Bank Safety Analysis
Is Merchants Bank of Indiana Safe?
Merchants Bank of Indiana meets regulatory minimums but is on the watch band for 1 of 5 safety dimensions. Analysis based on the Q2 2026 call report.
In Q2 2026, return on assets edged up by 0.10 percentage points, from 1.48% to 1.58%, the largest move among the key lines here. Merchants Bank of Indiana ranks 39th of 50 Indiana banks on CET1 ratio, in the lower half at 11.76% (Q2 2026). The median for banks in the $10B-100B asset tier is 12.96% on CET1 ratio. Merchants Bank of Indiana sits 1.20 points lower, at 11.76% (Q2 2026). From Q3 2023 to Q2 2026, Merchants Bank of Indiana's CET1 ratio ranged between 10.82% (Q1 2024) and 12.84% (Q4 2025) and its Texas ratio ranged between 4.06% (Q3 2023) and 19.09% (Q3 2025). Compared with Q2 2025, Merchants Bank of Indiana's CET1 ratio from 12.51% to 11.76%, noncurrent loans to total loans from 2.53% to 1.66%, Texas ratio from 17.49% to 15.13%, return on assets from 0.84% to 1.58% in Q2 2026.
Data as of · sourced from FFIEC call reports. How we update
A relative risk score, not a calibrated probability: it ranks this bank against every other filer. Model AUC 0.988 (v20261005_114304). Trained on credit-driven community-bank failures, it carries little signal for interest-rate or deposit-flight risk, and its accuracy above roughly $10B in assets is not established, so a low score is not evidence of safety. See the methodology. This is not investment advice or a credit rating.
Scorecard by dimension
Peer cohort: banks with $10B to $100B in assets (134 banks) · Industry averages as of Q2 2026.
CET1 of 11.76% sits comfortably above the 6.5% well-capitalized threshold under Prompt Corrective Action and the 7.0% level required once the capital conservation buffer is included.
Tier 1 leverage of 11.28% is above the 5% well-capitalized threshold.
Nonperforming loans at 1.66% are elevated; merits closer attention.
Texas Ratio of 15.1% is well below the 100% historical failure threshold.
Efficiency ratio of 38.8% reflects competitive operating costs (lower is better).
Risk screens
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Trigger | Result |
|---|---|---|---|
| CET1 capital ratio supervisory threshold | 11.76% | Flags below 7% | Within range |
| Texas ratio BankRegReports band | 15.13% | Watch at 50%, concern at 100% | Within range |
| Non-performing loan ratio BankRegReports band | 1.66% | Flags at 3% or above | Within range |
| Uninsured deposit share BankRegReports band | 28.97% | Watch at 50%, concern at 70% | Within range |
| Loan-to-deposit ratio BankRegReports band | 121.06% | Flags at 100% or above | Flagged |
| Commercial real estate to capital supervisory threshold | 301.08% | Watch at 200%, concern at 300% | Flagged |
| Held-to-maturity unrealized loss to equity BankRegReports band | 0.06% | Watch at 10%, concern at 25% | Within range |
Capital ratio: last 12 quarters
| Quarter | CET1 (%) |
|---|---|
| Q2 2026 | 11.76% |
| Q1 2026 | 11.93% |
| Q4 2025 | 12.84% |
| Q3 2025 | 12.75% |
| Q2 2025 | 12.51% |
| Q1 2025 | 12.15% |
| Q4 2024 | 12.29% |
| Q3 2024 | 11.39% |
| Q2 2024 | 11.40% |
| Q1 2024 | 10.82% |
| Q4 2023 | 10.91% |
| Q3 2023 | 10.94% |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 15.13% |
| Q1 2026 | 14.54% |
| Q4 2025 | 16.90% |
| Q3 2025 | 19.09% |
| Q2 2025 | 17.49% |
| Q1 2025 | 17.54% |
| Q4 2024 | 17.71% |
| Q3 2024 | 14.12% |
| Q2 2024 | 9.91% |
| Q1 2024 | 7.39% |
| Q4 2023 | 4.78% |
| Q3 2023 | 4.06% |
Merchants Bank of Indiana by quarter
| Quarter end | CET1 | Noncurrent loans | Texas ratio | ROA |
|---|---|---|---|---|
| Jun 30, 2026 | 11.76% | 1.66% | 15.13% | 1.58% |
| Mar 31, 2026 | 11.93% | 1.62% | 14.54% | 1.48% |
| Dec 31, 2025 | 12.84% | 2.13% | 16.90% | 1.46% |
| Sep 30, 2025 | 12.75% | 2.72% | 19.09% | 1.20% |
| Jun 30, 2025 | 12.51% | 2.53% | 17.49% | 0.84% |
| Mar 31, 2025 | 12.15% | 2.54% | 17.54% | 1.34% |
| Dec 31, 2024 | 12.29% | 2.54% | 17.71% | 2.10% |
| Sep 30, 2024 | 11.39% | 1.91% | 14.12% | 1.37% |
| Jun 30, 2024 | 11.40% | 1.32% | 9.91% | 1.76% |
| Mar 31, 2024 | 10.82% | 0.55% | 7.39% | 2.09% |
| Dec 31, 2023 | 10.91% | 0.55% | 4.78% | 1.87% |
| Sep 30, 2023 | 10.94% | 0.48% | 4.06% | 2.04% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Merchants Bank of Indiana FDIC insured?
Yes. Merchants Bank of Indiana is an FDIC-insured commercial bank (FDIC Certificate #8056). Customer deposits are protected up to the standard FDIC insurance limit of $250,000 per depositor, per ownership category.
Is Merchants Bank of Indiana well capitalized?
Yes. Merchants Bank of Indiana reports a CET1 Ratio of 11.76%, comfortably above the regulatory well-capitalized threshold that its primary federal regulator, the FDIC, applies under Prompt Corrective Action.
What is Merchants Bank of Indiana's nonperforming loan ratio?
As of the most recent call report, Merchants Bank of Indiana's nonperforming loan ratio is 1.66%. Nonperforming loans at 1.66% are elevated; merits closer attention.
What is Merchants Bank of Indiana's Texas Ratio?
Merchants Bank of Indiana's Texas Ratio is 15.13%. It compares nonperforming assets with tangible equity plus reserves; above 100% has historically signaled elevated failure risk.
How safe is my money at any FDIC-insured bank?
FDIC insurance covers up to $250,000 per depositor, per insured bank, per ownership category. If an insured bank fails, the FDIC typically pays insured depositors within one business day.
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Methodology & disclaimer
Based on the latest FFIEC call report. Model output is an estimate, not a credit rating, and this page is not investment advice. FDIC insurance covers deposits up to $250,000 per depositor per ownership category at any FDIC-insured bank, whatever its safety profile. See the methodology and full profile.
Regulator records: FDIC BankFind (cert 8056) · FFIEC NIC profile (RSSD 963945)
Explore: Full Merchants Bank of Indiana profile · Other banks in IN · Metric glossary · How the call report works