Bank Safety Analysis
Is Merchants Commercial Bank Safe?
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Merchants Commercial Bank 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, Texas ratio edged down by 2.01 percentage points, from 14.17% to 12.16%, the largest move among the key lines here. The median for banks in the $100M-1B asset tier is 10.95% on leverage ratio; Merchants Commercial Bank reported 10.79% for Q2 2026, nearly level with it. From Q3 2023 to Q2 2026, Merchants Commercial Bank's Texas ratio ranged between 0.00% (Q4 2023) and 64.57% (Q3 2023). Between Q2 2025 and Q2 2026, Merchants Commercial Bank's nonperforming loan ratio (nonaccrual plus 90+ days past due) fell from 2.16% to 1.76%, Texas ratio fell from 23.54% to 12.16% and return on assets rose from 1.76% to 1.82%.
Data as of · sourced from FFIEC call reports. How we update
An exploratory screening score that ranks relative failure risk across filers. It is not a calibrated probability, not a credit rating, and not a CAMELS rating. Held-out test AUC 0.904 for the 1-year horizon (v20261005_114304). Trained on credit-driven community-bank failures, it carries little signal for interest-rate or deposit-flight risk. The score covers every FDIC-insured bank in the latest run, but the model was trained on community and regional banks and its accuracy above roughly $10 billion in assets is not established, so a low score is not evidence of safety. See the model evidence and limits and the methodology. This is not investment advice or a credit rating.
Scorecard by dimension
Peer cohort: banks with $100M to $1B in assets (2,757 banks) · Industry averages as of Q2 2026.
Leverage ratio of 10.79% exceeds the 9% Community Bank Leverage Ratio threshold. The bank is deemed well-capitalized under CBLR.
Tier 1 leverage of 10.79% is above the 5% well-capitalized threshold.
Nonperforming loans at 1.76% are elevated; merits closer attention.
Texas Ratio of 12.2% is well below the 100% historical failure threshold.
Efficiency ratio of 48.1% reflects competitive operating costs (lower is better).
Note: This bank has elected the Community Bank Leverage Ratio framework, a simplified capital regime for community banks meeting size and complexity criteria. Banks under CBLR don't report CET1 separately; the CBLR leverage threshold serves as the well-capitalized benchmark.
Risk screens
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Trigger | Result |
|---|---|---|---|
| CET1 capital ratio supervisory threshold | — | Flags below 7% | Not reported |
| Texas ratio BankRegReports band | 12.16% | Watch at 50%, concern at 100% | Within range |
| Non-performing loan ratio BankRegReports band | 1.76% | Flags at 3% or above | Within range |
| Uninsured deposit share BankRegReports band | — | Watch at 50%, concern at 70% | Not reported |
| Loan-to-deposit ratio BankRegReports band | 60.18% | Flags at 100% or above | Within range |
| Commercial real estate to capital supervisory threshold | 153.88% | Watch at 200%, concern at 300% | Within range |
| Held-to-maturity unrealized loss to equity BankRegReports band | 0.00% | Watch at 10%, concern at 25% | Within range |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 12.16% |
| Q1 2026 | 14.17% |
| Q4 2025 | 18.09% |
| Q3 2025 | 20.22% |
| Q2 2025 | 23.54% |
| Q1 2025 | 21.45% |
| Q4 2024 | 21.03% |
| Q3 2024 | 13.32% |
| Q2 2024 | 10.26% |
| Q1 2024 | 10.09% |
| Q4 2023 | 0.00% |
| Q3 2023 | 64.57% |
Merchants Commercial Bank by quarter
| Quarter end | CET1 | NPL ratio | Texas ratio | ROA |
|---|---|---|---|---|
| Jun 30, 2026 | — | 1.76% | 12.16% | 1.82% |
| Mar 31, 2026 | — | 1.84% | 14.17% | 1.84% |
| Dec 31, 2025 | — | 2.50% | 18.09% | 1.55% |
| Sep 30, 2025 | — | 2.58% | 20.22% | 1.79% |
| Jun 30, 2025 | — | 2.16% | 23.54% | 1.76% |
| Mar 31, 2025 | — | 2.37% | 21.45% | 1.76% |
| Dec 31, 2024 | — | 2.57% | 21.03% | 1.87% |
| Sep 30, 2024 | — | 2.36% | 13.32% | 2.08% |
| Jun 30, 2024 | — | 1.49% | 10.26% | 2.24% |
| Mar 31, 2024 | — | 1.37% | 10.09% | 2.38% |
| Dec 31, 2023 | — | 0.49% | 0.00% | 2.33% |
| Sep 30, 2023 | — | 0.65% | 64.57% | 2.33% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Merchants Commercial Bank FDIC insured?
Yes. Merchants Commercial Bank is an FDIC-insured commercial bank (FDIC Certificate #58184). Customer deposits are protected up to the standard FDIC insurance limit of $250,000 per depositor, per ownership category.
Is Merchants Commercial Bank well capitalized?
Yes. Merchants Commercial Bank reports a Community Bank Leverage Ratio of 10.79%, comfortably above the regulatory well-capitalized threshold that its primary federal regulator, the FDIC, applies under Prompt Corrective Action.
What is Merchants Commercial Bank's nonperforming loan ratio?
As of the most recent call report, Merchants Commercial Bank's nonperforming loan ratio is 1.76%. Nonperforming loans at 1.76% are elevated; merits closer attention.
What is Merchants Commercial Bank's Texas Ratio?
Merchants Commercial Bank's Texas Ratio is 12.16%. 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 58184) · FFIEC NIC profile (RSSD 3487433)
Explore: Full Merchants Commercial Bank profile · Other banks in VI · Metric glossary · How the call report works