MERCHANTS BANCORP, 10-Q filed on 5/10/2024
Quarterly Report
v3.24.1.1.u2
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2024
May 01, 2024
Document Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
Document Transition Report false  
Entity File Number 001-38258  
Entity Registrant Name MERCHANTS BANCORP  
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 false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   43,354,718
Entity Central Index Key 0001629019  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
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  
Series D Preferred Stock    
Document Information    
Title of 12(b) Security Depositary Shares, each representing a 1/40th interest in a share of Series D Preferred Stock, without par value  
Trading Symbol MBINM  
Security Exchange Name NASDAQ  
v3.24.1.1.u2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Assets    
Cash and due from banks $ 17,924 $ 15,592
Interest-earning demand accounts 490,831 568,830
Cash and cash equivalents 508,755 584,422
Securities purchased under agreements to resell 3,329 3,349
Mortgage loans in process of securitization 142,629 110,599
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 1,061,288 1,113,687
Securities held to maturity ($1,176,178 and $1,203,535 at fair value, respectively) 1,175,167 1,204,217
Federal Home Loan Bank (FHLB) stock 64,215 48,578
Loans held for sale (includes $84,513 and $86,663 at fair value, respectively) 3,503,131 3,144,756
Loans receivable, net of allowance for credit losses on loans of $75,712 and $71,752, respectively 10,690,513 10,127,801
Premises and equipment, net 42,450 42,342
Servicing rights 172,200 158,457
Interest receivable 90,303 91,346
Goodwill 8,014 15,845
Intangible assets, net 149 742
Other assets and receivables 360,433 306,375
Total assets 17,822,576 16,952,516
Deposits    
Noninterest-bearing 319,872 520,070
Interest-bearing 13,655,789 13,541,390
Total deposits 13,975,661 14,061,460
Borrowings 1,835,985 964,127
Deferred and current tax liabilities, net 43,935 19,923
Other liabilities 190,527 205,922
Total liabilities 16,046,108 15,251,432
Commitments and Contingencies
Shareholders' Equity    
Common stock, without par value Authorized - 75,000,000 shares Issued and outstanding - 43,354,718 shares at March 31, 2024 and 43,242,928 shares at December 31, 2023 139,950 140,365
Retained earnings 1,138,083 1,063,599
Accumulated other comprehensive loss (1,173) (2,488)
Total shareholders' equity 1,776,468 1,701,084
Total liabilities and shareholders' equity 17,822,576 16,952,516
7% Series A 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
8.25% Series D Preferred Stock    
Shareholders' Equity    
Preferred stock $ 137,459 $ 137,459
v3.24.1.1.u2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Securities available for sale $ 700,640 $ 722,497
Securities held to maturity, fair value 1,176,178 1,203,535
Loans held for sale at fair value 84,513 86,663
Net of allowance for credit losses on loans $ 75,712 $ 71,752
Stockholders' Equity:    
Common stock, shares authorized 75,000,000 75,000,000
Common stock, shares issued 43,354,718 43,242,928
Common stock, shares outstanding 43,354,718 43,242,928
Preferred stock, shares authorized 5,000,000 5,000,000
7% Series A 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 200,000 200,000
Preferred stock, shares issued 196,181 196,181
Preferred stock, shares outstanding 196,181 196,181
Depositary shares 7,847,233 7,847,233
8.25% Series D Preferred Stock    
Stockholders' Equity:    
Preferred stock, dividend rate (as a percent) 8.25% 8.25%
Preferred stock liquidation preference (in dollars per share) $ 1,000 $ 1,000
Preferred stock, shares authorized 300,000 300,000
Preferred stock, shares issued 142,500 142,500
Preferred stock, shares outstanding 142,500 142,500
Depositary shares 5,700,000 5,700,000
v3.24.1.1.u2
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Interest Income    
Loans $ 271,998,000 $ 189,450,000
Mortgage loans in process of securitization 1,720,000 1,648,000
Investment securities:    
Available for sale 14,388,000 2,266,000
Held to maturity 20,522,000 15,754,000
Federal Home Loan Bank stock 844,000 427,000
Other 4,701,000 1,749,000
Total interest income 314,173,000 211,294,000
Interest Expense    
Deposits 171,022,000 104,442,000
Borrowed funds 16,095,000 6,159,000
Total interest expense 187,117,000 110,601,000
Net Interest Income 127,056,000 100,693,000
Provision for credit losses 4,726,000 6,867,000
Net Interest Income After Provision for Credit Losses 122,330,000 93,826,000
Noninterest Income    
Gain on sale of loans 9,356,000 6,733,000
Loan servicing fees, net 19,402,000 2,360,000
Mortgage warehouse fees 982,000 1,028,000
Loss on sale of investments available for sale (includes $(108) and $0, respectively, related to accumulated other comprehensive loss reclassifications) (108,000)  
Syndication and asset management fees 5,303,000 1,212,000
Other income 5,939,000 2,931,000
Total noninterest income 40,874,000 14,264,000
Noninterest Expense    
Salaries and employee benefits 29,596,000 22,146,000
Loan expenses 956,000 804,000
Occupancy and equipment 2,237,000 2,232,000
Professional fees 4,099,000 2,269,000
Deposit insurance expense 5,125,000 2,178,000
Technology expense 1,854,000 1,577,000
Other expense 5,045,000 3,566,000
Total noninterest expense 48,912,000 34,772,000
Income Before Income Taxes 114,292,000 73,318,000
Provision for income taxes (includes $26 and $0, respectively, related to income tax benefit for reclassification items) 27,238,000 18,363,000
Net Income 87,054,000 54,955,000
Dividends on preferred stock (8,667,000) (8,667,000)
Net income allocated to common shareholders $ 78,387,000 $ 46,288,000
Basic Earnings Per Share (in dollars per share) $ 1.81 $ 1.07
Diluted Earnings Per Share (in dollars per share) $ 1.80 $ 1.07
Weighted-Average Shares Outstanding    
Basic (in shares) 43,305,985 43,179,604
Diluted (in shares) 43,466,647 43,290,779
v3.24.1.1.u2
Consolidated Statements of Income (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Condensed Consolidated Statements of Income (Unaudited)    
Reclassifications included in gains on sale of investment available for sale $ (108) $ 0
Provision for income taxes related to income tax expense for reclassification items $ 26 $ 0
v3.24.1.1.u2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Condensed Consolidated Statements of Comprehensive Income (Unaudited)    
Net Income $ 87,054 $ 54,955
Other Comprehensive Income:    
Net unrealized gain on investment securities available for sale, net of tax expense of $(384) and $(934), respectively 1,233 2,792
Add: Reclassification adjustment for losses included in net income, net of tax benefit of $26 and $0, respectively 82  
Other comprehensive income (loss) for the period 1,315 2,792
Comprehensive Income $ 88,369 $ 57,747
v3.24.1.1.u2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Condensed Consolidated Statements of Comprehensive Income (Unaudited)    
Net of tax (expense)/ benefits on net change in unrealized gains/(losses) on investment securities available for sale $ (384) $ (934)
Net of tax expense on reclassification adjustment for gains include in net income $ 26 $ 0
v3.24.1.1.u2
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($)
$ in Thousands
Common stock
Preferred stock
7% Series A Preferred Stock
Preferred stock
6% Series B Preferred Stock
Preferred stock
6% Series C Preferred Stock
Preferred stock
8.25% Series D Preferred Stock
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total
Balance beginning of period at Dec. 31, 2022 $ 137,781         $ 832,871 $ (10,521)  
Balance beginning of period (in shares) at Dec. 31, 2022 43,113,127              
Consolidated Statements of Shareholders' Equity                
Net Income           54,955   $ 54,955
Dividends on 7% Series A preferred stock, $1.75 per share, annually           (910)    
Dividends on 6% Series B preferred stock, $60.00 per share, annually           (1,875)    
Dividends on 6% Series C preferred stock, $60.00 per share, annually           (2,943)    
Dividends on 8.25% Series D preferred stock, $82.50 per share, annually           (2,939)    
Dividends on common stock, $0.33 per share, annually in 2024 and $0.32 per share, annually in 2023           (3,459)    
Other comprehensive income (loss)             2,792 2,792
Distribution to employee stock ownership plan $ 810              
Distribution to employee stock ownership plan (in shares) 33,293              
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ (486)              
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 87,198              
Balance end of period at Mar. 31, 2023 $ 138,105 $ 50,221 $ 120,844 $ 191,084 $ 137,459 875,700 (7,729) 1,505,684
Balance end of period (in shares) at Mar. 31, 2023 43,233,618 2,081,800 125,000 196,181 142,500      
Balance beginning of period at Dec. 31, 2023 $ 140,365         1,063,599 (2,488) 1,701,084
Balance beginning of period (in shares) at Dec. 31, 2023 43,242,928              
Consolidated Statements of Shareholders' Equity                
Net Income           87,054   87,054
Dividends on 7% Series A preferred stock, $1.75 per share, annually           (910)    
Dividends on 6% Series B preferred stock, $60.00 per share, annually           (1,875)    
Dividends on 6% Series C preferred stock, $60.00 per share, annually           (2,943)    
Dividends on 8.25% Series D preferred stock, $82.50 per share, annually           (2,939)    
Dividends on common stock, $0.33 per share, annually in 2024 and $0.32 per share, annually in 2023           (3,903)    
Other comprehensive income (loss)             1,315 1,315
Distribution to employee stock ownership plan $ 997              
Distribution to employee stock ownership plan (in shares) 23,414              
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ (1,412)              
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 88,376              
Balance end of period at Mar. 31, 2024 $ 139,950 $ 50,221 $ 120,844 $ 191,084 $ 137,459 $ 1,138,083 $ (1,173) $ 1,776,468
Balance end of period (in shares) at Mar. 31, 2024 43,354,718 2,081,800 125,000 196,181 142,500      
v3.24.1.1.u2
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dividends on common stock per share $ 0.36 $ 0.32
7% Series A Preferred Stock    
Preferred stock, dividend rate (as a percent) 7.00%  
7% Series A Preferred Stock | Preferred stock    
Preferred stock, dividend rate (as a percent) 7.00% 7.00%
Dividends on preferred stock per share $ 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%
Dividends on preferred stock per share $ 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%
Dividends on preferred stock per share $ 60.00 $ 60.00
8.25% Series D Preferred Stock    
Preferred stock, dividend rate (as a percent) 8.25%  
8.25% Series D Preferred Stock | Preferred stock    
Preferred stock, dividend rate (as a percent) 8.25% 8.25%
Dividends on preferred stock per share $ 82.50 $ 82.50
v3.24.1.1.u2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Operating activities:    
Net income $ 87,054,000 $ 54,955,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 725,000 686,000
Provision for credit losses 4,726,000 6,867,000
Gain on sale of securities 108,000  
Gain on sale of loans (9,356,000) (6,733,000)
Proceeds from sales of loans 4,694,759,000 3,356,860,000
Loans and participations originated and purchased for sale (5,078,607,000) (3,674,484,000)
Proceeds from sale of low-income housing tax credits 25,861,000 8,670,000
Purchases of low-income housing tax credits for sale (21,113,000) (7,932,000)
Change in servicing rights for paydowns and fair value adjustments (11,577,000) 4,554,000
Net change in:    
Mortgage loans in process of securitization (32,030,000) (42,880,000)
Other assets and receivables (58,186,000) (8,116,000)
Other liabilities 14,595,000 7,607,000
Other (731,000) (1,587,000)
Net cash used in operating activities (383,772,000) (301,533,000)
Investing activities:    
Net change in securities purchased under agreements to resell 20,000 26,000
Purchases of securities available for sale (193,957,000) (353,249,000)
Purchases of securities held to maturity   (1,540,000)
Proceeds from the sale of securities available for sale 9,983,000 0
Proceeds from calls, maturities and paydowns of securities available for sale 231,585,000 832,000
Proceeds from calls, maturities and paydowns of securities held to maturity 29,050,000 15,783,000
Purchases of loans (27,727,000) (98,791,000)
Net change in loans receivable (552,568,000) (678,522,000)
Proceeds from loans held for sale previously classified as loans receivable 1,600,000  
Purchase of FHLB stock (16,031,000)  
Proceeds from sale of FHLB stock 394,000  
Purchases of premises and equipment (2,306,000) (1,041,000)
Purchase of limited partnership interests (4,157,000) (4,580,000)
Net cash paid on sale of branches (171,319,000)  
Other investing activities 414,000 906,000
Net cash used in investing activities (695,019,000) (1,120,176,000)
Financing activities:    
Net change in deposits 144,036,000 1,273,886,000
Proceeds from borrowings 26,751,878,000 22,335,000,000
Repayment of borrowings (25,871,971,000) (22,185,180,000)
Proceeds from credit linked notes   153,546,000
Payment of credit linked notes (8,249,000)  
Dividends (12,570,000) (12,126,000)
Other financing activities   5,000
Net cash provided by financing activities 1,003,124,000 1,565,131,000
Net Change in Cash and Cash Equivalents (75,667,000) 143,422,000
Cash and Cash Equivalents, Beginning of Period 584,422,000 226,164,000
Cash and Cash Equivalents, End of Period 508,755,000 369,586,000
Supplemental Cash Flows Information:    
Interest paid 178,751,000 101,381,000
Income taxes paid, net of refunds 783,000 966,000
Change in ROU assets due to lease renegotiation (1,349,000)  
Transfer of loans from loans held for sale to loans receivable 31,350,000 $ 377,460,000
Transfer of loans from loans receivable to loans held for sale $ 1,600,000  
v3.24.1.1.u2
Basis of Presentation
 3 Months Ended
Mar. 31, 2024
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”) (whose branches were sold to unaffiliated third parties and its remaining charter collapsed into Merchants Bank on January 26, 2024), 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, 2023, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of March 31, 2024 and for the three months ended March 31, 2024 and 2023, 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 unaudited 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, 2023 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 March 31, 2024 and the results of operations, cash flows, and changes in shareholders’ equity for the three months ended March 31, 2024 and 2023. All interim amounts have not been audited and the results of operations for the three months ended March 31, 2024, herein are not necessarily indicative of the results of operations to be expected for the entire year.

