MERCHANTS BANCORP, 10-Q filed on 8/8/2022
Quarterly Report
v3.22.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2022
Aug. 01, 2022
Document Information    
Entity Registrant Name MERCHANTS BANCORP  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2022  
Document Transition Report false  
Entity File Number 001-38258  
Amendment Flag false  
Entity Incorporation, State or Country Code IN  
Entity Tax Identification Number 20-5747400  
Entity Address, Address Line One 410 Monon Blvd  
Entity Address, City or Town Carmel  
Entity Address, State or Province IN  
Entity Address, Postal Zip Code 46032  
City Area Code 317  
Local Phone Number 569-7420  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   43,106,505
Entity Central Index Key 0001629019  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Common Stock.    
Document Information    
Title of 12(b) Security Common Stock, without par value  
Trading Symbol MBIN  
Security Exchange Name NASDAQ  
Series A Preferred Stock    
Document Information    
Title of 12(b) Security Series A Preferred Stock, without par value  
Trading Symbol MBINP  
Security Exchange Name NASDAQ  
Series B Preferred Stock    
Document Information    
Title of 12(b) Security Depositary Shares, each representing a 1/40th interest in a share of Series B Preferred Stock, without par value  
Trading Symbol MBINO  
Security Exchange Name NASDAQ  
Series C Preferred Stock    
Document Information    
Title of 12(b) Security Depositary Shares, each representing a 1/40th interest in a share of Series C Preferred Stock, without par value  
Trading Symbol MBINN  
Security Exchange Name NASDAQ  
v3.22.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Assets    
Cash and due from banks $ 10,714 $ 14,030
Interest-earning demand accounts 247,432 1,018,584
Cash and cash equivalents 258,146 1,032,614
Securities purchased under agreements to resell 3,520 5,888
Mortgage loans in process of securitization 323,046 569,239
Available for sale securities 336,814 310,629
Federal Home Loan Bank (FHLB) stock 39,130 29,588
Loans held for sale (includes $41,991 and $48,583, respectively at fair value) 2,759,116 3,303,199
Loans receivable, net of allowance for credit losses on loans of $37,474 and $31,344, respectively 7,033,203  
Loans receivable, net of allowance for credit losses on loans of $37,474 and $31,344, respectively   5,751,319
Premises and equipment, net 35,085 31,212
Servicing rights 130,710 110,348
Interest receivable 26,184 24,103
Goodwill 15,845 15,845
Intangible assets, net 1,441 1,707
Other assets and receivables 123,815 92,947
Total assets 11,086,055 11,278,638
Deposits    
Noninterest-bearing 444,461 641,442
Interest-bearing 7,855,277 8,341,171
Total deposits 8,299,738 8,982,613
Borrowings 1,440,904 1,033,954
Deferred and current tax liabilities, net 19,414 19,170
Other liabilities 97,460 87,492
Total liabilities 9,857,516 10,123,229
Commitments and Contingencies
Shareholders' Equity    
Common stock, without par value(1) Authorized - 75,000,000 shares at June 30, 2022 and 50,000,000 shares at December 31, 2021 Issued and outstanding - 43,106,505 shares at June 30, 2022 and 43,180,079 shares at December 31, 2021 136,671 137,565
Retained earnings 737,789 657,149
Accumulated other comprehensive loss (8,070) (1,454)
Total shareholders' equity 1,228,539 1,155,409
Total liabilities and shareholders' equity 11,086,055 11,278,638
7% Preferred Stock    
Shareholders' Equity    
Preferred stock 50,221 50,221
6% Series B Preferred Stock    
Shareholders' Equity    
Preferred stock 120,844 120,844
6% Series C Preferred Stock    
Shareholders' Equity    
Preferred stock $ 191,084 $ 191,084
v3.22.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Loans held for sale at fair value $ 41,991 $ 48,583
Allowance for credit losses on loans $ 37,474  
Allowance for credit losses on loans   $ 31,344
Stockholders' Equity:    
Common stock, without par value (in dollars per share)
Common stock, shares authorized 75,000,000 50,000,000
Common stock, shares issued 43,106,505 43,180,079
Common stock, shares outstanding 43,106,505 43,180,079
Preferred stock, shares authorized 5,000,000 5,000,000
7% Preferred Stock    
Stockholders' Equity:    
Preferred stock, dividend rate (as a percent) 7.00% 7.00%
Preferred stock liquidation preference (in dollars per share) $ 25 $ 25
Preferred stock, shares authorized 3,500,000 3,500,000
Preferred stock, shares issued 2,081,800 2,081,800
Preferred stock, shares outstanding 2,081,800 2,081,800
6% Series B Preferred Stock    
Stockholders' Equity:    
Preferred stock, dividend rate (as a percent) 6.00% 6.00%
Preferred stock liquidation preference (in dollars per share) $ 1,000 $ 1,000
Preferred stock, shares authorized 125,000 125,000
Preferred stock, shares issued 125,000 125,000
Preferred stock, shares outstanding 125,000 125,000
Depositary shares 5,000,000 5,000,000
6% Series C Preferred Stock    
Stockholders' Equity:    
Preferred stock, dividend rate (as a percent) 6.00% 6.00%
Preferred stock liquidation preference (in dollars per share) $ 1,000 $ 1,000
Preferred stock, shares authorized 250,000 250,000
Preferred stock, shares issued 196,181 196,181
Preferred stock, shares outstanding 196,181 196,181
Depositary shares 7,847,233 7,847,233
v3.22.2
Condensed Consolidated Statements of Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Interest Income        
Loans $ 85,994 $ 68,276 $ 158,190 $ 143,793
Mortgage loans in process of securitization 1,449 2,724 3,694 5,860
Investment securities:        
Available for sale - taxable 917 833 1,618 1,187
Available for sale - tax exempt   9   20
Federal Home Loan Bank stock 284 392 553 776
Other 626 204 1,227 351
Total interest income 89,270 72,438 165,282 151,987
Interest Expense        
Deposits 14,768 6,683 23,581 12,783
Borrowed funds 2,471 1,348 3,945 2,834
Total interest expense 17,239 8,031 27,526 15,617
Net Interest Income 72,031 64,407 137,756 136,370
Provision (credit) for credit losses 6,212 (315) 8,663 1,348
Net Interest Income After Provision for Credit Losses 65,819 64,722 129,093 135,022
Noninterest Income        
Gain on sale of loans 21,564 25,122 39,529 53,742
Loan servicing fees, net 9,607 1,727 19,338 9,678
Mortgage warehouse fees 1,350 3,079 3,208 7,195
Syndication and asset management fees 1,599 480 2,213 535
Other income 5,051 2,447 9,480 5,641
Total noninterest income 39,171 32,855 73,768 76,791
Noninterest Expense        
Salaries and employee benefits 22,475 18,869 43,768 40,143
Loan expenses 1,184 1,921 2,395 4,444
Occupancy and equipment 2,011 1,808 3,825 3,435
Professional fees 1,594 779 2,897 1,201
Deposit insurance expense 670 651 1,429 1,322
Technology expense 1,304 971 2,540 1,908
Other expense 3,719 3,184 7,136 5,814
Total noninterest expense 32,957 28,183 63,990 58,267
Income Before Income Taxes 72,033 69,394 138,871 153,546
Provision for income taxes 18,098 17,977 34,794 40,146
Net Income 53,935 51,417 104,077 113,400
Dividends on preferred stock (5,729) (5,659) (11,457) (9,416)
Net Income Allocated to Common Shareholders $ 48,206 $ 45,758 $ 92,620 $ 103,984
Basic Earnings Per Share $ 1.12 [1] $ 1.06 [1] $ 2.14 $ 2.41
Diluted Earnings Per Share $ 1.11 [1] $ 1.06 [1] $ 2.14 $ 2.40
Basic (in Shares) 43,209,824 [1] 43,174,220 [1] 43,220,198 43,166,223
Diluted (in Shares) 43,335,211 [1] 43,311,488 [1] 43,367,875 43,293,599
[1] The number of shares and per share amounts have been restated to reflect the 3-for-2 common stock split, effective on January 17, 2022
v3.22.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Condensed Consolidated Statements of Comprehensive Income        
Net Income $ 53,935 $ 51,417 $ 104,077 $ 113,400
Other Comprehensive Loss:        
Net change in unrealized losses on investment securities available for sale, net of tax benefits of $553, $87, $2,203 and $130, respectively (1,766) (253) (6,616) (378)
Other comprehensive loss for the period (1,766) (253) (6,616) (378)
Comprehensive Income $ 52,169 $ 51,164 $ 97,461 $ 113,022
v3.22.2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Condensed Consolidated Statements of Comprehensive Income        
Tax benefits on net change in unrealized gains/(losses) on investment securities available for sale $ 553 $ 87 $ 2,203 $ 130
v3.22.2
Condensed Consolidated Statement of Shareholders' Equity - USD ($)
$ in Thousands
Common stock
Preferred stock
8% Preferred Stock
Preferred stock
7% Preferred Stock
Preferred stock
6% Series B Preferred Stock
Preferred stock
6% Series C Preferred Stock
Common Stock Offering
Preferred stock
6% Series C Preferred Stock
Private Placement
Preferred stock
6% Series C Preferred Stock
Retained Earnings
Impact from adoption of ASU
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total
Balance at beginning of the period at Dec. 31, 2020 $ 135,857 $ 41,581 $ 50,221           $ 461,744 $ 374  
Balance at beginning of the period (in shares) at Dec. 31, 2020 43,120,625 41,625 2,081,800 125,000              
Condensed Consolidated Statements of Shareholders' Equity                      
Net income                 113,400   $ 113,400
Distribution to employee stock ownership plan $ 537                    
Distribution to employee stock ownership plan (in shares) 29,149                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ 442                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 25,625                    
Issuance of shares, net of offering expenses         $ 144,926 $ 46,158          
Issuance of shares, net of offering expenses (in shares)         150,000 46,181          
Dividends on 8% preferred stock, annually                 (833)    
Final dividend for redemption of 8% preferred stock                 (139)    
Dividends on 7% preferred stock, annually                 (1,821)    
Dividends on 6% Series B preferred stock, annually                 (3,750)    
Dividends on 6% Series C preferred stock, annually                 (2,873)    
Dividends on common stock, annually                 (5,181)    
Deconsolidation of entities                 (419)    
Redemption of 8% preferred stock   $ (41,581)             (45)    
Redemption of 8% preferred stock (in shares)   (41,625)                  
Other comprehensive loss                   (378) (378)
Balance at end of the period at Jun. 30, 2021 $ 136,836   $ 50,221 $ 120,844     $ 191,084   560,083 (4) $ 1,059,064
Balance at end of the period (in shares) at Jun. 30, 2021 43,175,399   2,081,800 125,000     196,181        
Balance at beginning of the period at Mar. 31, 2021 $ 136,474 $ 41,581 $ 50,221 $ 120,844     $ 144,925   516,961 249  
Balance at beginning of the period (in shares) at Mar. 31, 2021 43,173,209 41,625 2,081,800 125,000     150,000        
Condensed Consolidated Statements of Shareholders' Equity                      
Repurchase of common Stock (in shares)                     0
Net income                 51,417   $ 51,417
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ 362                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 2,190                    
Issuance of shares, net of offering expenses         $ 1 $ 46,158          
Issuance of shares, net of offering expenses (in shares)           46,181          
Dividends on 7% preferred stock, annually                 (911)    
Dividends on 6% Series B preferred stock, annually                 (1,875)    
Dividends on 6% Series C preferred stock, annually                 (2,873)    
Dividends on common stock, annually                 (2,591)    
Redemption of 8% preferred stock   $ (41,581)             (45)    
Redemption of 8% preferred stock (in shares)   (41,625)                  
Other comprehensive loss                   (253) (253)
Balance at end of the period at Jun. 30, 2021 $ 136,836   $ 50,221 $ 120,844     $ 191,084   560,083 (4) 1,059,064
Balance at end of the period (in shares) at Jun. 30, 2021 43,175,399   2,081,800 125,000     196,181        
Balance at beginning of the period at Dec. 31, 2021 $ 137,565   $ 50,221 $ 120,844     $ 191,084   657,149 (1,454) 1,155,409
Balance at beginning of the period (in shares) at Dec. 31, 2021 43,180,079   2,081,800 125,000     196,181        
Condensed Consolidated Statements of Shareholders' Equity                      
Repurchase of common stock $ (1,761)               (2,174)    
Repurchase of common Stock (in shares) (165,037)                    
Net income                 104,077   104,077
Cash paid in lieu of fractional shares for stock split $ (1)                    
Cash paid in lieu of fractional shares for stock split (in shares) (29)                    
Distribution to employee stock ownership plan $ 653                    
Distribution to employee stock ownership plan (in shares) 20,709                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ 215                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 70,783                    
Dividends on 7% preferred stock, annually                 (1,821)    
Dividends on 6% Series B preferred stock, annually                 (3,750)    
Dividends on 6% Series C preferred stock, annually                 (5,886)    
Dividends on common stock, annually                 (6,048)    
Other comprehensive loss                   (6,616) (6,616)
Balance at end of the period (ASU 2016-13) at Jun. 30, 2022               $ (3,648)      
Balance at end of the period (ASU 2016-02) at Jun. 30, 2022               (110)      
Balance at end of the period at Jun. 30, 2022 $ 136,671   $ 50,221 $ 120,844     $ 191,084   737,789 (8,070) 1,228,539
Balance at end of the period (in shares) at Jun. 30, 2022 43,106,505   2,081,800 125,000     196,181        
Balance at beginning of the period at Mar. 31, 2022 $ 137,882   $ 50,221 $ 120,844     $ 191,084   694,776 (6,304)  
Balance at beginning of the period (in shares) at Mar. 31, 2022 43,267,776   2,081,800 125,000     196,181        
Condensed Consolidated Statements of Shareholders' Equity                      
Repurchase of common stock $ (1,761)               (2,174)    
Repurchase of common Stock (in shares) (165,037)                    
Net income                 53,935   53,935
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ 550                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 3,766                    
Dividends on 7% preferred stock, annually                 (911)    
Dividends on 6% Series B preferred stock, annually                 (1,875)    
Dividends on 6% Series C preferred stock, annually                 (2,943)    
Dividends on common stock, annually                 (3,019)    
Other comprehensive loss                   (1,766) (1,766)
Balance at end of the period (ASU 2016-13) at Jun. 30, 2022               (3,648)      
Balance at end of the period (ASU 2016-02) at Jun. 30, 2022               $ (110)      
Balance at end of the period at Jun. 30, 2022 $ 136,671   $ 50,221 $ 120,844     $ 191,084   $ 737,789 $ (8,070) $ 1,228,539
Balance at end of the period (in shares) at Jun. 30, 2022 43,106,505   2,081,800 125,000     196,181        
v3.22.2
Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dividends on common stock per share $ 0.28 $ 0.24 $ 0.28 $ 0.24
8% Preferred Stock | Preferred stock        
Preferred stock, dividend rate (as a percent) 8.00% 8.00% 8.00% 8.00%
Dividends on preferred stock per share       $ 80.00
Final dividend for redemption of preferred stock per share       $ 3.33
7% Preferred Stock        
Preferred stock, dividend rate (as a percent)     7.00%  
7% Preferred Stock | Preferred stock        
Preferred stock, dividend rate (as a percent) 7.00% 7.00% 7.00% 7.00%
Dividends on preferred stock per share $ 1.75 $ 1.75 $ 1.75 $ 1.75
6% Series B Preferred Stock        
Preferred stock, dividend rate (as a percent)     6.00%  
6% Series B Preferred Stock | Preferred stock        
Preferred stock, dividend rate (as a percent) 6.00% 6.00% 6.00% 6.00%
Dividends on preferred stock per share $ 60.00 $ 60.00 $ 60.00 $ 60.00
6% Series C Preferred Stock        
Preferred stock, dividend rate (as a percent)     6.00%  
6% Series C Preferred Stock | Preferred stock        
Preferred stock, dividend rate (as a percent) 6.00% 6.00% 6.00% 6.00%
Dividends on preferred stock per share $ 60.00 $ 60.00 $ 60.00 $ 60.00
Offering expenses on issuance of stock       $ 5,100,000
6% Series C Preferred Stock | Private Placement | Preferred stock        
Preferred stock, dividend rate (as a percent) 6.00% 6.00% 6.00% 6.00%
Offering expenses on issuance of stock   $ 23,000   $ 23,000
v3.22.2
Condensed Consolidated Statements of Cash Flows - USD ($)
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Operating activities:    
Net income $ 104,077,000 $ 113,400,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 1,204,000 1,061,000
Provision for credit losses 8,663,000 1,348,000
Gain on sale of loans (39,529,000) (53,742,000)
Proceeds from sales of loans 14,491,319,000 30,088,479,000
Loans and participations originated and purchased for sale (13,918,978,000) (29,764,386,000)
Purchases of low-income housing tax credits for sale (9,829,000)  
Change in mortgage servicing rights for paydowns and fair value adjustments (9,367,000) 543,000
Net change in:    
Mortgage loans in process of securitization 246,193,000 (123,181,000)
Other assets and receivables (17,738,000) (4,072,000)
Other liabilities 18,389,000 12,071,000
Other 371,000 (906,000)
Net cash provided by operating activities 874,775,000 270,615,000
Investing activities:    
Net change in securities purchased under agreements to resell 2,368,000 73,000
Purchases of available for sale securities (47,866,000) (130,204,000)
Proceeds from the sale of available for sale securities 0 34,469,000
Proceeds from calls, maturities and paydowns of available for sale securities 12,206,000 49,444,000
Purchases of loans (92,533,000) (250,678,000)
Net change in loans receivable (1,199,040,000) (126,810,000)
Proceeds from sale of loans receivable   262,086,000
Purchase of FHLB stock (10,326,000) (111,000)
Proceeds from sale of FHLB stock 784,000  
Proceeds from sale of servicing rights   438,000
Purchases of premises and equipment (5,113,000) (2,686,000)
Purchase of servicing rights (2,057,000)  
Purchase of limited partnership interests (13,225,000) (1,603,000)
Cash paid in deconsolidation of subsidiary   (464,000)
Other investing activities 2,924,000 366,000
Net cash used in investing activities (1,351,878,000) (165,680,000)
Financing activities:    
Net change in deposits (682,875,000) 629,407,000
Proceeds from borrowings 21,595,000,000 20,406,224,000
Repayment of borrowings (21,190,050,000) (21,053,107,000)
Proceeds from notes payable 2,000,000  
Proceeds from issuance of preferred stock   191,084,000
Repurchase of preferred stock   (41,625,000)
Repurchase of common stock (3,935,000)  
Dividends (17,505,000) (14,597,000)
Net cash provided by (used in) financing activities (297,365,000) 117,386,000
Net Change in Cash and Cash Equivalents (774,468,000) 222,321,000
Cash and Cash Equivalents, Beginning of Period 1,032,614,000 179,728,000
Cash and Cash Equivalents, End of Period 258,146,000 402,049,000
Supplemental Cash Flows Information:    
Interest paid 25,191,000 14,622,000
Income taxes paid, net of refunds 28,331,000 41,667,000
Transfer of loans from loans receivable to loans held for sale   166,688,000
Deconsolidation of debt fund entities
v3.22.2
Basis of Presentation
 6 Months Ended
Jun. 30, 2022
Basis of Presentation  
Basis of Presentation

Note 1:   Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Merchants Bancorp, a registered bank holding company (the “Company”) and its wholly owned subsidiaries, Merchants Bank of Indiana (“Merchants Bank”), Farmers-Merchants Bank of Illinois (“FMBI”) and Merchants Asset Management, LLC (“MAM”). Merchants Bank’s primary operating subsidiaries include Merchants Capital Corp. (‘MCC”), Merchants Capital Servicing, LLC (“MCS”), and Merchants Capital Investments, LLC (“MCI”). All direct and indirectly owned subsidiaries owned by Merchants Bancorp are collectively referred to as the “Company”.

The accompanying unaudited condensed consolidated balance sheet of the Company as of December 31, 2021, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, were prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the audited financial statements and notes thereto of the Company as of and for the year ended December 31, 2021 in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Financial Statements contained in the Annual Report on Form 10-K.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included to present fairly the financial position as of June 30, 2022 and the results of operations for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. All interim amounts have not been audited and the results of operations for the three and six months ended June 30, 2022, herein are not necessarily indicative of the results of operations to be expected for the entire year.

Principles of Consolidation

The unaudited condensed consolidated financial statements as of and for the period ended June 30, 2022 and 2021 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, FMBI and MAM. Also included are Merchants Bank’s primary operating subsidiaries, MCC, MCS and MCI, as well as all direct and indirectly owned subsidiaries owned by Merchants Bancorp.

In addition, when the Company makes an equity investment in an entity for which it holds a variable interest, it is evaluated for consolidation requirements under Accounting Standards Update of Topic 810. Accordingly, the entity is assessed for potential consolidation under the variable interest entity (“VIE”) model and would only consolidate those entities for which it is a primary beneficiary. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the entity, and an interest that could be significant to the entity. To determine if an interest could be significant to the entity, both qualitative and quantitative factors regarding the nature, size and form of our involvement with the entity are evaluated. Alternatively, under the voting interest model, it would only consolidate those entities for which it has a controlling interest. Because the variable interest investments held by the Company as of June 30, 2022 are not deemed to be primary beneficiaries or controlling interests, the entities are not consolidated and the equity method or proportional method of accounting has been applied. The Company will analyze whether its entities are the primary beneficiary on an ongoing basis. Changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment. See Note 5: Variable Interest Entities (VIEs) for additional information about VIEs.

All significant intercompany accounts and transactions have been eliminated in consolidation.

​

Deconsolidation

The unaudited condensed consolidated financial statements included consolidated results from certain entities primarily involved in single-family debt financing until January 30, 2021, while the Company was deemed to be a primary beneficiary. On February 1, 2021, the Company’s single-family debt fund entities were restructured in such a way that its ownership and participation was significantly reduced with the inclusion of additional, unrelated investors and the Company was no longer classified as a primary beneficiary.  Accordingly, results from these entities were no longer consolidated after this date, in accordance with the consolidation guidelines of the Accounting Standards Update of Topic 810.

Following the deconsolidation, the carrying value of assets and liabilities of these entities were removed from the consolidated balance sheet, and the continuing investments were recorded at fair value at the date of deconsolidation. The total amount deconsolidated from the balance sheet included net assets of approximately $10 million, consisting primarily of $66.6 million in loans receivable, and $52.7 million in borrowings with Merchants Bank that was previously eliminated in consolidation.  The fair value of its continuing investments was approximately $10 million on the deconsolidation date and has been reported in Other Assets after deconsolidation. The estimated fair value was determined based on third-party evaluations of similar assets in the underlying business. The difference between the fair value of these deconsolidated entities and their carrying value was deemed to be immaterial, resulting in no gain or loss on deconsolidation. These continuing investments after deconsolidation are classified as variable interest entities, have not been consolidated, and are accounted for under the equity method of accounting. See Note 5: Variable Interest Entities (VIEs) for additional information about VIEs.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses on loans, servicing rights and fair values of financial instruments.

Significant Accounting Policies

​

The significant accounting policies followed by the Company for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. However, on January 1, 2022, the Company adopted FASB Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL"). The Company revised certain accounting policies and implemented certain accounting policy elections, related to the adoption of CECL, which are described below. All adjustments, which are of a normal recurring nature and are, in the opinion of management, necessary for a fair statement of the results for the periods reported, have been included in the accompanying Condensed Consolidated Financial Statements.

​

CECL replaces the previous "allowance for loan and lease losses" model for measuring credit losses, which encompassed allowances for current known and inherent losses within the portfolio, with an "expected loss" model for measuring credit losses, which encompasses allowances for losses expected to be incurred over the life of the included assets. The new CECL model requires the measurement of all expected credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures (“OBCEs”) based on historical experiences, current conditions, and reasonable and supportable forecasts. CECL also requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as credit quality and underwriting standards of an organization's portfolio. In addition, CECL includes certain changes to the accounting for investment securities available for sale depending on whether management intends to sell the securities or believes that it is more likely than not they will be required to sell.

As of adoption date on January 1, 2022, the Company recorded a $3.6 million decrease, net of taxes, to retained earnings for the cumulative effect of adopting CECL. The transition adjustment included a $0.3 million increase to retained earnings related to allowance for credit losses on loans (“ACL-Loans”) and a $5.2 million decrease to retained earnings related to allowance for OBCEs (“ACL-OBCEs”). The following table summarizes the impact of the adoption of CECL on the Company’s balance sheet as of January 1, 2022.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Impact of

​

​

January 1, 2022

​

​

​

​

​

CECL

​

​

Post-CECL

​

    

December 31, 2021

    

Adoption

    

Adoption

Assets:

​

(In thousands)

MTG WHLOC

​

$

1,955

​

$

41

​

$

1,996

RES RE

​

 

4,170

​

​

275

​

 

4,445

MF FIN

​

​

14,084

​

​

520

​

​

14,604

HC FIN

​

​

4,461

​

​

139

​

​

4,600

CML & CRE

​

 

5,879

​

 

(1,277)

​

 

4,602

AG & AGRE

​

​

657

​

​

(18)

​

​

639

CON & MAR

​

 

138

​

 

21

​

 

159

ACL - Loans

​

$

31,344

​

$

(299)

​

$

31,045

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

​

​

​

​

​

​

​

​

ACL - OBCEs (in Other Liabilities)

​

$

—

​

$

5,176

​

$

5,176

​

​

​

​

​

​

​

​

​

​

Stockholders' Equity:

​

​

​

​

​

​

​

​

​

Retained earnings, net of tax

​

$

657,149

​

$

(3,648)

​

$

653,501

​

ACL-Loans - the ACL-Loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans over the contractual term. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Adjustments to the ACL-Loans are reported in the income statement as a provision for credit loss. Further information regarding the policies and methodology used to estimate the ACL-Loans is detailed in Note 4: Loans and Allowance for credit losses on loans of these Notes to Consolidated Condensed Financial Statements.

​

ACL-OBCEs – the ACL–OBCEs is a liability account representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if the Company has the unconditional right to cancel the obligation. OBCEs primarily consist of amounts available under outstanding lines of credit. For the period of exposure, the estimate of expected credit losses considers both the likelihood that funding will occur and the amount expected to be funded over the estimated remaining life of the commitment. The likelihood and expected amount of funding are based on historical utilization rates. The amount of the allowance represents management’s best estimate of expected credit losses on commitments expected to be funded over the contractual life of the commitment. The ACL–OBCEs is adjusted through the income statement as a component of provision for credit loss.

​

The Company adopted CECL using the modified retrospective method for loans and OBCEs. Therefore, results for reporting periods beginning after January 1, 2022 are presented in accordance with CECL, while prior period amounts continue to be reported in accordance with previously applicable Generally Accepted Accounting Principles (“GAAP”).

​

​

Reclassifications

​

Certain reclassifications may have been made to the 2021 financial statements to conform to the financial statement presentation as of and for the three and six months ended June 30, 2022. These reclassifications had no effect on net income.
v3.22.2
Securities Available For Sale
 6 Months Ended
Jun. 30, 2022
Securities Available For Sale  
Securities Available For Sale

Note 2:   Securities Available For Sale

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

​

​

​

​

Gross

​

Gross

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

35,111

​

$

1

​

$

308

​

$

34,804

Federal agencies

​

 

284,978

​

 

—

​

 

10,126

​

 

274,852

Mortgage-backed - Government-sponsored entity (GSE)

​

​

15,774

​

​

12

​

​

7

​

​

15,779

Mortgage-backed - Non-GSE multi-family

​

 

11,731

​

 

—

​

 

352

​

 

11,379

Total available for sale securities

​

$

347,594

​

$

13

​

$

10,793

​

$

336,814

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

​

​

​

Gross

​

Gross

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

8,232

​

$

4

​

$

27

​

$

8,209

Federal agencies

​

 

264,970

​

 

—

​

 

1,675

​

 

263,295

Municipals

​

 

4,300

​

 

—

​

 

—

​

 

4,300

Mortgage-backed - Government-sponsored entity (GSE)

​

​

18,664

​

​

32

​

​

336

​

​

18,360

Mortgage-backed - Non-GSE multi-family

​

 

16,424

​

 

41

​

 

—

​

 

16,465

Total available for sale securities

​

$

312,590

​

$

77

​

$

2,038

​

$

310,629

​

At June 30, 2022 and December 31, 2021, GSE mortgage-backed securities included in the tables above are primarily backed by multi-family loans. The tables above for June 30, 2022 and December 31, 2021 also include securities purchased from Freddie Mac following the loan sale and securitization arrangement with Freddie Mac described in Note 4: Loans and Allowance for Credit Losses on Loans.

