Merchants Bank of Indiana: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 4.18% (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: 4.18% (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 11.76% +5.26 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 | $2.31B | 2,314,389 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $19.69B | 19,687,142 | RCOAA223 |
| Recomputed ratio | 11.76% | numerator / denominator | |
| Filed ratio | 11.76% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +5.26 pp | $1.03B | capital that could be lost first |
Tier 1 risk-based capital ratio 11.76% +3.76 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 | $2.31B | 2,314,389 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $19.69B | 19,687,142 | RCOAA223 |
| Recomputed ratio | 11.76% | numerator / denominator | |
| Filed ratio | 11.76% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +3.76 pp | $739.4M | capital that could be lost first |
Total risk-based capital ratio 12.18% +2.18 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 | $2.40B | 2,398,352 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $19.69B | 19,687,142 | RCOAA223 |
| Recomputed ratio | 12.18% | numerator / denominator | |
| Filed ratio | 12.18% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +2.18 pp | $429.6M | capital that could be lost first |
Tier 1 leverage ratio 11.28% +6.28 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 | $2.31B | 2,314,389 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $20.51B | 20,510,659 | RCOAA224 |
| Recomputed ratio | 11.28% | numerator / denominator | |
| Filed ratio | 11.28% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +6.28 pp | $1.29B | 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 | 856,274 | 856,274 | 856,274 | 856,274 | 856,274 | 856,274 | RCOAP742 |
| Retained earnings | 1,466,958 | 1,401,315 | 1,379,145 | 1,323,287 | 1,282,013 | 1,256,987 | RCOAKW00 |
| Accumulated other comprehensive income | (1,199) | (804) | (33) | (211) | (247) | (77) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 2,322,033 | 2,256,785 | 2,235,386 | 2,179,350 | 2,138,040 | 2,113,184 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (7,644) | (8,168) | (8,745) | (8,471) | (8,482) | (8,752) | P859 - P840 |
| Common equity Tier 1 capital | 2,314,389 | 2,248,617 | 2,226,641 | 2,170,879 | 2,129,558 | 2,104,432 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 2,314,389 | 2,248,617 | 2,226,641 | 2,170,879 | 2,129,558 | 2,104,432 | RCOA8274 |
| Tier 2 capital | 83,963 | 86,522 | 93,586 | 103,796 | 104,033 | 97,069 | RCOA5311 |
| Allowance includable in Tier 2 capital | 83,963 | 86,522 | 93,586 | 103,796 | 104,033 | 97,069 | RCOA5310 |
| Total capital | 2,398,352 | 2,335,139 | 2,320,227 | 2,274,675 | 2,233,591 | 2,201,501 | RCOA3792 |
| Total risk-weighted assets | 19,687,142 | 18,854,834 | 17,347,952 | 17,024,048 | 17,022,155 | 17,315,546 | RCOAA223 |
| Average total assets for the leverage ratio | 20,510,659 | 18,881,629 | 19,745,676 | 18,746,183 | 18,917,003 | 17,760,059 | 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 | $314.7M | $4.7M | 1.48% | 0.02% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $305.6M | $52.0M | 17.02% | 0.26% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $1.5M | $0 | 0.00% | 0.00% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $1.08B | $562.2M | 51.96% | 2.86% | RC-R Part II, item 4.a, 5.a |
| Loans: high-volatility commercial real estate | $34.5M | $51.7M | 150.00% | 0.26% | RC-R Part II, item 4.b, 5.b |