Sale of Farmers-Merchants Bank of Illinois branches

On September 7, 2023, the Company entered into an agreement with Bank of Pontiac to sell its Farmers-Merchants Bank of Illinois branch locations in Paxton, Melvin, and Piper City, Illinois, and into an agreement with CBI Bank & Trust, to sell its Farmers-Merchants Bank of Illinois branch located in Joy, Illinois.

​

This transaction enhances the Company’s ability to focus on its core business of single and multi-family mortgage lending and strategically aligns the branches with institutions that share a similar business model and allows them to provide additional products to their customers.

​

On January 26, 2024, the transaction was completed after having met customary closing conditions, including regulatory approval.

​

In addition to the branches, Bank of Pontiac acquired approximately $164.8 million in deposits and $19.2 million in loans, and CBI Bank & Trust acquired approximately $65.1 million in deposits and $28.6 million in loans.

​

Total assets and liabilities of approximately $60.8 million and $230.6 million, respectively, were sold. A net gain of $715,000 was recognized from the transactions, which includes a $10.1 million deposit premium and the extinguishment of $7.8 million in goodwill and $0.5 million in intangibles during the three months ended March 31, 2024.

​

Principles of Consolidation

The unaudited condensed consolidated financial statements as of and for the period ended March 31, 2024 and 2023 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, FMBI (until its branches were sold and its bank charter merged into Merchants Bank on January 26, 2024) 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.

During 2022, Merchants Foundation, Inc., a nonprofit corporation, was incorporated and its results are consolidated with the Company’s consolidated financial statements in all periods presented.

In addition, when the Company makes an equity investment in or has a relationship with an entity for which it holds a variable interest, it is evaluated for consolidation requirements under Accounting Standards Update (“ASU”) 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.

​

In May 2023, the Company acquired a variable interest in an investment for which it is the primary beneficiary of, and its results have been consolidated since the date of acquisition. Additionally, the Company has certain variable interest investments that it was deemed not to be a primary beneficiary of as of March 31, 2024 and December 31, 2023. These VIEs are not consolidated and the equity or proportional method of accounting has been applied. The Company will analyze whether the primary beneficiary designation has changed through triggering events on a prospective 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.

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.

Restricted Cash

​

Included in cash equivalents is an account restricted as collateral for the potential risk of loss on senior credit linked notes issued by the Company. The balance of the notes as of March 31, 2024 was $115.6 million. As of March 31, 2024, there was $39.2 million in restricted cash. Also see Note 11: Borrowings.

​
v3.24.1.1.u2
Investment Securities
 3 Months Ended
Mar. 31, 2024
Investment Securities  
Investment Securities

Note 2:   Investment Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities available for sale and held to maturity were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

​

​

​

​

Gross

​

Gross

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Securities available for sale:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

109,146

​

$

15

​

$

58

​

$

109,103

Federal agencies

​

 

240,000

​

 

—

​

 

1,499

​

 

238,501

Mortgage-backed - Government Agency ("Agency") (2) - multi-family

​

​

13,044

​

​

—

​

​

—

​

​

13,044

Mortgage-backed - Non-Agency residential - fair value option (1)

​

​

472,192

​

​

—

​

​

—

​

​

472,192

Mortgage-backed - Agency - residential - fair value option (1)

​

​

228,448

​

​

—

​

​

—

​

​

228,448

Total securities available for sale

​

$

1,062,830

​

$

15

​

$

1,557

​

$

1,061,288

Securities held to maturity:

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed - Non-Agency - multi-family

​

$

710,024

​

$

—

​

$

419

​

$

709,605

Mortgage-backed - Non-Agency - residential

​

​

453,167

​

​

2,385

​

​

87

​

​

455,465

Mortgage-backed - Agency

​

​

11,976

​

​

—

​

​

868

​

​

11,108

Total securities held to maturity

​

$

1,175,167

​

$

2,385

​

$

1,374

​

$

1,176,178

​

(1)

For fair value option securities, the amortized cost reflects the carrying value, which is also equal to the fair value.

(2)

Agency includes government sponsored agencies, such as Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”), and Government National Mortgage Association (“Ginnie Mae”).

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

​

​

​

​

Gross

​

Gross

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Securities available for sale:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

129,261

​

$

45

​

$

338

​

$

128,968

Federal agencies

​

 

250,731

​

 

—

​

 

2,976

​

 

247,755

Mortgage-backed - Government Agency ("Agency") (2) - multi-family

​

​

14,465

​

​

5

​

​

3

​

​

14,467

Mortgage-backed - Non-Agency residential - fair value option (1)

​

​

485,500

​

​

—

​

​

—

​

​

485,500

Mortgage-backed - Agency - residential - fair value option (1)

​

​

236,997

​

​

—

​

​

—

​

​

236,997

Total securities available for sale

​

$

1,116,954

​

$

50

​

$

3,317

​

$

1,113,687

Securities held to maturity:

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed - Non-Agency - multi-family

​

$

719,662

​

$

—

​

$

415

​

$

719,247

Mortgage-backed - Non-Agency - residential

​

​

472,539

​

​

973

​

​

418

​

​

473,094

Mortgage-backed - Agency

​

​

12,016

​

​

—

​

​

822

​

​

11,194

Total securities held to maturity

​

$

1,204,217

​

$

973

​

$

1,655

​

$

1,203,535

​

(1)

For fair value option securities, the amortized cost reflects the carrying value, which is also equal to the fair value.

(2)

Agency includes government sponsored agencies, such as Fannie Mae, Freddie Mac, and Ginnie Mae.

Accrued interest on securities available for sale totaled $5.1 million at March 31, 2024 and $6.7 million at December 31, 2023, and is excluded from the estimate of credit losses.

Accrued interest on securities held to maturity totaled $5.6 million at March 31, 2024 and $5.8 million at December 31, 2023, and is excluded from the estimate of credit losses.

The amortized cost and fair value of available for sale securities at March 31, 2024 and December 31, 2023, 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.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

December 31, 2023

​

​

Amortized

​

Fair

​

Amortized

​

Fair

​

    

Cost

    

Value

    

Cost

    

Value

Securities available for sale:

​

(In thousands)

Within one year

​

$

209,146

​

$

207,796

​

$

308,474

​

$

305,406

After one through five years

​

 

140,000

​

 

139,808

​

 

71,518

​

 

71,317

​

​

 

349,146

​

 

347,604

​

 

379,992

​

 

376,723

Mortgage-backed - Agency

​

​

13,044

​

​

13,044

​

​

14,465

​

​

14,467

Mortgage-backed - Non-Agency residential - fair value option

​

​

472,192

​

​

472,192

​

​

485,500

​

​

485,500

Mortgage-backed - Agency - residential - fair value option

​

​

228,448

​

​

228,448

​

​

236,997

​

​

236,997

​

​

$

1,062,830

​

$

1,061,288

​

$

1,116,954

​

$

1,113,687

Securities held to maturity:

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed - Non-Agency - multi-family

​

$

710,024

​

$

709,605

​

$

719,662

​

$

719,247

Mortgage-backed - Non-Agency - residential

​

​

453,167

​

​

455,465

​

​

472,539

​

​

473,094

Mortgage-backed - Agency

​

​

11,976

​

 

11,108

​

 

12,016

​

 

11,194

​

​

$

1,175,167

​

$

1,176,178

​

$

1,204,217

​

$

1,203,535

​

During the three months ended March 31, 2024, the Company recognized a net loss of $108,000 from sales of securities available for sale. The $108,000 net loss consisted of $10,000 in gains and $118,000 of losses. During the three months ended March 31, 2023, no securities available for sale were sold.

​

The following tables show the Company’s gross unrealized losses and fair value of the Company’s investment securities with unrealized losses, for which an allowance for credit losses (“ACL”) has not been recorded, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2024 and December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

​

​

​

​

​

​

​

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)

Securities available for sale:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

3,092

​

$

1

​

$

26,938

​

$

57

​

$

30,030

​

$

58

Federal agencies

​

​

139,808

​

​

192

​

​

98,693

​

​

1,307

​

​

238,501

​

​

1,499

​

​

$

142,900

​

$

193

​

$

125,631

​

$

1,364

​

$

268,531

​

$

1,557

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

​

​

​

​

​

​

​

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)

Securities available for sale:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

3,052

​

$

6

​

$

32,080

​

$

332

​

$

35,132

​

$

338

Federal agencies

​

​

60,541

​

​

189

​

​

167,213

​

​

2,787

​

​

227,754

​

​

2,976

Mortgage-backed - Agency

​

​

364

​

​

1

​

​

186

​

​

2

​

​

550

​

​

3

​

​

$

63,957

​

$

196

​

$

199,479

​

$

3,121

​

$

263,436

​

$

3,317

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

      ​

Allowance for Credit Losses (ACL)

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 noncredit related factors. Any impairment that is not credit-related is recognized in accumulated other comprehensive income (loss), 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 March 31, 2024 and December 31, 2023.

​

Securities held to maturity are comprised of non-agency mortgage-backed securities secured by multi-family or single-family properties, and agency mortgage-backed securities secured by multi-family properties. The agency securities are Ginnie Mae mortgage-backed securities and backed by the full faith and credit of the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities. The non-agency securities were purchased under securitization arrangements where a credit loss component was purchased by third party investors. These securities were evaluated for credit losses over and above the credit loss percentage sold under the arrangements, and the Company does not anticipate any such losses. Additional qualitative factors are evaluated, including the timeliness of principal and interest payments under the contractual terms of the securities. Accordingly, no allowance for credit losses has been recorded for the non-agency securities.
v3.24.1.1.u2
Mortgage Loans in Process of Securitization
 3 Months Ended
Mar. 31, 2024
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 Ginnie Mae mortgage-backed securities, and Fannie Mae and Freddie Mac participation certificates, all of which are pending settlements under 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 $0.7 million and $4.0 million for the three months ended March 31, 2024 and 2023, respectively.