Accrued interest on available for sale securities totaled $0.5 million at June 30, 2022 and $0.4 million at December 31, 2021, respectively, and is excluded from the estimate of credit losses.

The amortized cost and fair value of available for sale securities at June 30, 2022 and December 31, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may

have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

December 31, 2021

​

​

Amortized

​

Fair

​

Amortized

​

Fair

​

    

Cost

    

Value

    

Cost

    

Value

Contractual Maturity

​

(In thousands)

Within one year

​

$

54,247

​

$

52,983

​

$

6,548

​

$

6,551

After one through five years

​

 

265,842

​

 

256,673

​

 

270,954

​

 

269,253

After five through ten years

​

 

—

​

 

—

​

 

—

​

 

—

After ten years

​

 

—

​

 

—

​

 

—

​

 

—

​

​

 

320,089

​

 

309,656

​

 

277,502

​

 

275,804

Mortgage-backed - Government-sponsored entity (GSE)

​

​

15,774

​

​

15,779

​

​

18,664

​

​

18,360

Mortgage-backed - Non-GSE multi-family

​

 

11,731

​

 

11,379

​

 

16,424

​

 

16,465

​

​

$

347,594

​

$

336,814

​

$

312,590

​

$

310,629

​

During the three and six months ended June 30, 2022, no securities available for sale were sold. During the three and six months ended June 30, 2021 proceeds from sales of $34.5 million securities available for sale were sold, and no gain or loss was recognized.

​

The following tables show the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2022 and December 31, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

​

​

​

​

​

​

​

12 Months or

​

​

​

​

​

​

​

​

Less than 12 Months

​

 Longer

​

Total

​

​

​

​

​

Gross

​

​

​

​

Gross

​

​

​

​

Gross

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

    

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

32,599

​

$

263

​

$

1,955

​

$

45

​

$

34,554

​

$

308

Federal agencies

​

​

169,115

​

​

5,884

​

​

105,737

​

​

4,242

​

​

274,852

​

​

10,126

Mortgage-backed - Government-sponsored entity (GSE)

​

​

798

​

​

7

​

​

—

​

​

—

​

​

798

​

​

7

Mortgage-backed - Non-GSE multi-family

​

​

—

​

​

352

​

​

—

​

​

—

​

​

—

​

​

352

​

​

$

202,512

​

$

6,506

​

$

107,692

​

$

4,287

​

$

310,204

​

$

10,793

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

​

​

​

​

​

​

12 Months or

​

​

​

​

​

​

​

​

Less than 12 Months

​

Longer

​

Total

​

    

​

​

    

Gross

    

​

​

    

Gross

    

​

​

    

Gross

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

​

Value

​

Losses

​

Value

​

Losses

​

Value

​

Losses

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

7,957

​

$

27

​

$

—

​

$

—

​

$

7,957

​

$

27

Federal agencies

​

​

238,489

​

​

1,503

​

​

24,806

​

​

172

​

​

263,295

​

​

1,675

Mortgage-backed - Government-sponsored entity (GSE)

​

​

719

​

​

336

​

​

—

​

​

—

​

​

719

​

​

336

​

​

$

247,165

​

$

1,866

​

$

24,806

​

$

172

​

$

271,971

​

$

2,038

​

For available for sale securities with an unrealized loss position, the Company evaluates the securities to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or non-credit related factors. Any impairment that is not credit-related is recognized in AOCI, net of tax. Credit-related impairment is recognized as an ACL for available for sale securities on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company expects, or is required, to sell an impaired available for sale security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.

​

In evaluating available for sale securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors. Unrealized losses on the Company’s investment securities portfolio have not been recognized as an expense because the securities are of high credit quality, and the decline in fair values is attributable to changes in the prevailing interest rate environment since the purchase date. Fair value is expected to recover as securities reach maturity and/or the interest rate environment returns to conditions similar to when these securities were purchased. There were no credit related factors underlying unrealized losses on available for sale debt securities at June 30, 2022 and December 31, 2021.
v3.22.2
Mortgage Loans in Process of Securitization
 6 Months Ended
Jun. 30, 2022
Mortgage Loans in Process of Securitization.  
Mortgage Loans in Process of Securitization

Note 3:   Mortgage Loans in Process of Securitization

Mortgage loans in process of securitization are recorded at fair value with changes in fair value recorded in earnings. These include multi-family rental real estate loan originations to be sold as Government National Mortgage Association (“Ginnie Mae”) mortgage-backed securities and Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) participation certificates, all of which are pending settlement with firm investor commitments to purchase the securities, typically occurring within 30 days. The fair value increases recorded in earnings for mortgage loans in process of securitization totaled $4.9 million and $7.0 million at June 30, 2022 and 2021, respectively.
v3.22.2
Loans and Allowance for Credit Losses on Loans
 6 Months Ended
Jun. 30, 2022
Loans and Allowance for Credit Losses on Loans  
Loans and Allowance for Credit Losses on Loans

Note 4:   Loans and Allowance for Credit Losses on Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the ACL-Loans, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans.

For loans at amortized cost, interest income is accrued based on the unpaid principal balance.

The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and reports accrued interest separately from the related loan balance in the consolidated balance sheets. Accrued interest on loans totaled $18.0 million and $15.4 million at June 30, 2022 and December 31, 2021, respectively.

The Company also elected not to measure an allowance for credit losses for accrued interest receivables. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest collected on these loans is applied to the principal balance until the loan can be returned to an accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

For all loan portfolio segments, the Company promptly charges off loans, or portions thereof, when available information confirms that specific loans are uncollectable based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations.

When cash payments for accrued interest are received on nonaccrual loans in each loan class, the Company records a reduction in principle on the balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms.

The Company offers warehouse lines of credit to fund mortgage loans held for sale from closing until sale to an investor. Under a warehousing arrangement the Company funds a mortgage loan as secured financing. The warehousing arrangement is secured by the underlying mortgages and a combination of deposits, personal guarantees and advance rates. The Company typically holds the collateral until it is sent under a bailee arrangement instructing the investor to send proceeds to the Company. Typical investors are large financial institutions or government agencies. Interest earned from the time of funding to the time of sale is recognized as interest income as accrued. Fees earned agreements are recognized when collected as noninterest income.

 Loan Portfolio Summary‌ 

Loans receivable at June 30, 2022 and December 31, 2021 include:

​

​

​

​

​

​

​

​

​

June 30, 

​

December 31, 

​

    

2022

    

2021

​

​

(In thousands)

​

​

​

​

​

​

​

Mortgage warehouse lines of credit

​

$

900,585

​

$

781,437

Residential real estate

​

 

876,652

​

 

843,101

Multi-family financing(1)

​

 

3,236,917

​

 

2,702,042

Healthcare financing(1)

​

​

1,262,424

​

​

826,157

Commercial and commercial real estate

​

 

695,158

​

 

520,199

Agricultural production and real estate

​

 

90,070

​

 

97,060

Consumer and margin loans

​

 

8,871

​

 

12,667

​

​

 

7,070,677

​

 

5,782,663

Less:

​

 

  

​

 

  

ACL-Loans

​

 

37,474

​

 

31,344

​

​

​

​

​

​

​

Loans Receivable

​

$

7,033,203

​

$

5,751,319

​

(1)In 2022, the Company started presenting these two loan types on separate lines for reporting purposes.

​

In response to the COVID-19 global pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) established the Paycheck Protection Program (“PPP”) to provide loans for eligible business/not-for-profits. These loans qualify for forgiveness when used for qualifying expenses during the appropriate period. Loans funded through the PPP are fully guaranteed by the U.S. government. As of June 30, 2022 all PPP loans have been forgiven. As of December 31, 2021, commercial and commercial real estate loans included PPP loans with principal balances of $7.0 million that had not yet been forgiven.

Risk characteristics applicable to each segment of the loan portfolio are described as follows.

Mortgage Warehouse Lines of Credit (MTG WHLOC): Under its warehouse program, the Company provides warehouse financing arrangements to approved mortgage companies for the origination and sale of residential mortgage loans and to a lesser extent multi-family loans. Agency eligible, governmental and jumbo residential mortgage loans that

are secured by mortgages placed on existing one-to-four family dwellings may be originated or purchased and placed on each mortgage warehouse line.

As a secured repurchase agreement, collateral pledged to the Company secures each individual mortgage until the lender sells the loan in the secondary market. A traditional secured warehouse line of credit typically carries a base interest rate of 30-day London Interbank Offered Rate (“LIBOR”) or the Federal Reserve’s Secured Overnight Financing Rate (“SOFR”), or mortgage note rate and a margin.

Risk is evident if there is a change in the fair value of mortgage loans originated by mortgage bankers in warehouse, the sale of which is the expected source of repayment of the borrowings under a warehouse line of credit.

Residential Real Estate Loans (RES RE): Real estate loans are secured by owner-occupied 1-4 family residences. Repayment of residential real estate loans is primarily dependent on the personal income and credit rating of the borrowers. First-lien HELOC mortgages included in this segment typically carry a base rate of 30-day LIBOR or the One-Year Constant Maturity Treasury (“CMT”), plus a margin.

Multi-Family Financing (MF FIN): The Company engages in multi-family financing, including construction loans, specializing in originating and servicing loans for multi-family rental properties. In addition, the Company originates loans secured by an assignment of federal income tax credits by partnerships invested in multi-family real estate projects. Construction and land loans are generally based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans are dependent on the cash flow of the property, and may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent agency-eligible financing is obtained. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economy in the Company’s market area. Repayment of these loans depends on the successful operation of a business or property and the borrower’s cash flows. Loans included in this segment typically carry a base rate of SOFR that adjusts on a monthly basis and a margin.

Healthcare Financing (HC FIN): The healthcare financing portfolio includes customized loan products for independent living, assisted living, memory care and skilled nursing projects. A variety of loan products are available to accommodate rehabilitation, acquisition, and refinancing of healthcare properties. Credit risk in these loans are primarily driven by local demographics and the expertise of the operators of the facilities. Repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent agency-eligible financing is obtained, as well as successful operation of a business or property and the borrower’s cash flows. Loans included in this segment typically carry a base rate of SOFR that adjusts on a monthly basis and a margin.

Commercial Lending and Commercial Real Estate Loans (CML & CRE): The commercial lending and commercial real estate portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions, as well as loans to commercial customers to finance land and improvements. It also includes loans collateralized by servicing rights and loan sale proceeds of mortgage warehouse customers. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations. PPP loans and Small Business Administration (“SBA”) loans are included in this category.

Agricultural Production and Real Estate Loans (AG & AGRE): Agricultural production loans are generally comprised of seasonal operating lines of credit to grain farmers to plant and harvest corn and soybeans and term loans to fund the purchase of equipment. The Company also offers long term financing to purchase agricultural real estate. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry-developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop and other farm assets as considered necessary. The Company is approved to sell agricultural loans in the secondary market through the Federal Agricultural Mortgage Corporation and uses this relationship to manage interest rate risk within the portfolio.

Agricultural real estate loans included in this segment are typically structured with a one-year ARM, 3-year ARM or 5-year ARM CMT and a margin. Agriculture production, livestock, and equipment loans are structured with variable rates that are indexed to prime or fixed for terms not exceeding 5 years.  

​

Consumer and Margin Loans (CON & MAR): Consumer loans are those loans secured by household assets. Margin loans are those loans secured by marketable securities. The term and maximum amount for these loans are determined by considering the purpose of the loan, the margin (advance percentage against value) in all collateral, the primary source of repayment, and the borrower’s other related cash flow.

ACL-Loans

The Company adopted CECL on January 1, 2022. CECL replaces the previous “Allowance for Loan and Lease Losses” standard for measuring credit losses. Upon adoption of CECL, the difference in the two measurements was recorded in the ACL-Loans and retained earnings.

The ACL-Loans is the Company’s estimate of expected credit losses. Loans receivable is presented net of the allowance to reflect the principal balance expected to be collected over the contractual term of the loans. This life of loan allowance is established through a provision for credit losses charged to net interest income as loans are recorded in the financial statements. The provision for a reporting period also reflects increases or decreases in the allowance related to changes in credit loss expectations. Actual credit losses are charged against the allowance when management believes the uncollectibility of a loan balance, or a portion thereof, is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The ACL-Loans is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans considering relevant available information from internal and external sources, including historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. The allowance also incorporates reasonable and supportable forecasts. There have been no changes to the credit quality components used to assess risk during the six months ended June 30, 2022. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The level of the ACL is believed to be adequate to absorb innate expected future losses in the loan portfolio as of the measurement date.

The ACL-Loans consists of individually evaluated loans and pooled loan components. The Company’s primary portfolio segmentation is by credit risk grade. Loans risk graded substandard and worse are individually evaluated for expected credit losses. For individually evaluated loans that are collateral dependent, an allowance is established when the fair value of the collateral, the loan’s obtainable market price, or the present value of expected future cash flows discounted at the loan’s effective interest rate, is lower than the carrying value of that loan. A loan is considered to be collateral dependent when repayment is expected to be provided substantially through the operation or the sale of the collateral.

To calculate the allowance for expected credit losses on loans risk graded pass through special mention, the loan portfolio is segmented into 14 segments comprised of loans with similar risk characteristics.

​

​

​

​

Loan Portfolio Segment

    

ACL-Loans Methodology

​

​

​

Ag loans

​

Remaining Life Method

Ag real estate loans

​

Remaining Life Method

Commercial loans

​

Discounted Cash Flow

Commercial real estate loans

​

Discounted Cash Flow

Consumer and margin loans

​

Remaining Life Method

HELOC loans

​

Discounted Cash Flow

Multi-family healthcare loans

​

Discounted Cash Flow

Multi-family non-management loans

​

Discounted Cash Flow

Multi-family construction loans

​

Discounted Cash Flow

Multi-family loans

​

Discounted Cash Flow

Residential real estate loans

​

Discounted Cash Flow

SBA commercial loans

​

Discounted Cash Flow

SBA real estate commercial loans

​

Discounted Cash Flow

Single-family warehouse lines of credit

​

Remaining Life Method

​

Loan characteristics used in determining the segmentation included the underlying collateral, type or purpose of the loan, and expected credit loss patterns. The estimation of expected credit losses for each segment is primarily based on historical credit loss experience. Given the Company’s modest historical credit loss experience, peer and industry data was incorporated into the measurement. Expected life of loan credit losses are quantified using discounted cash flows and remaining life methodologies. For the ten portfolio segments where the discounted cash flow method was employed, econometric models are utilized to determine a Probability of Default (“PD”). Macroeconomic factors utilized in the modeling process include the national unemployment rate and the home price index. A risk index was then utilized to predict the Loss Given Default (“LGD”). The PD is then multiplied by the LGD to determine the expected loss that is incorporated into the discounted cash flow calculations. Within the discount cash flow calculation, an effective yield of the instrument is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows. An ACL is established for the difference between the instrument’s net present value and amortized cost basis. The remaining life method applies average loss rates for each segment to estimated loan balances for the remaining life of the segment.

The estimate includes a four-quarter reasonable and supportable economic forecast period followed by an eight-quarter, straight-line reversion period to the historical mean for the remaining life of the loans. Model results are supplemented by qualitative adjustments for risk factors relevant in assessing the expected credit losses within the portfolio segments. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor. The various risks that are considered in making qualitative adjustments include (i) changes in the value of underlying collateral for collateral dependent loans, (ii) the effect of other external factors such as regulatory and legal requirements, the impact of (i) changes in national, regional and local economic conditions, (ii) changes in lending policies and procedures, (iii) changes in the volume and severity of past due loans, (iv) changes in the nature and volume of the loan portfolio, (v) changes in the experience, depth and ability of lending management, (vi) the existence and effect of any concentrations in credit, (vii) changes in the quality of the credit review function,

The models utilized and the applicable qualitative adjustments require assumptions and management judgement that can be subjective in nature. The above measurement approach is also used to estimate the expected credit losses associated with unfunded loan commitments, which also incorporates expected utilization rates.

The following tables present, by loan portfolio segment, the activity in the ACL-Loans for the three and six months ended June 30, 2022:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended June 30, 2022

​

 

MTG WHLOC

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

ACL-Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,941

​

$

4,547

 

$

15,131

​

$

5,618

​

$

4,102

​

$

597

​

$

166

​

$

32,102

Provision for credit losses

​

 

481

​

 

363

 

​

1,233

​

​

2,318

​

 

474

​

 

(46)

​

 

(55)

​

 

4,768

Loans charged to the allowance

​

 

—

​

 

—

 

​

—

​

​

—

​

 

(32)

​

 

—

​

 

(15)

​

 

(47)

Recoveries of loans previously charged off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

651

​

 

—

​

 

—

​

 

651

Balance, end of period

​

$

2,422

​

$

4,910

​

$

16,364

​

$

7,936

​

$

5,195

​

$

551

​

$

96

​

$

37,474

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Six Months Ended June 30, 2022

​

  

MTG WHLOC

  

RES RE

  

MF FIN

  

HC FIN

​

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

​

​

(In thousands)

ACL-Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,955

​

$

4,170

​

$

14,084

​

$

4,461

​

$

5,879

​

$

657

​

$

138

​

$

31,344

Impact of adopting CECL

​

​

41

​

​

275

​

​

520

​

​

139

​

​

(1,277)

​

​

(18)

​

​

21

​

​

(299)

Provision for credit losses

​

 

426

​

​

465

​

​

1,760

​

​

3,336

​

​

905

​

​

(88)

​

​

(55)

​

​

6,749

Loans charged to the allowance

​

 

—

​

​

—

​

​

—

​

​

—

​

​

(963)

​

​

—

​

​

(15)

​

​

(978)

Recoveries of loans previously charged off

​

 

—

​

​

—

​

​

—

​

​

—

​

​

651

​

​

—

​

​

7

​

 

658

Balance, end of period

​

$

2,422

​

$

4,910

​

$

16,364

​

$

7,936

​

$

5,195

​

$

551

​

$

96

​

$

37,474

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

The Company recorded a provision for credit losses of $6.2 million for the three months ended June 30, 2022. The $6.2 million provision for credit losses consisted of $4.8 million for the ACL-Loans, $0.2 million for the ACL-OBCE’s and $1.2 million for the contingent reserve related to the Freddie Mac-sponsored Q-series securitization transaction.

The Company recorded a provision for credit losses of $8.7 million for the six months ended June 30, 2022. The $8.7 million provision for credit losses consisted of $6.7 million for the ACL-Loans, $0.8 million for the ACL-OBCE’s, and $1.2 million for the contingent reserve related to the Freddie Mac-sponsored Q-series securitization transaction.

Prior to the adoption of CECL, the Company maintained an allowance for loan losses in accordance with the incurred loss model as disclosed in the Company’s 2021 Annual Report on Form 10-K.

​

The following tables present the allowance for loan losses for the three and six months ended June 30, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended June 30, 2021

​

 

MTG WHLOC

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

3,321

​

$

3,600

 

$

13,396

​

$

3,740

​

$

4,264

​

$

632

​

$

138

​

$

29,091

Provision for credit losses

​

 

(386)

​

 

371

 

​

(1,718)

​

​

364

​

 

1,059

​

 

(21)

​

 

16

​

 

(315)

Loans charged to the allowance

​

 

—

​

 

(2)

 

​

—

​

​

—

​

 

(84)

​

 

—

​

 

—

​

 

(86)

Recoveries of loans previously charged off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

—

​

 

—

​

 

6

​

 

6

Balance, end of period

​

$

2,935

​

$

3,969

​

$

11,678

​

$

4,104

​

$

5,239

​

$

611

​

$

160

​

$

28,696

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Six Months Ended June 30, 2021

​

  

MTG WHLOC

  

RES RE

  

MF FIN

  

HC FIN

​

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

4,018

​

$

3,334

​

$

12,041

​

$

2,690

​

$

4,641

​

$

636

​

$

140

​

$

27,500

Provision for credit losses

​

 

(1,083)

​

​

637

​

​

(363)

​

​

1,414

​

​

750

​

​

(25)

​

​

18

​

 

1,348

Loans charged to the allowance

​

 

—

​

​

(2)

​

​

—

​

​

—

​

​

(152)

​

​

—

​

​

(6)

​

 

(160)

Recoveries of loans previously charged off

​

 

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

8

​

 

8

Balance, end of period

​

$

2,935

​

$

3,969

​

$

11,678

​

$

4,104

​

$

5,239

​

$

611

​

$

160

​

$

28,696

​

​

The following table presents the allowance for loan losses and the recorded investment in loans and impairment method as of December 31, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

MTG WHLOC

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, December 31, 2021

​

$

1,955

​

$

4,170

​

$

14,084

​

$

4,461

​

$

5,879

​

$

657

​

$

138

​

$

31,344

Ending balance: individually evaluated for impairment

​

$

—

​

$

16

​

$

—

​

$

—

​

$

867

​

$

—

​

$

7

​

$

890

Ending balance: collectively evaluated for impairment

​

$

1,955

​

$

4,154

​

$

14,084

​

$

4,461

​

$

5,012

​

$

657

​

$

131

​

$

30,454

Loans

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Balance, December 31, 2021

​

$

781,437

​

$

843,101

​

$

2,702,042

​

$

826,157

​

$

520,199

​

$

97,060

​

$

12,667

​

$

5,782,663

Ending balance individually evaluated for impairment

​

$

—

​

$

419

​

$

36,760

​

$

—

​

$

6,055

​

$

158

​

$

13

​

$

43,405

Ending balance collectively evaluated for impairment

​

$

781,437

​

$

842,682

​

$

2,665,282

​

$

826,157

​

$

514,144

​

$

96,902

​

$

12,654

​

$

5,739,258

​

​

The below table presents the amortized cost basis and ACL-Loans allocated for collateral dependent loans, which are individually evaluated to determine expected credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

    

Real Estate

    

Accounts Receivable / Equipment

    

Other

    

Total

    

ACL-Loans Allocation

​

​

(In thousands)

RES RE

​

$

353

​

$

—

​

$

6

​

$

359

​

$

29

MF FIN

​

​

36,760

​

​

—

​

​

—

​

​

36,760

​

​

187

CML & CRE

​

 

134

​

 

4,935

​

 

236

​

 

5,305

​

 

92

AG & AGRE

​

 

158

​

 

—

​

 

—

​

 

158

​

 

1

CON & MAR

​

 

—

​

 

—

​

 

3

​

 

3

​

 

—

Total collateral dependent loans

​

$

37,405

​

$

4,935

​

$

245

​

$

42,585

​

$

309

​

There has been no significant changes to the types of collateral securing the Company’s collateral dependent loans compared to June 30, 2021.

​

Internal Risk Categories

In adherence with policy, the Company uses the following internal risk grading categories and definitions for loans:

Average or above – Loans to borrowers of satisfactory financial strength or better. Earnings performance is consistent with primary and secondary sources of repayment that are well defined and adequate to retire the debt in a timely and orderly fashion. These businesses would generally exhibit satisfactory asset quality and liquidity with moderate leverage, average performance to their peer group and experienced management in key positions. These loans are disclosed as “Acceptable and Above” in the following table.

Acceptable – Loans to borrowers involving more than average risk and which contain certain characteristics that require some supervision and attention by the lender. Asset quality is acceptable, but debt capacity is modest and little excess liquidity is available. The borrower may be fully leveraged and unable to sustain major setbacks. Covenants are structured to ensure adequate protection. Borrower’s management may have limited experience and depth. This category includes loans which are highly leveraged due to regulatory constraints, as well as loans involving reasonable exceptions to policy. These loans are disclosed as “Acceptable and Above” in the following table.

Special Mention (Watch) – This is a loan that is sound and collectable but contains potential risk. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following tables present the credit risk profile of the Company’s loan portfolio based on internal risk rating category as of June 30, 2022 and December 31, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

2022

    

2021

    

2020

​

2019

    

2018

    

Prior

    

Revolving Loans

    

TOTAL

​

​

(In thousands)

MTG WHLOC

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

900,585

​

$

900,585

Total

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

900,585

​

$

900,585

RES RE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

10,316

​

​

36,482

​

​

49,380

​

​

3,327

​

​

865

​

​

10,439

​

​

764,571

​

​

875,380

Special Mention (Watch)

​

​

—

​

​

—

​

​

—

​

​

61

​

​

74

​

​

779

​

​

—

​

​

914

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

358

​

​

—

​

​

358

Total

​

$

10,316

​

$

36,482

​

$

49,380

​

$

3,388

​

$

939

​

$

11,576

​

$

764,571

​

$

876,652

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

874,093

​

​

1,049,580

​

​

305,633

​

​

71,513

​

​

12,245

​

​

7,739

​

​

852,442

​

​

3,173,245

Special Mention (Watch)

​

​

14,614

​

​

12,298

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

26,912

Substandard

​

​

36,760

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

36,760

Total

​

$

925,467

​

$

1,061,878

​

$

305,633

​

$

71,513

​

$

12,245

​

$

7,739

​

$

852,442

​

$

3,236,917

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

486,989

​

​

331,862

​

​

183,035

​

​

17,186

​

​

—

​

​

—

​

​

144,812

​

​

1,163,884

Special Mention (Watch)

​

​

—

​

​

29,462

​

​

62,373

​

​

6,705

​

​

—

​

​

—

​

​

—

​

​

98,540

Total

​

$

486,989

​

$

361,324

​

$

245,408

​

$

23,891

​

$

—

​

$

—

​

$

144,812

​

$

1,262,424

CML & CRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

66,173

​

​

85,267

​

​

31,966

​

​

49,946

​

​

13,850

​

​

15,489

​

​

424,308

​

​

686,999

Special Mention (Watch)

​

​

48

​

​

21

​

​

1,448

​

​

129

​

​

—

​

​

234

​

​

973

​

​

2,853

Substandard

​

​

—

​

​

2,000

​

​

—

​

​

107

​

​

175

​

​

282

​

​

2,742

​

​

5,306

Total

​

$

66,221

​

$

87,288

​

$

33,414

​

$

50,182

​

$

14,025

​

$

16,005

​

$

428,023

​

$

695,158

AG & AGRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

8,358

​

​

7,984

​

​

15,952

​

​

6,291

​

​

3,457

​

​

21,141

​

​

24,779

​

​

87,962

Special Mention (Watch)

​

​

14

​

​

64

​

​

719

​

​

431

​

​

288

​

​

390

​

​

44

​

​

1,950

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

158

​

​

—

​

​

158

Total

​

$

8,372

​

$

8,048

​

$

16,671

​

$

6,722

​

$

3,745

​

$

21,689

​

$

24,823

​

$

90,070

CON & MAR

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

240

​

​

674

​

​

394

​

​

140

​

​

4,743

​

​

20

​

​

2,638

​

​

8,849

Special Mention (Watch)

​

​

—

​

​

—

​

​

16

​

​

—

​

​

—

​

​

3

​

​

—

​

​

19

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

3

​

​

—

​

​

3

Total

​

$

240

​

$

674

​

$

410

​

$

140

​

$

4,743

​

$

26

​

$

2,638

​

$

8,871

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Acceptable and Above

​

$

1,446,169

​

$

1,511,849

​

$

586,360

​

$

148,403

​

$

35,160

​

$

54,828

​

$

3,114,135

​

$

6,896,904

Total Special Mention (Watch)

​

$

14,676

​

$

41,845

​

$

64,556

​

$

7,326

​

$

362

​

$

1,406

​

$

1,017

​

$

131,188

Total Substandard

​

$

36,760

​

$

2,000

​

$

—

​

$

107

​

$

175

​

$

801

​

$

2,742

​

$

42,585

Total Loans

​

$

1,497,605

​

$

1,555,694

​

$

650,916

​

$

155,836

​

$

35,697

​

$

57,035

​

$

3,117,894

​

$

7,070,677

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

    

MTG WHLOC

    

RES RE

    

MF FIN

    

HC FIN

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

Special Mention (Watch)

​

$

—

​

$

946

​

$

27,155

​

$

66,406

​

$

2,483

​

$

3,820

​

$

21

​

$

100,831

Substandard

​

 

—

​

 

419

​

 

36,760

​

 

—

​

 

6,055

​

 

158

​

 

13

​

 

43,405

Acceptable and Above

​

 

781,437

​

 

841,736

​

 

2,638,127

​

 

759,751

​

 

511,661

​

 

93,082

​

 

12,633

​

 

5,638,427

Total

​

$

781,437

​

$

843,101

​

$

2,702,042

​

$

826,157

​

$

520,199

​

$

97,060

​

$

12,667

​

$

5,782,663

​

​

The Company evaluates the loan risk grading system definitions and ACL-Loans methodology on an ongoing basis. No significant changes were made to either during the past year.

