% | 9.23% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 10.46% | 10.46% | 11.36% | 9.21% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 10.34% | 10.34% | 11.21% | 9.38% | 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 Bank (this bank) | Risk-based | 13.87% | 13.87% | 15.03% | 10.56% | |
| Mountain Valley Bank | $254.6M | Risk-based | 15.17% | 15.17% | 16.05% | 10.02% |
| Raritan State Bank | $253.9M | CBLR | NA | NA | NA | 10.78% |
| Visionbank | $253.9M | Risk-based | 12.47% | 12.47% | 13.45% | 9.99% |
| Security Bank | $253.8M | CBLR | NA | NA | NA | 11.58% |
| Farmers State Bank | $254.8M | CBLR | NA | NA | NA | 9.99% |
| Hometown Bank | $254.9M | Risk-based | 10.82% | 10.82% | 11.59% | 8.17% |
| BNY Mellon Trust of Delaware | $254.9M | Risk-based | 164.90% | 164.90% | 165.16% | 29.59% |
| Union Bank and Trust Company | $253.4M | Risk-based | 16.16% | 16.16% | 17.41% | 10.02% |
| First Bank & Trust Company | $255.2M | CBLR | NA | NA | NA | 11.34% |
| The Clay City Banking Co. | $253.3M | Risk-based | 15.72% | 15.72% | 16.70% | 10.24% |
| Peer 25th percentile | 13.14% | 13.14% | 14.10% | 10.00% | ||
| Peer median | 15.45% | 15.45% | 16.37% | 10.13% | ||
| Peer 75th percentile | 16.05% | 16.05% | 17.23% | 11.20% | ||
| This bank's percentile | 33 | 33 | 33 | 60 |
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/700458/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.