​
v3.24.1.1.u2
Loans and Allowance for Credit Losses on Loans
 3 Months Ended
Mar. 31, 2024
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 unaudited condensed consolidated balance sheets. Accrued interest on loans totaled $60.2 million and $60.4 million at March 31, 2024 and December 31, 2023, 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 principal on the balance of the loan. For loan modifications, interest income is recognized on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms.

The Company offers repurchase agreements to fund mortgage loans held for sale from closing until sale to an investor. Under a warehousing arrangement the Company funds a mortgage loan through 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. Warehouse fees are accrued as noninterest income.

​

​

​

Loan Portfolio Summary

Loans receivable at March 31, 2024 and December 31, 2023 include:

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

    

2024

    

2023

​

​

(In thousands)

​

​

​

​

​

​

​

Mortgage warehouse repurchase agreements

​

$

1,142,994

​

$

752,468

Residential real estate(1)

​

 

1,321,300

​

 

1,324,305

Multi-family financing

​

 

4,096,606

​

 

4,006,160

Healthcare financing

​

​

2,464,685

​

​

2,356,689

Commercial and commercial real estate(2)(3)

​

 

1,666,751

​

 

1,643,081

Agricultural production and real estate

​

 

65,977

​

 

103,150

Consumer and margin loans

​

 

7,912

​

 

13,700

​

​

 

10,766,225

​

 

10,199,553

Less:

​

 

  

​

 

  

ACL-Loans

​

 

75,712

​

 

71,752

​

​

​

​

​

​

​

Loans Receivable

​

$

10,690,513

​

$

10,127,801

(1)Includes $1.2 billion and $1.2 billion of All-in-One© first-lien home equity lines of credit at March 31, 2024 and December 31, 2023, respectively.
(2)Includes $1.1 billion and $1.1 billion of revolving lines of credit collateralized primarily by single-family mortgage servicing rights as of March 31, 2024 and December 31, 2023, respectively.
(3)Includes only $6.8 million and $8.4 million of non-owner occupied commercial real estate as of March 31, 2024 and December 31, 2023, respectively.

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

Mortgage Warehouse Repurchase Agreements (MTG WHRA): Under its warehouse program, the Company provides warehouse financing arrangements to approved mortgage companies for their origination and sale of residential mortgage and multi-family loans. Loans secured by mortgages placed on existing one-to-four family dwellings may be originated or purchased and placed through each mortgage warehouse facility.

As a secured repurchase agreement, collateral pledged to the Company secures each individual mortgage until the mortgage company sells the loan in the secondary market. A traditional secured warehouse facility typically carries a base interest rate of 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 companies in warehouse, the sale of which is the expected source of repayment under a warehouse facility. However, the warehouse customers are required to hedge the change in value of these loans to mitigate the risk, typically through forward sales contracts.

Residential Real Estate Loans (RES RE): Real estate loans are secured by owner-occupied one-to-four 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 carried a base rate of 30-day LIBOR, plus a margin. With the sunset of LIBOR, loans have been transitioned to the One-Year Constant Maturity Treasury (“CMT”), plus a margin.

Multi-Family Financing (MF FIN): The Company specializes in originating multi-family financing that can be market rate or affordable. The portfolio includes loans for construction, acquisition, refinance, or permanent financing. Loans are typically secured by real estate mortgages, assignment of Low-Income Housing Tax Credits (“LIHTC”), and/or equity interest in the underlying properties. All loans are assessed and reviewed at a minimum based on borrower strength/experience, historical property performance, market trends, projected financial performance with regards to intended strategy, and source of repayment. Independent third-party reports are used to ensure legal conformity and support valuations of the assets. Exit strategies and sources of repayment are provided through the secondary market via governmental programs, strategic refinances, LIHTC equity installments, and cashflow from the properties. Repayment of these loans depends on the successful operation of a business or property and the borrower’s cash flows. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economy in the related market area. These loans are well-collateralized and underwritten to agency guidelines. Loans included in this segment typically carry a base rate of 30-day SOFR, that adjusts on a monthly basis, and a margin. The Company strategically focuses on loan classes that are government backed or can be sold in the secondary market.

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. These loans are well-collateralized and underwritten to agency guidelines. Loans included in this segment typically carry a base rate of 30-day SOFR, that adjusts on a monthly basis, and a margin. The Company strategically focuses on loan classes that are government backed or can be sold in the secondary market.

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 lines of credit collateralized by servicing rights that are assessed for fair value quarterly at the Company’s request. 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. Small Business Administration (“SBA”) loans are included in this category. Less than 1% of total commercial and commercial real estate loans are made up of non-owner occupied commercial real estate loans.

​

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 adjustable rate mortgage (“ARM”), three-year ARM or five-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 five 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 ACL-Loans is the Company’s estimate of current 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 included in 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 uncollectability 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 three months ended March 31, 2024. 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 loans with similar risk characteristics. Loans risk graded substandard and worse are individually evaluated for expected credit losses. For individually evaluated loans that are collateral dependent, the Company may use the fair value of the collateral, less estimated costs to sell, as a practical expedient as of the reporting date to determine the carrying amount of an asset and the allowance for credit losses, as applicable. 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 when the borrower is experiencing financial difficulty as of the reporting date.

To calculate the ACL-Loans risk graded pass through special mention, the portfolio is segmented by loans with similar risk characteristics.

​

Loan Portfolio Segment

​

ACL-Loans Methodology

​

 

​

Mortgage warehouse repurchase agreements

​

Remaining Life Method

Residential real estate loans

​

Discounted Cash Flow

Multi-family financing

​

Discounted Cash Flow

Healthcare financing

​

Discounted Cash Flow

Commercial and commercial real estate

​

Discounted Cash Flow

Agricultural production and real estate

​

Remaining Life Method

Consumer and margin loans

​

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 initial estimate of expected credit losses for each segment is based on historical credit loss experience and management’s judgement. 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.

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 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 table presents, by loan portfolio segment, the activity in the ACL-Loans for the three months ended March 31, 2024 and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended March 31, 2024

​

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

ACL-Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

2,070

​

$

7,323

 

$

26,874

​

$

22,454

​

$

12,243

​

$

619

​

$

169

​

$

71,752

FMBI's ACL for loans sold

​

​

—

​

​

(55)

​

​

(186)

​

​

(2)

​

​

(92)

​

​

(246)

​

​

(12)

​

​

(593)

Provision for credit losses

​

 

952

​

 

(363)

 

​

1,976

​

​

2,135

​

 

763

​

 

77

​

 

(63)

​

 

5,477

Loans charged to the allowance

​

 

—

​

 

—

 

​

—

​

​

—

​

 

(925)

​

 

—

​

 

—

​

 

(925)

Recoveries of loans previously charged-off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

1

​

 

—

​

 

—

​

 

1

Balance, end of period

​

$

3,022

​

$

6,905

​

$

28,664

​

$

24,587

​

$

11,990

​

$

450

​

$

94

​

$

75,712

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended March 31, 2023

​

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

ACL-Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,249

​

$

7,029

 

$

16,781

​

$

9,882

​

$

8,326

​

$

565

​

$

182

​

$

44,014

Provision for credit losses

​

 

415

​

 

349

 

​

3,070

​

​

1,871

​

 

2,149

​

 

(22)

​

 

(15)

​

 

7,817

Loans charged to the allowance

​

 

—

​

 

—

 

​

—

​

​

—

​

 

—

​

 

—

​

 

—

​

 

—

Recoveries of loans previously charged-off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

7

​

 

—

​

 

—

​

 

7

Balance, end of period

​

$

1,664

​

$

7,378

​

$

19,851

​

$

11,753

​

$

10,482

​

$

543

​

$

167

​

$

51,838

​

The Company recorded a total provision for credit losses of $4.7 million for the three months ended March 31, 2024. The $4.7 million total provision for credit losses consisted of $4.9 million for the ACL-Loans as shown above and $(0.2) million for the ACL-Off-Balance Sheet Credit Exposures (“OBCE’s”). The $4.9 million total provision for ACL-Loans reflected an elimination of $593,000 from the sale of FMBI branches in January 2024.

The Company recorded a total provision for credit losses of $6.9 million for the three months ended March 31, 2023. The $6.9 million total provision for credit losses consisted of $7.8 million for the ACL-Loans as shown above and $(0.9) million for the ACL-OBCE’s.

The following table presents, by loan portfolio segment, the activity in the ACL-Loans for the twelve months ended December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Year Ended December 31, 2023

​

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

ACL-Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,249

​

$

7,029

 

$

16,781

​

$

9,882

​

$

8,326

​

$

565

​

$

182

​

$

44,014

Provision for credit losses

​

 

821

​

 

328

 

​

18,493

​

​

12,572

​

 

5,232

​

 

54

​

 

(12)

​

 

37,488

Loans charged to the allowance

​

 

—

​

 

(34)

 

​

(8,400)

​

​

—

​

 

(1,356)

​

 

—

​

 

(1)

​

 

(9,791)

Recoveries of loans previously charged-off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

41

​

 

—

​

 

—

​

 

41

Balance, end of period

​

$

2,070

​

$

7,323

​

$

26,874

​

$

22,454

​

$

12,243

​

$

619

​

$

169

​

$

71,752

​

​

​

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 as of March 31, 2024 and December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

    

Real Estate

    

Accounts Receivable / Equipment

    

Other

    

Total

    

ACL-Loans Allocation

​

​

(In thousands)

RES RE

​

$

1,272

​

$

—

​

$

—

​

$

1,272

​

$

8

MF FIN

​

​

53,200

​

​

—

​

​

—

​

​

53,200

​

​

581

HC FIN

​

 

63,283

​

 

—

​

 

—

​

 

63,283

​

 

5,652

CML & CRE

​

 

168

​

 

2,628

​

 

2,657

​

 

5,453

​

 

1,780

AG & AGRE

​

 

147

​

 

—

​

 

—

​

 

147

​

 

1

CON & MAR

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total collateral dependent loans

​

$

118,070

​

$

2,628

​

$

2,657

​

$

123,355

​

$

8,022

​

There were no significant changes to the types of collateral securing the Company’s collateral dependent loans compared to December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

 

Real Estate

 

Accounts Receivable / Equipment

 

Other

 

Total

 

ACL-Loans Allocation

​

​

(In thousands)

RES RE

​

$

1,557

​

$

—

 

$

3

​

$

1,560

​

$

21

MF FIN

​

 

46,575

​

 

—

 

​

—

​

 

46,575

​

 

521

HC FIN

​

​

73,909

​

​

—

​

​

—

​

​

73,909

​

​

6,289

CML & CRE

​

 

146

​

 

3,603

 

​

2,684

​

 

6,433

​

 

1,132

AG & AGRE

​

 

147

​

 

—

 

​

—

​

 

147

​

 

1

CON & MAR

​

​

—

​

​

—

​

​

3

​

​

3

​

​

—

Total collateral dependent loans

​

$

122,334

​

$

3,603

​

$

2,690

​

$

128,627

​

$

7,964

​

Internal Risk Categories

The Company evaluates the loan risk grading system definitions and ACL-Loans methodology on an ongoing basis. As of December 31, 2023, the Company created a newly defined special mention risk rating category to be consistent with industry practices. Loans with a Watch classification are now included in the Pass risk rating category as of December 31, 2023. This updated policy was approved by the Company’s Management Committee, to be effective as of December 31, 2023 on a prospective basis.

In adherence with policy, the Company uses the following internal risk grading categories and definitions for loans since December 31, 2023:

Pass - Loans that are considered to be of acceptable credit quality, and not classified as Special Mention, Substandard or Doubtful. Also included are loans classified as watch loans, which represent loans that remain sound and collectible but contain elevated risk that requires management’s attention.

