The Merchants & Citizens Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 16.15% (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: 16.15% (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 22.90% +16.40 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 | $19.0M | 18,963 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $82.8M | 82,803 | RCOAA223 |
| Recomputed ratio | 22.90% | numerator / denominator | |
| Filed ratio | 22.90% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +16.40 pp | $13.6M | capital that could be lost first |
Tier 1 risk-based capital ratio 22.90% +14.90 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 | $19.0M | 18,963 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $82.8M | 82,803 | RCOAA223 |
| Recomputed ratio | 22.90% | numerator / denominator | |
| Filed ratio | 22.90% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +14.90 pp | $12.3M | capital that could be lost first |
Total risk-based capital ratio 24.15% +14.15 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 | $20.0M | 19,999 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $82.8M | 82,803 | RCOAA223 |
| Recomputed ratio | 24.15% | numerator / denominator | |
| Filed ratio | 24.15% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +14.15 pp | $11.7M | capital that could be lost first |
Tier 1 leverage ratio 13.24% +8.24 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 | $19.0M | 18,963 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $143.3M | 143,272 | RCOAA224 |
| Recomputed ratio | 13.24% | numerator / denominator | |
| Filed ratio | 13.24% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +8.24 pp | $11.8M | 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 | 11,000 | 11,000 | 11,000 | 11,000 | 11,000 | 11,000 | RCOAP742 |
| Retained earnings | 11,027 | 10,703 | 10,483 | 11,042 | 10,768 | 10,455 | RCOAKW00 |
| Accumulated other comprehensive income | (7,064) | (7,673) | (7,002) | (7,821) | (9,224) | (9,337) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 14,963 | 14,030 | 14,481 | 14,221 | 12,544 | 12,118 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | 4,000 | 4,625 | 3,978 | 4,795 | 6,214 | 6,442 | P859 - P840 |
| Common equity Tier 1 capital | 18,963 | 18,655 | 18,459 | 19,016 | 18,758 | 18,560 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 18,963 | 18,655 | 18,459 | 19,016 | 18,758 | 18,560 | RCOA8274 |
| Tier 2 capital | 1,036 | 1,044 | 1,023 | 1,007 | 970 | 937 | RCOA5311 |
| Allowance includable in Tier 2 capital | 1,036 | 1,044 | 1,023 | 1,007 | 970 | 937 | RCOA5310 |
| Total capital | 19,999 | 19,699 | 19,482 | 20,023 | 19,728 | 19,497 | RCOA3792 |
| Total risk-weighted assets | 82,803 | 83,409 | 81,764 | 82,286 | 81,975 | 79,012 | RCOAA223 |
| Average total assets for the leverage ratio | 143,272 | 142,163 | 135,102 | 140,283 | 143,781 | 137,128 | 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 | $6.9M | $1.4M | 20.00% | 1.65% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $84.5M | $28.9M | 34.17% | 34.80% | RC-R Part II, item 2.a, 2.b |
| Loans: residential mortgage | $18.9M | $9.6M | 50.52% | 11.52% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $113K | $170K | 150.00% | 0.20% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $34.2M | $34.2M | 100.00% | 41.24% | RC-R Part II, item 4.d, 5.d |
| All other assets | $8.4M | $8.4M | 100.00% | 10.11% | RC-R Part II, item 8 |
| Market risk and other approaches | NA | $389K | NA | 0.47% | RC-R Part II, item 27 |
How the categories add up to total risk-weighted assets
| Categories above, excluding market risk and other approaches | $82.5M | does not tie to item 31 ($82.9M) |
|---|---|---|
| Risk-weighted assets before deductions | $82.9M | RCONB704 |
| Less: excess allowance for credit losses | $135K | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $82.8M | 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 | 22.90% | 22.90% | 24.15% | 13.24% | 15.12% | 15.12% | 16.26% | 10.99% |
| 1Q26 | Risk-based | 22.37% | 22.37% | 23.62% | 13.12% | 14.98% | 15.01% | 16.09% | 10.86% |
| 4Q25 | Risk-based | 22.58% | 22.58% | 23.83% | 13.66% | 14.89% | 14.90% | 16.02% | 10.79% |
| 3Q25 | Risk-based | 23.11% | 23.11% | 24.33% | 13.56% | 14.82% | 14.86% | 15.98% | 10.87% |
| 2Q25 | Risk-based | 22.88% | 22.88% | 24.07% | 13.05% | 14.75% | 14.79% | 15.93% | 10.80% |
| 1Q25 | Risk-based | 23.49% | 23.49% | 24.68% | 13.53% | 14.77% | 14.82% | 15.94% | 10.70% |
| 4Q24 | Risk-based | 23.33% | 23.33% | 24.55% | 13.83% | 14.67% | 14.74% | 15.75% | 10.61% |
| 3Q24 | Risk-based | 24.24% | 24.24% | 25.48% | 14.21% | 14.69% | 14.72% | 15.80% | 10.69% |
| 2Q24 | Risk-based | 24.20% | 24.20% | 25.45% | 14.11% | 14.55% | 14.57% | 15.69% | 10.61% |
| 1Q24 | Risk-based | 24.69% | 24.69% | 25.94% | 14.64% | 14.58% | 14.60% | 15.70% | 10.54% |
| 4Q23 | Risk-based | 24.17% | 24.17% | 25.42% | 14.67% | 14.42% | 14.45% | 15.56% | 10.55% |
| 3Q23 | Risk-based | 24.63% | 24.63% | 25.88% | 14.82% | 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 |
|---|---|---|---|---|---|---|
| The Merchants & Citizens Bank (this bank) | Risk-based | 22.90% | 22.90% | 24.15% | 13.24% | |
| Exchange State Bank | $146.0M | CBLR | NA | NA | NA | 11.17% |
| The First State Bank of Rosemount | $146.1M | Risk-based | 9.66% | 9.66% | 10.89% | 6.28% |
| Bank of Cashton | $146.1M | Risk-based | 14.47% | 14.47% | 15.45% | 10.90% |
| Warren Bank and Trust Company | $146.3M | CBLR | NA | NA | NA | 16.24% |
| Jonesburg State Bank | $145.6M | Risk-based | 14.98% | 14.98% | 16.18% | 9.95% |
| Union Federal Savings and Loan Association | $145.6M | CBLR | NA | NA | NA | 16.53% |
| Vermilion Bank & Trust Company | $145.5M | Risk-based | 23.97% | 23.97% | 25.22% | 12.55% |
| Independent Farmers Bank | $146.5M | Risk-based | 16.65% | 16.65% | 17.75% | 10.53% |
| Millbury National Bank | $146.5M | Risk-based | 13.21% | 13.21% | 13.81% | 9.51% |
| Security Bank of Southwest Missouri | $146.8M | CBLR | NA | NA | NA | 12.74% |
| Peer 25th percentile | 13.52% | 13.52% | 14.22% | 10.10% | ||
| Peer median | 14.72% | 14.72% | 15.81% | 11.03% | ||
| Peer 75th percentile | 16.23% | 16.23% | 17.36% | 12.69% | ||
| This bank's percentile | 83 | 83 | 83 | 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/784430/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.