Delinquent Loans

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of June 30, 2022 and December 31, 2021. There was one loan totaling $36.8 million at June 30, 2022 and December 31, 2021 that had been modified in accordance with the CARES Act and therefore not classified as delinquent.  This loan has been granted extended dates to make payments and no payments were due as of June 30, 2022. Also excluded from the tables below are government guaranteed commercial SBA loans totaling $0 and $3.2 million that were 30-59 days past due and government guaranteed commercial SBA loans with balances of $0 and $274,000 that were over 90 days past due as of June 30, 2022 and December 31, 2021, respectively.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHLOC

​

$

—

​

$

—

​

$

—

​

$

—

​

$

900,585

​

$

900,585

RES RE

​

 

307

​

​

216

​

 

176

​

 

699

​

 

875,953

​

 

876,652

MF FIN

​

 

—

​

​

—

​

 

—

​

 

—

​

 

3,236,917

​

 

3,236,917

HC FIN

​

​

—

​

​

—

​

​

—

​

​

—

​

​

1,262,424

​

​

1,262,424

CML & CRE

​

 

—

​

​

—

​

 

4,083

​

 

4,083

​

 

691,075

​

 

695,158

AG & AGRE

​

 

—

​

​

—

​

 

—

​

 

—

​

 

90,070

​

 

90,070

CON & MAR

​

 

39

​

​

42

​

 

3

​

 

84

​

 

8,787

​

 

8,871

​

​

$

346

​

$

258

​

$

4,262

​

$

4,866

​

$

7,065,811

​

$

7,070,677

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHLOC

​

$

—

 

$

—

​

$

—

​

$

—

​

$

781,437

​

$

781,437

RES RE

​

 

1,252

 

​

287

​

 

186

​

 

1,725

​

 

841,376

​

 

843,101

MF FIN

​

 

—

 

​

—

​

 

—

​

 

—

​

 

2,702,042

​

 

2,702,042

HC FIN

​

​

—

​

​

—

​

​

—

​

​

—

​

​

826,157

​

​

826,157

CML & CRE

​

 

591

 

​

8

​

 

149

​

 

748

​

 

519,451

​

 

520,199

AG & AGRE

​

 

37

 

​

21

​

 

—

​

 

58

​

 

97,002

​

 

97,060

CON & MAR

​

 

43

 

​

5

​

 

40

​

 

88

​

 

12,579

​

 

12,667

​

​

$

1,923

​

$

321

​

$

375

​

$

2,619

​

$

5,780,044

​

$

5,782,663

​

​

Impaired Loans

The following table presents impaired loans and specific valuation allowance information based on class level as of December 31, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

    

MTG WHLOC

    

RES RE

    

MF FIN

​

HC FIN

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

Impaired loans without a specific allowance:

 

​

  

 

​

  

 

​

  

​

​

​

 

​

  

 

​

  

 

​

  

 

​

  

Recorded investment

​

$

—

​

$

372

​

$

36,760

​

$

—

​

$

3,912

​

$

158

​

$

4

​

$

41,206

Unpaid principal balance

​

 

—

​

 

372

​

 

36,760

​

​

—

​

 

3,912

​

 

158

​

 

4

​

 

41,206

Impaired loans with a specific allowance:

​

 

—

​

 

  

​

 

  

​

​

—

​

 

  

​

 

  

​

 

  

​

 

  

Recorded investment

​

 

—

​

 

47

​

 

—

​

​

—

​

 

2,143

​

 

—

​

 

9

​

 

2,199

Unpaid principal balance

​

 

—

​

 

47

​

 

—

​

​

—

​

 

2,143

​

 

—

​

 

9

​

 

2,199

Specific allowance

​

 

—

​

 

16

​

 

—

​

​

—

​

 

867

​

 

—

​

 

7

​

 

890

Total impaired loans:

​

 

​

​

 

  

​

 

  

​

​

​

​

 

  

​

 

  

​

 

  

​

 

  

Recorded investment

​

 

—

​

 

419

​

 

36,760

​

​

—

​

 

6,055

​

 

158

​

 

13

​

 

43,405

Unpaid principal balance

​

 

—

​

 

419

​

 

36,760

​

​

—

​

 

6,055

​

 

158

​

 

13

​

 

43,405

Specific allowance

​

 

—

​

 

16

​

 

—

​

​

—

​

 

867

​

 

—

​

 

7

​

 

890

​

​

The following table presents by portfolio class, information related to the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended June 30, 2021

​

    

MTG WHLOC

    

RES RE

    

MF FIN

​

HC FIN

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

​

Average recorded investment in impaired loans

​

—

​

$

2,201

​

$

—

​

$

—

​

$

6,113

​

$

175

​

$

6

​

$

8,495

Interest income recognized

​

—

​

 

16

​

 

—

​

 

—

​

 

55

​

 

—

​

 

—

​

 

71

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Six Months Ended June 30, 2021

​

    

​

    

​

    

​

​

​

​

    

CML &

    

​

AG &

    

CON &

    

​

​

​

​

​

RES RE

​

MF RE

​

​

​

​

CRE

​

​

AGRE

​

MAR

​

TOTAL

​

​

​

Average recorded investment in impaired loans

​

—

​

$

2,442

​

$

—

​

$

—

​

$

7,254

​

$

1,000

​

$

7

​

$

10,703

Interest income recognized

​

—

​

 

27

​

 

—

​

 

—

​

 

259

​

 

—

​

 

—

​

 

286

​

​

Nonperforming Loans

Nonaccrual loans, including TDRs that have not met the six-month minimum performance criterion, are reported as nonperforming loans. For all loan classes, it is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until three months of satisfactory borrower performance, at which time management would consider its return to accrual status. A loan is generally classified as nonaccrual when the Company believes that receipt of principal and interest is doubtful under the terms of the loan

agreement. Most generally, this is at 90 or more days past due. The amount of interest income recognized on nonaccrual financial assets during the six months ended June 30, 2022 was immaterial.

The following table presents the Company’s nonaccrual loans and loans past due 90 days or more and still accruing at June 30, 2022 and December 31, 2021.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 

​

December 31, 

​

​

2022

​

2021

​

​

​

​

​

Total Loans >

​

​

​

​

Total Loans >

​

​

​

​

​

90 Days &

​

​

​

​

90 Days &

​

    

Nonaccrual

    

Accruing

    

Nonaccrual

    

Accruing

​

​

(In thousands)

RES RE

​

$

347

​

$

—

​

$

362

​

$

22

CML & CRE

​

 

4,305

​

​

—

​

 

—

​

​

149

AG & AGRE

​

 

158

​

 

—

​

 

158

​

 

30

CON & MAR

​

 

3

​

 

—

​

 

4

​

 

36

​

​

$

4,813

​

$

—

​

$

524

​

$

237

​

The Company did not have any nonperforming loans without an estimated ACL at June 30, 2022.

​

No troubled loans were modified during the three or six months ended June 30, 2022 or 2021. No restructured loans defaulted during the three or six months ended June 30, 2022 or 2021. Loan modifications or forbearances related to the COVID-19 pandemic will generally not be considered TDRs.

​

The CARES Act included several provisions designed to help financial institutions like the Company in working with their customers. Section 4013 of the CARES Act, as extended, allows a financial institution to elect to suspend generally accepted accounting principles and regulatory determinations with respect to qualifying loan modifications related to COVID-19 that would otherwise be categorized as a TDR until January 1, 2022. The Company has taken advantage of this provision to extend certain payment modifications to loan customers in need. As of June 30, 2022, the Company has only one loan totaling $36.8 million that was modified during 2020 or 2021 under the CARES Act guidance, that remain on modified terms. The Company modified other loans under the guidance that have since returned to normal repayment status as of June 30, 2022.

​

There were no residential loans in process of foreclosure as of June 30, 2022 and December 31, 2021.

​

Loan Sales for Freddie Mac Q Series Securitizations

2022 Activity

On May 5, 2022, the Company entered into an arrangement through a third-party trust and Freddie Mac, by which a $214.0 million portfolio of multi-family loans were sold to the trust and ultimately securitized through Freddie Mac and sold to investors. The Company did not purchase any of the securities. The transfer of these loans was accounted for as a sale for financial reporting purposes, in accordance with ASC 860, and a $2.3 million net gain on sale was recognized, which included establishing a contingent and noncontingent reserve and servicing rights associated with this transaction.  

The Company’s ongoing involvement in this transaction is limited to customary obligations of loan sales, including any material breach in representation.  In connection with the securitization, the Company also entered into a reimbursement agreement for a first loss position in the underlying loan portfolio, not to exceed 12% of the unpaid principal amount of the loans comprising the securitization pool at settlement, or approximately $25.7 million.  A contingent reserve of $1.2 million for estimated losses was established with respect to the first loss obligation on May 5, 2022, which was included in provision for credit losses on the consolidated statement of income and other liabilities on the consolidated balance sheet. A noncontingent reserve of $2.5 million related to the Company’s reimbursement obligation was included in other liabilities on the consolidated balance sheet and offset through gain on sale in the

consolidated statement of income. The Company was also required to hold collateral against the reimbursement agreement. Accordingly, $27.0 million of U.S. Treasury securities were acquired as part of the transaction.

As part of the securitization transaction, the Company released all mortgage servicing obligations and rights to Freddie Mac, who was designated as the Master Servicer. Freddie Mac appointed the Company with sub-servicing obligations, which include obligations to collect and remit payments of principal and interest, manage payments of taxes and insurance, and otherwise administer the underlying loans. Accordingly, the Company recognized a mortgage servicing asset of $1.2 million on the sale date.

2021 Activity

On May 7, 2021, the Company entered into an arrangement through a third-party trust and Freddie Mac, by which a $262.0 million portfolio of multi-family loans were sold to the trust and ultimately securitized through Freddie Mac and sold to investors. The Company purchased two of the securities for a total of $28.7 million. The transfer of these loans was accounted for as a sale for financial reporting purposes, in accordance with ASC 860, and a $676,000 net loss on sale was recognized, which included the impact of establishing a risk share allowance and servicing rights associated with this transaction.  

Beyond holding the two securities, the Company’s ongoing involvement in this transaction is limited to customary obligations of loan sales, including any material breach in representation.  In connection with the securitization and purchase of one of the securities, Merchants maintains a first loss position in the underlying loan portfolio not to exceed 10% of the unpaid principal amount of the loans comprising the securitization pool at settlement, or approximately $26.2 million.  Therefore, a reserve of $1.4 million for estimated losses was established with respect to the first loss obligation at May 7, 2021, which was included in other liabilities on the consolidated balance sheets.  These estimated losses were consistent with the amount in allowance for loan losses that was released when the loans were sold. If the Company sells one of the securities, this first loss obligation would be eliminated.

As part of the securitization transaction, Merchants released all mortgage servicing obligations and rights to Freddie Mac who was designated as the Master Servicer. As Master Servicer, Freddie Mac appointed the Company with sub-servicing obligations, which include obligations to collect and remit payments of principal and interest, manage payments of taxes and insurance, and otherwise administer the underlying loans. Accordingly, the company recognized a mortgage servicing asset of $730,000 on the sale date.

Loans Purchased

The Company purchased $92.5 million and $250.7 million of loans during the six months ended June 30, 2022 and 2021, respectively.

v3.22.2
Variable Interest Entities (VIEs)
 6 Months Ended
Jun. 30, 2022
Variable Interest Entities (VIEs).  
Variable Interest Entities (VIEs)

Note 5:   Variable Interest Entities (VIEs)

A VIE is a corporation, partnership, limited liability company, or any other legal structure used to conduct activities or hold assets generally that either:

​

●Does not have equity investors with voting rights that can directly or indirectly make decisions about the entity’s activities through those voting rights or similar rights; or

​

●Has equity investors that do not provide sufficient equity for the entity to finance its activities without additional subordinated financial support.

The Company has invested in single-family, multi-family, and healthcare debt financing entities, as well as low-income housing syndicated funds that are deemed to be VIEs. Accordingly, the entities were assessed for potential

consolidation under the VIE model that requires primary beneficiaries to consolidate the entity’s results. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the entity, and an interest that could be significant to the entity. To determine if an interest could be significant to the entity, both qualitative and quantitative factors regarding the nature, size and form of involvement with the entity are evaluated.

​

At June 30, 2022 the Company determined it was not the primary beneficiary of its VIEs primarily because the Company did not have the obligation to absorb losses or the rights to receive benefits from the VIE that could potentially be significant to the VIE. Evaluation and assessment of VIEs for consolidation is performed on an ongoing basis by management. Any changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment.

​

The Company’s maximum exposure to loss associated with its VIEs consists of the capital invested plus any unfunded equity commitments. These investments are recorded in other assets and other liabilities on our consolidated balance sheet. The table below reflects the size of the VIEs as well as our maximum exposure to loss in connection with these investments at June 30, 2022, and December 31, 2021.

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

​

Total

​

Maximum

Assets ($ in thousands)

    

Assets

    

Liabilities

    

Exposure to Loss

​

​

(In thousands)

June 30, 2022

​

 

  

​

 

  

​

 

  

Unconsolidated VIEs

​

$

39,898

​

$

14,823

​

$

38,414

December 31, 2021

​

 

  

​

 

  

​

 

  

Unconsolidated VIEs

​

$

36,573

​

$

21,014

​

$

36,164

​
v3.22.2
Regulatory Matters
 6 Months Ended
Jun. 30, 2022
Regulatory Matters  
Regulatory Matters

Note 6:   Regulatory Matters

​

The Company, Merchants Bank, and FMBI 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, Merchants Bank, and FMBI must meet specific capital guidelines that involve quantitative measures of the Company’s, Merchants Bank’s, and FMBI’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s, Merchants Bank’s, and FMBI’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, and other factors. Furthermore, the Company’s, Merchants Bank’s, and FMBI’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

On November 13, 2019, the federal regulators finalized and adopted a regulatory capital rule establishing a new community bank leverage ratio (“CBLR”), which became effective on January 1, 2020. The intent of CBLR is to provide a simple alternative measure of capital adequacy for electing qualifying depository institutions and depository institution holding companies, as directed under the Economic Growth, Regulatory Relief, and Consumer Protection Act. Under CBLR, if a qualifying depository institution or depository institution holding company elects to use such measure, such institution or holding company will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds a 9% threshold, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios. Eligibility criteria to utilize CBLR includes the following:

●Total assets of less than $10 billion,
●Total trading assets plus liabilities of 5% or less of consolidated assets,
●Total off-balance sheet exposures of 25% or less of consolidated assets,
●Cannot be an advanced approaches banking organization, and
●Leverage ratio greater than 9%, or temporarily prescribed threshold established in response to COVID-19.

​

The Company, Merchants Bank, and FMBI elected to begin using CBLR in the first quarter of 2020 and all intend to utilize this measure until they no longer meet the eligibility criteria and the applicable grace periods have expired. Accordingly, the Company will not calculate or report risk-based capital ratios at this time.

At June 30, 2022 the Company’s off-balance sheets exposures exceeded 25% of total assets. If these exposures remain above 25%, the Company may no longer be eligible to utilize CBLR after September 30, 2022, when the grace periods expire. Additionally, total assets exceeded $10 billion and the Company is prepared to address the additional regulatory requirements and does not expect it to have significant financial implications.

Management believes, as of June 30, 2022 and December 31, 2021, that the Company, Merchants Bank, and FMBI met all the regulatory capital adequacy requirements with CBLR to be classified as well-capitalized, and management is not aware of any conditions or events since the most recent regulatory notification that would change the Company’s, Merchants Bank’s, or FMBI’s category.

As of June 30, 2022 and December 31, 2021, 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 FDIC categorized Merchants Bank and FMBI 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, Merchants Bank’s, or FMBI’s 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

​

​

​

Actual

​

Capitalized(1)

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

    

​

​

(Dollars in thousands)

​

June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

CBLR (Tier 1) capital(1) (to average assets)

​

 

​

 

  

​

 

  

 

​

​

(i.e., CBLR - leverage ratio)

​

​

​

​

​

​

​

​

​

​

​

Company

​

$

1,217,718

 

12.4

%  

$

882,179

 

> 9

%  

Merchants Bank

​

​

1,171,291

 

12.3

%  

 

857,175

 

> 9

%  

FMBI

​

 

31,104

 

10.3

%  

 

27,088

 

> 9

%  

(1)As defined by regulatory agencies.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum Amount

​

​

​

​

​

​

​

​

To Be Well

​

​

​

Actual

​

Capitalized(1)

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

​

​

​

(Dollars in thousands)

​

December 31, 2021

​

​

​

​

​

​

​

​

​

​

​

CBLR (Tier 1) capital(1) (to average assets)

 

​

  

 

  

 

​

  

 

  

 

(i.e., CBLR - leverage ratio)

​

​

​

​

​

​

​

​

​

​

​

Company

​

$

1,138,090

 

10.4

%  

$

928,731

 

> 8.5

%  

Merchants Bank

​

 

1,088,621

 

10.3

%  

 

901,188

 

> 8.5

%  

FMBI

​

​

28,958

 

9.7

%  

 

25,499

 

> 8.5

%  

(1)As defined by regulatory agencies.

​

Failure to exceed the leverage ratio thresholds required under CBLR in the future, subject to any applicable grace period, would require the Company, Merchants Bank, and/or FMBI to return to the risk-based capital ratio thresholds previously utilized under the fully phased-in Basel III Capital Rules to determine capital adequacy.

v3.22.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2022
Derivative Financial Instruments  
Derivative Financial Instruments

Note 7: Derivative Financial Instruments

​

The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities.

Forward Sales Commitments, Interest Rate Lock Commitments, and Interest Rate Swaps

The Company enters into forward contracts for the future delivery of mortgage loans to third party investors and enters into interest rate lock commitments with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts are entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans.

Interest rate swaps are also used by the Company to reduce the risk that significant increases in interest rates may have on the value of certain loans held for sale and the respective loan payments received from borrowers.  All changes in the fair market value of these interest rate swaps and loans held for sale have been included in gain on sale of loans.  Any difference between the fixed and floating interest rate components of these transactions have been included in interest income.

​

All of these items are considered derivatives, but are not designated as accounting hedges, and are recorded at fair value with changes in fair value reflected in noninterest income on the condensed consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in other assets in the condensed consolidated balance sheets while derivative instruments with a negative fair value are reported in other liabilities in the condensed consolidated balance sheets.

The following table presents the notional amount and fair value of interest rate locks, forward contracts, and interest rate swaps utilized by the Company at June 30, 2022 and December 31, 2021.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

June 30, 2022

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

62,301

​

​

Other assets/liabilities

​

$

299

​

$

121

Forward contracts

$

49,750

​

​

Other assets/liabilities

​

​

114

​

​

203

Interest rate swaps

$

25,190

​

​

Other assets/liabilities

​

 

160

​

​

—

​

​

​

​

​

​

​

$

573

​

$

324

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

December 31, 2021

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

58,701

​

​

Other assets/liabilities

​

$

264

​

$

41

Forward contracts

$

81,250

​

​

Other assets/liabilities

​

 

86

​

​

118

​

​

​

​

​

​

​

$

350

​

$

159

​

Fair values of these derivative financial instruments were estimated using changes in mortgage interest rates from the date the Company entered into the interest rate lock commitment and the balance sheet date. The following table summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income for the three and six months ended June 30, 2022 and 2021.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2022

    

2021

    

2022

    

2021

​

​

(In thousands)

​

​

(In thousands)

Derivative gain (loss) included in other income:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

$

837

​

$

1,046

​

$

(45)

​

$

(5,698)

Forward contracts (includes pair-off settlements)

​

​

1,309

​

​

(2,289)

​

​

4,459

​

​

6,107

Net derivative gains (loss)

​

$

2,146

​

$

(1,243)

​

$

4,414

​

$

409

Gain (loss) included in gain on sale of loans:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rates swaps - change in fair value

​

​

160

​

​

—

​

​

160

​

​

—

Hedged loans held for sale - change in fair value

​

​

(165)

​

​

—

​

 

(165)

​

​

—

Net gain (loss)

​

$

(5)

​

$

—

​

$

(5)

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivatives on Behalf of Customers

The Company offers derivative contracts to some customers in connection with their risk management needs. These derivatives include back-to-back interest rate swaps. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party dealer. These derivatives generally work together as an economic interest rate hedge, but the Company does not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred, typically resulting in no net earnings impact. The fair values of derivative assets and liabilities related to derivatives for customers with back-to-back interest rate swaps were recorded in the condensed consolidated balance sheets as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

​

​

(In thousands)

​

​

​

​

​

(In thousands)

June 30, 2022

$

181,805

​

​

Other assets/liabilities

​

$

3,662

​

$

3,662

December 31, 2021

$

135,686

​

​

Other assets/liabilities

​

$

1,131

​

$

1,131

​

The gross gains and losses on these derivative assets and liabilities were recorded in other noninterest income and other noninterest expense in the condensed consolidated statements of income as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2022

    

2021

    

2022

    

2021

​

​

(In thousands)

​

​

(In thousands)

Gross swap gains

​

$

2,035

​

$

195

​

$

2,531

​

$

1,081

Gross swap losses

​

​

2,035

​

​

195

​

 

2,531

​

​

1,081

Net swap gains (losses)

​

$

—

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

The Company pledged $2.9 million and $3.9 million in collateral to secure its obligations under back-to-back swap contracts at June 30, 2022 and December 31, 2021, respectively.

v3.22.2
Disclosures about Fair Value of Assets and Liabilities
 6 Months Ended
Jun. 30, 2022
Disclosures about Fair Value of Assets and Liabilities  
Disclosures about Fair Value of Assets and Liabilities

Note 8:   Disclosures about Fair Value of Assets and Liabilities

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable

inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1    Quoted prices in active markets for identical assets or liabilities

Level 2    Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3    Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities

Recurring Measurements

The following tables present the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022 and December 31, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

Quoted Prices in

​

Significant

​

 

​

​

​

​

​

​

Active Markets 

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable 

​

​

Fair

​

Assets

​

Inputs

​

Inputs

Assets

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

​

​

(In thousands)

June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

323,046

​

$

—

​

$

323,046

​

$

—

Available for sale securities:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

34,804

​

 

34,804

​

 

—

​

 

—

Federal agencies

​

 

274,852

​

 

—

​

 

274,852

​

 

—

Mortgage-backed - Government-sponsored entity (GSE)

​

 

15,779

​

 

—

​

 

15,779

​

 

—

Mortgage-backed - Non-GSE multi-family

​

​

11,379

​

​

—

​

 

11,379

​

 

—

Loans held for sale

​

 

41,991

​

 

—

​

 

41,991

​

 

—

Servicing rights

​

 

130,710

​

 

—

​

 

—

​

 

130,710

Derivative assets - interest rate lock commitments

​

 

299

​

 

—

​

 

—

​

 

299

Derivative assets - forward contracts

​

 

114

​

 

—

​

 

114

​

 

—

Derivative assets - interest rate swaps

​

​

160

​

​

—

​

​

160

​

​

—

Derivative assets - interest rate swaps (back-to-back)

​

 

3,662

​

 

—

​

 

3,662

​

 

—

Derivative liabilities - interest rate lock commitments

​

 

121

​

​

—

​

​

—

​

​

121

Derivative liabilities - forward contracts

​

 

203

​

​

—

​

​

203

​

​

—

Derivative liabilities - interest rate swaps (back-to-back)

​

 

3,662

​

​

—

​

​

3,662

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

  

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

569,239

​

$

—

​

$

569,239

​

$

—

Available for sale securities:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

8,209

​

 

8,209

​

 

—

​

 

—

Federal agencies

​

 

263,295

​

 

—

​

 

263,295

​

 

—

Municipals

​

 

4,300

​

 

—

​

 

4,300

​

 

—

Mortgage-backed - Government-sponsored entity (GSE)

​

 

18,360

​

 

—

​

 

18,360

​

 

—

Mortgage-backed - Non-GSE multi-family

​

​

16,465

​

​

—

​

 

16,465

​

 

—

Loans held for sale

​

 

48,583

​

 

—

​

 

48,583

​

 

—

Servicing rights

​

 

110,348

​

 

—

​

 

—

​

 

110,348

Derivative assets - interest rate lock commitments

​

 

264

​

 

—

​

 

—

​

 

264

Derivative assets - forward contracts

​

 

86

​

 

—

​

 

86

​

 

—

Derivative assets - interest rate swaps (back-to-back)

​

​

1,131

​

​

—

​

​

1,131

​

​

—

Derivative liabilities - interest rate lock commitments

​

 

41

​

​

—

​

​

—

​

​

41

Derivative liabilities - forward contracts

​

 

118

​

​

—

​

​

118

​

​

—

Derivative liabilities - interest rate swaps (back-to-back)

​

 

1,131

​

​

—

​

​

1,131

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the six

months ended June 30, 2022 and the year ended December 31, 2021. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Mortgage Loans in Process of Securitization and Available for Sale Securities

Where quoted market prices are available in an active market, securities such as U.S. Treasuries are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy including federal agencies, mortgage-backed securities, municipal securities and Federal Housing Administration participation certificates. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Loans Held for Sale

Certain loans held for sale at fair value are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices, or market price equivalents, which would be used by other market participants. These saleable loans are considered Level 2.

Servicing Rights

Servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed, cost of servicing, interest rates, and default rate. Due to the nature of the valuation inputs, servicing rights are classified within Level 3 of the hierarchy.

The Chief Financial Officer’s (CFO) office contracts with a pricing specialist to generate fair value estimates on a quarterly basis. The CFO’s office challenges the reasonableness of the assumptions used and reviews the methodology to ensure the estimated fair value complies with accounting standards generally accepted in the United States.

Derivative Financial Instruments

The Company estimates the fair value of interest rate lock commitments based on the value of the underlying mortgage loan, quoted mortgage backed security prices, estimates of the fair value of the servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the interest rate lock commitment, net of expenses. With respect to its interest rate lock commitments, management determined that a Level 3 classification was most appropriate based on the various significant unobservable inputs utilized in estimating the fair value of its interest rate lock commitments. The Company estimates the fair value of forward sales commitments based on market quotes of mortgage backed security prices for securities similar to the ones used, which are considered Level 2. The fair value of interest rate swaps is based on prices that are obtained from a third party that uses observable market inputs, thereby supporting a Level 2 classification. Changes in fair value of the Company’s derivative financial instruments are recognized through noninterest income and/or noninterest expenses on its condensed consolidated statement of income.

