Merchants National Bank: Regulatory Capital and Risk-Weighted Assets
As of 2Q26, from Call Report Schedule RC-R.
Capital conservation buffer: 5.20% (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: 5.20% (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 12.00% +5.50 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 | $113.0M | 112,959 | RCOAP859 |
|---|---|---|---|
| Divided by total risk-weighted assets | $941.6M | 941,579 | RCOAA223 |
| Recomputed ratio | 12.00% | numerator / denominator | |
| Filed ratio | 12.00% | RCOAP793 | |
| Regulatory minimum | 4.50% | ||
| Minimum plus conservation buffer | 7.00% | ||
| Well-capitalized level | 6.50% | ||
| Cushion over that level | +5.50 pp | $51.8M | capital that could be lost first |
Tier 1 risk-based capital ratio 12.00% +4.00 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 | $113.0M | 112,959 | RCOA8274 |
|---|---|---|---|
| Divided by total risk-weighted assets | $941.6M | 941,579 | RCOAA223 |
| Recomputed ratio | 12.00% | numerator / denominator | |
| Filed ratio | 12.00% | RCOA7206 | |
| Regulatory minimum | 6.00% | ||
| Minimum plus conservation buffer | 8.50% | ||
| Well-capitalized level | 8.00% | ||
| Cushion over that level | +4.00 pp | $37.6M | capital that could be lost first |
Total risk-based capital ratio 13.20% +3.20 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 | $124.3M | 124,311 | RCOA3792 |
|---|---|---|---|
| Divided by total risk-weighted assets | $941.6M | 941,579 | RCOAA223 |
| Recomputed ratio | 13.20% | numerator / denominator | |
| Filed ratio | 13.20% | RCOA7205 | |
| Regulatory minimum | 8.00% | ||
| Minimum plus conservation buffer | 10.50% | ||
| Well-capitalized level | 10.00% | ||
| Cushion over that level | +3.20 pp | $30.2M | capital that could be lost first |
Tier 1 leverage ratio 8.91% +3.91 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 | $113.0M | 112,959 | RCOA8274 |
|---|---|---|---|
| Divided by average total assets for the leverage ratio | $1.27B | 1,268,275 | RCOAA224 |
| Recomputed ratio | 8.91% | numerator / denominator | |
| Filed ratio | 8.91% | RCOA7204 | |
| Regulatory minimum | 4.00% | ||
| Well-capitalized level | 5.00% | ||
| Cushion over that level | +3.91 pp | $49.5M | 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 | 49,795 | 49,795 | 49,795 | 49,795 | 49,795 | 49,795 | RCOAP742 |
| Retained earnings | 75,724 | 77,555 | 74,624 | 77,667 | 74,551 | 73,510 | RCOAKW00 |
| Accumulated other comprehensive income | (4,249) | (4,386) | (4,259) | (4,822) | (6,131) | (7,281) | RCOAB530 |
| Common equity Tier 1 minority interest | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP839 |
| Common equity Tier 1 capital before adjustments and deductions | 121,270 | 122,964 | 120,160 | 122,640 | 118,215 | 116,024 | RCOAP840 |
| Adjustments and deductions from common equity Tier 1 | (8,311) | (8,256) | (8,465) | (7,984) | (6,757) | (5,689) | P859 - P840 |
| Common equity Tier 1 capital | 112,959 | 114,708 | 111,695 | 114,656 | 111,458 | 110,335 | RCOAP859 |
| Additional Tier 1 capital | 0 | 0 | 0 | 0 | 0 | 0 | RCOAP865 |
| Tier 1 capital | 112,959 | 114,708 | 111,695 | 114,656 | 111,458 | 110,335 | RCOA8274 |
| Tier 2 capital | 11,352 | 11,347 | 11,357 | 11,333 | 11,279 | 11,191 | RCOA5311 |
| Allowance includable in Tier 2 capital | 11,352 | 11,347 | 11,357 | 11,333 | 11,279 | 11,191 | RCOA5310 |
| Total capital | 124,311 | 126,055 | 123,052 | 125,989 | 122,737 | 121,526 | RCOA3792 |
| Total risk-weighted assets | 941,579 | 939,254 | 948,086 | 947,069 | 956,561 | 952,555 | RCOAA223 |