Special Mention – Loans classified as special mention have potential weaknesses that deserve management’s attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention loans are not adversely classified and do

not warrant adverse classification. Loans with questions or concerns regarding collateral, adverse market conditions impacting future performance, and declining financial trends would be considered for special mention.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must 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. When a loan in the form of a line of credit is downgraded to substandard, it is evaluated for impairment and future draws under the line of credit require the approval of an officer of Senior Credit Officer or above.

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 March 31, 2024 and December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

    

2024

    

2023

    

2022

​

2021

    

2020

    

Prior

    

Revolving Loans

    

TOTAL

​

​

(In thousands)

MTG WHRA

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1,142,994

​

$

1,142,994

Total

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1,142,994

​

$

1,142,994

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

RES RE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

1,780

​

$

32,353

​

$

9,793

​

$

6,175

​

$

21,315

​

$

7,400

​

$

1,240,994

​

$

1,319,810

Special Mention

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

218

​

​

—

​

​

218

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

1,272

​

​

1,272

Total

​

$

1,780

​

$

32,353

​

$

9,793

​

$

6,175

​

$

21,315

​

$

7,618

​

$

1,242,266

​

$

1,321,300

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

298,730

​

$

957,019

​

$

734,071

​

$

114,353

​

$

9,070

​

$

34,587

​

$

1,731,470

​

$

3,879,300

Special Mention

​

​

8,000

​

​

96,900

​

​

28,559

​

​

8,400

​

​

—

​

​

1,470

​

​

20,777

​

​

164,106

Substandard

​

​

—

​

​

11,667

​

​

28,360

​

​

6,534

​

​

—

​

​

—

​

​

6,639

​

​

53,200

Total

​

$

306,730

​

$

1,065,586

​

$

790,990

​

$

129,287

​

$

9,070

​

$

36,057

​

$

1,758,886

​

$

4,096,606

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

258,604

​

$

626,388

​

$

936,880

​

$

98,815

​

$

—

​

$

14,459

​

$

398,904

​

$

2,334,050

Special Mention

​

​

24,319

​

​

20,900

​

​

9,502

​

​

—

​

​

—

​

​

—

​

​

12,631

​

​

67,352

Substandard

​

​

—

​

​

25,600

​

​

—

​

​

28,783

​

​

—

​

​

—

​

​

8,900

​

​

63,283

Total

​

$

282,923

​

$

672,888

​

$

946,382

​

$

127,598

​

$

—

​

$

14,459

​

$

420,435

​

$

2,464,685

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

CML & CRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

4,469

​

$

54,002

​

$

116,479

​

$

71,824

​

$

19,203

​

$

34,169

​

$

1,360,706

​

$

1,660,852

Special Mention

​

​

—

​

​

—

​

​

—

​

​

289

​

​

157

​

​

—

​

​

—

​

​

446

Substandard

​

​

—

​

​

—

​

​

92

​

​

776

​

​

850

​

​

60

​

​

3,675

​

​

5,453

Total

​

$

4,469

​

$

54,002

​

$

116,571

​

$

72,889

​

$

20,210

​

$

34,229

​

$

1,364,381

​

$

1,666,751

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

925

​

$

—

​

$

—

​

$

—

​

$

925

AG & AGRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

7,833

​

$

7,875

​

$

5,103

​

$

2,722

​

$

8,566

​

$

15,515

​

$

18,216

​

$

65,830

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

147

​

​

—

​

​

147

Total

​

$

7,833

​

$

7,875

​

$

5,103

​

$

2,722

​

$

8,566

​

$

15,662

​

$

18,216

​

$

65,977

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

CON & MAR

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

—

​

$

109

​

$

28

​

$

25

​

$

2

​

$

4,268

​

$

3,480

​

$

7,912

Total

​

$

—

​

$

109

​

$

28

​

$

25

​

$

2

​

$

4,268

​

$

3,480

​

$

7,912

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Pass

​

$

571,416

​

$

1,677,746

​

$

1,802,354

​

$

293,914

​

$

58,156

​

$

110,398

​

$

5,896,764

​

$

10,410,748

Total Special Mention

​

$

32,319

​

$

117,800

​

$

38,061

​

$

8,689

​

$

157

​

$

1,688

​

$

33,408

​

$

232,122

Total Substandard

​

$

—

​

$

37,267

​

$

28,452

​

$

36,093

​

$

850

​

$

207

​

$

20,486

​

$

123,355

Total Doubtful

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Total Loans

​

$

603,735

​

$

1,832,813

​

$

1,868,867

​

$

338,696

​

$

59,163

​

$

112,293

​

$

5,950,658

​

$

10,766,225

Total Charge-offs

​

$

—

​

$

—

​

$

—

​

$

925

​

$

—

​

$

—

​

$

—

​

$

925

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

    

2023

    

2022

    

2021

    

2020

    

2019

    

Prior

    

Revolving Loans

    

TOTAL

​

​

(In thousands)

MTG WHRA

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

752,468

​

$

752,468

Total

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

752,468

​

$

752,468

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

RES RE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

31,011

​

$

10,086

​

$

6,573

​

$

22,725

​

$

3,298

​

$

9,340

​

$

1,239,161

​

$

1,322,194

Special Mention

​

​

—

​

​

—

​

​

—

​

​

—

​

​

59

​

​

492

​

​

—

​

​

551

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

288

​

​

1,272

​

​

1,560

Total

​

$

31,011

​

$

10,086

​

$

6,573

​

$

22,725

​

$

3,357

​

$

10,120

​

$

1,240,433

​

$

1,324,305

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

21

​

$

13

​

$

34

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

1,094,698

​

$

762,448

​

$

208,343

​

$

77,340

​

$

29,764

​

$

8,455

​

$

1,646,445

​

$

3,827,493

Special Mention

​

​

94,973

​

​

3,189

​

​

8,400

​

​

—

​

​

—

​

​

1,477

​

​

24,052

​

​

132,091

Substandard

​

​

11,682

​

​

28,360

​

​

6,534

​

​

—

​

​

—

​

​

—

​

​

—

​

​

46,576

Total

​

$

1,201,353

​

$

793,997

​

$

223,277

​

$

77,340

​

$

29,764

​

$

9,932

​

$

1,670,497

​

$

4,006,160

Charge-offs

​

$

—

​

$

8,400

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

8,400

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

752,591

​

$

996,273

​

$

110,197

​

$

—

​

$

14,563

​

$

—

​

$

351,110

​

$

2,224,734

Special Mention

​

​

35,869

​

​

9,520

​

​

—

​

​

—

​

​

—

​

​

—

​

​

12,658

​

​

58,047

Substandard

​

​

25,600

​

​

10,625

​

​

28,783

​

​

—

​

​

—

​

​

—

​

​

8,900

​

​

73,908

Total

​

$

814,060

​

$

1,016,418

​

$

138,980

​

$

—

​

$

14,563

​

$

—

​

$

372,668

​

$

2,356,689

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

CML & CRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

51,110

​

$

119,386

​

$

77,316

​

$

21,154

​

$

21,088

​

$

17,066

​

$

1,328,980

​

$

1,636,100

Special Mention

​

​

—

​

​

—

​

​

292

​

​

172

​

​

—

​

​

84

​

​

—

​

​

548

Substandard

​

​

—

​

​

70

​

​

1,701

​

​

878

​

​

62

​

​

—

​

​

3,672

​

​

6,383

Doubtful

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

50

​

​

—

​

​

50

Total

​

$

51,110

​

$

119,456

​

$

79,309

​

$

22,204

​

$

21,150

​

$

17,200

​

$

1,332,652

​

$

1,643,081

Charge-offs

​

$

—

​

$

496

​

$

274

​

$

586

​

$

—

​

$

—

​

$

—

​

$

1,356

AG & AGRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

16,850

​

$

9,825

​

$

6,490

​

$

14,267

​

$

5,237

​

$

16,606

​

$

33,728

​

$

103,003

Special Mention

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

147

​

​

—

​

​

147

Total

​

$

16,850

​

$

9,825

​

$

6,490

​

$

14,267

​

$

5,237

​

$

16,753

​

$

33,728

​

$

103,150

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

CON & MAR

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

748

​

$

4,329

​

$

247

​

$

115

​

$

27

​

$

4,339

​

$

3,862

​

$

13,667

Special Mention

​

​

—

​

​

—

​

​

—

​

​

15

​

​

15

​

​

—

​

​

—

​

​

30

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

3

​

​

—

​

​

3

Total

​

$

748

​

$

4,329

​

$

247

​

$

130

​

$

42

​

$

4,342

​

$

3,862

​

$

13,700

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1

​

$

—

​

$

1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Pass

​

$

1,947,008

​

$

1,902,347

​

$

409,166

​

$

135,601

​

$

73,977

​

$

55,806

​

$

5,355,754

​

$

9,879,659

Total Special Mention

​

$

130,842

​

$

12,709

​

$

8,692

​

$

187

​

$

74

​

$

2,053

​

$

36,710

​

$

191,267

Total Substandard

​

$

37,282

​

$

39,055

​

$

37,018

​

$

878

​

$

62

​

$

438

​

$

13,844

​

$

128,577

Total Doubtful

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

50

​

$

—

​

$

50

Total Loans

​

$

2,115,132

​

$

1,954,111

​

$

454,876

​

$

136,666

​

$

74,113

​

$

58,347

​

$

5,406,308

​

$

10,199,553

Total Charge-offs

​

$

—

​

$

8,896

​

$

274

​

$

586

​

$

—

​

$

22

​

$

13

​

$

9,791

​

The Company did not have any material revolving loans converted to term loans at March 31, 2024 or December 31, 2023.

​

​

Delinquent Loans

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of March 31, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHRA

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1,142,994

​

$

1,142,994

RES RE

​

 

4,588

​

​

682

​

 

218

​

 

5,488

​

 

1,315,812

​

 

1,321,300

MF FIN

​

 

24,870

​

​

—

​

 

78,910

​

 

103,780

​

 

3,992,826

​

 

4,096,606

HC FIN

​

​

—

​

​

25,600

​

​

48,733

​

​

74,333

​

​

2,390,352

​

​

2,464,685

CML & CRE

​

 

1,922

​

​

—

​

 

3,006

​

 

4,928

​

 

1,661,823

​

 

1,666,751

AG & AGRE

​

 

44

​

​

10

​

 

159

​

 

213

​

 

65,764

​

 

65,977

CON & MAR

​

 

—

​

​

—

​

 

—

​

 

—

​

 

7,912

​

 

7,912

​

​

$

31,424

​

$

26,292

​

$

131,026

​

$

188,742

​

$

10,577,483

​

$

10,766,225

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHRA

​

$

—

 

$

—

​

$

—

​

$

—

​

$

752,468

​

$

752,468

RES RE

​

 

4,557

 

​

—

​

 

2,379

​

 

6,936

​

 

1,317,369

​

 

1,324,305

MF FIN

​

 

38,218

 

​

11,055

​

 

39,609

​

 

88,882

​

 

3,917,278

​

 

4,006,160

HC FIN

​

​

—

​

​

47,275

​

​

35,999

​

​

83,274

​

​

2,273,415

​

​

2,356,689

CML & CRE

​

 

172

 

​

393

​

 

3,665

​

 

4,230

​

 

1,638,851

​

 

1,643,081

AG & AGRE

​

 

27

 

​

11

​

 

147

​

 

185

​

 

102,965

​

 

103,150

CON & MAR

​

 

1

 

​

3

​

 

18

​

 

22

​

 

13,678

​

 

13,700

​

​

$

42,975

​

$

58,737

​

$

81,817

​

$

183,529

​

$

10,016,024

​

$

10,199,553

​

The above tables do not include two delinquent loans that were classified as held for sale at March 31, 2024, totaling $30.2 million.