Level 3 Reconciliation

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable (Level 3) inputs:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 

​

Six Months Ended June 30, 

​

    

2022

    

2021

    

2022

    

2021

​

​

(In thousands)

​

(In thousands)

Servicing rights

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

121,036

​

$

96,215

​

$

110,348

​

$

82,604

Additions

​

 

  

​

 

  

​

 

​

​

 

  

Originated servicing

​

 

5,203

​

 

6,527

​

 

10,995

​

 

16,708

Subtractions

​

 

  

​

 

  

​

 

  

​

 

  

Paydowns

​

 

(3,268)

​

 

(4,627)

​

 

(6,017)

​

 

(8,075)

Sales of servicing

​

​

—

​

​

(438)

​

​

—

​

​

(438)

Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model

​

 

7,739

​

 

654

​

 

15,384

​

 

7,532

Balance, end of period

​

$

130,710

​

$

98,331

​

$

130,710

​

$

98,331

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivative Assets - interest rate lock commitments

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

112

​

$

467

​

$

264

​

$

6,131

Changes in fair value

​

 

187

​

 

20

​

 

35

​

 

(5,644)

Balance, end of period

​

$

299

​

$

487

​

$

299

​

$

487

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivative Liabilities - interest rate lock commitments

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

771

​

$

1,080

​

$

41

​

$

—

Changes in fair value

​

 

(650)

​

 

(1,026)

​

 

80

​

 

54

Balance, end of period

​

$

121

​

$

54

​

$

121

​

$

54

​

Nonrecurring Measurements

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022 and December 31, 2021.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

Quoted Prices in

​

Significant

​

 

​

​

​

​

​

​

Active Markets 

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable 

​

​

Fair

​

Assets

​

Inputs

​

Inputs

Assets

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

​

​

(In thousands)

June 30, 2022

​

 

  

​

 

  

​

 

  

​

 

  

Collateral dependent loans

​

$

4,275

​

$

—

​

$

—

​

$

4,275

December 31, 2021

​

 

  

​

 

  

​

 

  

​

 

  

Impaired loans (collateral-dependent)

​

$

4,263

​

$

—

​

$

—

​

$

4,263

​

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Collateral Dependent Loans, Net of ACL-Loans

The estimated fair value of collateral dependent loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral dependent loans are classified within Level 3 of the fair value hierarchy.

The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Chief Credit Officer’s (“CCO)” office. Appraisals and evaluations are reviewed for accuracy and consistency by the CCO’s office. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the CCO’s office by comparison to historical results.

Unobservable (Level 3) Inputs:

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Valuation

​

​

​

​

​

Weighted

​

    

Fair Value

    

Technique

    

Unobservable Inputs

​

Range

    

Average

​

​

(In thousands)

​

​

​

​

​

​

​

​

At June 30, 2022:

 

​

  

 

  

​

​

​

​

 

​

Collateral dependent loans

​

$

4,275

 

Market comparable properties

 

Marketability discount

​

82%

 

82%

Servicing rights - Multi-family

​

$

97,059

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

8%

​

​

​

​

​

​

​

Constant prepayment rate

​

0% - 50%

 

3%

Servicing rights - Single-family

​

$

29,632

 

Discounted cash flow

 

Discount rate

​

9% - 10%

​

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

7% - 9%

​

7%

Servicing rights - SBA

​

$

4,019

 

Discounted cash flow

 

Discount rate

​

16%

​

16%

​

​

​

​

​

​

​

Constant prepayment rate

​

3% - 16%

​

8%

Derivative assets - interest rate lock commitments

​

$

299

 

Discounted cash flow

 

Loan closing rates

​

50% - 99%

 

81%

Derivative liabilities - interest rate lock commitments

​

$

121

 

Discounted cash flow

 

Loan closing rates

​

50% - 99%

 

81%

​

​

​

​

​

​

​

​

​

​

​

​

At December 31, 2021:

​

 

  

 

  

​

​

​

​

 

​

Collateral-dependent impaired loans

​

$

4,263

 

Market comparable properties

 

Marketability discount

​

44% - 76%

 

73%

Servicing rights - Multi-family

​

$

84,567

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

0 - 50%

 

4%

Servicing rights - Single-family

​

$

23,012

 

Discounted cash flow

 

Discount rate

​

9% - 10%

​

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

10 - 13%

​

11%

Servicing rights - SBA

​

$

2,769

 

Discounted cash flow

 

Discount rate

​

16%

 

16%

​

​

​

​

​

​

​

Constant prepayment rate

​

10% - 13%

​

12%

Derivative assets - interest rate lock commitments

​

$

264

 

Discounted cash flow

 

Loan closing rates

​

63% - 99%

 

83%

Derivative liabilities - interest rate lock commitments

​

$

41

 

Discounted cash flow

 

Loan closing rates

​

63% - 99%

 

83%

​

Sensitivity of Significant Unobservable Inputs

The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement, and of how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement.

Servicing Rights

The significant unobservable inputs used in the fair value measurement of the Company’s servicing rights are discount rates and constant prepayment rates. These two inputs can drive a significant amount of a market participant’s valuation of servicing rights. Significant increases (decreases) in the discount rate or assumed constant prepayment rates used to value servicing rights would decrease (increase) the value derived.

Fair Value of Financial Instruments

The following table presents the carrying amount and estimated fair values of the Company’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022 and December 31, 2021.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

​

​

​

Quoted Prices in

​

Significant

​

 

​

​

​

​

​

​

​

​

​

Active Markets 

​

Other

​

Significant

​

​

​

​

​

​

​

​

for Identical

​

Observable

​

Unobservable 

​

​

Carrying

​

Fair

​

Assets

​

Inputs

​

Inputs

Assets

    

Value

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

​

​

(In thousands)

June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

258,146

​

$

258,146

​

$

258,146

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

3,520

​

 

3,520

​

 

—

​

 

3,520

​

 

—

FHLB stock

​

 

39,130

​

 

39,130

​

 

—

​

 

39,130

​

 

—

Loans held for sale

​

 

2,717,125

​

 

2,717,125

​

 

—

​

 

2,717,125

​

 

—

Loans receivable, net

​

 

7,033,203

​

 

7,046,313

​

 

—

​

 

—

​

 

7,046,313

Interest receivable

​

 

26,184

​

 

26,184

​

 

—

​

 

26,184

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

Deposits

​

 

8,299,738

​

 

8,294,601

​

 

6,829,667

​

 

1,464,934

​

 

—

Short-term subordinated debt

​

 

19,000

​

 

19,000

​

 

—

​

 

19,000

​

 

—

FHLB advances

​

 

851,904

​

 

851,711

​

 

—

​

 

851,711

​

 

—

Other borrowing

​

​

570,000

​

​

570,000

​

​

—

​

​

570,000

​

​

—

Interest payable

​

 

3,805

​

 

3,805

​

 

—

​

 

3,805

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

1,032,614

​

$

1,032,614

​

$

1,032,614

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

5,888

​

 

5,888

​

 

—

​

 

5,888

​

 

—

FHLB stock

​

 

29,588

​

 

29,588

​

 

—

​

 

29,588

​

 

—

Loans held for sale

​

 

3,254,616

​

 

3,254,616

​

 

—

​

 

3,254,616

​

 

—

Loans receivable, net

​

 

5,751,319

​

 

5,731,500

​

 

—

​

 

—

​

 

5,731,500

Interest receivable

​

 

24,103

​

 

24,103

​

 

—

​

 

24,103

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

Deposits

​

 

8,982,613

​

 

8,982,680

​

 

7,783,553

​

 

1,199,127

​

 

—

Short-term subordinated debt

​

 

17,000

​

 

17,000

​

 

—

​

 

17,000

​

 

—

FHLB advances

​

 

556,954

​

 

556,925

​

 

—

​

 

556,925

​

 

—

Other borrowing

​

​

460,000

​

​

460,000

​

​

—

​

​

460,000

​

​

—

Interest payable

​

 

1,469

​

 

1,469

​

 

—

​

 

1,469

​

 

—

​
v3.22.2
Leases
 6 Months Ended
Jun. 30, 2022
Leases.  
Leases

​

​

​

​

​

​

​

​

​

Note 9:   Leases

The Company has operating leases for various locations with terms ranging from two to eleven years. Some operating leases included in the right-of-use asset include options to extend the leases if the likelihood of extension was fairly certain. The Company elected not to separate non-lease components from lease components for its operating leases.

The Company has operating lease right-of-use assets of $9.2 million and operating lease liabilities of $9.9 million as of June 30, 2022.

Balance sheet, income statement and cash flow detail regarding operating leases follows:

​

​

​

​

​

​

June 30, 2022

Balance Sheet

​

(In thousands)

Operating lease right-of-of use asset (in other assets)

$

9,189

Operating lease liability (in other liabilities)

​

9,920

​

​

​

Weighted average remaining lease term (years)

​

7.2

Weighted average discount rate

​

2.09%

​

​

​

Maturities of lease liabilities:

​

​

2022 remaining

$

864

2023

​

1,812

2024

​

1,638

2025

​

1,246

2026

​

1,277

Thereafter

​

3,857

Total future minimum lease payments

​

10,694

Less: imputed interest

​

774

Total

$

9,920

​

​

​

​

​

Three Months Ended

​

​

June 30, 2022

Income Statement

​

(In thousands)

Components of lease expense:

​

​

Operating lease cost (in occupancy and equipment expense)

$

425

​

​

​

​

​

Six Months Ended

​

​

June 30, 2022

Income Statement

​

(In thousands)

Components of lease expense:

​

​

Operating lease cost (in occupancy and equipment expense)

$

792

​

​

​

​

​

Six Months Ended

​

​

June 30, 2022

Cash Flow Statement

​

(In thousands)

Supplemental cash flow information:

​

​

Operating cash flows from operating leases

$

597

​
v3.22.2
Earnings Per Share
 6 Months Ended
Jun. 30, 2022
Earnings Per Share  
Earnings Per Share

Note 10:   Earnings Per Share

Earnings per share were computed as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Month Periods Ended June 30, 

​

​

2022

​

2021

​

​

​

​

​

Weighted-

​

Per 

​

​

​

​

Weighted-

​

Per 

​

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

​

​

(In thousands)

​

​

​

​

​

​

(In thousands)

​

​

​

​

​

Net income

​

$

53,935

 

  

 

​

  

​

$

51,417

 

  

 

​

  

Dividends on preferred stock

​

 

(5,729)

 

  

 

​

  

​

 

(5,659)

 

  

 

​

  

Net income allocated to common shareholders

​

$

48,206

 

  

 

​

  

​

$

45,758

 

  

 

​

  

Basic earnings per share(1)

​

 

  

 

43,209,824

​

$

1.12

​

 

  

 

43,174,220

​

$

1.06

Effect of dilutive securities-restricted stock awards(1)

​

 

  

 

125,387

​

 

  

​

 

  

 

137,268

​

 

  

Diluted earnings per share(1)

​

 

  

 

43,335,211

​

$

1.11

​

 

  

 

43,311,488

​

$

1.06

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Month Periods Ended June 30, 

​

​

2022

​

2021

 

​

​

​

​

​

​

Weighted-

​

Per 

​

​

​

​

Weighted-

​

Per 

​

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

​

​

(In thousands)

​

​

​

​

​

​

(In thousands)

​

​

​

 

​

Net income

​

$

104,077

 

  

 

​

  

​

$

113,400

 

  

 

​

  

Dividends on preferred stock

​

 

(11,457)

 

  

 

​

  

​

 

(9,416)

 

  

 

​

  

Net income allocated to common shareholders

​

$

92,620

 

  

 

​

  

​

$

103,984

 

  

 

​

  

Basic earnings per share

​

 

  

 

43,220,198

​

$

2.14

​

 

  

 

43,166,223

​

$

2.41

Effect of dilutive securities-restricted stock awards

​

 

  

 

147,677

​

 

  

​

 

  

 

127,376

​

 

  

Diluted earnings per share

​

 

  

 

43,367,875

​

$

2.14

​

 

  

 

43,293,599

​

$

2.40

​

​

​

​

​

​

​

​

(1)The number of shares and per share amounts have been restated to reflect the 3-for-2 common stock split, effective on January 17, 2022.
v3.22.2
Common Stock
 6 Months Ended
Jun. 30, 2022
Common Stock  
Common Stock

​

Note 11:   Common Stock

Stock Splits:

​

On November 17, 2021, the Company approved a 3-for-2 common stock split. Shareholders of record at the close of business on January 3, 2022 received one additional share of Merchants Bancorp common stock for every two shares owned. These additional shares were distributed on or around January 17, 2022. Cash was distributed in lieu of fractional shares based on the closing price of Merchants’ common stock on Nasdaq on January 3, 2022. The presentation of authorized common shares has been retrospectively adjusted to give effect to the increase, and all share and per share amounts have been retrospectively adjusted to give effect to the split.

​

​

​

​

​

​

​

Repurchase of Common Stock:

During the three months ended June 30, 2022, the Company repurchased 165,037 shares for $3.9 million at an average price of $23.85 per share of common stock. The Company did not have any repurchases of common stock during the three months ended June 30, 2021. The following table presents our repurchase activity on a cash basis:

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

June 30, 

​

​

​

2022

Dollar value of shares repurchased

​

$

3,935,333

Shares repurchased(1)

​

​

165,037

Average price paid per share

​

$

23.85

​

(1)On November 17, 2021, the Company announced an increase in authorization for its stock repurchase program, up to $75,000,000 of common stock, expiring December 31, 2023. On April 29, 2022, the Company entered into a Rule 10b5-1 plan (the “10b5-1 Plan”) with a broker for the repurchase of shares of its common stock commencing on May 3, 2022. The details of this repurchase plan were provided in the Form 8-K filed by the Company on May 24, 2022.
v3.22.2
Share-Based Payment Plans
 6 Months Ended
Jun. 30, 2022
Share-Based Payment Plans  
Share-Based Payment Plans

Note 12:   Share-Based Payment Plans

Equity-based incentive awards for Company officers are currently issued pursuant to the 2017 Equity Incentive Plan (the “2017 Incentive Plan”). During the three months ended June 30, 2022 and 2021, the Company did not issue any shares. During the six months ended June 30, 2022 and 2021, the Company issued 64,962 and 35,056 shares, respectively.

During 2018, the Compensation Committee of the Board of Directors approved a plan for non-executive directors to receive a portion of their annual retainer fees in the form of shares of common stock equal to $10,000, rounded up to the nearest whole share. In January 2021, the Board of Directors amended the plan for nonexecutive directors to receive a portion of their annual fees, issued quarterly, in the form of restricted common stock equal to $50,000 per member, rounded up to the nearest whole share, to be effective after the Company’s annual meeting of shareholders held in May 2021. There were 3,766 and 5,821 shares issued to non-executive directors during the three and six months ended June 30, 2022, respectively and there were 2,190 and 4,695 shares issued to non-executive directors during the three and six months ended June 30, 2021, respectively.

v3.22.2
Preferred Stock
 6 Months Ended
Jun. 30, 2022
Preferred Stock  
Preferred Stock

Note 13:   Preferred Stock

Public Offerings of Preferred Stock:

​

On March 28, 2019, the Company issued 2,000,000 shares of 7.00% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock, without par value, and with a liquidation preference of $25.00 per share (the “Series A Preferred Stock”). The aggregate gross offering proceeds for the shares issued by the Company was $50.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $1.7 million paid to third parties, the Company received total net proceeds of $48.3 million. On April 12, 2019, the Company issued an additional 81,800 shares of Series A Preferred Stock to the underwriters related to their exercise of an option to purchase additional shares under the associated underwriting agreement, resulting in an additional $2.0 million in net proceeds, after deducting $41,000 in underwriting discounts. The Series A Preferred Stock have no voting rights with respect to matters that generally require the approval of our common shareholders. Dividends on the Series A Preferred Stock, to the extent declared by the Company’s board, are payable quarterly. The Company may redeem the Series A Preferred Stock, in whole or in part, at its option, on any dividend payment date on or after April 1, 2024, subject to the

approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption.

On August 19, 2019, the Company issued 5,000,000 depositary shares, each representing a 1/40th interest in a share of its 6.00% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, without par value (the “Series B Preferred Stock”), and with a liquidation preference of $1,000.00 per share (equivalent to $25.00 per depositary share). The aggregate gross offering proceeds for the shares issued by the Company was $125.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $4.2 million paid to third parties, the Company received total net proceeds of $120.8 million. The Series B Preferred Stock have no voting rights with respect to matters that generally require the approval of our common shareholders. Dividends on the Series B Preferred Stock, to the extent declared by the Company’s board, are payable quarterly. The Company may redeem the Series B Preferred Stock, in whole or in part, at its option, on any dividend payment date on or after October 1, 2024, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption.

On March 23, 2021, the Company issued 6,000,000 depositary shares, each representing a 1/40th interest in a share of its 6.00% Fixed-to-Floating Rate Series C Non-Cumulative Perpetual Preferred Stock, without par value (the “Series C Preferred Stock”), and with a liquidation preference of $1,000.00 per share (equivalent to $25.00 per depositary share). The aggregate gross offering proceeds for the shares issued by the Company was $150.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $5.1 million paid to third parties, the Company received total net proceeds of $144.9 million. The Series C Preferred Stock have no voting rights with respect to matters that generally require the approval of our common shareholders. Dividends on the Series C Preferred Stock, to the extent declared by the Company’s board, are payable quarterly. The Company may redeem the Series C Preferred Stock, in whole or in part, at its option, on any dividend payment date on or after April 1, 2026, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption.

Private Placement Offerings of Preferred Stock

The Company previously issued a total of 41,625 shares of 8% Non-Cumulative, Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000.00 per share (8% Preferred Stock”) in private placement offerings.

On June 27, 2019 the Company issued an additional 874,000 shares of its 7.00% Series A Preferred Stock, without par value and with a liquidation preference of $25.00 per share, for aggregate proceeds of $21.85 million. No underwriter or placement agent was involved in this private placement and the Company did not pay any brokerage or underwriting fees or discounts in connection with the issuance of such shares. The shares were purchased primarily by related parties, including Michael Petrie, Chairman and Chief Executive Officer; Randall Rogers, Vice Chairman and a director and members of his family; Michael Dury, President and Chief Executive Officer of MCC; and other accredited investors.

On April 15, 2021, all 41,625 shares of the Company’s 8% preferred stock were redeemed for $41.6 million, plus unpaid dividends of $139,000. On May 6, 2021 these 8% preferred shareholders participated in a private offering to replace their redeemed shares with Series C Preferred Stock. Accordingly, 46,181 shares (1,847,233 depositary shares) of Series C Preferred Stock were issued at a price of $25 per depositary share. The total capital raised from the private offering was $46.2 million, net of $23,000 in expenses.

Repurchase of Preferred Stock:

On September 23, 2019 the Company repurchased and subsequently retired 874,000 shares of its 7.00% Series A Preferred Stock, for its liquidation preference of $25 per share, at an aggregate cost of $21.85 million. There were no brokerage fees in connection with the transaction.

​

On April 15, 2021, all 41,625 shares of the 8% Preferred Stock were redeemed for $41.6 million, plus unpaid dividends of $139,000, as noted above.

v3.22.2
Segment Information
 6 Months Ended
Jun. 30, 2022
Segment Information  
Segment Information

Note 14:   Segment Information

Our Company’s business segments are defined as Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The reportable business segments are consistent with the internal reporting and evaluation of the principal lines of business of the Company. The Multi-family Mortgage Banking segment originates and services government sponsored mortgages for multi-family and healthcare facilities. The Mortgage Warehousing segment funds agency eligible residential loans from the date of origination or purchase, until the date of sale in the secondary market, as well as commercial loans to non-depository financial institutions. The Banking segment provides a wide range of financial products and services to consumers and businesses, including retail banking, commercial lending, agricultural lending, retail and correspondent residential mortgage banking, and Small Business Administration (“SBA”) lending. Other includes general and administrative expenses that provide services to all segments; internal funds transfer pricing offsets resulting from allocations to/from the other segments, certain elimination entries and investments in qualified affordable housing limited partnerships. All operations are domestic.

The tables below present selected business segment financial information for the three and six months ended June 30, 2022 and 2021.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

    

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

​

​

(In thousands)

Three Months Ended June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

383

​

$

23,247

​

$

63,578

​

$

2,062

 

$

89,270

Interest expense

​

 

—

​

 

5,576

​

 

12,036

​

 

(373)

 

 

17,239

Net interest income

​

 

383

​

 

17,671

​

 

51,542

​

 

2,435

 

 

72,031

Provision for credit losses

​

 

1,153

​

 

834

​

 

4,225

​

 

—

 

 

6,212

Net interest income after provision for credit losses

​

 

(770)

​

 

16,837

​

 

47,317

​

 

2,435

 

 

65,819

Noninterest income

​

 

49,430

​

 

1,350

​

 

(10,252)

​

 

(1,357)

 

 

39,171

Noninterest expense

​

 

21,959

​

 

2,441

​

 

2,634

​

 

5,923

 

 

32,957

Income before income taxes

​

 

26,701

​

 

15,746

​

 

34,431

​

 

(4,845)

 

 

72,033

Income taxes

​

 

7,145

​

 

3,878

​

 

8,499

​

 

(1,424)

 

 

18,098

Net income (loss)

​

$

19,556

​

$

11,868

​

$

25,932

​

$

(3,421)

 

$

53,935

Total assets

​

$

330,676

​

$

2,836,998

​

$

7,835,152

​

$

83,229

 

$

11,086,055

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

​

​

(In thousands)

Three Months Ended June 30, 2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

204

​

$

29,935

​

$

40,983

​

$

1,316

 

$

72,438

Interest expense

​

 

—

​

 

1,599

​

 

7,216

​

 

(784)

 

 

8,031

Net interest income

​

 

204

​

 

28,336

​

 

33,767

​

 

2,100

 

 

64,407

Provision for credit losses

​

 

—

​

 

(40)

​

 

(275)

​

 

—

 

 

(315)

Net interest income after provision for credit losses

​

 

204

​

 

28,376

​

 

34,042

​

 

2,100

 

 

64,722

Noninterest income

​

 

28,572

​

 

3,079

​

 

2,613

​

 

(1,409)

 

 

32,855

Noninterest expense

​

 

13,626

​

 

2,703

​

 

7,496

​

 

4,358

 

 

28,183

Income before income taxes

​

 

15,150

​

 

28,752

​

 

29,159

​

 

(3,667)

 

 

69,394

Income taxes

​

 

4,179

​

 

7,304

​

 

7,418

​

 

(924)

 

 

17,977

Net income (loss)

​

$

10,971

​

$

21,448

​

$

21,741

​

$

(2,743)

 

$

51,417

Total assets

​

$

238,165

​

$

4,265,162

​

$

5,328,684

​

$

49,521

 

$

9,881,532

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

    

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

​

​

(In thousands)

Six Months Ended June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

640

​

$

43,576

​

​

117,303

​

$

3,763

 

$

165,282

Interest expense

​

 

—

​

 

7,597

​

 

20,553

​

 

(624)

 

 

27,526

Net interest income

​

 

640

​

 

35,979

​

 

96,750

​

 

4,387

 

 

137,756

Provision for credit losses

​

 

1,153

​

 

627

​

 

6,883

​

 

—

 

 

8,663

Net interest income after provision for credit losses

​

 

(513)

​

 

35,352

​

 

89,867

​

 

4,387

 

 

129,093

Noninterest income

​

 

81,616

​

 

3,210

​

 

(8,063)

​

 

(2,995)

 

 

73,768

Noninterest expense

​

 

38,490

​

 

5,367

​

 

9,208

​

 

10,925

 

 

63,990

Income before income taxes

​

 

42,613

​

 

33,195

​

 

72,596

​

 

(9,533)

 

 

138,871

Income taxes

​

 

11,565

​

 

8,168

​

 

17,900

​

 

(2,839)

 

 

34,794

Net income

​

$

31,048

​

$

25,027

​

$

54,696

​

$

(6,694)

 

$

104,077

Total assets

​

$

330,676

​

$

2,836,998

​

$

7,835,152

​

$

83,229

 

$

11,086,055

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

​

Total

​

​

(In thousands)

Six Months Ended June 30, 2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

411

​

$

68,522

​

$

80,523

​

$

2,531

 

$

151,987

Interest expense

​

 

—

​

 

3,323

​

 

13,655

​

 

(1,361)

 

 

15,617

Net interest income

​

 

411

​

 

65,199

​

 

66,868

​

 

3,892

 

 

136,370

Provision for credit losses

​

 

—

​

 

(1,124)

​

 

2,472

​

 

—

 

 

1,348

Net interest income after provision for credit losses

​

 

411

​

 

66,323

​

 

64,396

​

 

3,892

 

 

135,022

Noninterest income

​

 

61,806

​

 

7,196

​

 

10,291

​

 

(2,502)

 

 

76,791

Noninterest expense

​

 

30,070

​

 

5,599

​

 

14,621

​

 

7,977

 

 

58,267

Income before income taxes

​

 

32,147

​

 

67,920

​

 

60,066

​

 

(6,587)

 

 

153,546

Income taxes

​

 

9,215

​

 

17,289

​

 

15,300

​

 

(1,658)

 

 

40,146

Net income

​

$

22,932

​

$

50,631

​

$

44,766

​

$

(4,929)

 

$

113,400

Total assets

​

$

238,165

​

$

4,265,162

​

$

5,328,684

​

$

49,521

 

$

9,881,532

​
v3.22.2
Recent Accounting Pronouncements
 6 Months Ended
Jun. 30, 2022
Recent Accounting Pronouncements  
Recent Accounting Pronouncements

Note 15:   Recent Accounting Pronouncements

The Company is an emerging growth company and as such will be subject to the effective dates noted for private companies if they differ from the effective dates noted for public companies.

FASB ASU 2016-13, Financial Instruments—Credit Losses

The Company adopted FASB Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) on January 1, 2022. The amendments in this ASU replace the incurred loss model with a methodology that reflects the “current expected credit losses” over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. ASU 2016-13 replaces the incurred loss impairment methodology with a new methodology that reflects expected credit losses over the lives of the loans and requires consideration of a broader range of information to form credit loss estimates. The ASU requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts.

As of the adoption date on January 1, 2022, the Company recorded a $3.6 million decrease, net of taxes, to retained earnings for the cumulative effect of adopting CECL. The transition adjustment included a $0.3 million increase to retained earnings related to ACL-Loans and a $5.2 million decrease to retained earnings related to ACL-OBCEs.

FASB ASU 2016-02, Leases

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, “Leases.” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date:

●A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and
●A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, “Revenue from Contracts with Customers.” The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach.

The Company adopted this new guidance on January 1, 2022 and has elected the alternative transition method whereby comparative periods will not be restated. The Company also elected the package of practical expedients permitted under the transition guidance within the new standard. At the adoption date, the Company reported increased assets of approximately $7.1 million, liabilities of approximately $7.2 million, and retained earnings, net of tax of $110,000 on its consolidated balance sheets as a result of recognizing right-of-use assets and lease liabilities related to non-cancelable operating lease agreements.

FASB ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

​

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the LIBOR or other interbank offered rate on financial reporting. To help with the transition to new reference rates, the ASU provides optional expedients and exceptions for applying GAAP to affected contract modifications and hedge accounting relationships. The main provisions include:

​

●A change in a contract’s reference interest rate would be accounted for as a continuation of that contract rather than as the creation of a new one for contracts, including loans, debt, leases, and other arrangements, that meet specific criteria.

​

●When updating its hedging strategies in response to reference rate reform, an entity would be allowed to preserve its hedge accounting.

​

Entities may apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022.  The Company has organized a committee and implemented a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. All new contracts have incorporated language to address any required transition from LIBOR. The Company will continue to monitor and evaluate existing contracts throughout 2022. The Company believes the adoption of this guidance will not have a material impact on the consolidated financial statements.

FASB ASU 2022-02 - Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures

​

In February 2022, the FASB issued an ASU update to eliminate the recognition and measurement guidance on troubled debt restructurings for creditors that have adopted CECL and require enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. The new guidance also requires public business entities to present current-period gross write-offs (on a current year-to-date basis for interim-period disclosures) by year of origination in their vintage disclosures. These changes would be applied on a prospective basis.  Disclosure would not be required to prior period comparative periods.