| Loans: past due and nonaccrual | $201.5M | $302.2M | 150.00% | 1.53% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $15.08B | $13.79B | 91.48% | 70.05% | RC-R Part II, item 4.d, 5.d |
| Trading assets | $527.7M | $71.2M | 13.49% | 0.36% | RC-R Part II, item 7 |
| All other assets | $1.31B | $1.31B | 100.02% | 6.68% | RC-R Part II, item 8 |
| Securitization exposures at 1250% | $26.7M | $333.3M | 1250.00% | 1.69% | RC-R Part II, item 9, 10 |
| Off-balance-sheet commitments and letters of credit | $2.00B | $1.59B | 79.30% | 8.06% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| Derivatives (over the counter and centrally cleared) | $97.1M | $97.1M | 100.00% | 0.49% | RC-R Part II, item 20, 21 |
| Market risk and other approaches | NA | $1.52B | NA | 7.72% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $18.17B | ties to item 31 ($18.17B) |
|---|---|---|
| Risk-weighted assets before deductions | $19.69B | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $19.69B | 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 | 11.76% | 11.76% | 12.18% | 11.28% | 12.98% | 12.99% | 14.14% | 10.25% |
| 1Q26 | Risk-based | 11.93% | 11.93% | 12.38% | 11.91% | 13.06% | 13.07% | 14.31% | 10.26% |
| 4Q25 | Risk-based | 12.84% | 12.84% | 13.37% | 11.28% | 13.15% | 13.20% | 14.60% | 10.03% |
| 3Q25 | Risk-based | 12.75% | 12.75% | 13.36% | 11.58% | 13.29% | 13.29% | 14.49% | 10.31% |
| 2Q25 | Risk-based | 12.51% | 12.51% | 13.12% | 11.26% | 13.11% | 13.11% | 14.41% | 10.16% |
| 1Q25 | Risk-based | 12.15% | 12.15% | 12.71% | 11.85% | 13.16% | 13.16% | 14.34% | 10.10% |
| 4Q24 | Risk-based | 12.29% | 12.29% | 12.89% | 11.20% | 13.15% | 13.15% | 14.49% | 10.29% |
| 3Q24 | Risk-based | 11.39% | 11.39% | 12.00% | 10.40% | 13.25% | 13.25% | 14.44% | 10.08% |
| 2Q24 | Risk-based | 11.40% | 11.40% | 11.99% | 10.55% | 13.08% | 13.08% | 14.24% | 10.10% |
| 1Q24 | Risk-based | 10.82% | 10.82% | 11.39% | 10.22% | 12.76% | 12.76% | 13.98% | 9.86% |
| 4Q23 | Risk-based | 10.91% | 10.91% | 11.48% | 10.05% | 12.58% | 12.58% | 13.79% | 9.79% |
| 3Q23 | Risk-based | 10.94% | 10.94% | 11.48% | 10.13% | 12.66% | 12.67% | 13.78% | 9.78% |
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 of Indiana (this bank) | Risk-based | 11.76% | 11.76% | 12.18% | 11.28% | |
| Citizens Business Bank, N.A. | $21.18B | Risk-based | 14.33% | 14.33% | 14.94% | 11.41% |
| Mechanics Bank | $21.25B | Risk-based | 15.48% | 15.48% | 16.74% | 9.38% |
| First Merchants Bank | $21.32B | Risk-based | 11.50% | 11.50% | 12.75% | 9.96% |
| Seacoast National Bank | $21.34B | Risk-based | 13.55% | 13.55% | 14.80% | 9.84% |
| Optum Bank, Inc. | $21.43B | Risk-based | 17.86% | 17.86% | 18.66% | 13.22% |
| The Central Trust Bank | $20.31B | Risk-based | 12.69% | 12.69% | 13.89% | 7.94% |
| Beacon Bank & Trust | $22.20B | Risk-based | 11.77% | 11.77% | 12.86% | 9.83% |
| First Financial Bank | $22.35B | Risk-based | 12.77% | 12.78% | 14.05% | 9.78% |
| Apple Bank | $19.89B | Risk-based | 11.68% | 11.68% | 12.12% | 7.74% |
| Wilmington Savings Fund Society, FSB | $22.57B | Risk-based | 13.77% | 13.77% | 14.94% | 10.36% |
| Peer 25th percentile | 12.00% | 12.00% | 13.12% | 9.48% | ||
| Peer median | 13.16% | 13.16% | 14.43% | 9.83% | ||
| Peer 75th percentile | 14.19% | 14.19% | 14.94% | 10.26% | ||
| This bank's percentile | 20 | 20 | 10 | 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/963945/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.