Nonperforming Loans

Nonaccrual loans, including modified loans to borrowers experiencing financial difficulty 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 modified loans which are on nonaccrual status prior to being modified remain on nonaccrual status until six 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 three months ended as of March 31, 2024 and 2023, respectively, was immaterial.

​

​

​

The following table presents the Company’s nonaccrual loans and loans past due 90 days or more and still accruing at March 31, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

2024

​

2023

​

​

​

​

​

Total Loans >

​

​

​

​

Total Loans >

​

​

​

​

​

90 Days &

​

​

​

​

90 Days &

​

    

Nonaccrual

    

Accruing

    

Nonaccrual

    

Accruing

​

​

(In thousands)

RES RE

​

$

760

​

$

218

​

$

1,486

​

$

894

MF FIN

​

 

46,248

​

 

32,662

​

 

39,608

​

 

—

HC FIN

​

​

28,783

​

​

19,950

​

​

28,783

​

​

7,216

CML & CRE

​

 

2,866

​

​

140

​

 

3,820

​

​

43

AG & AGRE

​

 

147

​

 

12

​

 

147

​

 

—

CON & MAR

​

 

—

​

 

—

​

 

3

​

 

15

​

​

$

78,804

​

$

52,982

​

$

73,847

​

$

8,168

​

The Company did not have any nonperforming loans without an estimated ACL at March 31, 2024.

​

​

Modifications to Borrowers Experiencing Financial Difficulty

​

On January 1, 2023, the Company adopted FASB ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures, which eliminates the recognition and measurement of a troubled debt restructuring (“TDR”). The Company adopted the prospective approach for this new guidance.

​

Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.

​

There were no new loans modified for borrowers experiencing financial difficulty during the three months ended March 31, 2024.

​

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The Company did not have loans modified in the last twelve months that were delinquent as of March 31, 2024.

​

Foreclosures

​

There were no residential loans in the process of foreclosure as of March 31, 2024 and December 31, 2023.

​

Loans Purchased

The Company purchased $27.7 million and $98.8 million of loans during the three months ended March 31, 2024 and 2023, respectively.

v3.24.1.1.u2
Variable Interest Entities
 3 Months Ended
Mar. 31, 2024
Variable Interest Entities.  
Variable Interest Entities

​

​

​

Note 5: Variable Interest Entities

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. The Company also has deemed as VIEs a REMIC trust that was established in conjunction with the September 2022 multi-family loan sale and securitization transaction, as well as a second REMIC trust that was established in December 2023 with a related party in conjunction with a loan sale and securitization. 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 March 31, 2024 the Company determined it was not the primary beneficiary for most 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 is considered as part of this ongoing assessment.

​

The table below reflects the assets and liabilities of the VIEs as well as our maximum exposure to loss in connection with VIEs at March 31, 2024 and December 31, 2023. The Company’s maximum exposure to loss associated with its unconsolidated VIEs consists of the capital invested plus any unfunded equity commitments. These investments are recorded in other assets and other liabilities on our unaudited condensed consolidated balance sheet. Also included in the maximum loss exposure are bridge loans to VIEs and securities acquired as part of securitization transactions. The bridge loans are included in loans receivable and the securities are included in securities held to maturity.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investments

​

Bridge loans

​

Securities

​

Maximum

​

Liabilities

Assets

    

in VIEs

    

to VIEs

​

for VIEs

​

Exposure to Loss

​

for VIEs

​

​

($ in thousands)

March 31, 2024

​

 

  

​

 

​

​

​

​

​

​

​

​

 

  

Low-income housing tax credit investments

​

$

96,675

​

$

136,197

​

$

—

​

$

232,872

​

$

32,171

Debt funds

​

​

33,997

​

​

305,998

​

​

—

​

​

339,995

​

​

2,752

Off-balance-sheet REMIC trusts

​

​

—

​

​

—

​

​

1,163,191

​

​

1,163,191

​

​

—

Total Unconsolidated VIEs

​

$

130,672

​

$

442,195

​

$

1,163,191

​

$

1,736,058

​

$

34,923

December 31, 2023

​

 

  

​

 

​

​

 

​

​

 

  

​

 

  

Low-income housing tax credit investments

​

$

118,741

​

$

232,407

​

$

—

​

$

351,148

​

$

35,099

Debt funds

​

​

33,221

​

​

86,416

​

​

—

​

​

119,637

​

​

2,752

Off-balance-sheet REMIC trusts

​

​

—

​

​

—

​

​

1,192,201

​

​

1,192,201

​

​

—

Total Unconsolidated VIEs

​

$

151,962

​

$

318,823

​

$

1,192,201

​

$

1,662,986

​

$

37,851

​
v3.24.1.1.u2
Regulatory Matters
 3 Months Ended
Mar. 31, 2024
Regulatory Matters  
Regulatory Matters

Note 6:   Regulatory Matters

The Company, Merchants Bank and FMBI (prior to the January 26, 2024 sale of its branches and merger of its remaining charter into Merchants Bank) are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by federal and state banking regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Merchants Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Merchants Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Merchants Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, and other factors. Furthermore, the Company’s and Merchants Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Merchants Bank to maintain minimum amounts and ratios (set forth in the table below). Management believes, as of March 31, 2024 and December 31, 2023, that the Company and Merchants Bank met all capital adequacy requirements.

As of March 31, 2024 and December 31, 2023, the most recent notifications from the Board of Governors of the Federal Reserve System (“Federal Reserve”) categorized the Company as well capitalized and most recent notifications from the Federal Deposit Insurance Corporation (“FDIC”) categorized Merchants Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Company’s or Merchants Bank’s category.

FMBI was subject to these same requirements and guidelines prior to the sale of its branches and the merger of its remaining charter into Merchants Bank in January 2024. As of December 31, 2023, FMBI met all capital adequacy requirements (as set forth in the table below). The FDIC categorized FMBI as well capitalized at that time and there are no conditions or events since that notification that management believes would have changed that category.

The Company’s, Merchants Bank’s, and FMBI’s actual capital amounts and ratios are presented in the following tables.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum

​

​

​

​

​

​

​

​

​

​

Amount to be Well

​

Minimum Amount

​

​

​

​

​

​

​

​

Capitalized with

​

To Be Well

​

​

​

Actual

​

Basel III Buffer(1)

​

Capitalized(1)

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

​

Amount

    

Ratio

    

​

​

(Dollars in thousands)

​

March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total capital(1) (to risk-weighted assets)

 

​

  

 

  

 

​

​

​

​

​

​

  

 

  

 

Company

​

$

1,858,348

 

11.7

%  

$

1,662,302

 

10.5

%  

$

—

 

N/A

%  

Merchants Bank

​

​

1,801,020

 

11.4

%  

 

1,660,561

 

10.5

%  

 

1,581,487

 

10.0

​

Tier I capital(1) (to risk-weighted assets)

​

 

  

 

  

​

 

  

 

  

​

 

  

 

  

​

Company

​

 

1,768,553

 

11.2

%  

 

1,345,673

 

8.5

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,711,225

 

10.8

%  

 

1,344,264

 

8.5

%  

 

1,265,189

 

8.0

​

Common Equity Tier I capital(1) (to risk-weighted assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Company

​

 

1,268,945

 

8.0

%  

 

1,108,202

 

7.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,711,225

 

10.8

%  

 

1,107,041

 

7.0

%  

 

1,027,966

 

6.5

​

Tier I capital(1) (to average assets)

​

 

​

 

  

​

 

  

 

​

​

 

  

 

  

​

Company

​

 

1,768,553

 

10.5

%  

 

839,199

 

5.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,711,225

 

10.2

%  

 

837,560

 

5.0

%  

 

837,560

 

5.0

​

(1)As defined by regulatory agencies.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum

​

​

​

​

​

​

​

​

​

​

Amount to be Well

​

Minimum Amount

​

​

​

​

​

​

​

​

Capitalized with

​

To Be Well

​

​

​

Actual

​

Basel III Buffer(1)

​

Capitalized(1)

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

​

Amount

​

Ratio

​

​

​

(Dollars in thousands)

​

​

​

​

​

December 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total capital(1) (to risk-weighted assets)

 

​

  

 

  

 

​

​

​

​

​

​

  

 

  

 

Company

​

$

1,772,195

 

11.6

%  

$

1,598,260

 

10.5

%  

$

—

 

N/A

%  

Merchants Bank

​

​

1,724,505

 

11.5

%  

 

1,577,434

 

10.5

%  

 

1,502,318

 

10.0

%  

FMBI

​

 

40,613

 

21.1

%  

 

20,209

 

10.5

%  

 

19,247

 

10.0

%  

Tier I capital(1) (to risk-weighted assets)

​

 

  

 

  

​

 

  

 

  

​

 

  

 

  

​

Company

​

 

1,686,202

 

11.1

%  

 

1,293,830

 

8.5

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,639,171

 

10.9

%  

 

1,276,970

 

8.5

%  

 

1,201,854

 

8.0

%  

FMBI

​

 

39,953

 

20.8

%  

 

16,360

 

8.5

%  

 

15,398

 

8.0

%  

Common Equity Tier I capital(1) (to risk-weighted assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Company

​

 

1,186,594

 

7.8

%  

 

1,065,507

 

7.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,639,171

 

10.9

%  

 

1,051,623

 

7.0

%  

 

976,507

 

6.5

%  

FMBI

​

 

39,953

 

20.8

%  

 

13,473

 

7.0

%  

 

12,511

 

6.5

%  

Tier I capital(1) (to average assets)

​

 

​

 

  

​

 

  

 

​

​

 

  

 

  

​

Company

​

 

1,686,202

 

10.1

%  

 

832,706

 

5.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,639,171

 

10.1

%  

 

815,191

 

5.0

%  

 

815,191

 

5.0

%  

FMBI

​

 

39,953

 

11.5

%  

 

17,391

 

5.0

%  

 

17,391

 

5.0

%  

​

(1)As defined by regulatory agencies.
v3.24.1.1.u2
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2024
Derivative Financial Instruments  
Derivative Financial Instruments

​

Note 7:    Derivative Financial Instruments

​

The Company uses non-hedging, 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.

Internal Interest Rate Risk Management

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 fixed rate 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 associated 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.

​

The Company entered into a contract containing put options and interest rate floors on securities it acquired from a warehouse customer. These provide protection and prevent losses in value of certain available for sale securities. The Company also entered into interest rate floor contracts with two warehouse loan customers to minimize interest rate risk. All changes in the fair market value of these options and floors have been included in other noninterest income.

​

​

Credit Risk Management

In March 2024, the Company entered into a contract as the buyer of credit protection through the credit derivative market. A credit default swap was purchased to manage credit risk associated with specific multifamily mortgage loans. Under the terms of the contract, the Company will be compensated for certain credit-related losses on a pool of multifamily mortgage loans. The protection seller has posted aggregate collateral of $76.1 million related to their obligations under the contract. There was no value associated with the credit default swap as of March 31, 2024, as there was no consideration provided to the seller. All changes in the fair market value of this instrument will be included in other noninterest 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 unaudited condensed consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in other assets in the unaudited condensed consolidated balance sheets while derivative instruments with a negative fair value are reported in other liabilities in the unaudited condensed consolidated balance sheets.