The updates in ASU 2022-02 are effective for interim and annual periods beginning after December 15, 2022.  The Company is continuing to evaluate the impact of adopting this new guidance but does not expect it to have a material impact on the Company’s financial position or results of operations.
v3.22.2
Subsequent Events
 6 Months Ended
Jun. 30, 2022
Subsequent Events  
Subsequent Events

Note 16:   Subsequent Events

No material events were noted.
v3.22.2
Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2022
Basis of Presentation  
Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Merchants Bancorp, a registered bank holding company (the “Company”) and its wholly owned subsidiaries, Merchants Bank of Indiana (“Merchants Bank”), Farmers-Merchants Bank of Illinois (“FMBI”) and Merchants Asset Management, LLC (“MAM”). Merchants Bank’s primary operating subsidiaries include Merchants Capital Corp. (‘MCC”), Merchants Capital Servicing, LLC (“MCS”), and Merchants Capital Investments, LLC (“MCI”). All direct and indirectly owned subsidiaries owned by Merchants Bancorp are collectively referred to as the “Company”.

The accompanying unaudited condensed consolidated balance sheet of the Company as of December 31, 2021, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, were prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the audited financial statements and notes thereto of the Company as of and for the year ended December 31, 2021 in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Financial Statements contained in the Annual Report on Form 10-K.

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included to present fairly the financial position as of June 30, 2022 and the results of operations for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. All interim amounts have not been audited and the results of operations for the three and six months ended June 30, 2022, herein are not necessarily indicative of the results of operations to be expected for the entire year.
Principles of Consolidation

Principles of Consolidation

The unaudited condensed consolidated financial statements as of and for the period ended June 30, 2022 and 2021 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, FMBI and MAM. Also included are Merchants Bank’s primary operating subsidiaries, MCC, MCS and MCI, as well as all direct and indirectly owned subsidiaries owned by Merchants Bancorp.

In addition, when the Company makes an equity investment in an entity for which it holds a variable interest, it is evaluated for consolidation requirements under Accounting Standards Update of Topic 810. Accordingly, the entity is assessed for potential consolidation under the variable interest entity (“VIE”) model and would only consolidate those entities for which it is a primary beneficiary. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the entity, and an interest that could be significant to the entity. To determine if an interest could be significant to the entity, both qualitative and quantitative factors regarding the nature, size and form of our involvement with the entity are evaluated. Alternatively, under the voting interest model, it would only consolidate those entities for which it has a controlling interest. Because the variable interest investments held by the Company as of June 30, 2022 are not deemed to be primary beneficiaries or controlling interests, the entities are not consolidated and the equity method or proportional method of accounting has been applied. The Company will analyze whether its entities are the primary beneficiary on an ongoing basis. Changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment. See Note 5: Variable Interest Entities (VIEs) for additional information about VIEs.

All significant intercompany accounts and transactions have been eliminated in consolidation.

Deconsolidation

Deconsolidation

The unaudited condensed consolidated financial statements included consolidated results from certain entities primarily involved in single-family debt financing until January 30, 2021, while the Company was deemed to be a primary beneficiary. On February 1, 2021, the Company’s single-family debt fund entities were restructured in such a way that its ownership and participation was significantly reduced with the inclusion of additional, unrelated investors and the Company was no longer classified as a primary beneficiary.  Accordingly, results from these entities were no longer consolidated after this date, in accordance with the consolidation guidelines of the Accounting Standards Update of Topic 810.

Following the deconsolidation, the carrying value of assets and liabilities of these entities were removed from the consolidated balance sheet, and the continuing investments were recorded at fair value at the date of deconsolidation. The total amount deconsolidated from the balance sheet included net assets of approximately $10 million, consisting primarily of $66.6 million in loans receivable, and $52.7 million in borrowings with Merchants Bank that was previously eliminated in consolidation.  The fair value of its continuing investments was approximately $10 million on the deconsolidation date and has been reported in Other Assets after deconsolidation. The estimated fair value was determined based on third-party evaluations of similar assets in the underlying business. The difference between the fair value of these deconsolidated entities and their carrying value was deemed to be immaterial, resulting in no gain or loss on deconsolidation. These continuing investments after deconsolidation are classified as variable interest entities, have not been consolidated, and are accounted for under the equity method of accounting. See Note 5: Variable Interest Entities (VIEs) for additional information about VIEs.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses on loans, servicing rights and fair values of financial instruments.

v3.22.2
Basis of Presentation (Tables)
 6 Months Ended
Jun. 30, 2022
Basis of Presentation  
Schedule of impact of the adoption of CECL

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Impact of

​

​

January 1, 2022

​

​

​

​

​

CECL

​

​

Post-CECL

​

    

December 31, 2021

    

Adoption

    

Adoption

Assets:

​

(In thousands)

MTG WHLOC

​

$

1,955

​

$

41

​

$

1,996

RES RE

​

 

4,170

​

​

275

​

 

4,445

MF FIN

​

​

14,084

​

​

520

​

​

14,604

HC FIN

​

​

4,461

​

​

139

​

​

4,600

CML & CRE

​

 

5,879

​

 

(1,277)

​

 

4,602

AG & AGRE

​

​

657

​

​

(18)

​

​

639

CON & MAR

​

 

138

​

 

21

​

 

159

ACL - Loans

​

$

31,344

​

$

(299)

​

$

31,045

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

​

​

​

​

​

​

​

​

ACL - OBCEs (in Other Liabilities)

​

$

—

​

$

5,176

​

$

5,176

​

​

​

​

​

​

​

​

​

​

Stockholders' Equity:

​

​

​

​

​

​

​

​

​

Retained earnings, net of tax

​

$

657,149

​

$

(3,648)

​

$

653,501
v3.22.2
Securities Available For Sale (Tables)
 6 Months Ended
Jun. 30, 2022
Securities Available For Sale  
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

​

​

​

​

Gross

​

Gross

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

35,111

​

$

1

​

$

308

​

$

34,804

Federal agencies

​

 

284,978

​

 

—

​

 

10,126

​

 

274,852

Mortgage-backed - Government-sponsored entity (GSE)

​

​

15,774

​

​

12

​

​

7

​

​

15,779

Mortgage-backed - Non-GSE multi-family

​

 

11,731

​

 

—

​

 

352

​

 

11,379

Total available for sale securities

​

$

347,594

​

$

13

​

$

10,793

​

$

336,814

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

​

​

​

Gross

​

Gross

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

8,232

​

$

4

​

$

27

​

$

8,209

Federal agencies

​

 

264,970

​

 

—

​

 

1,675

​

 

263,295

Municipals

​

 

4,300

​

 

—

​

 

—

​

 

4,300

Mortgage-backed - Government-sponsored entity (GSE)

​

​

18,664

​

​

32

​

​

336

​

​

18,360

Mortgage-backed - Non-GSE multi-family

​

 

16,424

​

 

41

​

 

—

​

 

16,465

Total available for sale securities

​

$

312,590

​

$

77

​

$

2,038

​

$

310,629
Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

December 31, 2021

​

​

Amortized

​

Fair

​

Amortized

​

Fair

​

    

Cost

    

Value

    

Cost

    

Value

Contractual Maturity

​

(In thousands)

Within one year

​

$

54,247

​

$

52,983

​

$

6,548

​

$

6,551

After one through five years

​

 

265,842

​

 

256,673

​

 

270,954

​

 

269,253

After five through ten years

​

 

—

​

 

—

​

 

—

​

 

—

After ten years

​

 

—

​

 

—

​

 

—

​

 

—

​

​

 

320,089

​

 

309,656

​

 

277,502

​

 

275,804

Mortgage-backed - Government-sponsored entity (GSE)

​

​

15,774

​

​

15,779

​

​

18,664

​

​

18,360

Mortgage-backed - Non-GSE multi-family

​

 

11,731

​

 

11,379

​

 

16,424

​

 

16,465

​

​

$

347,594

​

$

336,814

​

$

312,590

​

$

310,629
Schedule of gross unrealized losses and fair value of investments with unrealized losses have been in continuous

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

​

​

​

​

​

​

​

12 Months or

​

​

​

​

​

​

​

​

Less than 12 Months

​

 Longer

​

Total

​

​

​

​

​

Gross

​

​

​

​

Gross

​

​

​

​

Gross

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

    

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

32,599

​

$

263

​

$

1,955

​

$

45

​

$

34,554

​

$

308

Federal agencies

​

​

169,115

​

​

5,884

​

​

105,737

​

​

4,242

​

​

274,852

​

​

10,126

Mortgage-backed - Government-sponsored entity (GSE)

​

​

798

​

​

7

​

​

—

​

​

—

​

​

798

​

​

7

Mortgage-backed - Non-GSE multi-family

​

​

—

​

​

352

​

​

—

​

​

—

​

​

—

​

​

352

​

​

$

202,512

​

$

6,506

​

$

107,692

​

$

4,287

​

$

310,204

​

$

10,793

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

​

​

​

​

​

​

12 Months or

​

​

​

​

​

​

​

​

Less than 12 Months

​

Longer

​

Total

​

    

​

​

    

Gross

    

​

​

    

Gross

    

​

​

    

Gross

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

​

Value

​

Losses

​

Value

​

Losses

​

Value

​

Losses

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

7,957

​

$

27

​

$

—

​

$

—

​

$

7,957

​

$

27

Federal agencies

​

​

238,489

​

​

1,503

​

​

24,806

​

​

172

​

​

263,295

​

​

1,675

Mortgage-backed - Government-sponsored entity (GSE)

​

​

719

​

​

336

​

​

—

​

​

—

​

​

719

​

​

336

​

​

$

247,165

​

$

1,866

​

$

24,806

​

$

172

​

$

271,971

​

$

2,038
v3.22.2
Loans and Allowance for Credit Losses on Loans (Tables)
 6 Months Ended
Jun. 30, 2022
Loans and Allowance for Credit Losses on Loans  
Summary of loans

​

​

​

​

​

​

​

​

​

June 30, 

​

December 31, 

​

    

2022

    

2021

​

​

(In thousands)

​

​

​

​

​

​

​

Mortgage warehouse lines of credit

​

$

900,585

​

$

781,437

Residential real estate

​

 

876,652

​

 

843,101

Multi-family financing(1)

​

 

3,236,917

​

 

2,702,042

Healthcare financing(1)

​

​

1,262,424

​

​

826,157

Commercial and commercial real estate

​

 

695,158

​

 

520,199

Agricultural production and real estate

​

 

90,070

​

 

97,060

Consumer and margin loans

​

 

8,871

​

 

12,667

​

​

 

7,070,677

​

 

5,782,663

Less:

​

 

  

​

 

  

ACL-Loans

​

 

37,474

​

 

31,344

​

​

​

​

​

​

​

Loans Receivable

​

$

7,033,203

​

$

5,751,319

​

(1)In 2022, the Company started presenting these two loan types on separate lines for reporting purposes.
Schedule of allowance for credit loss on loan methodology by loan portfolio segment

​

​

​

​

Loan Portfolio Segment

    

ACL-Loans Methodology

​

​

​

Ag loans

​

Remaining Life Method

Ag real estate loans

​

Remaining Life Method

Commercial loans

​

Discounted Cash Flow

Commercial real estate loans

​

Discounted Cash Flow

Consumer and margin loans

​

Remaining Life Method

HELOC loans

​

Discounted Cash Flow

Multi-family healthcare loans

​

Discounted Cash Flow

Multi-family non-management loans

​

Discounted Cash Flow

Multi-family construction loans

​

Discounted Cash Flow

Multi-family loans

​

Discounted Cash Flow

Residential real estate loans

​

Discounted Cash Flow

SBA commercial loans

​

Discounted Cash Flow

SBA real estate commercial loans

​

Discounted Cash Flow

Single-family warehouse lines of credit

​

Remaining Life Method
Summary of the activity in the ACL-Loans by portfolio segment

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended June 30, 2022

​

 

MTG WHLOC

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

ACL-Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,941

​

$

4,547

 

$

15,131

​

$

5,618

​

$

4,102

​

$

597

​

$

166

​

$

32,102

Provision for credit losses

​

 

481

​

 

363

 

​

1,233

​

​

2,318

​

 

474

​

 

(46)

​

 

(55)

​

 

4,768

Loans charged to the allowance

​

 

—

​

 

—

 

​

—

​

​

—

​

 

(32)

​

 

—

​

 

(15)

​

 

(47)

Recoveries of loans previously charged off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

651

​

 

—

​

 

—

​

 

651

Balance, end of period

​

$

2,422

​

$

4,910

​

$

16,364

​

$

7,936

​

$

5,195

​

$

551

​

$

96

​

$

37,474

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Six Months Ended June 30, 2022

​

  

MTG WHLOC

  

RES RE

  

MF FIN

  

HC FIN

​

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

​

​

(In thousands)

ACL-Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,955

​

$

4,170

​

$

14,084

​

$

4,461

​

$

5,879

​

$

657

​

$

138

​

$

31,344

Impact of adopting CECL

​

​

41

​

​

275

​

​

520

​

​

139

​

​

(1,277)

​

​

(18)

​

​

21

​

​

(299)

Provision for credit losses

​

 

426

​

​

465

​

​

1,760

​

​

3,336

​

​

905

​

​

(88)

​

​

(55)

​

​

6,749

Loans charged to the allowance

​

 

—

​

​

—

​

​

—

​

​

—

​

​

(963)

​

​

—

​

​

(15)

​

​

(978)

Recoveries of loans previously charged off

​

 

—

​

​

—

​

​

—

​

​

—

​

​

651

​

​

—

​

​

7

​

 

658

Balance, end of period

​

$

2,422

​

$

4,910

​

$

16,364

​

$

7,936

​

$

5,195

​

$

551

​

$

96

​

$

37,474

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
Summary of activity in the allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended June 30, 2021

​

 

MTG WHLOC

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

3,321

​

$

3,600

 

$

13,396

​

$

3,740

​

$

4,264

​

$

632

​

$

138

​

$

29,091

Provision for credit losses

​

 

(386)

​

 

371

 

​

(1,718)

​

​

364

​

 

1,059

​

 

(21)

​

 

16

​

 

(315)

Loans charged to the allowance

​

 

—

​

 

(2)

 

​

—

​

​

—

​

 

(84)

​

 

—

​

 

—

​

 

(86)

Recoveries of loans previously charged off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

—

​

 

—

​

 

6

​

 

6

Balance, end of period

​

$

2,935

​

$

3,969

​

$

11,678

​

$

4,104

​

$

5,239

​

$

611

​

$

160

​

$

28,696

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Six Months Ended June 30, 2021

​

  

MTG WHLOC

  

RES RE

  

MF FIN

  

HC FIN

​

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

4,018

​

$

3,334

​

$

12,041

​

$

2,690

​

$

4,641

​

$

636

​

$

140

​

$

27,500

Provision for credit losses

​

 

(1,083)

​

​

637

​

​

(363)

​

​

1,414

​

​

750

​

​

(25)

​

​

18

​

 

1,348

Loans charged to the allowance

​

 

—

​

​

(2)

​

​

—

​

​

—

​

​

(152)

​

​

—

​

​

(6)

​

 

(160)

Recoveries of loans previously charged off

​

 

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

8

​

 

8

Balance, end of period

​

$

2,935

​

$

3,969

​

$

11,678

​

$

4,104

​

$

5,239

​

$

611

​

$

160

​

$

28,696
Summary of activity in the allowance for loans and recorded investment by loan portfolio

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

MTG WHLOC

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, December 31, 2021

​

$

1,955

​

$

4,170

​

$

14,084

​

$

4,461

​

$

5,879

​

$

657

​

$

138

​

$

31,344

Ending balance: individually evaluated for impairment

​

$

—

​

$

16

​

$

—

​

$

—

​

$

867

​

$

—

​

$

7

​

$

890

Ending balance: collectively evaluated for impairment

​

$

1,955

​

$

4,154

​

$

14,084

​

$

4,461

​

$

5,012

​

$

657

​

$

131

​

$

30,454

Loans

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Balance, December 31, 2021

​

$

781,437

​

$

843,101

​

$

2,702,042

​

$

826,157

​

$

520,199

​

$

97,060

​

$

12,667

​

$

5,782,663

Ending balance individually evaluated for impairment

​

$

—

​

$

419

​

$

36,760

​

$

—

​

$

6,055

​

$

158

​

$

13

​

$

43,405

Ending balance collectively evaluated for impairment

​

$

781,437

​

$

842,682

​

$

2,665,282

​

$

826,157

​

$

514,144

​

$

96,902

​

$

12,654

​

$

5,739,258
Schedule of allowance for credit loss allocated to collateral dependent loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

    

Real Estate

    

Accounts Receivable / Equipment

    

Other

    

Total

    

ACL-Loans Allocation

​

​

(In thousands)

RES RE

​

$

353

​

$

—

​

$

6

​

$

359

​

$

29

MF FIN

​

​

36,760

​

​

—

​

​

—

​

​

36,760

​

​

187

CML & CRE

​

 

134

​

 

4,935

​

 

236

​

 

5,305

​

 

92

AG & AGRE

​

 

158

​

 

—

​

 

—

​

 

158

​

 

1

CON & MAR

​

 

—

​

 

—

​

 

3

​

 

3

​

 

—

Total collateral dependent loans

​

$

37,405

​

$

4,935

​

$

245

​

$

42,585

​

$

309
Schedule of credit risk profile of loan portfolio

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

2022

    

2021

    

2020

​

2019

    

2018

    

Prior

    

Revolving Loans

    

TOTAL

​

​

(In thousands)

MTG WHLOC

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

900,585

​

$

900,585

Total

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

900,585

​

$

900,585

RES RE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

10,316

​

​

36,482

​

​

49,380

​

​

3,327

​

​

865

​

​

10,439

​

​

764,571

​

​

875,380

Special Mention (Watch)

​

​

—

​

​

—

​

​

—

​

​

61

​

​

74

​

​

779

​

​

—

​

​

914

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

358

​

​

—

​

​

358

Total

​

$

10,316

​

$

36,482

​

$

49,380

​

$

3,388

​

$

939

​

$

11,576

​

$

764,571

​

$

876,652

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

874,093

​

​

1,049,580

​

​

305,633

​

​

71,513

​

​

12,245

​

​

7,739

​

​

852,442

​

​

3,173,245

Special Mention (Watch)

​

​

14,614

​

​

12,298

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

26,912

Substandard

​

​

36,760

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

36,760

Total

​

$

925,467

​

$

1,061,878

​

$

305,633

​

$

71,513

​

$

12,245

​

$

7,739

​

$

852,442

​

$

3,236,917

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

486,989

​

​

331,862

​

​

183,035

​

​

17,186

​

​

—

​

​

—

​

​

144,812

​

​

1,163,884

Special Mention (Watch)

​

​

—

​

​

29,462

​

​

62,373

​

​

6,705

​

​

—

​

​

—

​

​

—

​

​

98,540

Total

​

$

486,989

​

$

361,324

​

$

245,408

​

$

23,891

​

$

—

​

$

—

​

$

144,812

​

$

1,262,424

CML & CRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

66,173

​

​

85,267

​

​

31,966

​

​

49,946

​

​

13,850

​

​

15,489

​

​

424,308

​

​

686,999

Special Mention (Watch)

​

​

48

​

​

21

​

​

1,448

​

​

129

​

​

—

​

​

234

​

​

973

​

​

2,853

Substandard

​

​

—

​

​

2,000

​

​

—

​

​

107

​

​

175

​

​

282

​

​

2,742

​

​

5,306

Total

​

$

66,221

​

$

87,288

​

$

33,414

​

$

50,182

​

$

14,025

​

$

16,005

​

$

428,023

​

$

695,158

AG & AGRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

8,358

​

​

7,984

​

​

15,952

​

​

6,291

​

​

3,457

​

​

21,141

​

​

24,779

​

​

87,962

Special Mention (Watch)

​

​

14

​

​

64

​

​

719

​

​

431

​

​

288

​

​

390

​

​

44

​

​

1,950

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

158

​

​

—

​

​

158

Total

​

$

8,372

​

$

8,048

​

$

16,671

​

$

6,722

​

$

3,745

​

$

21,689

​

$

24,823

​

$

90,070

CON & MAR

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Acceptable and Above

​

​

240

​

​

674

​

​

394

​

​

140

​

​

4,743

​

​

20

​

​

2,638

​

​

8,849

Special Mention (Watch)

​

​

—

​

​

—

​

​

16

​

​

—

​

​

—

​

​

3

​

​

—

​

​

19

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

3

​

​

—

​

​

3

Total

​

$

240

​

$

674

​

$

410

​

$

140

​

$

4,743

​

$

26

​

$

2,638

​

$

8,871

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Acceptable and Above

​

$

1,446,169

​

$

1,511,849

​

$

586,360

​

$

148,403

​

$

35,160

​

$

54,828

​

$

3,114,135

​

$

6,896,904

Total Special Mention (Watch)

​

$

14,676

​

$

41,845

​

$

64,556

​

$

7,326

​

$

362

​

$

1,406

​

$

1,017

​

$

131,188

Total Substandard

​

$

36,760

​

$

2,000

​

$

—

​

$

107

​

$

175

​

$

801

​

$

2,742

​

$

42,585

Total Loans

​

$

1,497,605

​

$

1,555,694

​

$

650,916

​

$

155,836

​

$

35,697

​

$

57,035

​

$

3,117,894

​

$

7,070,677

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

    

MTG WHLOC

    

RES RE

    

MF FIN

    

HC FIN

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

Special Mention (Watch)

​

$

—

​

$

946

​

$

27,155

​

$

66,406

​

$

2,483

​

$

3,820

​

$

21

​

$

100,831

Substandard

​

 

—

​

 

419

​

 

36,760

​

 

—

​

 

6,055

​

 

158

​

 

13

​

 

43,405

Acceptable and Above

​

 

781,437

​

 

841,736

​

 

2,638,127

​

 

759,751

​

 

511,661

​

 

93,082

​

 

12,633

​

 

5,638,427

Total

​

$

781,437

​

$

843,101

​

$

2,702,042

​

$

826,157

​

$

520,199

​

$

97,060

​

$

12,667

​

$

5,782,663

​
Schedule of aging analysis of the recorded investment in loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHLOC

​

$

—

​

$

—

​

$

—

​

$

—

​

$

900,585

​

$

900,585

RES RE

​

 

307

​

​

216

​

 

176

​

 

699

​

 

875,953

​

 

876,652

MF FIN

​

 

—

​

​

—

​

 

—

​

 

—

​

 

3,236,917

​

 

3,236,917

HC FIN

​

​

—

​

​

—

​

​

—

​

​

—

​

​

1,262,424

​

​

1,262,424

CML & CRE

​

 

—

​

​

—

​

 

4,083

​

 

4,083

​

 

691,075

​

 

695,158

AG & AGRE

​

 

—

​

​

—

​

 

—

​

 

—

​

 

90,070

​

 

90,070

CON & MAR

​

 

39

​

​

42

​

 

3

​

 

84

​

 

8,787

​

 

8,871

​

​

$

346

​

$

258

​

$

4,262

​

$

4,866

​

$

7,065,811

​

$

7,070,677

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHLOC

​

$

—

 

$

—

​

$

—

​

$

—

​

$

781,437

​

$

781,437

RES RE

​

 

1,252

 

​

287

​

 

186

​

 

1,725

​

 

841,376

​

 

843,101

MF FIN

​

 

—

 

​

—

​

 

—

​

 

—

​

 

2,702,042

​

 

2,702,042

HC FIN

​

​

—

​

​

—

​

​

—

​

​

—

​

​

826,157

​

​

826,157

CML & CRE

​

 

591

 

​

8

​

 

149

​

 

748

​

 

519,451

​

 

520,199

AG & AGRE

​

 

37

 

​

21

​

 

—

​

 

58

​

 

97,002

​

 

97,060

CON & MAR

​

 

43

 

​

5

​

 

40

​

 

88

​

 

12,579

​

 

12,667

​

​

$

1,923

​

$

321

​

$

375

​

$

2,619

​

$

5,780,044

​

$

5,782,663
Schedule of components of impaired loans and specific valuation allowance

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

    

MTG WHLOC

    

RES RE

    

MF FIN

​

HC FIN

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

Impaired loans without a specific allowance:

 

​

  

 

​

  

 

​

  

​

​

​

 

​

  

 

​

  

 

​

  

 

​

  

Recorded investment

​

$

—

​

$

372

​

$

36,760

​

$

—

​

$

3,912

​

$

158

​

$

4

​

$

41,206

Unpaid principal balance

​

 

—

​

 

372

​

 

36,760

​

​

—

​

 

3,912

​

 

158

​

 

4

​

 

41,206

Impaired loans with a specific allowance:

​

 

—

​

 

  

​

 

  

​

​

—

​

 

  

​

 

  

​

 

  

​

 

  

Recorded investment

​

 

—

​

 

47

​

 

—

​

​

—

​

 

2,143

​

 

—

​

 

9

​

 

2,199

Unpaid principal balance

​

 

—

​

 

47

​

 

—

​

​

—

​

 

2,143

​

 

—

​

 

9

​

 

2,199

Specific allowance

​

 

—

​

 

16

​

 

—

​

​

—

​

 

867

​

 

—

​

 

7

​

 

890

Total impaired loans:

​

 

​

​

 

  

​

 

  

​

​

​

​

 

  

​

 

  

​

 

  

​

 

  

Recorded investment

​

 

—

​

 

419

​

 

36,760

​

​

—

​

 

6,055

​

 

158

​

 

13

​

 

43,405

Unpaid principal balance

​

 

—

​

 

419

​

 

36,760

​

​

—

​

 

6,055

​

 

158

​

 

13

​

 

43,405

Specific allowance

​

 

—

​

 

16

​

 

—

​

​

—

​

 

867

​

 

—

​

 

7

​

 

890

​

​
Schedule of average recorded investment and interest income recognized in impaired loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended June 30, 2021

​

    

MTG WHLOC

    

RES RE

    

MF FIN

​

HC FIN

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

​

Average recorded investment in impaired loans

​

—

​

$

2,201

​

$

—

​

$

—

​

$

6,113

​

$

175

​

$

6

​

$

8,495

Interest income recognized

​

—

​

 

16

​

 

—

​

 

—

​

 

55

​

 

—

​

 

—

​

 

71

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Six Months Ended June 30, 2021

​

    

​

    

​

    

​

​

​

​

    

CML &

    

​

AG &

    

CON &

    

​

​

​

​

​

RES RE

​

MF RE

​

​

​

​

CRE

​

​

AGRE

​

MAR

​

TOTAL

​

​

​

Average recorded investment in impaired loans

​

—

​

$

2,442

​

$

—

​

$

—

​

$

7,254

​

$

1,000

​

$

7

​

$

10,703

Interest income recognized

​

—

​

 

27

​

 

—

​

 

—

​

 

259

​

 

—

​

 

—

​

 

286
Schedule of nonaccrual loans and loans past due 90 days or more and still accruing

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 

​

December 31, 

​

​

2022

​

2021

​

​

​

​

​

Total Loans >

​

​

​

​

Total Loans >

​

​

​

​

​

90 Days &

​

​

​

​

90 Days &

​

    

Nonaccrual

    

Accruing

    

Nonaccrual

    

Accruing

​

​

(In thousands)

RES RE

​

$

347

​

$

—

​

$

362

​

$

22

CML & CRE

​

 

4,305

​

​

—

​

 

—

​

​

149

AG & AGRE

​

 

158

​

 

—

​

 

158

​

 

30

CON & MAR

​

 

3

​

 

—

​

 

4

​

 

36

​

​

$

4,813

​

$

—

​

$

524

​

$

237
v3.22.2
Variable Interest Entities (VIEs) (Tables)
 6 Months Ended
Jun. 30, 2022
Variable Interest Entities (VIEs).  
Schedule reflects the size of VIEs as well as maximum exposure to loss in connection with investments

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

​

Total

​

Maximum

Assets ($ in thousands)

    

Assets

    

Liabilities

    

Exposure to Loss

​

​

(In thousands)

June 30, 2022

​

 

  

​

 

  

​

 

  

Unconsolidated VIEs

​

$

39,898

​

$

14,823

​

$

38,414

December 31, 2021

​

 

  

​

 

  

​

 

  

Unconsolidated VIEs

​

$

36,573

​

$

21,014

​

$

36,164
v3.22.2
Regulatory Matters (Tables)
 6 Months Ended
Jun. 30, 2022
Regulatory Matters  
Summary of bank's actual capital amounts and ratios

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

​

​

​

Actual

​

Capitalized(1)

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

    

​

​

(Dollars in thousands)

​

June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

CBLR (Tier 1) capital(1) (to average assets)

​

 

​

 

  

​

 

  

 

​

​

(i.e., CBLR - leverage ratio)

​

​

​

​

​

​

​

​

​

​

​

Company

​

$

1,217,718

 

12.4

%  

$

882,179

 

> 9

%  

Merchants Bank

​

​

1,171,291

 

12.3

%  

 

857,175

 

> 9

%  

FMBI

​

 

31,104

 

10.3

%  

 

27,088

 

> 9

%  

(1)As defined by regulatory agencies.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum Amount

​

​

​

​

​

​

​

​

To Be Well

​

​

​

Actual

​

Capitalized(1)

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

​

​

​

(Dollars in thousands)

​

December 31, 2021

​

​

​

​

​

​

​

​

​

​

​

CBLR (Tier 1) capital(1) (to average assets)

 

​

  

 

  

 

​

  

 

  

 

(i.e., CBLR - leverage ratio)

​

​

​

​

​

​

​

​

​

​

​

Company

​

$

1,138,090

 

10.4

%  

$

928,731

 

> 8.5

%  

Merchants Bank

​

 

1,088,621

 

10.3

%  

 

901,188

 

> 8.5

%  

FMBI

​

​

28,958

 

9.7

%  

 

25,499

 

> 8.5

%  

(1)As defined by regulatory agencies.