| Average total assets for the leverage ratio | 1,268,275 | 1,321,043 | 1,325,699 | 1,342,431 | 1,331,576 | 1,332,160 | 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 | $98.0M | $2.8M | 2.81% | 0.29% | RC-R Part II, item 1 |
| Securities (HTM and AFS) | $163.1M | $37.8M | 23.18% | 4.01% | RC-R Part II, item 2.a, 2.b |
| Fed funds sold and repo-style transactions | $5.7M | $5.3M | 92.20% | 0.56% | RC-R Part II, item 3.a, 16 |
| Loans: residential mortgage | $355.7M | $198.5M | 55.81% | 21.08% | RC-R Part II, item 4.a, 5.a |
| Loans: past due and nonaccrual | $2.4M | $3.7M | 150.00% | 0.39% | RC-R Part II, item 4.c, 5.c |
| Loans: all other | $594.0M | $594.0M | 100.00% | 63.09% | RC-R Part II, item 4.d, 5.d |
| All other assets | $57.2M | $54.4M | 94.99% | 5.78% | RC-R Part II, item 8 |
| Off-balance-sheet commitments and letters of credit | $45.2M | $45.2M | 100.00% | 4.80% | RC-R Part II, item 12, 13, 14, 15, 17, 18.a, 18.b |
| 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 | $941.6M | ties to item 31 ($941.6M) |
|---|---|---|
| Risk-weighted assets before deductions | $941.6M | RCONB704 |
| Less: excess allowance for credit losses | $0 | A222 |
| Less: allocated transfer risk reserve | $0 | 3128 |
| Total risk-weighted assets | $941.6M | 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 | 12.00% | 12.00% | 13.20% | 8.91% | 13.52% | 13.55% | 14.66% | 10.52% |
| 1Q26 | Risk-based | 12.21% | 12.21% | 13.42% | 8.68% | 13.45% | 13.46% | 14.59% | 10.46% |
| 4Q25 | Risk-based | 11.78% | 11.78% | 12.98% | 8.43% | 13.36% | 13.37% | 14.44% | 10.38% |
| 3Q25 | Risk-based | 12.11% | 12.11% | 13.30% | 8.54% | 13.38% | 13.39% | 14.51% | 10.37% |
| 2Q25 | Risk-based | 11.65% | 11.65% | 12.83% | 8.37% | 13.21% | 13.21% | 14.27% | 10.30% |
| 1Q25 | Risk-based | 11.58% | 11.58% | 12.76% | 8.28% | 13.15% | 13.17% | 14.26% | 10.24% |
| 4Q24 | Risk-based | 11.06% | 11.06% | 12.20% | 8.15% | 13.02% | 13.05% | 14.10% | 10.07% |
| 3Q24 | Risk-based | 11.06% | 11.06% | 12.21% | 8.06% | 12.97% | 13.02% | 14.13% | 10.12% |
| 2Q24 | Risk-based | 10.91% | 10.91% | 12.07% | 8.03% | 12.93% | 12.94% | 14.06% | 10.10% |
| 1Q24 | Risk-based | 11.08% | 11.08% | 12.25% | 8.03% | 12.90% | 12.91% | 14.02% | 10.06% |
| 4Q23 | Risk-based | 10.48% | 10.48% | 11.60% | 8.16% | 12.81% | 12.82% | 13.92% | 10.01% |
| 3Q23 | Risk-based | 10.71% | 10.71% | 11.85% | 8.08% | 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 National Bank (this bank) | Risk-based | 12.00% | 12.00% | 13.20% | 8.91% | |
| Central Penn Bank & Trust | $1.27B | CBLR | NA | NA | NA | 9.01% |
| Legacy Bank | $1.27B | Risk-based | 10.03% | 10.03% | 11.28% | 8.85% |
| Bank of the Pacific | $1.26B | Risk-based | 16.39% | 16.39% | 17.51% | 10.99% |
| Legend Bank, N. A. | $1.27B | Risk-based | 14.14% | 14.14% | 15.32% | 10.35% |
| JD Bank | $1.26B | Risk-based | 16.78% | 16.78% | 17.79% | 11.88% |
| Iowa State Bank | $1.26B | CBLR | NA | NA | NA | 11.72% |
| Northwest Community Bank | $1.26B | Risk-based | 11.99% | 11.99% | 13.11% | 8.72% |
| Corefirst Bank & Trust | $1.26B | Risk-based | 11.78% | 11.78% | 12.81% | 8.66% |
| Consumers National Bank | $1.28B | Risk-based | 10.91% | 10.91% | 11.93% | 8.35% |
| Peoples Bank | $1.25B | CBLR | NA | NA | NA | 10.73% |
| Peer 25th percentile | 11.35% | 11.35% | 12.37% | 8.75% | ||
| Peer median | 11.99% | 11.99% | 13.11% | 9.68% | ||
| Peer 75th percentile | 15.27% | 15.27% | 16.41% | 10.92% | ||
| This bank's percentile | 57 | 57 | 57 | 40 |
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/701222/regulatory-capital/ and in the Excel workbook. Next: the capital tab, the peer group page, or the full profile.