The following table presents the notional amount and fair value of interest rate locks, forward contracts, interest rate swaps, put options and interest rate floors utilized by the Company at March 31, 2024 and December 31, 2023. This table excludes the fair market value adjustment on loans associated with these derivatives.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

March 31, 2024

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

31,888

​

​

Other assets/liabilities

​

$

174

​

$

22

Forward contracts

​

33,375

​

​

Other assets/liabilities

​

​

9

​

​

110

Interest rate swaps

​

57,531

​

​

Other assets/liabilities

​

​

3,985

​

​

—

Put options

​

734,130

​

​

Other assets

​

​

33,490

​

​

—

Interest rate floors

​

1,229,918

​

​

Other assets

​

 

8,910

​

​

—

Credit derivatives

​

76,092

​

​

Other liabilities

​

​

—

​

​

—

​

​

​

​

​

​

​

$

46,568

​

$

132

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

December 31, 2023

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

16,526

​

​

Other assets/liabilities

​

$

140

​

$

4

Forward contracts

​

25,500

​

​

Other assets/liabilities

​

​

4

​

​

391

Interest rate swaps

​

57,540

​

​

Other assets/liabilities

​

​

2,610

​

​

—

Put options

​

748,374

​

​

Other assets

​

​

25,877

​

​

—

Interest rate floors

​

748,374

​

​

Other assets

​

​

6,576

​

​

—

​

​

​

​

​

​

​

$

35,207

​

$

395

​

​

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 months ended March 31, 2024 and 2023.

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

    

2024

    

2023

​

​

(In thousands)

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

​

​

​

​

​

​

Interest rate lock commitments

​

$

16

​

$

209

Forward contracts (includes pair-off settlements)

​

​

94

​

​

(96)

Interest rates swaps

​

​

1,375

​

​

(1,336)

Net gain (loss)

​

$

1,485

​

$

(1,223)

​

​

​

​

​

​

​

Derivative gain (loss) included in other income:

​

​

​

​

​

​

Put options

​

​

7,613

​

​

—

Interest rate floors

​

​

2,334

​

​

—

Net gain (loss)

​

$

9,947

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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 swap arrangements. 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 offsetting 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 material 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 unaudited condensed consolidated balance sheets as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

​

​

(In thousands)

​

​

​

​

​

(In thousands)

March 31, 2024

$

657,572

​

​

Other assets/liabilities

​

$

15,259

​

$

15,259

December 31, 2023

$

607,169

​

​

Other assets/liabilities

​

$

12,426

​

$

12,426

​

​

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

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

    

2024

    

2023

​

​

(In thousands)

Gross swap gains

​

$

2,833

​

$

580

Gross swap losses

​

​

2,833

​

​

580

Net swap gains (losses)

​

$

—

​

$

—

​

​

​

​

​

​

​

​

The Company pledged $0 in collateral to secure its obligations under swap contracts at both March 31, 2024 and December 31, 2023.
v3.24.1.1.u2
Disclosures about Fair Value of Assets and Liabilities
 3 Months Ended
Mar. 31, 2024
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 unaudited condensed consolidated 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 March 31, 2024 and December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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)

March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

142,629

​

$

—

​

$

142,629

​

$

—

Securities available for sale:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

109,103

​

 

109,103

​

 

—

​

 

—

Federal agencies

​

 

238,501

​

 

—

​

 

238,501

​

 

—

Mortgage-backed - Agency

​

​

13,044

​

​

—

​

 

13,044

​

 

—

Mortgage-backed - Non-agency residential - fair value option

​

​

472,192

​

​

—

​

 

—

​

 

472,192

Mortgage-backed - Agency - fair value option

​

 

228,448

​

 

—

​

 

228,448

​

 

—

Loans held for sale

​

 

84,513

​

 

—

​

 

84,513

​

 

—

Servicing rights

​

 

172,200

​

 

—

​

 

—

​

 

172,200

Derivative assets:

​

 

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

 

174

​

 

—

​

 

—

​

 

174

Forward contracts

​

​

9

​

 

—

​

 

9

​

 

—

Interest rate swaps

​

​

3,985

​

​

—

​

​

3,985

​

​

—

Interest rate swaps (back-to-back)

​

​

15,259

​

​

—

​

​

15,259

​

​

—

Put options

​

​

33,490

​

​

—

​

​

10,514

​

​

22,976

Interest rate floors

​

​

8,910

​

​

—

​

​

—

​

​

8,910

Derivative liabilities:

​

 

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

 

22

​

​

—

​

​

—

​

​

22

Forward contracts

​

 

110

​

​

—

​

​

110

​

​

—

Interest rate swaps (back-to-back)

​

 

15,259

​

​

—

​

​

15,259

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

 

  

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

110,599

​

$

—

​

$

110,599

​

$

—

Securities available for sale:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

128,968

​

 

128,968

​

 

—

​

 

—

Federal agencies

​

 

247,755

​

 

—

​

 

247,755

​

 

—

Mortgage-backed - Agency

​

​

14,467

​

​

—

​

 

14,467

​

 

—

Mortgage-backed - Non-agency residential - fair value option

​

​

485,500

​

​

—

​

 

—

​

 

485,500

Mortgage-backed - Agency - fair value option

​

 

236,997

​

 

—

​

 

236,997

​

 

—

Loans held for sale

​

 

86,663

​

 

—

​

 

86,663

​

 

—

Servicing rights

​

 

158,457

​

 

—

​

 

—

​

 

158,457

Derivative assets:

​

 

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

 

140

​

 

—

​

 

—

​

 

140

Forward contracts

​

​

4

​

 

—

​

 

4

​

 

—

Interest rate swaps

​

​

2,610

​

​

—

​

​

2,610

​

​

—

Interest rate swaps (back-to-back)

​

​

12,426

​

​

—

​

​

12,426

​

​

—

Put options

​

​

25,877

​

​

—

​

​

7,223

​

​

18,654

Interest rate floors

​

​

6,576

​

​

—

​

​

—

​

​

6,576

Derivative liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

​

4

​

​

—

​

​

—

​

​

4

Forward contracts

​

​

391

​

​

—

​

​

391

​

​

—

Interest rate swaps (back-to-back)

​

​

12,426

​

​

—

​

​

12,426

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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 unaudited condensed consolidated 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 three months ended March 31, 2024 and the year ended December 31, 2023. 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, Securities Available for Sale, and Securities with a Fair Value Option Election

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 an independent 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

Interest rate lock commitments - 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.

Forward sales 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.

Interest rate swaps – The Company estimates the fair value of interest rate swaps based on prices that are obtained from a third party that uses observable market inputs, thereby supporting a Level 2 classification.

Put options - The fair value of put options are linked to securities available for sale that are accounted for using the fair value option and are classified as either Level 2 or Level 3 on the hierarchy.  The put options are classified as Level 2 or Level 3 in the hierarchy, depending upon the magnitude of observable inputs in the valuation of the securities. These valuations are estimated by a third party.

Interest rate floors - The fair value of certain interest rate floors is linked to securities available for sale that are accounted for using the fair value option. Other interest rate floors are linked to loans with warehouse customers. The value of the interest rate floors is based on estimated discounted cash flows that are based on inputs that are not readily observable and, thus, are classified as Level 3 on the hierarchy. These valuations are estimated by a third party.

Credit Default Swap – The fair value of the credit default swap is linked to the value of its underlying mortgage loans. The Company estimates the fair value based on estimated discounted cash flows that are derived from inputs that are not readily observable and, thus, are classified as Level 3 on the hierarchy. These valuations are estimated by a third party.

The fair value of the credit default swap was equal to the transaction price of zero at inception on March 27, 2024. The Company will subsequently measure the fair value of the credit default swap each reporting period.

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 March 31, 

​

    

2024

    

2023

​

​

(In thousands)

Servicing rights

​

​

​

​

​

​

Balance, beginning of period

​

$

158,457

​

$

146,248

Additions

​

 

  

​

 

  

Originated servicing

​

 

2,166

​

 

2,173

Subtractions

​

 

  

​

 

  

Paydowns

​

 

(2,387)

​

 

(1,698)

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

​

 

13,964

​

 

(2,856)

Balance, end of period

​

$

172,200

​

$

143,867

​

​

​

​

​

​

​

Available for sale securities - Mortgage-backed - Non-Agency residential - fair value option

​

​

​

​

​

​

Balance, beginning of period

​

$

485,500

​

$

—

Paydowns

​

​

(8,986)

​

​

—

Changes in fair value

​

 

(4,322)

​

 

—

Balance, end of period

​

$

472,192

​

$

—

​

​

​

​

​

​

​

Derivative Assets - put options

​

​

​

​

​

​

Balance, beginning of period

​

$

18,654

​

$

—

Changes in fair value

​

 

4,322

​

 

—

Balance, end of period

​

$

22,976

​

$

—

​

​

​

​

​

​

​

Derivative Assets - interest rate floors

​

​

​

​

​

​

Balance, beginning of period

​

$

6,576

​

$

—

Changes in fair value

​

 

2,334

​

 

—

Balance, end of period

​

$

8,910

​

$

—

​

​

​

​

​

​

​

Derivative Assets - interest rate lock commitments

​

​

​

​

​

​

Balance, beginning of period

​

$

140

​

$

28

Changes in fair value

​

 

34

​

 

190

Balance, end of period

​

$

174

​

$

218

​

​

​

​

​

​

​

Derivative Liabilities - interest rate lock commitments

​

​

​

​

​

​

Balance, beginning of period

​

$

4

​

$

23

Changes in fair value

​

 

18

​

 

(19)

Balance, end of period

​

$

22

​

$

4

​

​

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 March 31, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

Quoted Prices in

​

Significant

​

Significant

​

​

​

​

​

Active Markets for

​

Other Observable

​

Unobservable 

​

​

Fair

​

Identical Assets

​

Inputs

​

Inputs

Assets

​

Value

​

(Level 1)

​

(Level 2)

​

(Level 3)

​

​

(In thousands)

March 31, 2024

​

 

  

​

 

  

​

 

  

​

 

  

Collateral dependent loans

​

$

420

​

$

—

​

$

—

​

$

420

December 31, 2023

​

 

  

​

 

  

​

 

  

​

 

  

Collateral dependent loans

​

$

47,026

​

$

—

​

$

—

​

$

47,026

​

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 unaudited condensed consolidated balance sheets, 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 March 31, 2024:

 

​

  

 

  

​

​

​

​

 

​

Available for sale securities - Mortgage-backed - Non-Agency residential - fair value option

​

$

472,192

​

Discounted cash flow

​

Market credit spread

​

2%

​

2%

Collateral dependent loans

​

$

420

 

Market comparable properties

 

Marketability discount

​

24% - 27%

 

26%

Servicing rights - Multi-family

​

$

135,314

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

0% - 73%

 

7%

Servicing rights - Single-family

​

$

31,898

 

Discounted cash flow

 

Discount rate

​

10% - 11%

​

10%

​

​

​

​

​

​

​

Constant prepayment rate

​

6% - 15%

​

7%

Servicing rights - SBA

​

$

4,988

 

Discounted cash flow

 

Discount rate

​

16%

 

16%

​

​

​

​

​

​

​

Constant prepayment rate

​

3% - 14%

​

9%

Derivative assets:

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

$

174

 

Discounted cash flow

 

Loan closing rates

​

50% - 99%

 

82%

Put options

​

$

22,976

​

Intrinsic option value

​

Market credit spread

​

2%

​

2%

Interest rate floors

​

$

8,910

​

Discounted cash flow

​

Discount rate

​

6%-8%

​

7%

Derivative liabilities - interest rate lock commitments

​

$

22

 

Discounted cash flow

 

Loan closing rates

​

50% - 99%

 

82%

​

​

​

​

​

​

​

​

​

​

​

​

At December 31, 2023:

​

 

  

 

  

​

​

​

​

 

​

Available for sale securities - Mortgage-backed - Non-Agency residential - fair value option

​

$

485,500

​

Discounted cash flow

​

Market credit spread

​

2%

​

2%

Collateral dependent loans

​

$

47,026

 

Market comparable properties

 

Marketability discount

​

0% - 100%

 

2%

Servicing rights - Multi-family

​

$

122,218

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

0% - 50%

 

7%

Servicing rights - Single-family

​

$

30,959

 

Discounted cash flow

 

Discount rate

​

10% - 11%

​

10%

​

​

​

​

​

​

​

Constant prepayment rate

​

6% - 16%

​

7%

Servicing rights - SBA

​

$

5,280

 

Discounted cash flow

 

Discount rate

​

16%

​

16%

​

​

​

​

​

​

​

Constant prepayment rate

​

3% - 14%

​

9%

Derivative assets:

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

$

140

 

Discounted cash flow

 

Loan closing rates

​

45% - 99%

 

78%

Put options

​

$

18,654

​

Intrinsic option value

​

Market credit spread

​

2%

​

2%

Interest rate floors

​

$

6,576

​

Discounted cash flow

​

Discount rate

​

6%-7%

​

7%

Derivative liabilities - interest rate lock commitments

​

$

4

 

Discounted cash flow

 

Loan closing rates

​

45% - 99%

 

78%

​

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.