​
v3.22.2
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2022
Derivative Financial Instruments  
Summary of notional amount and fair value of derivative assets and liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

June 30, 2022

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

62,301

​

​

Other assets/liabilities

​

$

299

​

$

121

Forward contracts

$

49,750

​

​

Other assets/liabilities

​

​

114

​

​

203

Interest rate swaps

$

25,190

​

​

Other assets/liabilities

​

 

160

​

​

—

​

​

​

​

​

​

​

$

573

​

$

324

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

December 31, 2021

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

58,701

​

​

Other assets/liabilities

​

$

264

​

$

41

Forward contracts

$

81,250

​

​

Other assets/liabilities

​

 

86

​

​

118

​

​

​

​

​

​

​

$

350

​

$

159
Summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2022

    

2021

    

2022

    

2021

​

​

(In thousands)

​

​

(In thousands)

Derivative gain (loss) included in other income:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

$

837

​

$

1,046

​

$

(45)

​

$

(5,698)

Forward contracts (includes pair-off settlements)

​

​

1,309

​

​

(2,289)

​

​

4,459

​

​

6,107

Net derivative gains (loss)

​

$

2,146

​

$

(1,243)

​

$

4,414

​

$

409

Gain (loss) included in gain on sale of loans:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rates swaps - change in fair value

​

​

160

​

​

—

​

​

160

​

​

—

Hedged loans held for sale - change in fair value

​

​

(165)

​

​

—

​

 

(165)

​

​

—

Net gain (loss)

​

$

(5)

​

$

—

​

$

(5)

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​
Interest rate swaps  
Derivative Financial Instruments  
Summary of notional amount and fair value of derivative assets and liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

​

​

(In thousands)

​

​

​

​

​

(In thousands)

June 30, 2022

$

181,805

​

​

Other assets/liabilities

​

$

3,662

​

$

3,662

December 31, 2021

$

135,686

​

​

Other assets/liabilities

​

$

1,131

​

$

1,131
Summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2022

    

2021

    

2022

    

2021

​

​

(In thousands)

​

​

(In thousands)

Gross swap gains

​

$

2,035

​

$

195

​

$

2,531

​

$

1,081

Gross swap losses

​

​

2,035

​

​

195

​

 

2,531

​

​

1,081

Net swap gains (losses)

​

$

—

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​
v3.22.2
Disclosures about Fair Value of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2022
Disclosures about Fair Value of Assets and Liabilities  
Schedule of fair value measurement of assets measured at fair value on recurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

Quoted Prices in

​

Significant

​

 

​

​

​

​

​

​

Active Markets 

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable 

​

​

Fair

​

Assets

​

Inputs

​

Inputs

Assets

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

​

​

(In thousands)

June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

323,046

​

$

—

​

$

323,046

​

$

—

Available for sale securities:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

34,804

​

 

34,804

​

 

—

​

 

—

Federal agencies

​

 

274,852

​

 

—

​

 

274,852

​

 

—

Mortgage-backed - Government-sponsored entity (GSE)

​

 

15,779

​

 

—

​

 

15,779

​

 

—

Mortgage-backed - Non-GSE multi-family

​

​

11,379

​

​

—

​

 

11,379

​

 

—

Loans held for sale

​

 

41,991

​

 

—

​

 

41,991

​

 

—

Servicing rights

​

 

130,710

​

 

—

​

 

—

​

 

130,710

Derivative assets - interest rate lock commitments

​

 

299

​

 

—

​

 

—

​

 

299

Derivative assets - forward contracts

​

 

114

​

 

—

​

 

114

​

 

—

Derivative assets - interest rate swaps

​

​

160

​

​

—

​

​

160

​

​

—

Derivative assets - interest rate swaps (back-to-back)

​

 

3,662

​

 

—

​

 

3,662

​

 

—

Derivative liabilities - interest rate lock commitments

​

 

121

​

​

—

​

​

—

​

​

121

Derivative liabilities - forward contracts

​

 

203

​

​

—

​

​

203

​

​

—

Derivative liabilities - interest rate swaps (back-to-back)

​

 

3,662

​

​

—

​

​

3,662

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

  

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

569,239

​

$

—

​

$

569,239

​

$

—

Available for sale securities:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

8,209

​

 

8,209

​

 

—

​

 

—

Federal agencies

​

 

263,295

​

 

—

​

 

263,295

​

 

—

Municipals

​

 

4,300

​

 

—

​

 

4,300

​

 

—

Mortgage-backed - Government-sponsored entity (GSE)

​

 

18,360

​

 

—

​

 

18,360

​

 

—

Mortgage-backed - Non-GSE multi-family

​

​

16,465

​

​

—

​

 

16,465

​

 

—

Loans held for sale

​

 

48,583

​

 

—

​

 

48,583

​

 

—

Servicing rights

​

 

110,348

​

 

—

​

 

—

​

 

110,348

Derivative assets - interest rate lock commitments

​

 

264

​

 

—

​

 

—

​

 

264

Derivative assets - forward contracts

​

 

86

​

 

—

​

 

86

​

 

—

Derivative assets - interest rate swaps (back-to-back)

​

​

1,131

​

​

—

​

​

1,131

​

​

—

Derivative liabilities - interest rate lock commitments

​

 

41

​

​

—

​

​

—

​

​

41

Derivative liabilities - forward contracts

​

 

118

​

​

—

​

​

118

​

​

—

Derivative liabilities - interest rate swaps (back-to-back)

​

 

1,131

​

​

—

​

​

1,131

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​
Schedule of Level 3 reconciliation of recurring fair value measurements

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 

​

Six Months Ended June 30, 

​

    

2022

    

2021

    

2022

    

2021

​

​

(In thousands)

​

(In thousands)

Servicing rights

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

121,036

​

$

96,215

​

$

110,348

​

$

82,604

Additions

​

 

  

​

 

  

​

 

​

​

 

  

Originated servicing

​

 

5,203

​

 

6,527

​

 

10,995

​

 

16,708

Subtractions

​

 

  

​

 

  

​

 

  

​

 

  

Paydowns

​

 

(3,268)

​

 

(4,627)

​

 

(6,017)

​

 

(8,075)

Sales of servicing

​

​

—

​

​

(438)

​

​

—

​

​

(438)

Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model

​

 

7,739

​

 

654

​

 

15,384

​

 

7,532

Balance, end of period

​

$

130,710

​

$

98,331

​

$

130,710

​

$

98,331

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivative Assets - interest rate lock commitments

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

112

​

$

467

​

$

264

​

$

6,131

Changes in fair value

​

 

187

​

 

20

​

 

35

​

 

(5,644)

Balance, end of period

​

$

299

​

$

487

​

$

299

​

$

487

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivative Liabilities - interest rate lock commitments

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

771

​

$

1,080

​

$

41

​

$

—

Changes in fair value

​

 

(650)

​

 

(1,026)

​

 

80

​

 

54

Balance, end of period

​

$

121

​

$

54

​

$

121

​

$

54
Schedule of fair value measurement of assets and liabilities measured at fair value on nonrecurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

Quoted Prices in

​

Significant

​

 

​

​

​

​

​

​

Active Markets 

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable 

​

​

Fair

​

Assets

​

Inputs

​

Inputs

Assets

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

​

​

(In thousands)

June 30, 2022

​

 

  

​

 

  

​

 

  

​

 

  

Collateral dependent loans

​

$

4,275

​

$

—

​

$

—

​

$

4,275

December 31, 2021

​

 

  

​

 

  

​

 

  

​

 

  

Impaired loans (collateral-dependent)

​

$

4,263

​

$

—

​

$

—

​

$

4,263
Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Valuation

​

​

​

​

​

Weighted

​

    

Fair Value

    

Technique

    

Unobservable Inputs

​

Range

    

Average

​

​

(In thousands)

​

​

​

​

​

​

​

​

At June 30, 2022:

 

​

  

 

  

​

​

​

​

 

​

Collateral dependent loans

​

$

4,275

 

Market comparable properties

 

Marketability discount

​

82%

 

82%

Servicing rights - Multi-family

​

$

97,059

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

8%

​

​

​

​

​

​

​

Constant prepayment rate

​

0% - 50%

 

3%

Servicing rights - Single-family

​

$

29,632

 

Discounted cash flow

 

Discount rate

​

9% - 10%

​

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

7% - 9%

​

7%

Servicing rights - SBA

​

$

4,019

 

Discounted cash flow

 

Discount rate

​

16%

​

16%

​

​

​

​

​

​

​

Constant prepayment rate

​

3% - 16%

​

8%

Derivative assets - interest rate lock commitments

​

$

299

 

Discounted cash flow

 

Loan closing rates

​

50% - 99%

 

81%

Derivative liabilities - interest rate lock commitments

​

$

121

 

Discounted cash flow

 

Loan closing rates

​

50% - 99%

 

81%

​

​

​

​

​

​

​

​

​

​

​

​

At December 31, 2021:

​

 

  

 

  

​

​

​

​

 

​

Collateral-dependent impaired loans

​

$

4,263

 

Market comparable properties

 

Marketability discount

​

44% - 76%

 

73%

Servicing rights - Multi-family

​

$

84,567

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

0 - 50%

 

4%

Servicing rights - Single-family

​

$

23,012

 

Discounted cash flow

 

Discount rate

​

9% - 10%

​

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

10 - 13%

​

11%

Servicing rights - SBA

​

$

2,769

 

Discounted cash flow

 

Discount rate

​

16%

 

16%

​

​

​

​

​

​

​

Constant prepayment rate

​

10% - 13%

​

12%

Derivative assets - interest rate lock commitments

​

$

264

 

Discounted cash flow

 

Loan closing rates

​

63% - 99%

 

83%

Derivative liabilities - interest rate lock commitments

​

$

41

 

Discounted cash flow

 

Loan closing rates

​

63% - 99%

 

83%
Schedule of carrying amount and estimated fair value of financial instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

​

​

​

Quoted Prices in

​

Significant

​

 

​

​

​

​

​

​

​

​

​

Active Markets 

​

Other

​

Significant

​

​

​

​

​

​

​

​

for Identical

​

Observable

​

Unobservable 

​

​

Carrying

​

Fair

​

Assets

​

Inputs

​

Inputs

Assets

    

Value

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

​

​

(In thousands)

June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

258,146

​

$

258,146

​

$

258,146

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

3,520

​

 

3,520

​

 

—

​

 

3,520

​

 

—

FHLB stock

​

 

39,130

​

 

39,130

​

 

—

​

 

39,130

​

 

—

Loans held for sale

​

 

2,717,125

​

 

2,717,125

​

 

—

​

 

2,717,125

​

 

—

Loans receivable, net

​

 

7,033,203

​

 

7,046,313

​

 

—

​

 

—

​

 

7,046,313

Interest receivable

​

 

26,184

​

 

26,184

​

 

—

​

 

26,184

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

Deposits

​

 

8,299,738

​

 

8,294,601

​

 

6,829,667

​

 

1,464,934

​

 

—

Short-term subordinated debt

​

 

19,000

​

 

19,000

​

 

—

​

 

19,000

​

 

—

FHLB advances

​

 

851,904

​

 

851,711

​

 

—

​

 

851,711

​

 

—

Other borrowing

​

​

570,000

​

​

570,000

​

​

—

​

​

570,000

​

​

—

Interest payable

​

 

3,805

​

 

3,805

​

 

—

​

 

3,805

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

1,032,614

​

$

1,032,614

​

$

1,032,614

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

5,888

​

 

5,888

​

 

—

​

 

5,888

​

 

—

FHLB stock

​

 

29,588

​

 

29,588

​

 

—

​

 

29,588

​

 

—

Loans held for sale

​

 

3,254,616

​

 

3,254,616

​

 

—

​

 

3,254,616

​

 

—

Loans receivable, net

​

 

5,751,319

​

 

5,731,500

​

 

—

​

 

—

​

 

5,731,500

Interest receivable

​

 

24,103

​

 

24,103

​

 

—

​

 

24,103

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

Deposits

​

 

8,982,613

​

 

8,982,680

​

 

7,783,553

​

 

1,199,127

​

 

—

Short-term subordinated debt

​

 

17,000

​

 

17,000

​

 

—

​

 

17,000

​

 

—

FHLB advances

​

 

556,954

​

 

556,925

​

 

—

​

 

556,925

​

 

—

Other borrowing

​

​

460,000

​

​

460,000

​

​

—

​

​

460,000

​

​

—

Interest payable

​

 

1,469

​

 

1,469

​

 

—

​

 

1,469

​

 

—
v3.22.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2022
Leases.  
Schedule of balance sheet, income statement and cash flow detail regarding operating leases

​

​

​

​

​

​

June 30, 2022

Balance Sheet

​

(In thousands)

Operating lease right-of-of use asset (in other assets)

$

9,189

Operating lease liability (in other liabilities)

​

9,920

​

​

​

Weighted average remaining lease term (years)

​

7.2

Weighted average discount rate

​

2.09%

​

​

​

Maturities of lease liabilities:

​

​

2022 remaining

$

864

2023

​

1,812

2024

​

1,638

2025

​

1,246

2026

​

1,277

Thereafter

​

3,857

Total future minimum lease payments

​

10,694

Less: imputed interest

​

774

Total

$

9,920

​

​

​

​

​

Three Months Ended

​

​

June 30, 2022

Income Statement

​

(In thousands)

Components of lease expense:

​

​

Operating lease cost (in occupancy and equipment expense)

$

425

​

​

​

​

​

Six Months Ended

​

​

June 30, 2022

Income Statement

​

(In thousands)

Components of lease expense:

​

​

Operating lease cost (in occupancy and equipment expense)

$

792

​

​

​

​

​

Six Months Ended

​

​

June 30, 2022

Cash Flow Statement

​

(In thousands)

Supplemental cash flow information:

​

​

Operating cash flows from operating leases

$

597
v3.22.2
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2022
Earnings Per Share  
Schedule of computation of earnings per share

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Month Periods Ended June 30, 

​

​

2022

​

2021

​

​

​

​

​

Weighted-

​

Per 

​

​

​

​

Weighted-

​

Per 

​

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

​

​

(In thousands)

​

​

​

​

​

​

(In thousands)

​

​

​

​

​

Net income

​

$

53,935

 

  

 

​

  

​

$

51,417

 

  

 

​

  

Dividends on preferred stock

​

 

(5,729)

 

  

 

​

  

​

 

(5,659)

 

  

 

​

  

Net income allocated to common shareholders

​

$

48,206

 

  

 

​

  

​

$

45,758

 

  

 

​

  

Basic earnings per share(1)

​

 

  

 

43,209,824

​

$

1.12

​

 

  

 

43,174,220

​

$

1.06

Effect of dilutive securities-restricted stock awards(1)

​

 

  

 

125,387

​

 

  

​

 

  

 

137,268

​

 

  

Diluted earnings per share(1)

​

 

  

 

43,335,211

​

$

1.11

​

 

  

 

43,311,488

​

$

1.06

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Month Periods Ended June 30, 

​

​

2022

​

2021

 

​

​

​

​

​

​

Weighted-

​

Per 

​

​

​

​

Weighted-

​

Per 

​

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

​

​

(In thousands)

​

​

​

​

​

​

(In thousands)

​

​

​

 

​

Net income

​

$

104,077

 

  

 

​

  

​

$

113,400

 

  

 

​

  

Dividends on preferred stock

​

 

(11,457)

 

  

 

​

  

​

 

(9,416)

 

  

 

​

  

Net income allocated to common shareholders

​

$

92,620

 

  

 

​

  

​

$

103,984

 

  

 

​

  

Basic earnings per share

​

 

  

 

43,220,198

​

$

2.14

​

 

  

 

43,166,223

​

$

2.41

Effect of dilutive securities-restricted stock awards

​

 

  

 

147,677

​

 

  

​

 

  

 

127,376

​

 

  

Diluted earnings per share

​

 

  

 

43,367,875

​

$

2.14

​

 

  

 

43,293,599

​

$

2.40
v3.22.2
Common Stock (Tables)
 6 Months Ended
Jun. 30, 2022
Common Stock  
Schedule of repurchase activity on a cash basis

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

June 30, 

​

​

​

2022

Dollar value of shares repurchased

​

$

3,935,333

Shares repurchased(1)

​

​

165,037

Average price paid per share

​

$

23.85

​

(1)On November 17, 2021, the Company announced an increase in authorization for its stock repurchase program, up to $75,000,000 of common stock, expiring December 31, 2023. On April 29, 2022, the Company entered into a Rule 10b5-1 plan (the “10b5-1 Plan”) with a broker for the repurchase of shares of its common stock commencing on May 3, 2022. The details of this repurchase plan were provided in the Form 8-K filed by the Company on May 24, 2022.
v3.22.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2022
Segment Information  
Schedule of business segment financial information

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

    

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

​

​

(In thousands)

Three Months Ended June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

383

​

$

23,247

​

$

63,578

​

$

2,062

 

$

89,270

Interest expense

​

 

—

​

 

5,576

​

 

12,036

​

 

(373)

 

 

17,239

Net interest income

​

 

383

​

 

17,671

​

 

51,542

​

 

2,435

 

 

72,031

Provision for credit losses

​

 

1,153

​

 

834

​

 

4,225

​

 

—

 

 

6,212

Net interest income after provision for credit losses

​

 

(770)

​

 

16,837

​

 

47,317

​

 

2,435

 

 

65,819

Noninterest income

​

 

49,430

​

 

1,350

​

 

(10,252)

​

 

(1,357)

 

 

39,171

Noninterest expense

​

 

21,959

​

 

2,441

​

 

2,634

​

 

5,923

 

 

32,957

Income before income taxes

​

 

26,701

​

 

15,746

​

 

34,431

​

 

(4,845)

 

 

72,033

Income taxes

​

 

7,145

​

 

3,878

​

 

8,499

​

 

(1,424)

 

 

18,098

Net income (loss)

​

$

19,556

​

$

11,868

​

$

25,932

​

$

(3,421)

 

$

53,935

Total assets

​

$

330,676

​

$

2,836,998

​

$

7,835,152

​

$

83,229

 

$

11,086,055

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

​

​

(In thousands)

Three Months Ended June 30, 2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

204

​

$

29,935

​

$

40,983

​

$

1,316

 

$

72,438

Interest expense

​

 

—

​

 

1,599

​

 

7,216

​

 

(784)

 

 

8,031

Net interest income

​

 

204

​

 

28,336

​

 

33,767

​

 

2,100

 

 

64,407

Provision for credit losses

​

 

—

​

 

(40)

​

 

(275)

​

 

—

 

 

(315)

Net interest income after provision for credit losses

​

 

204

​

 

28,376

​

 

34,042

​

 

2,100

 

 

64,722

Noninterest income

​

 

28,572

​

 

3,079

​

 

2,613

​

 

(1,409)

 

 

32,855

Noninterest expense

​

 

13,626

​

 

2,703

​

 

7,496

​

 

4,358

 

 

28,183

Income before income taxes

​

 

15,150

​

 

28,752

​

 

29,159

​

 

(3,667)

 

 

69,394

Income taxes

​

 

4,179

​

 

7,304

​

 

7,418

​

 

(924)

 

 

17,977

Net income (loss)

​

$

10,971

​

$

21,448

​

$

21,741

​

$

(2,743)

 

$

51,417

Total assets

​

$

238,165

​

$

4,265,162

​

$

5,328,684

​

$

49,521

 

$

9,881,532

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

    

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

​

​

(In thousands)

Six Months Ended June 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

640

​

$

43,576

​

​

117,303

​

$

3,763

 

$

165,282

Interest expense

​

 

—

​

 

7,597

​

 

20,553

​

 

(624)

 

 

27,526

Net interest income

​

 

640

​

 

35,979

​

 

96,750

​

 

4,387

 

 

137,756

Provision for credit losses

​

 

1,153

​

 

627

​

 

6,883

​

 

—

 

 

8,663

Net interest income after provision for credit losses

​

 

(513)

​

 

35,352

​

 

89,867

​

 

4,387

 

 

129,093

Noninterest income

​

 

81,616

​

 

3,210

​

 

(8,063)

​

 

(2,995)

 

 

73,768

Noninterest expense

​

 

38,490

​

 

5,367

​

 

9,208

​

 

10,925

 

 

63,990

Income before income taxes

​

 

42,613

​

 

33,195

​

 

72,596

​

 

(9,533)

 

 

138,871

Income taxes

​

 

11,565

​

 

8,168

​

 

17,900

​

 

(2,839)

 

 

34,794

Net income

​

$

31,048

​

$

25,027

​

$

54,696

​

$

(6,694)

 

$

104,077

Total assets

​

$

330,676

​

$

2,836,998

​

$

7,835,152

​

$

83,229

 

$

11,086,055

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

​

Total

​

​

(In thousands)

Six Months Ended June 30, 2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

411

​

$

68,522

​

$

80,523

​

$

2,531

 

$

151,987

Interest expense

​

 

—

​

 

3,323

​

 

13,655

​

 

(1,361)

 

 

15,617

Net interest income

​

 

411

​

 

65,199

​

 

66,868

​

 

3,892

 

 

136,370

Provision for credit losses

​

 

—

​

 

(1,124)

​

 

2,472

​

 

—

 

 

1,348

Net interest income after provision for credit losses

​

 

411

​

 

66,323

​

 

64,396

​

 

3,892

 

 

135,022

Noninterest income

​

 

61,806

​

 

7,196

​

 

10,291

​

 

(2,502)

 

 

76,791

Noninterest expense

​

 

30,070

​

 

5,599

​

 

14,621

​

 

7,977

 

 

58,267

Income before income taxes

​

 

32,147

​

 

67,920

​

 

60,066

​

 

(6,587)

 

 

153,546

Income taxes

​

 

9,215

​

 

17,289

​

 

15,300

​

 

(1,658)

 

 

40,146

Net income

​

$

22,932

​

$

50,631

​

$

44,766

​

$

(4,929)

 

$

113,400

Total assets

​

$

238,165

​

$

4,265,162

​

$

5,328,684

​

$

49,521

 

