Merchants Bank, N.A.: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 6.60% (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: 6.60% (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 13.46% +6.96 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 | $328.6M | 328,610 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $2.44B | 2,441,941 | RCOAA223 |
| Recomputed ratio | 13.46% | numerator / denominator | |
| Filed ratio | 13.46% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +6.96 pp | $169.9M | capital that could be lost first |
Tier 1 risk-based capital ratio 13.46% +5.46 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 | $328.6M | 328,610 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $2.44B | 2,441,941 | RCOAA223 |
| Recomputed ratio | 13.46% | numerator / denominator | |
| Filed ratio | 13.46% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +5.46 pp | $133.3M | capital that could be lost first |
Total risk-based capital ratio 14.60% +4.60 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 | $356.6M | 356,590 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $2.44B | 2,441,941 | RCOAA223 |
| Recomputed ratio | 14.60% | numerator / denominator | |
| Filed ratio | 14.60% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +4.60 pp | $112.4M | capital that could be lost first |
Tier 1 leverage ratio 11.49% +6.49 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 | $328.6M | 328,610 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $2.86B | 2,861,110 | RCOAA224 |
| Recomputed ratio | 11.49% | numerator / denominator | |
| Filed ratio | 11.49% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +6.49 pp | $185.6M | 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 | 87,169 | 87,169 | 87,169 | 87,169 | 87,169 | 87,169 | RCOAP742 |
| Retained earnings | 267,138 | 262,642 | 253,730 | 248,781 | 241,360 | 236,015 | RCOAKW00 |
| Accumulated other comprehensive income | (10,114) | (9,264) | (5,282) | (5,966) | (9,231) | (8,528) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 344,193 | 340,547 | 335,617 | 329,984 | 319,298 | 314,656 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (15,583) | (16,433) | (20,415) | (19,731) | (16,470) | (17,186) | P859 - P840 |
| Common equity Tier 1 capital | 328,610 | 324,114 | 315,202 | 310,253 | 302,828 | 297,470 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 328,610 | 324,114 | 315,202 | 310,253 | 302,828 | 297,470 | RCOA8274 |
| Tier 2 capital | 27,980 | 28,215 | 27,446 | 29,020 | 29,125 | 30,331 | RCOA5311 |
| Allowance includable in Tier 2 capital | 27,980 | 28,215 | 27,446 | 29,020 | 29,125 | 30,331 | RCOA5310 |
| Total capital | 356,590 | 352,329 | 342,648 | 339,273 | 331,953 | 327,801 | RCOA3792 |
| Total risk-weighted assets | 2,441,941 | 2,438,734 | 2,443,229 | 2,397,234 | 2,447,365 | 2,426,261 | RCOAA223 |
| Average total assets for the leverage ratio | 2,861,110 | 2,869,756 | 2,794,819 | 2,779,859 | 2,742,486 | 2,805,814 | 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 | $167.3M | $31K | 0.02% | 0.00% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $496.4M | $57.3M | 11.54% | 2.35% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $19.2M | $3.9M | 20.53% | 0.16% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $385.7M | $266.5M | 69.08% | 10.91% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $8.1M | $12.1M | 150.00% | 0.50% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $1.67B | $1.65B | 99.03% | 67.66% | RC-R Part II, item 4.d, 5.d |
| All other assets | $160.0M | $195.7M | 122.36% | 8.02% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $254.1M | $254.1M | 100.00% | 10.41% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $2.3M | $25K | 1.11% | 0.00% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $900 | 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 | $2.44B | ties to item 31 ($2.44B) |
|---|---|---|
| Risk-weighted assets before deductions | $2.44B | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $2.44B | 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 | 13.46% | 13.46% | 14.60% | 11.49% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 13.29% | 13.29% | 14.45% | 11.29% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 12.90% | 12.90% | 14.02% | 11.28% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 12.94% | 12.94% | 14.15% | 11.16% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 12.37% | 12.37% | 13.56% | 11.04% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 12.26% | 12.26% | 13.51% | 10.60% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 11.75% | 11.75% | 12.98% | 10.58% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 12.27% | 12.27% | 13.52% | 10.89% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 12.04% | 12.04% | 13.26% | 11.06% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 11.79% | 11.79% | 12.95% | 11.05% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 11.35% | 11.35% | 12.50% | 11.16% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 12.03% | 12.03% | 13.22% | 11.62% | 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 |
|---|---|---|---|---|---|---|
| Merchants Bank, N.A. (this bank) | Risk-based | 13.46% | 13.46% | 14.60% | 11.49% | |
| West Texas National Bank | $2.88B | Risk-based | 16.75% | 16.75% | 18.01% | 10.52% |
| American First National Bank | $2.89B | Risk-based | 16.38% | 16.38% | 17.44% | 14.38% |
| Jefferson Bank | $2.88B | CBLR | NA | NA | NA | 9.81% |
| National Exchange Bank and Trust | $2.89B | CBLR | NA | NA | NA | 20.06% |
| BayCoast Bank | $2.86B | Risk-based | 10.77% | 10.77% | 12.02% | 8.29% |
| Cedar Rapids Bank and Trust Company | $2.90B | Risk-based | 13.15% | 13.15% | 13.86% | 16.94% |
| WebBank | $2.86B | Risk-based | 18.10% | 18.10% | 19.18% | 17.39% |
| Bank Independent | $2.86B | Risk-based | 13.22% | 13.22% | 14.42% | 9.82% |
| Industrial and Commercial Bank of China (USA), N.A. | $2.86B | Risk-based | 17.53% | 17.53% | 18.27% | 17.26% |
| Peer 25th percentile | 13.19% | 13.19% | 14.14% | 9.82% | ||
| Peer median | 16.38% | 16.38% | 17.44% | 14.38% | ||
| Peer 75th percentile | 17.14% | 17.14% | 18.14% | 17.26% | ||
| This bank's percentile | 43 | 43 | 43 | 44 |
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/779351/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.