Securities Available for Sale with a Fair Value Option Election, Loans, and Related Derivative Financial Instruments

The significant unobservable input used in the fair value measurement of certain securities available for sale and their related put options include market credit spreads that can be impacted by market conditions and drive a significant amount of a market participant’s valuation of the security and its related put option. The impact of changes to the unobservable inputs for the securities is mitigated by changes to the unobservable inputs for the put options, which are valued in opposite directions, so as to minimize the financial impact to the Company.

The significant unobservable input used in the fair value measurement of interest rate floor derivatives associated with certain securities available for sale and loans include the discount rate that can have a significant impact on the value of the derivative. Another variable that affects the floor value is the forward interest curve, which is observable, but changes with market conditions as interest rates and future interest rate expectations change.

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 March 31, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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)

March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

508,755

​

$

508,755

​

$

508,755

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

3,329

​

 

3,329

​

 

—

​

 

3,329

​

 

—

Securities held to maturity

​

 

1,175,167

​

 

1,176,178

​

 

—

​

 

466,573

​

 

709,605

FHLB stock

​

 

64,215

​

 

64,215

​

 

—

​

 

64,215

​

 

—

Loans held for sale

​

 

3,418,618

​

 

3,418,618

​

 

—

​

 

3,418,618

​

 

—

Loans receivable, net

​

 

10,690,513

​

 

10,646,477

​

 

—

​

 

—

​

 

10,646,477

Interest receivable

​

 

90,303

​

 

90,303

​

 

—

​

 

90,303

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

Deposits

​

 

13,975,661

​

 

13,973,624

​

 

8,018,126

​

 

5,955,498

​

 

—

Short-term subordinated debt

​

 

64,922

​

 

64,922

​

 

—

​

 

64,922

​

 

—

FHLB advances

​

 

1,426,299

​

 

1,425,888

​

 

—

​

 

1,425,888

​

 

—

Other borrowing

​

​

232,934

​

​

232,934

​

​

—

​

​

232,934

​

​

—

Credit linked notes

​

​

111,830

​

​

111,828

​

​

—

​

​

111,828

​

​

—

Interest payable

​

 

51,790

​

 

51,790

​

 

—

​

 

51,790

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

584,422

​

$

584,422

​

$

584,422

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

3,349

​

 

3,349

​

 

—

​

 

3,349

​

 

—

Securities held to maturity

​

​

1,204,217

​

​

1,203,535

​

 

—

​

 

484,288

​

 

719,247

FHLB stock

​

 

48,578

​

 

48,578

​

 

—

​

 

48,578

​

 

—

Loans held for sale

​

 

3,058,093

​

 

3,058,093

​

 

—

​

 

3,058,093

​

 

—

Loans receivable, net

​

 

10,127,801

​

 

10,088,468

​

 

—

​

 

—

​

 

10,088,468

Interest receivable

​

 

91,346

​

 

91,346

​

 

—

​

 

91,346

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

Deposits

​

 

14,061,460

​

 

14,062,457

​

 

8,894,058

​

 

5,168,399

​

 

—

Short-term subordinated debt

​

 

64,922

​

 

64,922

​

 

—

​

 

64,922

​

 

—

FHLB advances

​

 

771,392

​

 

771,029

​

 

—

​

 

771,029

​

 

—

Other borrowing

​

​

7,934

​

​

7,934

​

​

—

​

​

7,934

​

​

—

Credit linked notes

​

​

119,879

​

​

119,878

​

​

—

​

​

119,878

​

​

—

Interest payable

​

 

43,423

​

 

43,423

​

 

—

​

 

43,423

​

 

—

​
v3.24.1.1.u2
Leases
 3 Months Ended
Mar. 31, 2024
Leases.  
Leases

Note 9: Leases

The Company has operating leases for various locations with terms ranging from one to seven years. Some operating leases include options to extend. The extensions were included in the right-of-use asset if the likelihood of extension was reasonably 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 $8.2 million and $10.1 million as of March 31, 2024 and December 31, 2023, respectively, and operating lease right-of-use liabilities of $9.4 million and $11.3 million as of March 31, 2024 and December 31, 2023, respectively.

Unaudited condensed consolidated balance sheet, income statement and cash flow detail regarding operating leases follows:

​

​

​

​

​

​

​

​

​

March 31, 2024

​

​

December 31, 2023

Balance Sheet

​

(In thousands)

​

​

(In thousands)

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

$

8,211

​

$

10,060

Operating lease liability (in other liabilities)

​

9,386

​

​

11,251

​

​

​

​

​

​

Weighted average remaining lease term (years)

​

4.8

​

​

6.0

Weighted average discount rate

​

3.19%

​

​

2.89%

​

​

​

​

​

​

Maturities of lease liabilities:

​

​

​

​

​

One year or less

$

2,359

​

$

2,441

Year two

​

2,073

​

​

2,064

Year three

​

1,951

​

​

2,100

Year four

​

1,805

​

​

2,046

Year five

​

1,123

​

​

1,438

Thereafter

​

824

​

​

2,128

Total future minimum lease payments

​

10,135

​

​

12,217

Less: imputed interest

​

749

​

​

966

Total

$

9,386

​

$

11,251

​

​

​

​

​

​

​

​

Three Months Ended

​

​

Three Months Ended

​

​

March 31, 2024

​

​

March 31, 2023

Income Statement

​

(In thousands)

​

​

(In thousands)

Components of lease expense:

​

​

​

​

​

Operating lease cost (in occupancy and equipment expense)

$

604

​

$

583

​

​

​

​

​

​

​

​

Three Months Ended

​

​

Three Months Ended

​

​

March 31, 2024

​

​

March 31, 2023

Cash Flow Statement

​

(In thousands)

​

​

(In thousands)

Supplemental cash flow information:

​

​

​

​

​

Operating cash flows from operating leases

$

594

​

$

426

​

​
v3.24.1.1.u2
Deposits
 3 Months Ended
Mar. 31, 2024
Deposits  
Deposits

​

Note 10: Deposits

Deposits were comprised of the following at March 31, 2024 and December 31, 2023:

​

​

​

​

​

​

​

​

​

​

March 31,

​

December 31,

​

    

2024

    

2023

​

​

(In thousands)

Noninterest-bearing deposits

​

​

​

​

​

​

Demand deposits

​

$

319,872

​

$

520,070

Total noninterest-bearing deposits

​

​

319,872

​

​

520,070

Interest-bearing deposits

​

​

​

​

​

​

Demand deposits

​

$

4,680,405

​

$

5,381,067

Savings deposits

​

 

3,017,849

​

 

2,992,921

Certificates of deposit

​

 

5,957,535

​

 

5,167,402

Total interest-bearing deposits

​

​

13,655,789

​

​

13,541,390

Total deposits

​

$

13,975,661

​

$

14,061,460

​

Maturities for certificates of deposit are as follows:

​

​

​

​

​

​

    

March 31, 2024

​

​

(In thousands)

Due within one year

​

$

5,865,446

Due in one year to two years

​

 

76,281

Due in two years to three years

​

 

15,808

Due in three years to four years

​

 

—

Due in four years to five years

​

​

—

Due in five years to six years

​

 

—

​

​

$

5,957,535

​

Brokered deposit amounts at March 31, 2024 and December 31, 2023, were as follows:

​

​

​

​

​

​

​

​

​

​

March 31,

​

December 31, 

​

    

2024

    

2023

​

​

(In thousands)

Brokered certificates of deposit

​

$

5,351,397

​

$

4,465,825

Brokered savings deposits

​

 

1,338

​

 

589

Brokered deposit on demand accounts

​

 

400,159

​

 

1,504,230

​

​

$

5,752,894

​

$

5,970,644

​
v3.24.1.1.u2
Borrowings
 3 Months Ended
Mar. 31, 2024
Borrowings  
Borrowings

Note 11: Borrowings

Borrowings were comprised of the following at March 31, 2024 and December 31, 2023:

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

    

2024

    

2023

​

​

(In thousands)

Federal Reserve discount window borrowings

​

$

50,000

​

$

—

Short-term subordinated debt

​

 

64,922

​

 

64,922

FHLB advances

​

​

1,426,299

​

​

771,392

American Financial Exchange borrowing

​

​

175,000

​

​

—

Credit linked notes, net of debt discount

​

​

111,830

​

​

119,879

Other borrowings

​

 

7,934

​

 

7,934

Total borrowings

​

$

1,835,985

​

$

964,127

​

On March 22, 2024, the Company entered into a new variable rate debt agreement with the FHLB for an advance that has put and call options attached to it. The balance of the advance was $500.0 million as of March 31, 2024, and matures on June 20, 2024. The variable interest rate is based on the Federal Funds effective rate, plus 10 basis points, which was 5.43% as of March 31, 2024. The FHLB has an option to cancel the agreement 60 days after the initial execution date and the Company has an option to cancel the agreement at any time, with one day’s notice.

v3.24.1.1.u2
Earnings Per Share
 3 Months Ended
Mar. 31, 2024
Earnings Per Share  
Earnings Per Share

Note 12:   Earnings Per Share

Earnings per share were computed as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Month Periods Ended March 31, 

​

​

2024

​

2023

​

​

​

​

​

Weighted-

​

Per 

​

​

​

​

Weighted-

​

Per 

​

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

​

​

(In thousands, except share data)

Net income

​

$

87,054

 

  

 

​

  

​

$

54,955

 

  

 

​

  

Dividends on preferred stock

​

 

(8,667)

 

  

 

​

  

​

 

(8,667)

 

  

 

​

  

Net income allocated to common shareholders

​

$

78,387

 

  

 

​

  

​

$

46,288

 

  

 

​

  

Basic earnings per share

​

 

  

 

43,305,985

​

$

1.81

​

 

  

 

43,179,604

​

$

1.07

Effect of dilutive securities-restricted stock awards

​

 

  

 

160,662

​

 

  

​

 

  

 

111,175

​

 

  

Diluted earnings per share

​

 

  

 

43,466,647

​

$

1.80

​

 

  

 

43,290,779

​

$

1.07

​

​

​

​

​
v3.24.1.1.u2
Share-Based Payment Plans
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Plans  
Share-Based Payment Plans

Note 13:   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”). The Company issued 85,212 and 84,335 shares during the three months ended March 31, 2024 and 2023, 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. In November 2023, 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 $70,000 per member, rounded up to the nearest whole share, to be effective as of January 1, 2024. Accordingly, there were 3,164 and 2,863 shares, issued to non-executive directors during the three months ended March 31, 2024 and 2023, respectively.

The Company established an employee stock ownership plan (“ESOP”) effective as of January 1, 2020 to provide certain benefits for all employees who meet certain requirements. Expense recognized for the contribution to the ESOP totaled $287,000 and $267,000 for the three months ended March 31, 2024 and 2023, respectively. The Company contributed 23,414 shares and 33,293 shares to the ESOP for the three months ended March 31, 2024 and 2023, respectively.
v3.24.1.1.u2
Preferred Stock
 3 Months Ended
Mar. 31, 2024
Preferred Stock.  
Preferred Stock

​

Note 14:   Preferred Stock

Public Offerings of Preferred Stock:

Series A – 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 Company redeemed all outstanding shares of the Series A Preferred Stock on April 1, 2024 at a price equal to the liquidation preference of $25.00 per share, using cash on hand. As of the redemption date, the Series A Preferred Stock did not have any accrued but unpaid dividends.