$

9,881,532
v3.22.2
Basis of Presentation - Principles of Consolidation (Details)
Feb. 01, 2021
USD ($)
Net assets deconsolidated $ 10,000,000
Loans receivable deconsolidated 66,600,000
Borrowings deconsolidated 52,700,000
Gain or loss on deconsolidation 0
Other assets, net  
Fair value of continuing investments after deconsolidation $ 10,000,000
v3.22.2
Basis of Presentation - Impact of the Adoption of CECL (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jan. 01, 2022
Dec. 31, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Allowance for loan losses     $ 31,344 $ 28,696 $ 29,091 $ 27,500
Retained earnings, net of tax $ 737,789   657,149      
Impact from adoption of ASU | ASU 2016-13            
Allowance for loan losses   $ (299) (299)      
ACL - OBCEs (in Other Liabilities)   5,176        
Retained earnings, net of tax   (3,648)        
Post ASU Adoption | ASU 2016-13            
Allowance for loan losses   31,045        
ACL - OBCEs (in Other Liabilities)   5,176        
Retained earnings, net of tax   653,501        
Mortgage warehouse lines of credit            
Allowance for loan losses     1,955 2,935 3,321 4,018
Mortgage warehouse lines of credit | Impact from adoption of ASU | ASU 2016-13            
Allowance for loan losses   41 41      
Mortgage warehouse lines of credit | Post ASU Adoption | ASU 2016-13            
Allowance for loan losses   1,996        
Residential real estate            
Allowance for loan losses     4,170 3,969 3,600 3,334
Residential real estate | Impact from adoption of ASU | ASU 2016-13            
Allowance for loan losses   275 275      
Residential real estate | Post ASU Adoption | ASU 2016-13            
Allowance for loan losses   4,445        
Multi-family financing            
Allowance for loan losses     14,084 11,678 13,396 12,041
Multi-family financing | Impact from adoption of ASU | ASU 2016-13            
Allowance for loan losses   520 520      
Multi-family financing | Post ASU Adoption | ASU 2016-13            
Allowance for loan losses   14,604        
Healthcare financing            
Allowance for loan losses     4,461 4,104 3,740 2,690
Healthcare financing | Impact from adoption of ASU | ASU 2016-13            
Allowance for loan losses   139 139      
Healthcare financing | Post ASU Adoption | ASU 2016-13            
Allowance for loan losses   4,600        
Commercial and commercial real estate            
Allowance for loan losses     5,879 5,239 4,264 4,641
Commercial and commercial real estate | Impact from adoption of ASU | ASU 2016-13            
Allowance for loan losses   (1,277) (1,277)      
Commercial and commercial real estate | Post ASU Adoption | ASU 2016-13            
Allowance for loan losses   4,602        
Agricultural production and real estate            
Allowance for loan losses     657 611 632 636
Agricultural production and real estate | Impact from adoption of ASU | ASU 2016-13            
Allowance for loan losses   (18) (18)      
Agricultural production and real estate | Post ASU Adoption | ASU 2016-13            
Allowance for loan losses   639        
Consumer and margin loans            
Allowance for loan losses     138 $ 160 $ 138 $ 140
Consumer and margin loans | Impact from adoption of ASU | ASU 2016-13            
Allowance for loan losses   21 $ 21      
Consumer and margin loans | Post ASU Adoption | ASU 2016-13            
Allowance for loan losses   $ 159        
v3.22.2
Securities Available For Sale - Amortized Cost to Approximate Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Available-for-sale securities:    
Amortized Cost $ 347,594 $ 312,590
Gross Unrealized Gains 13 77
Gross Unrealized Losses 10,793 2,038
Fair Value 336,814 310,629
Accrued interest on available for sale securities 500 400
Treasury notes    
Available-for-sale securities:    
Amortized Cost 35,111 8,232
Gross Unrealized Gains 1 4
Gross Unrealized Losses 308 27
Fair Value 34,804 8,209
Federal agencies    
Available-for-sale securities:    
Amortized Cost 284,978 264,970
Gross Unrealized Losses 10,126 1,675
Fair Value 274,852 263,295
Municipals    
Available-for-sale securities:    
Amortized Cost   4,300
Fair Value   4,300
Mortgage-backed - Government-sponsored entity (GSE)    
Available-for-sale securities:    
Amortized Cost 15,774 18,664
Gross Unrealized Gains 12 32
Gross Unrealized Losses 7 336
Fair Value 15,779 18,360
Mortgage-backed - Non-GSE multi-family    
Available-for-sale securities:    
Amortized Cost 11,731 16,424
Gross Unrealized Gains   41
Gross Unrealized Losses 352  
Fair Value $ 11,379 $ 16,465
v3.22.2
Securities Available For Sale - Contractual Maturities (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Contractual Maturities, Amortized Cost    
Within one year $ 54,247 $ 6,548
After one through five years 265,842 270,954
Amortized Costs, Gross 320,089 277,502
Amortized Costs, Net 347,594 312,590
Contractual Maturities, Fair Value    
Within one year 52,983 6,551
After one through five years 256,673 269,253
Fair Value, Gross 309,656 275,804
Available-for-sale Securities, Debt Securities, Total 336,814 310,629
Mortgage-backed - Government-sponsored entity (GSE)    
Contractual Maturities, Amortized Cost    
Amortized Costs, Mortgage-backed 15,774 18,664
Amortized Costs, Net 15,774 18,664
Contractual Maturities, Fair Value    
Fair Value, Mortgage-backed 15,779 18,360
Available-for-sale Securities, Debt Securities, Total 15,779 18,360
Mortgage-backed - Non-GSE multi-family    
Contractual Maturities, Amortized Cost    
Amortized Costs, Mortgage-backed 11,731 16,424
Amortized Costs, Net 11,731 16,424
Contractual Maturities, Fair Value    
Fair Value, Mortgage-backed 11,379 16,465
Available-for-sale Securities, Debt Securities, Total $ 11,379 $ 16,465
v3.22.2
Securities Available For Sale - Sale of securities (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Securities Available For Sale        
Proceeds from the sale of available for sale securities $ 0 $ 34,500 $ 0 $ 34,469
Gain loss recognized   $ 0   $ 0
v3.22.2
Securities Available For Sale - Continuous Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months $ 202,512 $ 247,165
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer 107,692 24,806
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 310,204 271,971
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses    
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months 6,506 1,866
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer 4,287 172
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total 10,793 2,038
Treasury notes    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months 32,599 7,957
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer 1,955  
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 34,554 7,957
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses    
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months 263 27
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer 45  
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total 308 27
Federal agencies    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months 169,115 238,489
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer 105,737 24,806
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 274,852 263,295
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses    
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months 5,884 1,503
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer 4,242 172
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total 10,126 1,675
Mortgage-backed - Government-sponsored entity (GSE)    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months 798 719
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 798 719
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses    
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months 7 336
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total 7 $ 336
Mortgage-backed - Non-GSE multi-family    
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses    
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months 352  
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total $ 352  
v3.22.2
Mortgage Loans in Process of Securitization (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Mortgage Loans in Process of Securitization    
Unrealized gains included in mortgage loans $ 4.9 $ 7.0
v3.22.2
Loans and Allowance for Credit Losses on Loans - Summary of Loans By Classification (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Loans and Allowance for Loan Losses            
Loans $ 7,070,677          
Less: ACL-Loans 37,474 $ 32,102        
Loans receivable 7,033,203          
Loans     $ 5,782,663      
Allowance for loan losses     31,344 $ 28,696 $ 29,091 $ 27,500
Loans Receivable     5,751,319      
Accrued interest on loans, excluded from amortized cost of loans 18,000   15,400      
Mortgage warehouse lines of credit            
Loans and Allowance for Loan Losses            
Loans 900,585          
Less: ACL-Loans 2,422 1,941        
Loans     781,437      
Allowance for loan losses     1,955 2,935 3,321 4,018
Residential real estate            
Loans and Allowance for Loan Losses            
Loans 876,652          
Less: ACL-Loans 4,910 4,547        
Loans     843,101      
Allowance for loan losses     4,170 3,969 3,600 3,334
Healthcare financing            
Loans and Allowance for Loan Losses            
Loans 1,262,424          
Less: ACL-Loans 7,936 5,618        
Loans     826,157      
Allowance for loan losses     4,461 4,104 3,740 2,690
Multi-family financing            
Loans and Allowance for Loan Losses            
Loans 3,236,917          
Less: ACL-Loans 16,364 15,131        
Loans     2,702,042      
Allowance for loan losses     14,084 11,678 13,396 12,041
Commercial and commercial real estate            
Loans and Allowance for Loan Losses            
Loans 695,158          
Less: ACL-Loans 5,195 4,102        
Loans     520,199      
Allowance for loan losses     5,879 5,239 4,264 4,641
Commercial and commercial real estate | Loans funded through PPP, CARES Act            
Loans and Allowance for Loan Losses            
Loans     7,000      
Agricultural production and real estate            
Loans and Allowance for Loan Losses            
Loans 90,070          
Less: ACL-Loans 551 597        
Loans     97,060      
Allowance for loan losses     657 611 632 636
Consumer and margin loans            
Loans and Allowance for Loan Losses            
Loans 8,871          
Less: ACL-Loans $ 96 $ 166        
Loans     12,667      
Allowance for loan losses     $ 138 $ 160 $ 138 $ 140
v3.22.2
Loans and Allowance for Credit Losses on Loans - Allowance For Credit-Loan Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Allowance for credit losses          
Balance, beginning of period $ 32,102        
Provision for credit losses 4,768   $ 6,749    
Loans charged to the allowance (47)   (978)    
Recoveries of loans previously charged off 651   658    
Balance, end of period 37,474   37,474    
Allowance for loan losses          
Balance, beginning of period   $ 29,091 31,344 $ 27,500  
Provision for credit losses   (315)   1,348  
Loans charged to the allowance   86   160  
Recoveries of loans previously charged off   (6)   8  
Balance, end of period   28,696   28,696  
Ending balance: individually evaluated for impairment         $ 890
Ending balance: collectively evaluated for impairment         30,454
Loans          
Ending balance         5,782,663
Ending balance individually evaluated for impairment         43,405
Ending balance: collectively evaluated for impairment         5,739,258
ACL Loans          
Provision for credit losses 6,212 (315) 8,663 1,348  
Provision for credit losses, ACL Loans 4,768   6,749    
Provision for credit losses, ACL-OBCE's 200   800    
Provision for credit losses, Freddie Mac-sponsored Q-series securitization transaction 1,200   1,200    
ASU 2016-13 | Impact from adoption of ASU          
Allowance for loan losses          
Balance, beginning of period     (299)    
Mortgage warehouse lines of credit          
Allowance for credit losses          
Balance, beginning of period 1,941        
Provision for credit losses 481   426    
Balance, end of period 2,422   2,422    
Allowance for loan losses          
Balance, beginning of period   3,321 1,955 4,018  
Provision for credit losses   (386)   (1,083)  
Balance, end of period   2,935   2,935  
Ending balance: collectively evaluated for impairment         1,955
Loans          
Ending balance         781,437
Ending balance: collectively evaluated for impairment         781,437
ACL Loans          
Provision for credit losses, ACL Loans 481   426    
Mortgage warehouse lines of credit | ASU 2016-13 | Impact from adoption of ASU          
Allowance for loan losses          
Balance, beginning of period     41    
Residential real estate          
Allowance for credit losses          
Balance, beginning of period 4,547        
Provision for credit losses 363   465    
Balance, end of period 4,910   4,910    
Allowance for loan losses          
Balance, beginning of period   3,600 4,170 3,334  
Provision for credit losses   371   637  
Loans charged to the allowance   2   2  
Balance, end of period   3,969   3,969  
Ending balance: individually evaluated for impairment         16
Ending balance: collectively evaluated for impairment         4,154
Loans          
Ending balance         843,101
Ending balance individually evaluated for impairment         419
Ending balance: collectively evaluated for impairment         842,682
ACL Loans          
Provision for credit losses, ACL Loans 363   465    
Residential real estate | ASU 2016-13 | Impact from adoption of ASU          
Allowance for loan losses          
Balance, beginning of period     275    
Multi-family financing          
Allowance for credit losses          
Balance, beginning of period 15,131        
Provision for credit losses 1,233   1,760    
Balance, end of period 16,364   16,364    
Allowance for loan losses          
Balance, beginning of period   13,396 14,084 12,041  
Provision for credit losses   (1,718)   (363)  
Balance, end of period   11,678   11,678  
Ending balance: collectively evaluated for impairment         14,084
Loans          
Ending balance         2,702,042
Ending balance individually evaluated for impairment         36,760
Ending balance: collectively evaluated for impairment         2,665,282
ACL Loans          
Provision for credit losses, ACL Loans 1,233   1,760    
Multi-family financing | ASU 2016-13 | Impact from adoption of ASU          
Allowance for loan losses          
Balance, beginning of period     520    
Healthcare financing          
Allowance for credit losses          
Balance, beginning of period 5,618        
Provision for credit losses 2,318   3,336    
Balance, end of period 7,936   7,936    
Allowance for loan losses          
Balance, beginning of period   3,740 4,461 2,690  
Provision for credit losses   364   1,414  
Balance, end of period   4,104   4,104  
Ending balance: collectively evaluated for impairment         4,461
Loans          
Ending balance         826,157
Ending balance: collectively evaluated for impairment         826,157
ACL Loans          
Provision for credit losses, ACL Loans 2,318   3,336    
Healthcare financing | ASU 2016-13 | Impact from adoption of ASU          
Allowance for loan losses          
Balance, beginning of period     139    
Commercial and commercial real estate          
Allowance for credit losses          
Balance, beginning of period 4,102        
Provision for credit losses 474   905    
Loans charged to the allowance (32)   (963)    
Recoveries of loans previously charged off 651   651    
Balance, end of period 5,195   5,195    
Allowance for loan losses          
Balance, beginning of period   4,264 5,879 4,641  
Provision for credit losses   1,059   750  
Loans charged to the allowance   84   152  
Balance, end of period   5,239   5,239  
Ending balance: individually evaluated for impairment         867
Ending balance: collectively evaluated for impairment         5,012
Loans          
Ending balance         520,199
Ending balance individually evaluated for impairment         6,055
Ending balance: collectively evaluated for impairment         514,144
ACL Loans          
Provision for credit losses, ACL Loans 474   905    
Commercial and commercial real estate | ASU 2016-13 | Impact from adoption of ASU          
Allowance for loan losses          
Balance, beginning of period     (1,277)    
Commercial and commercial real estate | Loans funded through PPP, CARES Act          
Loans          
Ending balance         7,000
Agricultural production and real estate          
Allowance for credit losses          
Balance, beginning of period 597        
Provision for credit losses (46)   (88)    
Balance, end of period 551   551    
Allowance for loan losses          
Balance, beginning of period   632 657 636  
Provision for credit losses   (21)   (25)  
Balance, end of period   611   611  
Ending balance: collectively evaluated for impairment         657
Loans          
Ending balance         97,060
Ending balance individually evaluated for impairment         158
Ending balance: collectively evaluated for impairment         96,902
ACL Loans          
Provision for credit losses, ACL Loans (46)   (88)    
Agricultural production and real estate | ASU 2016-13 | Impact from adoption of ASU          
Allowance for loan losses          
Balance, beginning of period     (18)    
Consumer and margin loans          
Allowance for credit losses          
Balance, beginning of period 166        
Provision for credit losses (55)   (55)    
Loans charged to the allowance (15)   (15)    
Recoveries of loans previously charged off     7    
Balance, end of period 96   96    
Allowance for loan losses          
Balance, beginning of period   138 138 140  
Provision for credit losses   16   18  
Loans charged to the allowance       6  
Recoveries of loans previously charged off   (6)   8  
Balance, end of period   $ 160   $ 160  
Ending balance: individually evaluated for impairment         7
Ending balance: collectively evaluated for impairment         131
Loans          
Ending balance         12,667
Ending balance individually evaluated for impairment         13
Ending balance: collectively evaluated for impairment         $ 12,654
ACL Loans          
Provision for credit losses, ACL Loans $ (55)   (55)    
Consumer and margin loans | ASU 2016-13 | Impact from adoption of ASU          
Allowance for loan losses          
Balance, beginning of period     $ 21    
v3.22.2
Loans and Allowance for Credit Losses on Loans - Amortized cost basis and ACL (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Mar. 31, 2022
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis $ 7,070,677  
Allowance for credit losses on loans 37,474 $ 32,102
Collateral Dependent Loans    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 42,585  
Allowance for credit losses on loans 309  
Real Estate    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 37,405  
Accounts Receivable Or Equipment    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 4,935  
Other Collateralized Assets    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 245  
Mortgage warehouse lines of credit    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 900,585  
Allowance for credit losses on loans 2,422 1,941
Residential real estate    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 876,652  
Allowance for credit losses on loans 4,910 4,547
Residential real estate | Collateral Dependent Loans    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 359  
Allowance for credit losses on loans 29  
Residential real estate | Real Estate    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 353  
Residential real estate | Other Collateralized Assets    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 6  
Multi-family financing    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 3,236,917  
Allowance for credit losses on loans 16,364 15,131
Multi-family financing | Collateral Dependent Loans    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 36,760  
Allowance for credit losses on loans 187  
Multi-family financing | Real Estate    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 36,760  
Healthcare financing    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 1,262,424  
Allowance for credit losses on loans 7,936 5,618
Commercial and commercial real estate    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 695,158  
Allowance for credit losses on loans 5,195 4,102
Commercial and commercial real estate | Collateral Dependent Loans    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 5,305  
Allowance for credit losses on loans 92  
Commercial and commercial real estate | Real Estate    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 134  
Commercial and commercial real estate | Accounts Receivable Or Equipment    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 4,935  
Commercial and commercial real estate | Other Collateralized Assets    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 236  
Agricultural production and real estate    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 90,070  
Allowance for credit losses on loans 551 597
Agricultural production and real estate | Collateral Dependent Loans    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 158  
Allowance for credit losses on loans 1  
Agricultural production and real estate | Real Estate    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 158  
Consumer and margin loans    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 8,871  
Allowance for credit losses on loans 96 $ 166
Consumer and margin loans | Collateral Dependent Loans    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis 3  
Consumer and margin loans | Other Collateralized Assets    
Loans and Allowance for Credit Losses on Loans    
Amortized Cost Basis $ 3  
v3.22.2
Loans and Allowance for Credit Losses on Loans - Credit Risk Profile of Loan Portfolio (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Credit risk profile of portfolio    
2022 $ 1,497,605  
2021 1,555,694  
2020 650,916  
2019 155,836  
2018 35,697  
Prior 57,035  
Revolving Loans 3,117,894  
Loans 7,070,677  
Loans   $ 5,782,663
Acceptable and Above    
Credit risk profile of portfolio    
2022 1,446,169  
2021 1,511,849  
2020 586,360  
2019 148,403  
2018 35,160  
Prior 54,828  
Revolving Loans 3,114,135  
Loans 6,896,904  
Loans   5,638,427
Special Mention (Watch)    
Credit risk profile of portfolio    
2022 14,676  
2021 41,845  
2020 64,556  
2019 7,326  
2018 362  
Prior 1,406  
Revolving Loans 1,017  
Loans 131,188  
Loans   100,831
Substandard    
Credit risk profile of portfolio    
2022 36,760  
2021 2,000  
2019 107  
2018 175  
Prior 801  
Revolving Loans 2,742  
Loans 42,585  
Loans   43,405
Mortgage warehouse lines of credit    
Credit risk profile of portfolio    
Revolving Loans 900,585  
Loans 900,585  
Loans   781,437
Mortgage warehouse lines of credit | Acceptable and Above    
Credit risk profile of portfolio    
Revolving Loans 900,585  
Loans 900,585  
Loans   781,437
Residential real estate    
Credit risk profile of portfolio    
2022 10,316  
2021 36,482  
2020 49,380  
2019 3,388  
2018 939  
Prior 11,576  
Revolving Loans 764,571  
Loans 876,652  
Loans   843,101
Residential real estate | Acceptable and Above    
Credit risk profile of portfolio    
2022 10,316  
2021 36,482  
2020 49,380  
2019 3,327  
2018 865  
Prior 10,439  
Revolving Loans 764,571  
Loans 875,380  
Loans   841,736
Residential real estate | Special Mention (Watch)    
Credit risk profile of portfolio    
2019 61  
2018 74  
Prior 779  
Loans 914  
Loans   946
Residential real estate | Substandard    
Credit risk profile of portfolio    
Prior 358  
Loans 358  
Loans   419
Multi-family financing    
Credit risk profile of portfolio    
2022 925,467  
2021 1,061,878  
2020 305,633  
2019 71,513  
2018 12,245  
Prior 7,739  
Revolving Loans 852,442  
Loans 3,236,917  
Loans   2,702,042
Multi-family financing | Acceptable and Above    
Credit risk profile of portfolio    
2022 874,093  
2021 1,049,580  
2020 305,633  
2019 71,513  
2018 12,245  
Prior 7,739  
Revolving Loans 852,442  
Loans 3,173,245  
Loans   2,638,127
Multi-family financing | Special Mention (Watch)    
Credit risk profile of portfolio    
2022 14,614  
2021 12,298  
Loans 26,912  
Loans   27,155
Multi-family financing | Substandard    
Credit risk profile of portfolio    
2022 36,760  
Loans 36,760  
Loans   36,760
Healthcare financing    
Credit risk profile of portfolio    
2022 486,989  
2021 361,324  
2020 245,408  
2019 23,891  
Revolving Loans 144,812  
Loans 1,262,424  
Loans   826,157
Healthcare financing | Acceptable and Above    
Credit risk profile of portfolio    
2022 486,989  
2021 331,862  
2020 183,035  
2019 17,186  
Revolving Loans 144,812  
Loans 1,163,884  
Loans   759,751
Healthcare financing | Special Mention (Watch)    
Credit risk profile of portfolio    
2021 29,462  
2020 62,373  
2019 6,705  
Loans 98,540  
Loans   66,406
Commercial and commercial real estate    
Credit risk profile of portfolio    
2022 66,221  
2021 87,288  
2020 33,414  
2019 50,182  
2018 14,025  
Prior 16,005  
Revolving Loans 428,023  
Loans 695,158  
Loans   520,199
Commercial and commercial real estate | Acceptable and Above    
Credit risk profile of portfolio    
2022 66,173  
2021 85,267  
2020 31,966  
2019 49,946  
2018 13,850  
Prior 15,489  
Revolving Loans 424,308  
Loans 686,999  
Loans   511,661
Commercial and commercial real estate | Special Mention (Watch)    
Credit risk profile of portfolio    
2022 48  
2021 21  
2020 1,448  
2019 129  
Prior 234  
Revolving Loans 973  
Loans 2,853  
Loans   2,483
Commercial and commercial real estate | Substandard    
Credit risk profile of portfolio    
2021 2,000  
2019 107  
2018 175  
Prior 282  
Revolving Loans 2,742  
Loans 5,306  
Loans   6,055
Agricultural production and real estate    
Credit risk profile of portfolio    
2022 8,372  
2021 8,048  
2020 16,671  
2019 6,722  
2018 3,745  
Prior 21,689  
Revolving Loans 24,823  
Loans 90,070  
Loans   97,060
Agricultural production and real estate | Acceptable and Above    
Credit risk profile of portfolio    
2022 8,358  
2021 7,984  
2020 15,952  
2019 6,291  
2018 3,457  
Prior 21,141  
Revolving Loans 24,779  
Loans 87,962  
Loans   93,082
Agricultural production and real estate | Special Mention (Watch)    
Credit risk profile of portfolio    
2022 14  
2021 64  
2020 719  
2019 431  
2018 288  
Prior 390  
Revolving Loans 44  
Loans 1,950  
Loans   3,820
Agricultural production and real estate | Substandard    
Credit risk profile of portfolio    
Prior 158  
Loans 158  
Loans   158
Consumer and margin loans    
Credit risk profile of portfolio    
2022 240  
2021 674  
2020 410  
2019 140  
2018 4,743  
Prior 26  
Revolving Loans 2,638  
Loans 8,871  
Loans   12,667
Consumer and margin loans | Acceptable and Above    
Credit risk profile of portfolio    
2022 240  
2021 674  
2020 394  
2019 140  
2018 4,743  
Prior 20  
Revolving Loans 2,638  
Loans 8,849  
Loans   12,633
Consumer and margin loans | Special Mention (Watch)    
Credit risk profile of portfolio    
2020 16  
Prior 3  
Loans 19  
Loans   21
Consumer and margin loans | Substandard    
Credit risk profile of portfolio    
Prior 3  
Loans $ 3  
Loans   $ 13
v3.22.2
Loans and Allowance for Credit Losses on Loans - Aging Analysis Of The Recorded Investment In Loans (Details)
Jun. 30, 2022
USD ($)
loan
Dec. 31, 2021
USD ($)
loan
Aging analysis of loan portfolio    
Loans $ 7,070,677,000  
Loans   $ 5,782,663,000
Number of loans modified in accordance with CARES Act | loan 1 1
Amount of outstanding loans modified in accordance with CARES Act $ 36,800,000 $ 36,800,000
Loans modified in accordance with CARES Act, payments due 0  
Total Past Due    
Aging analysis of loan portfolio    
Loans 4,866,000  
Loans   2,619,000
30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans 346,000  
Loans   1,923,000
60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans 258,000  
Loans   321,000
Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 4,262,000  
Loans   375,000
Current.    
Aging analysis of loan portfolio    
Loans 7,065,811,000  
Loans   5,780,044,000
Mortgage warehouse lines of credit    
Aging analysis of loan portfolio    
Loans 900,585,000  
Loans   781,437,000
Mortgage warehouse lines of credit | Current.    
Aging analysis of loan portfolio    
Loans 900,585,000  
Loans   781,437,000
Residential real estate    
Aging analysis of loan portfolio    
Loans 876,652,000  
Loans   843,101,000
Residential real estate | Total Past Due    
Aging analysis of loan portfolio    
Loans 699,000  
Loans   1,725,000
Residential real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans 307,000  
Loans   1,252,000
Residential real estate | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans 216,000  
Loans   287,000
Residential real estate | Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 176,000  
Loans   186,000
Residential real estate | Current.    
Aging analysis of loan portfolio    
Loans 875,953,000  
Loans   841,376,000
Healthcare financing    
Aging analysis of loan portfolio    
Loans 1,262,424,000  
Loans   826,157,000
Healthcare financing | Current.    
Aging analysis of loan portfolio    
Loans 1,262,424,000  
Loans   826,157,000
Multi-family financing    
Aging analysis of loan portfolio    
Loans 3,236,917,000  
Loans   2,702,042,000
Multi-family financing | Current.    
Aging analysis of loan portfolio    
Loans 3,236,917,000  
Loans   2,702,042,000
Commercial and commercial real estate    
Aging analysis of loan portfolio    
Loans 695,158,000  
Loans   520,199,000
Commercial and commercial real estate | Total Past Due    
Aging analysis of loan portfolio    
Loans 4,083,000  
Loans   748,000
Commercial and commercial real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans   591,000
Commercial and commercial real estate | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans   8,000
Commercial and commercial real estate | Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 4,083,000  
Loans   149,000
Commercial and commercial real estate | Current.    
Aging analysis of loan portfolio    
Loans 691,075,000  
Loans   519,451,000
Commercial and commercial real estate | Government guaranteed SBA loans | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans 0  
Loans   3,200,000
Commercial and commercial real estate | Government guaranteed SBA loans | Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 0  
Loans   274,000
Agricultural production and real estate    
Aging analysis of loan portfolio    
Loans 90,070,000  
Loans   97,060,000
Agricultural production and real estate | Total Past Due    
Aging analysis of loan portfolio    
Loans   58,000
Agricultural production and real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans   37,000
Agricultural production and real estate | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans   21,000
Agricultural production and real estate | Current.    
Aging analysis of loan portfolio    
Loans 90,070,000  
Loans   97,002,000
Consumer and margin loans    
Aging analysis of loan portfolio    
Loans 8,871,000  
Loans   12,667,000
Consumer and margin loans | Total Past Due    
Aging analysis of loan portfolio    
Loans 84,000  
Loans   88,000
Consumer and margin loans | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans 39,000  
Loans   43,000
Consumer and margin loans | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans 42,000  
Loans   5,000
Consumer and margin loans | Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 3,000  
Loans   40,000
Consumer and margin loans | Current.    
Aging analysis of loan portfolio    
Loans $ 8,787,000  
Loans   $ 12,579,000
v3.22.2
Loans and Allowance for Credit Losses on Loans - Impaired Loans and Specific Valuation Allowance (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Impaired loans without a specific allowance:  
Recorded investment $ 41,206
Unpaid principal balance 41,206
Impaired loans with a specific allowance:  
Recorded investment 2,199
Unpaid principal balance 2,199
Specific allowance 890
Total impaired loans:  
Recorded investments 43,405
Unpaid principal balance 43,405
Specific allowance 890
Residential real estate  
Impaired loans without a specific allowance:  
Recorded investment 372
Unpaid principal balance 372
Impaired loans with a specific allowance:  
Recorded investment 47
Unpaid principal balance 47
Specific allowance 16
Total impaired loans:  
Recorded investments 419
Unpaid principal balance 419
Specific allowance 16
Multi-family financing  
Impaired loans without a specific allowance:  
Recorded investment 36,760
Unpaid principal balance 36,760
Total impaired loans:  
Recorded investments 36,760
Unpaid principal balance 36,760
Commercial and commercial real estate  
Impaired loans without a specific allowance:  
Recorded investment 3,912
Unpaid principal balance 3,912
Impaired loans with a specific allowance:  
Recorded investment 2,143
Unpaid principal balance 2,143
Specific allowance 867
Total impaired loans:  
Recorded investments 6,055
Unpaid principal balance 6,055
Specific allowance 867
Agricultural production and real estate  
Impaired loans without a specific allowance:  
Recorded investment 158
Unpaid principal balance 158
Total impaired loans:  
