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Regulatory Matters | 3 Months Ended
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Mar. 31, 2024
Regulatory Matters |
Regulatory Matters | Note 6: Regulatory Matters The Company, Merchants Bank and FMBI (prior to the January 26, 2024 sale of its branches and merger of its remaining charter into Merchants Bank) are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by federal and state banking regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Merchants Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Merchants Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Merchants Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, and other factors. Furthermore, the Company’s and Merchants Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Company and Merchants Bank to maintain minimum amounts and ratios (set forth in the table below). Management believes, as of March 31, 2024 and December 31, 2023, that the Company and Merchants Bank met all capital adequacy requirements. As of March 31, 2024 and December 31, 2023, the most recent notifications from the Board of Governors of the Federal Reserve System (“Federal Reserve”) categorized the Company as well capitalized and most recent notifications from the Federal Deposit Insurance Corporation (“FDIC”) categorized Merchants Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Company’s or Merchants Bank’s category. FMBI was subject to these same requirements and guidelines prior to the sale of its branches and the merger of its remaining charter into Merchants Bank in January 2024. As of December 31, 2023, FMBI met all capital adequacy requirements (as set forth in the table below). The FDIC categorized FMBI as well capitalized at that time and there are no conditions or events since that notification that management believes would have changed that category. The Company’s, Merchants Bank’s, and FMBI’s actual capital amounts and ratios are presented in the following tables. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Minimum | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Amount to be Well | ​ | Minimum Amount | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Capitalized with | ​ | To Be Well | ​
​ | ​ | Actual | ​ | Basel III Buffer(1) | ​ | Capitalized(1) | ​
​ |  | Amount |  | Ratio |  | Amount |  | Ratio | ​ | Amount |  | Ratio |
​ | ​ | (Dollars in thousands) | ​
March 31, 2024 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total capital(1) (to risk-weighted assets) |  | ​ |  |  |  |  | ​ | ​ | ​ | ​ | ​ | ​ |  |  |  |
Company | ​ | $ | 1,858,348 |  | 11.7 | % | $ | 1,662,302 |  | 10.5 | % | $ | — |  | N/A | %
Merchants Bank | ​ | ​ | 1,801,020 |  | 11.4 | % |  | 1,660,561 |  | 10.5 | % |  | 1,581,487 |  | 10.0 | ​
Tier I capital(1) (to risk-weighted assets) | ​ |  |  |  |  | ​ |  |  |  |  | ​ |  |  |  |  | ​
Company | ​ |  | 1,768,553 |  | 11.2 | % |  | 1,345,673 |  | 8.5 | % |  | — |  | N/A | %
Merchants Bank | ​ | ​ | 1,711,225 |  | 10.8 | % |  | 1,344,264 |  | 8.5 | % |  | 1,265,189 |  | 8.0 | ​
Common Equity Tier I capital(1) (to risk-weighted assets) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Company | ​ |  | 1,268,945 |  | 8.0 | % |  | 1,108,202 |  | 7.0 | % |  | — |  | N/A | %
Merchants Bank | ​ | ​ | 1,711,225 |  | 10.8 | % |  | 1,107,041 |  | 7.0 | % |  | 1,027,966 |  | 6.5 | ​
Tier I capital(1) (to average assets) | ​ |  | ​ |  |  | ​ |  |  |  | ​ | ​ |  |  |  |  | ​
Company | ​ |  | 1,768,553 |  | 10.5 | % |  | 839,199 |  | 5.0 | % |  | — |  | N/A | %
Merchants Bank | ​ | ​ | 1,711,225 |  | 10.2 | % |  | 837,560 |  | 5.0 | % |  | 837,560 |  | 5.0 | ​
| (1) | As defined by regulatory agencies.
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Minimum | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Amount to be Well | ​ | Minimum Amount | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Capitalized with | ​ | To Be Well | ​
​ | ​ | Actual | ​ | Basel III Buffer(1) | ​ | Capitalized(1) | ​
​ |  | Amount |  | Ratio |  | Amount |  | Ratio | ​ | Amount | ​ | Ratio | ​
​ | ​ | (Dollars in thousands) | ​ | ​ | ​ | ​ | ​
December 31, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total capital(1) (to risk-weighted assets) |  | ​ |  |  |  |  | ​ | ​ | ​ | ​ | ​ | ​ |  |  |  |
Company | ​ | $ | 1,772,195 |  | 11.6 | % | $ | 1,598,260 |  | 10.5 | % | $ | — |  | N/A | %
Merchants Bank | ​ | ​ | 1,724,505 |  | 11.5 | % |  | 1,577,434 |  | 10.5 | % |  | 1,502,318 |  | 10.0 | %
FMBI | ​ |  | 40,613 |  | 21.1 | % |  | 20,209 |  | 10.5 | % |  | 19,247 |  | 10.0 | %
Tier I capital(1) (to risk-weighted assets) | ​ |  |  |  |  | ​ |  |  |  |  | ​ |  |  |  |  | ​
Company | ​ |  | 1,686,202 |  | 11.1 | % |  | 1,293,830 |  | 8.5 | % |  | — |  | N/A | %
Merchants Bank | ​ | ​ | 1,639,171 |  | 10.9 | % |  | 1,276,970 |  | 8.5 | % |  | 1,201,854 |  | 8.0 | %
FMBI | ​ |  | 39,953 |  | 20.8 | % |  | 16,360 |  | 8.5 | % |  | 15,398 |  | 8.0 | %
Common Equity Tier I capital(1) (to risk-weighted assets) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Company | ​ |  | 1,186,594 |  | 7.8 | % |  | 1,065,507 |  | 7.0 | % |  | — |  | N/A | %
Merchants Bank | ​ | ​ | 1,639,171 |  | 10.9 | % |  | 1,051,623 |  | 7.0 | % |  | 976,507 |  | 6.5 | %
FMBI | ​ |  | 39,953 |  | 20.8 | % |  | 13,473 |  | 7.0 | % |  | 12,511 |  | 6.5 | %
Tier I capital(1) (to average assets) | ​ |  | ​ |  |  | ​ |  |  |  | ​ | ​ |  |  |  |  | ​
Company | ​ |  | 1,686,202 |  | 10.1 | % |  | 832,706 |  | 5.0 | % |  | — |  | N/A | %
Merchants Bank | ​ | ​ | 1,639,171 |  | 10.1 | % |  | 815,191 |  | 5.0 | % |  | 815,191 |  | 5.0 | %
FMBI | ​ |  | 39,953 |  | 11.5 | % |  | 17,391 |  | 5.0 | % |  | 17,391 |  | 5.0 | %
​
| (1) | As defined by regulatory agencies.

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