Recorded investments 158
Unpaid principal balance 158
Consumer and margin loans  
Impaired loans without a specific allowance:  
Recorded investment 4
Unpaid principal balance 4
Impaired loans with a specific allowance:  
Recorded investment 9
Unpaid principal balance 9
Specific allowance 7
Total impaired loans:  
Recorded investments 13
Unpaid principal balance 13
Specific allowance $ 7
v3.22.2
Loans and Allowance for Credit Losses on Loans - Average Recorded Investment and Interest Income Recognized (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2021
Impaired Loans    
Average recorded investment in impaired loans $ 8,495 $ 10,703
Interest income recognized 71 286
Residential real estate    
Impaired Loans    
Average recorded investment in impaired loans 2,201 2,442
Interest income recognized 16 27
Commercial and commercial real estate    
Impaired Loans    
Average recorded investment in impaired loans 6,113 7,254
Interest income recognized 55 259
Agricultural production and real estate    
Impaired Loans    
Average recorded investment in impaired loans 175 1,000
Consumer and margin loans    
Impaired Loans    
Average recorded investment in impaired loans $ 6 $ 7
v3.22.2
Loans and Allowance for Credit Losses on Loans - Non Accrual Loans and Loans Past Due 90 Days Or More and Still Accruing (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Loan portfolio past due loans    
Nonaccrual $ 4,813 $ 524
Total Loans Greater than 90 Days & Accruing   237
Residential real estate    
Loan portfolio past due loans    
Nonaccrual 347 362
Total Loans Greater than 90 Days & Accruing   22
Commercial and commercial real estate    
Loan portfolio past due loans    
Nonaccrual 4,305  
Total Loans Greater than 90 Days & Accruing   149
Agricultural production and real estate    
Loan portfolio past due loans    
Nonaccrual 158 158
Total Loans Greater than 90 Days & Accruing   30
Consumer and margin loans    
Loan portfolio past due loans    
Nonaccrual $ 3 4
Total Loans Greater than 90 Days & Accruing   $ 36
v3.22.2
Loans and Allowance for Credit Losses on Loans - Troubled Debt and Modifications (Details)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
USD ($)
loan
item
Jun. 30, 2021
loan
item
Jun. 30, 2022
USD ($)
loan
item
Jun. 30, 2021
item
loan
Dec. 31, 2021
USD ($)
loan
Troubled debt and modifications          
Number of troubled debt restructuring 0 0 0 0  
Number of loans restructured defaulted | item 0 0 0 0  
Number of loans modified in accordance with CARES Act 1   1   1
Amount of outstanding loans modified in accordance with CARES Act | $ $ 36.8   $ 36.8   $ 36.8
Residential real estate          
Troubled debt and modifications          
Number of loans in the process of foreclosure     0   0
v3.22.2
Loans and Allowance for Credit Losses on Loans - Narrative (Details)
 6 Months Ended
May 05, 2022
USD ($)
security
May 07, 2021
USD ($)
security
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
Loans and Leases Receivable Disclosure [Line Items]          
Proceeds from sale of loans receivable       $ 262,086,000  
Purchases of available for sale securities     $ 47,866,000 130,204,000  
Servicing rights     130,710,000   $ 110,348,000
Purchase of loans     $ 92,533,000 $ 250,678,000  
Loan Sale and Freddie Mac Q Series Securitization          
Loans and Leases Receivable Disclosure [Line Items]          
Net gain (loss) on sale of loans $ 2,300,000 $ (676,000)      
First loss position in loan portfolio, maximum securitization pool, percentage 12.00% 10.00%      
First loss position in loan portfolio, maximum securitization pool, amount $ 25,700,000 $ 26,200,000      
First loss position in loan portfolio, reserves for losses 1,200,000 1,400,000      
Servicing rights 1,200,000 $ 730,000      
Loan Sale and Freddie Mac Q Series Securitization | Other liabilities          
Loans and Leases Receivable Disclosure [Line Items]          
Non-contingent reserve $ 2,500,000        
Loan Sale and Freddie Mac Q Series Securitization | Mortgage-backed Securities, Purchased from Freddie Mac          
Loans and Leases Receivable Disclosure [Line Items]          
Number of securities purchased | security 0 2      
Purchases of available for sale securities   $ 28,700,000      
Loan Sale and Freddie Mac Q Series Securitization | US Treasury Securities.          
Loans and Leases Receivable Disclosure [Line Items]          
Purchases of available for sale securities $ 27,000,000.0        
Multi-family financing | Loan Sale and Freddie Mac Q Series Securitization          
Loans and Leases Receivable Disclosure [Line Items]          
Proceeds from sale of loans receivable $ 214,000,000.0 $ 262,000,000.0      
v3.22.2
Variable Interest Entities (VIEs) (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Jun. 30, 2021
Variable Interest Entities (VIEs)      
Total Assets $ 11,086,055 $ 11,278,638 $ 9,881,532
Total Liabilities 9,857,516 10,123,229  
Single Family and Multi-Family Debt Financing Investments | Variable Interest Entity, Not Primary Beneficiary      
Variable Interest Entities (VIEs)      
Total Assets 39,898 36,573  
Total Liabilities 14,823 21,014  
Maximum Exposure to Loss $ 38,414 $ 36,164  
v3.22.2
Regulatory Matters (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
Company    
Tier 1 Capital (to average assets)    
Tier 1 Capital, Actual, Capital Amount $ 1,217,718 $ 1,138,090
Tier 1 Capital (to average assets), Actual, Ratio (as a percent) 0.124 0.104
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount $ 882,179 $ 928,731
Company | Minimum    
Tier 1 Capital (to average assets)    
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.09 0.085
Merchants Bank    
Tier 1 Capital (to average assets)    
Tier 1 Capital, Actual, Capital Amount $ 1,171,291 $ 1,088,621
Tier 1 Capital (to average assets), Actual, Ratio (as a percent) 0.123 0.103
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount $ 857,175 $ 901,188
Merchants Bank | Minimum    
Tier 1 Capital (to average assets)    
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.09 0.085
FMBI    
Tier 1 Capital (to average assets)    
Tier 1 Capital, Actual, Capital Amount $ 31,104 $ 28,958
Tier 1 Capital (to average assets), Actual, Ratio (as a percent) 0.103 0.097
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount $ 27,088 $ 25,499
FMBI | Minimum    
Tier 1 Capital (to average assets)    
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.09 0.085
v3.22.2
Derivative Financial Instruments (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Pledged in collateral $ 2,900   $ 2,900   $ 3,900
Other income          
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses) 2,146 $ (1,243) 4,414 $ 409  
Loans held for sale          
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses) (5)   (5)    
Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 573   573   350
Derivative liabilities          
Derivative Financial Instruments          
Derivative liabilities, fair value 324   324   159
Interest Rate Lock Commitments          
Derivative Financial Instruments          
Notional amount 62,301   62,301   58,701
Interest Rate Lock Commitments | Other income          
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses) 837 1,046 (45) (5,698)  
Interest Rate Lock Commitments | Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 299   299   264
Interest Rate Lock Commitments | Derivative liabilities          
Derivative Financial Instruments          
Derivative liabilities, fair value 121   121   41
Forward Contracts          
Derivative Financial Instruments          
Notional amount 49,750   49,750   81,250
Forward Contracts | Other income          
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses) 1,309 (2,289) 4,459 6,107  
Forward Contracts | Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 114   114   86
Forward Contracts | Derivative liabilities          
Derivative Financial Instruments          
Derivative liabilities, fair value 203   203   118
Interest rate swaps          
Derivative Financial Instruments          
Notional amount 25,190   25,190    
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Gross swap gains 2,035 195 2,531 1,081  
Gross swap losses 2,035 $ 195 2,531 $ 1,081  
Interest rate swaps | Loans held for sale          
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses) 160   160    
Interest rate swaps | Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 160   160    
Interest rate swap back to back          
Derivative Financial Instruments          
Notional amount 181,805   181,805   135,686
Interest rate swap back to back | Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 3,662   3,662   1,131
Interest rate swap back to back | Derivative liabilities          
Derivative Financial Instruments          
Derivative liabilities, fair value 3,662   3,662   $ 1,131
Loans held for sale | Loans held for sale          
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses) $ (165)   $ (165)    
v3.22.2
Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Disclosures about Fair Value of Assets and Liabilities    
Mortgage loans in process of securitization $ 323,046 $ 569,239
Available for sale securities 336,814 310,629
Loans held for sale 41,991 48,583
Servicing rights 130,710 110,348
Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Mortgage loans in process of securitization 323,046 569,239
Loans held for sale 41,991 48,583
Servicing rights 130,710 110,348
Recurring | Interest Rate Lock Commitments    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 299 264
Derivative liabilities 121 41
Recurring | Forward Contracts    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 114 86
Derivative liabilities 203 118
Recurring | Interest rate swaps    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 160  
Recurring | Interest rate swap back to back    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 3,662 1,131
Derivative liabilities 3,662 1,131
Level 2 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Mortgage loans in process of securitization 323,046 569,239
Loans held for sale 41,991 48,583
Level 2 | Recurring | Forward Contracts    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 114 86
Derivative liabilities 203 118
Level 2 | Recurring | Interest rate swaps    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 160  
Level 2 | Recurring | Interest rate swap back to back    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 3,662 1,131
Derivative liabilities 3,662 1,131
Level 3 | Interest Rate Lock Commitments    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 299 264
Derivative liabilities 121 41
Level 3 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Servicing rights 130,710 110,348
Level 3 | Recurring | Interest Rate Lock Commitments    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 299 264
Derivative liabilities 121 41
Treasury notes    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 34,804 8,209
Treasury notes | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 34,804 8,209
Treasury notes | Level 1 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 34,804 8,209
Federal agencies    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 274,852 263,295
Federal agencies | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 274,852 263,295
Federal agencies | Level 2 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 274,852 263,295
Municipals. | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities   4,300
Municipals. | Level 2 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities   4,300
Mortgage-backed - Government-sponsored entity (GSE)    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 15,779 18,360
Mortgage-backed - Government-sponsored entity (GSE) | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 15,779 18,360
Mortgage-backed - Government-sponsored entity (GSE) | Level 2 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 15,779 18,360
Mortgage-backed - Non-GSE multi-family    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 11,379 16,465
Mortgage-backed - Non-GSE multi-family | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities 11,379 16,465
Mortgage-backed - Non-GSE multi-family | Level 2 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Available for sale securities $ 11,379 $ 16,465
v3.22.2
Disclosures about Fair Value of Assets and Liabilities - Reconciliation of Unobservable Inputs (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Derivative liabilities | Interest Rate Lock Commitments        
Reconciliation of significant unobservable inputs, liabilities:        
Balance, beginning of period $ 771 $ 1,080 $ 41  
Changes in fair value (650) (1,026) 80 $ 54
Balance, end of period 121 54 121 54
Servicing rights.        
Reconciliation of significant unobservable inputs, assets:        
Balance, beginning of period 121,036 96,215 110,348 82,604
Additions        
Originated servicing 5,203 6,527 10,995 16,708
Subtractions        
Paydowns (3,268) (4,627) (6,017) (8,075)
Sales of servicing   (438)   (438)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model 7,739 654 15,384 7,532
Balance, end of period 130,710 98,331 130,710 98,331
Derivative assets | Interest Rate Lock Commitments        
Reconciliation of significant unobservable inputs, assets:        
Balance, beginning of period 112 467 264 6,131
Subtractions        
Changes in fair value 187 20 35 (5,644)
Balance, end of period $ 299 $ 487 $ 299 $ 487
v3.22.2
Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Disclosures about Fair Value of Assets and Liabilities    
Collateral dependent loans $ 4,275 $ 4,263
Level 3    
Disclosures about Fair Value of Assets and Liabilities    
Collateral dependent loans $ 4,275 $ 4,263
v3.22.2
Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs (Details)
Jun. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
Quantitative information about unobservable inputs    
Servicing rights $ 130,710,000 $ 110,348,000
Weighted average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input   12
Level 3 | Servicing rights | Loans funded through PPP, CARES Act    
Quantitative information about unobservable inputs    
Servicing rights $ 4,019,000  
Level 3 | Servicing rights | Loans funded through PPP, CARES Act | Discount Rate    
Quantitative information about unobservable inputs    
Servicing rights   $ 2,769,000
Servicing asset, measurement input 0.16 16
Level 3 | Servicing rights | Loans funded through PPP, CARES Act | Discount Rate | Weighted average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.16 16
Level 3 | Servicing rights | Loans funded through PPP, CARES Act | Constant Prepayment Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.03 10
Level 3 | Servicing rights | Loans funded through PPP, CARES Act | Constant Prepayment Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.16 13
Level 3 | Servicing rights | Loans funded through PPP, CARES Act | Constant Prepayment Rate | Weighted average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.08  
Level 3 | Servicing rights | Single Family    
Quantitative information about unobservable inputs    
Servicing rights $ 29,632,000 $ 23,012,000
Level 3 | Servicing rights | Single Family | Discount Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input   9
Level 3 | Servicing rights | Single Family | Discount Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input   10
Level 3 | Servicing rights | Single Family | Discount Rate | Weighted average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input   9
Level 3 | Servicing rights | Single Family | Constant Prepayment Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.07 0.10
Level 3 | Servicing rights | Single Family | Constant Prepayment Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.09 0.13
Level 3 | Servicing rights | Single Family | Constant Prepayment Rate | Weighted average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 7 0.11
Level 3 | Servicing rights | Single Family | Mortgage Yield | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.09  
Level 3 | Servicing rights | Single Family | Mortgage Yield | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.10  
Level 3 | Servicing rights | Single Family | Mortgage Yield | Weighted average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 9  
Level 3 | Servicing rights | Multi-family    
Quantitative information about unobservable inputs    
Servicing rights $ 97,059,000 $ 84,567,000
Level 3 | Servicing rights | Multi-family | Discount Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.08 0.08
Level 3 | Servicing rights | Multi-family | Discount Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.13 0.13
Level 3 | Servicing rights | Multi-family | Discount Rate | Weighted average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.08 0.09
Level 3 | Servicing rights | Multi-family | Constant Prepayment Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0 0
Level 3 | Servicing rights | Multi-family | Constant Prepayment Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.50 0.50
Level 3 | Servicing rights | Multi-family | Constant Prepayment Rate | Weighted average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.03 0.04
Level 3 | Collateral-dependent impaired loans    
Quantitative information about unobservable inputs    
Collateral-dependent impaired loans $ 4,275,000 $ 4,263,000
Marketability discount (as a percent) 0.82  
Level 3 | Collateral-dependent impaired loans | Minimum    
Quantitative information about unobservable inputs    
Marketability discount (as a percent)   0.44
Level 3 | Collateral-dependent impaired loans | Weighted average    
Quantitative information about unobservable inputs    
Marketability discount (as a percent) 0.82 0.73
Level 3 | Interest Rate Lock Commitments    
Quantitative information about unobservable inputs    
Derivative assets $ 299,000 $ 264,000
Derivative liabilities $ 121,000 $ 41,000
Level 3 | Interest Rate Lock Commitments | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input   63
Level 3 | Interest Rate Lock Commitments | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input   99
Level 3 | Interest Rate Lock Commitments | Measurement Input, Maturity | Minimum    
Quantitative information about unobservable inputs    
Loan closing rates (as a percent) 0.50 0.63
Loan closing rates (as a percent) 0.50  
Level 3 | Interest Rate Lock Commitments | Measurement Input, Maturity | Maximum    
Quantitative information about unobservable inputs    
Loan closing rates (as a percent) 0.99 0.99
Loan closing rates (as a percent) 0.99  
Level 3 | Interest Rate Lock Commitments | Measurement Input, Maturity | Weighted average    
Quantitative information about unobservable inputs    
Loan closing rates (as a percent) 81 0.83
Loan closing rates (as a percent) 81 83
v3.22.2
Disclosures about Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Financial assets:    
Loans held for sale $ 41,991 $ 48,583
Carrying value per balance sheet    
Financial assets:    
Cash and cash equivalents 258,146 1,032,614
Securities purchased under agreements to resell 3,520 5,888
FHLB stock 39,130 29,588
Loans held for sale 2,717,125 3,254,616
Loans receivable, net 7,033,203 5,751,319
Interest receivable 26,184 24,103
Financial liabilities:    
Deposits 8,299,738 8,982,613
Short-term subordinated debt 19,000 17,000
FHLB advances 851,904 556,954
Other borrowing 570,000 460,000
Interest payable 3,805 1,469
Estimated fair value    
Financial assets:    
Cash and cash equivalents 258,146 1,032,614
Securities purchased under agreements to resell 3,520 5,888
FHLB stock 39,130 29,588
Loans held for sale 2,717,125 3,254,616
Loans receivable, net 7,046,313 5,731,500
Interest receivable 26,184 24,103
Financial liabilities:    
Deposits 8,294,601 8,982,680
Short-term subordinated debt 19,000 17,000
FHLB advances 851,711 556,925
Other borrowing 570,000 460,000
Interest payable 3,805 1,469
Level 1 | Estimated fair value    
Financial assets:    
Cash and cash equivalents 258,146 1,032,614
Financial liabilities:    
Deposits 6,829,667 7,783,553
Level 2 | Estimated fair value    
Financial assets:    
Securities purchased under agreements to resell 3,520 5,888
FHLB stock 39,130 29,588
Loans held for sale 2,717,125 3,254,616
Interest receivable 26,184 24,103
Financial liabilities:    
Deposits 1,464,934 1,199,127
Short-term subordinated debt 19,000 17,000
FHLB advances 851,711 556,925
Other borrowing 570,000 460,000
Interest payable 3,805 1,469
Level 3 | Estimated fair value    
Financial assets:    
Loans receivable, net $ 7,046,313 $ 5,731,500
v3.22.2
Leases (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
Leases  
Operating lease right-of-use assets $ 9,189
Operating lease liabilities $ 9,920
Maximum  
Leases  
Lease period 11 years
Minimum  
Leases  
Lease period 2 years
v3.22.2
Leases - Balance sheet, income statement and cash flow detail regarding operating leases (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
Leases.    
Operating lease right-of-of use asset (in Other Assets) $ 9,189 $ 9,189
Operating lease liability (in Other Liabilities) $ 9,920 $ 9,920
Weighted average remaining lease term (years) 7 years 2 months 12 days 7 years 2 months 12 days
Weighted average discount rate 2.09% 2.09%
Maturities of lease liabilities    
2022 remaining $ 864 $ 864
2023 1,812 1,812
2024 1,638 1,638
2025 1,246 1,246
2026 1,277 1,277
Thereafter 3,857 3,857
Total future minimum lease payments 10,694 10,694
Less: imputed interest 774 774
Total 9,920 9,920
Components of lease expense:    
Operating lease cost (in occupancy and equipment expense) $ 425 792
Operating cash flows from operating leases   $ 597
v3.22.2
Earnings Per Share (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jan. 17, 2022
Jun. 30, 2022
USD ($)
$ / shares
shares
Jun. 30, 2021
USD ($)
$ / shares
shares
Jun. 30, 2022
USD ($)
$ / shares
shares
Jun. 30, 2021
USD ($)
$ / shares
shares
Net Income          
Net income | $   $ 53,935 $ 51,417 $ 104,077 $ 113,400
Dividends on preferred stock | $   (5,729) (5,659) (11,457) (9,416)
Net Income Allocated to Common Shareholders | $   $ 48,206 $ 45,758 $ 92,620 $ 103,984
Weighted-Average Shares          
Weighted average shares - Basic | shares   43,209,824 [1] 43,174,220 [1] 43,220,198 43,166,223
Effect of dilutive securities-restricted stock awards | shares   125,387 [1] 137,268 [1] 147,677 127,376
Weighted average shares - diluted | shares   43,335,211 [1] 43,311,488 [1] 43,367,875 43,293,599
Per Share Amount          
Basic earnings per share | $ / shares   $ 1.12 [1] $ 1.06 [1] $ 2.14 $ 2.41
Diluted earnings per share | $ / shares   $ 1.11 [1] $ 1.06 [1] $ 2.14 $ 2.40
Other disclosures          
Stock split ratio 1.5        
[1] The number of shares and per share amounts have been restated to reflect the 3-for-2 common stock split, effective on January 17, 2022
v3.22.2
Common Stock (Details)
 3 Months Ended 6 Months Ended
Jan. 17, 2022
Jun. 30, 2022
USD ($)
$ / shares
shares
Jun. 30, 2021
shares
Jun. 30, 2022
USD ($)
Nov. 17, 2021
USD ($)
Common Stock          
Repurchase of common Stock (in shares) | shares     0    
Stock split ratio 1.5        
Exchange Ratio of Additional Shares for Every Shares Owned         0.5
Repurchased (in shares) | shares   165,037      
Repurchased amount | $   $ 3,935,333   $ 3,935,000  
Average price per common share | $ / shares   $ 23.85      
Repurchase program, Authorized Amount | $         $ 75,000,000
v3.22.2
Share-Based Payment Plans (Details) - USD ($)
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 31, 2021
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2018
Non executive directors            
Plan disclosures            
Shares issued   3,766 2,190 5,821 4,695  
Value of shares available for issuance for compensation related to annual fees $ 50,000         $ 10,000
2017 Plan | Restricted Stock            
Plan disclosures            
Shares issued   0 0 64,962 35,056  
v3.22.2
Preferred Stock (Details)
 6 Months Ended 12 Months Ended 24 Months Ended
May 06, 2021
USD ($)
$ / shares
shares
Apr. 15, 2021
USD ($)
shares
Mar. 23, 2021
USD ($)
$ / shares
shares
Sep. 23, 2019
USD ($)
$ / shares
shares
Aug. 19, 2019
USD ($)
$ / shares
shares
Jun. 27, 2019
USD ($)
$ / shares
shares
Apr. 12, 2019
USD ($)
shares
Mar. 28, 2019
USD ($)
$ / shares
shares
Jun. 30, 2022
$ / shares
Jun. 30, 2021
USD ($)
Dec. 31, 2021
$ / shares
Dec. 31, 2016
$ / shares
Dec. 31, 2016
$ / shares
shares
Public Offering of Preferred Stock                          
Net proceeds                   $ 191,084,000      
8% Preferred Stock                          
Public Offering of Preferred Stock                          
Redemption of 8% preferred stock (in shares) | shares   41,625                      
Redemption of 8% preferred stock   $ 41,600,000                      
Preferred stock, dividend rate (as a percent) 8.00% 8.00%                      
Final dividend for redemption of 8% preferred stock   $ 139,000                      
8% Preferred Stock | Private Placement                          
Public Offering of Preferred Stock                          
Shares issued (in shares) | shares                         41,625
Preferred stock, dividend rate (as a percent)                       8.00%  
Preferred stock liquidation preference (in dollars per share) | $ / shares                       $ 1,000.00 $ 1,000.00
7% Preferred Stock                          
Public Offering of Preferred Stock                          
Redemption of 8% preferred stock (in shares) | shares       874,000                  
Preferred stock, dividend rate (as a percent)       7.00%         7.00%   7.00%    
Preferred stock liquidation preference (in dollars per share) | $ / shares       $ 25         $ 25   $ 25    
Redemption of preferred stock       $ 21,850,000                  
Brokerage fees       $ 0                  
7% Preferred Stock | Public Offering                          
Public Offering of Preferred Stock                          
Shares issued (in shares) | shares             81,800 2,000,000          
Preferred stock, dividend rate (as a percent)               7.00%          
Preferred stock liquidation preference (in dollars per share) | $ / shares               $ 25.00          
Aggregate gross offering proceeds for the shares issued               $ 50,000,000.0          
Net proceeds             $ 2,000,000.0 48,300,000          
Offering costs               $ 1,700,000          
Underwriting discounts             $ 41,000            
7% Preferred Stock | Private Placement                          
Public Offering of Preferred Stock                          
Shares issued (in shares) | shares           874,000              
Preferred stock, dividend rate (as a percent)           7.00%              
Preferred stock liquidation preference (in dollars per share) | $ / shares           $ 25.00              
Aggregate gross offering proceeds for the shares issued           $ 21,850,000              
6% Series B Preferred Stock                          
Public Offering of Preferred Stock                          
Preferred stock, dividend rate (as a percent)                 6.00%   6.00%    
Preferred stock liquidation preference (in dollars per share) | $ / shares                 $ 1,000   $ 1,000    
6% Series B Preferred Stock | Public Offering                          
Public Offering of Preferred Stock                          
Shares issued (in shares) | shares         5,000,000                
Depositary shares equivalent preferred stock interest per share         0.250                
Preferred stock, dividend rate (as a percent)         6.00%                
Preferred stock liquidation preference (in dollars per share) | $ / shares         $ 1,000.00                
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares         $ 25.00                
Aggregate gross offering proceeds for the shares issued         $ 125,000,000.0                
Net proceeds         120,800,000                
Underwriting discounts         $ 4,200,000                
6% Series C Preferred Stock                          
Public Offering of Preferred Stock                          
Shares issued (in shares) | shares 46,181                        
Depositary shares issued (in shares) | shares 1,847,233                        
Depositary share price (in dollars per share) | $ / shares $ 25                        
Preferred stock, dividend rate (as a percent)                 6.00%   6.00%    
Preferred stock liquidation preference (in dollars per share) | $ / shares                 $ 1,000   $ 1,000    
Net proceeds $ 46,200,000                        
Offering costs $ 23,000                        
6% Series C Preferred Stock | Public Offering                          
Public Offering of Preferred Stock                          
Shares issued (in shares) | shares     6,000,000                    
Depositary shares equivalent preferred stock interest per share     0.250                    
Preferred stock, dividend rate (as a percent)     6.00%                    
Preferred stock liquidation preference (in dollars per share) | $ / shares     $ 1,000.00                    
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares     $ 25.00                    
Aggregate gross offering proceeds for the shares issued     $ 150,000,000.0                    
Net proceeds     144,900,000                    
Underwriting discounts     $ 5,100,000                    
v3.22.2
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Segment Information          
Interest income $ 89,270 $ 72,438 $ 165,282 $ 151,987  
Interest expense 17,239 8,031 27,526 15,617  
Net Interest Income 72,031 64,407 137,756 136,370  
Provision for credit losses 4,768   6,749    
Provision for credit losses 6,212 (315) 8,663 1,348  
Net Interest Income After Provision for Credit Losses 65,819 64,722 129,093 135,022  
Noninterest income 39,171 32,855 73,768 76,791  
Noninterest expense 32,957 28,183 63,990 58,267  
Income Before Income Taxes 72,033 69,394 138,871 153,546  
Income taxes 18,098 17,977 34,794 40,146  
Net Income 53,935 51,417 104,077 113,400  
Total assets 11,086,055 9,881,532 11,086,055 9,881,532 $ 11,278,638
Other          
Segment Information          
Interest income 2,062 1,316 3,763 2,531  
Interest expense (373) (784) (624) (1,361)  
Net Interest Income 2,435 2,100 4,387 3,892  
Net Interest Income After Provision for Credit Losses 2,435 2,100 4,387 3,892  
Noninterest income (1,357) (1,409) (2,995) (2,502)  
Noninterest expense 5,923 4,358 10,925 7,977  
Income Before Income Taxes (4,845) (3,667) (9,533) (6,587)  
Income taxes (1,424) (924) (2,839) (1,658)  
Net Income (3,421) (2,743) (6,694) (4,929)  
Total assets 83,229 49,521 83,229 49,521  
Multifamily | Operating Segments          
Segment Information          
Interest income 383 204 640 411  
Net Interest Income 383 204 640 411  
Provision for credit losses 1,153   1,153    
Net Interest Income After Provision for Credit Losses (770) 204 (513) 411  
Noninterest income 49,430 28,572 81,616 61,806  
Noninterest expense 21,959 13,626 38,490 30,070  
Income Before Income Taxes 26,701 15,150 42,613 32,147  
Income taxes 7,145 4,179 11,565 9,215  
Net Income 19,556 10,971 31,048 22,932  
Total assets 330,676 238,165 330,676 238,165  
Mortgage Warehousing | Operating Segments          
Segment Information          
Interest income 23,247 29,935 43,576 68,522  
Interest expense 5,576 1,599 7,597 3,323  
Net Interest Income 17,671 28,336 35,979 65,199  
Provision for credit losses 834 (40) 627 (1,124)  
Net Interest Income After Provision for Credit Losses 16,837 28,376 35,352 66,323  
Noninterest income 1,350 3,079 3,210 7,196  
Noninterest expense 2,441 2,703 5,367 5,599  
Income Before Income Taxes 15,746 28,752 33,195 67,920  
Income taxes 3,878 7,304 8,168 17,289  
Net Income 11,868 21,448 25,027 50,631  
Total assets 2,836,998 4,265,162 2,836,998 4,265,162  
Banking | Operating Segments          
Segment Information          
Interest income 63,578 40,983 117,303 80,523  
Interest expense 12,036 7,216 20,553 13,655  
Net Interest Income 51,542 33,767 96,750 66,868  
Provision for credit losses 4,225 (275) 6,883 2,472  
Net Interest Income After Provision for Credit Losses 47,317 34,042 89,867 64,396  
Noninterest income (10,252) 2,613 (8,063) 10,291  
Noninterest expense 2,634 7,496 9,208 14,621  
Income Before Income Taxes 34,431 29,159 72,596 60,066  
Income taxes 8,499 7,418 17,900 15,300  
Net Income 25,932 21,741 54,696 44,766  
Total assets $ 7,835,152 $ 5,328,684 $ 7,835,152 $ 5,328,684  
v3.22.2
Recent Accounting Pronouncements (Details) - USD ($)
Jun. 30, 2022
Jan. 01, 2022
Dec. 31, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Recent Accounting Pronouncements            
Allowance for loan losses     $ 31,344,000 $ 28,696,000 $ 29,091,000 $ 27,500,000
Retained earnings, net of tax $ 737,789,000   657,149,000      
Operating lease right-of-use assets 9,189,000          
Operating lease liabilities $ 9,920,000          
Impact from adoption of ASU | ASU 2016-02            
Recent Accounting Pronouncements            
Retained earnings, net of tax   $ 110,000        
Operating lease right-of-use assets   7,100,000        
Operating lease liabilities   7,200,000        
Impact from adoption of ASU | ASU 2016-13            
Recent Accounting Pronouncements            
Allowance for loan losses   (299,000) $ (299,000)      
ACL - OBCEs (in Other Liabilities)   5,176,000        
Retained earnings, net of tax   $ (3,648,000)