Series B – 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.

Series C – 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.

Series D – On September 27, 2022, the Company issued 5,200,000 depositary shares, each representing a 1/40th interest in a share of its 8.25% Fixed Rate Reset Series D Non-Cumulative Perpetual Preferred Stock, without par value (the “Series D 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 $130.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $4.6 million paid to third parties, the Company received total net proceeds of $125.4 million. On September 30, 2022, the Company issued an additional 500,000 depositary shares of Series D 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 $12.1 million in net proceeds, after deducting $0.4 million in underwriting discounts.

The Series D Preferred Stock have no voting rights with respect to matters that generally require the approval of our common shareholders. Dividends on the Series D Preferred Stock, to the extent declared by the Company’s board, are payable quarterly. The Company may redeem the Series D Preferred Stock, in whole or in part, at its option, on any dividend payment date on or after October 1, 2027, 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.

v3.24.1.1.u2
Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Information  
Segment Information

Note 15:   Segment Information

The 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. It is also a fully integrated syndicator of low-income housing tax credit and debt funds. 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. The Other segment 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 or LLCs and certain debt funds. All operations are domestic.

​

​

​

​

​

​

​

​

​

The tables below present selected business segment financial information for the three months ended March 31, 2024 and 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

    

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

Three Months Ended March 31, 2024

​

(In thousands)

Interest income

​

$

1,746

​

$

84,901

​

$

224,288

​

$

3,238

 

$

314,173

Interest expense

​

 

20

​

 

56,140

​

 

131,723

​

 

(766)

 

 

187,117

Net interest income

​

 

1,726

​

 

28,761

​

 

92,565

​

 

4,004

 

 

127,056

Provision for credit losses

​

 

—

​

 

940

​

 

3,786

​

 

—

 

 

4,726

Net interest income after provision for credit losses

​

 

1,726

​

 

27,821

​

 

88,779

​

 

4,004

 

 

122,330

Noninterest income

​

 

40,467

​

 

3,317

​

 

429

​

 

(3,339)

 

 

40,874

Noninterest expense

​

 

19,571

​

 

4,798

​

 

15,578

​

 

8,965

 

 

48,912

Income (loss) before income taxes

​

 

22,622

​

 

26,340

​

 

73,630

​

 

(8,300)

 

 

114,292

Income taxes

​

 

6,013

​

 

6,150

​

 

17,205

​

 

(2,130)

 

 

27,238

Net income (loss)

​

$

16,609

​

$

20,190

​

$

56,425

​

$

(6,170)

 

$

87,054

Total assets

​

$

416,454

​

$

5,369,299

​

$

11,760,028

​

$

276,795

 

$

17,822,576

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

Three Months Ended March 31, 2023

​

(In thousands)

Interest income

​

$

1,106

​

$

42,318

​

$

166,726

​

$

1,144

 

$

211,294

Interest expense

​

 

—

​

 

27,794

​

 

84,526

​

 

(1,719)

 

 

110,601

Net interest income

​

 

1,106

​

 

14,524

​

 

82,200

​

 

2,863

 

 

100,693

Provision for credit losses

​

 

—

​

 

1,364

​

 

5,503

​

 

—

 

 

6,867

Net interest income after provision for credit losses

​

 

1,106

​

 

13,160

​

 

76,697

​

 

2,863

 

 

93,826

Noninterest income

​

 

16,597

​

 

1,033

​

 

(1,189)

​

 

(2,177)

 

 

14,264

Noninterest expense

​

 

14,631

​

 

2,755

​

 

10,170

​

 

7,216

 

 

34,772

Income (loss) before income taxes

​

 

3,072

​

 

11,438

​

 

65,338

​

 

(6,530)

 

 

73,318

Income taxes

​

 

1,106

​

 

2,797

​

 

16,031

​

 

(1,571)

 

 

18,363

Net income (loss)

​

$

1,966

​

$

8,641

​

$

49,307

​

$

(4,959)

 

$

54,955

Total assets

​

$

341,487

​

$

3,318,491

​

$

10,430,293

​

$

150,695

 

$

14,240,966

​
v3.24.1.1.u2
Recent Accounting Pronouncements
 3 Months Ended
Mar. 31, 2024
Recent Accounting Pronouncements  
Recent Accounting Pronouncements

Note 16:   Recent Accounting Pronouncements

The Company continually monitors potential accounting pronouncement and SEC release changes. The following pronouncements and releases have been deemed to have the most applicability to the Company’s financial statements:

FASB ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

​

In November 2023, the FASB issued an ASU update that will require public entities’ disclosures, on an annual and interim basis, to include additional details on reportable segments so financial statement users may better understand an entity’s overall performance and assist in assessing potential future cash flows. The new guidance will require public entities to present information regarding significant segment expenses that are regularly provided to the chief operating decision maker (CODM) as well as details regarding segment’s profit and loss.

​

The updates in ASU 2023-07 are effective for annual periods beginning after December 15, 2023 and interim periods for years beginning after December 15, 2024. An entity shall apply the ASU retrospectively to financial statements for periods beginning after the effective date. 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.

​

FASB ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures

​

In December 2023, the FASB issued an ASU update that will require public business entity’s disclosures to include a tabular tax rate reconciliation. The update will also require all public entities disclose income tax expense and taxes paid broken down by federal, state, and foreign with a disaggregation for jurisdictions that exceed 5% of income for taxes paid.

​

The updates in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. An entity shall apply the ASU on a prospective basis to financial statements for annual periods beginning after the effective date. 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.

​

​
v3.24.1.1.u2
Subsequent Events
 3 Months Ended
Mar. 31, 2024
Subsequent Events  
Subsequent Events

Note 17:   Subsequent Events

The Company redeemed all outstanding shares of the Series A Preferred Stock on April 1, 2024 at a price equal to the liquidation preference of $25.00 per share, or $52 million, using cash on hand. As of March 31, 2024, the cash to redeem the shares was delivered to the Company’s transfer agent, resulting in a prepaid asset reported in other assets. As of the redemption date the Series A Preferred Stock did not have any accrued, but unpaid dividends.

​
v3.24.1.1.u2
Basis of Presentation (Policies)
 3 Months Ended
Mar. 31, 2024
Basis of Presentation  
Sale of Farmers-Merchants Bank of Illinois branches

Sale of Farmers-Merchants Bank of Illinois branches

On September 7, 2023, the Company entered into an agreement with Bank of Pontiac to sell its Farmers-Merchants Bank of Illinois branch locations in Paxton, Melvin, and Piper City, Illinois, and into an agreement with CBI Bank & Trust, to sell its Farmers-Merchants Bank of Illinois branch located in Joy, Illinois.

​

This transaction enhances the Company’s ability to focus on its core business of single and multi-family mortgage lending and strategically aligns the branches with institutions that share a similar business model and allows them to provide additional products to their customers.

​

On January 26, 2024, the transaction was completed after having met customary closing conditions, including regulatory approval.

​

In addition to the branches, Bank of Pontiac acquired approximately $164.8 million in deposits and $19.2 million in loans, and CBI Bank & Trust acquired approximately $65.1 million in deposits and $28.6 million in loans.

​

Total assets and liabilities of approximately $60.8 million and $230.6 million, respectively, were sold. A net gain of $715,000 was recognized from the transactions, which includes a $10.1 million deposit premium and the extinguishment of $7.8 million in goodwill and $0.5 million in intangibles during the three months ended March 31, 2024.

Principles of Consolidation

Principles of Consolidation

The unaudited condensed consolidated financial statements as of and for the period ended March 31, 2024 and 2023 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, FMBI (until its branches were sold and its bank charter merged into Merchants Bank on January 26, 2024) 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.

During 2022, Merchants Foundation, Inc., a nonprofit corporation, was incorporated and its results are consolidated with the Company’s consolidated financial statements in all periods presented.

In addition, when the Company makes an equity investment in or has a relationship with an entity for which it holds a variable interest, it is evaluated for consolidation requirements under Accounting Standards Update (“ASU”) 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.

​

In May 2023, the Company acquired a variable interest in an investment for which it is the primary beneficiary of, and its results have been consolidated since the date of acquisition. Additionally, the Company has certain variable interest investments that it was deemed not to be a primary beneficiary of as of March 31, 2024 and December 31, 2023. These VIEs are not consolidated and the equity or proportional method of accounting has been applied. The Company will analyze whether the primary beneficiary designation has changed through triggering events on a prospective 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.
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.

Significant Accounting Policies

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.

Restricted Cash

Restricted Cash

​

Included in cash equivalents is an account restricted as collateral for the potential risk of loss on senior credit linked notes issued by the Company. The balance of the notes as of March 31, 2024 was $115.6 million. As of March 31, 2024, there was $39.2 million in restricted cash. Also see Note 11: Borrowings.

​
v3.24.1.1.u2
Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2024
Investment Securities  
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

​

​

​

​

Gross

​

Gross

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Securities available for sale:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

109,146

​

$

15

​

$

58

​

$

109,103

Federal agencies

​

 

240,000

​

 

—

​

 

1,499

​

 

238,501

Mortgage-backed - Government Agency ("Agency") (2) - multi-family

​

​

13,044

​

​

—

​

​

—

​

​

13,044

Mortgage-backed - Non-Agency residential - fair value option (1)

​

​

472,192

​

​

—

​

​

—

​

​

472,192

Mortgage-backed - Agency - residential - fair value option (1)

​

​

228,448

​

​

—

​

​

—

​

​

228,448

Total securities available for sale

​

$

1,062,830

​

$

15

​

$

1,557

​

$

1,061,288

Securities held to maturity:

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed - Non-Agency - multi-family

​

$

710,024

​

$

—

​

$

419

​

$

709,605

Mortgage-backed - Non-Agency - residential

​

​

453,167

​

​

2,385

​

​

87

​

​

455,465

Mortgage-backed - Agency

​

​

11,976

​

​

—

​

​

868

​

​

11,108

Total securities held to maturity

​

$

1,175,167

​

$

2,385

​

$

1,374

​

$

1,176,178

​

(1)

For fair value option securities, the amortized cost reflects the carrying value, which is also equal to the fair value.

(2)

Agency includes government sponsored agencies, such as Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”), and Government National Mortgage Association (“Ginnie Mae”).

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

​

​

​

​

Gross

​

Gross

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Securities available for sale:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

129,261

​

$

45

​

$

338

​

$

128,968

Federal agencies

​

 

250,731

​

 

—

​

 

2,976

​

 

247,755

Mortgage-backed - Government Agency ("Agency") (2) - multi-family

​

​

14,465

​

​

5

​

​

3

​

​

14,467

Mortgage-backed - Non-Agency residential - fair value option (1)

​

​

485,500

​

​

—

​

​

—

​

​

485,500

Mortgage-backed - Agency - residential - fair value option (1)

​

​

236,997

​

​

—

​

​

—

​

​

236,997

Total securities available for sale

​

$

1,116,954

​

$

50

​

$

3,317

​

$

1,113,687

Securities held to maturity:

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed - Non-Agency - multi-family

​

$

719,662

​

$

—

​

$

415

​

$

719,247

Mortgage-backed - Non-Agency - residential

​

​

472,539

​

​

973

​

​

418

​

​

473,094

Mortgage-backed - Agency

​

​

12,016

​

​

—

​

​

822

​

​

11,194

Total securities held to maturity

​

$

1,204,217

​

$

973

​

$

1,655

​

$

1,203,535

​

(1)

For fair value option securities, the amortized cost reflects the carrying value, which is also equal to the fair value.

(2)

Agency includes government sponsored agencies, such as Fannie Mae, Freddie Mac, and Ginnie Mae.

Schedule of amortized cost and fair value of available-for-sale securities and held to maturity securities by contractual maturity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

December 31, 2023

​

​

Amortized

​

Fair

​

Amortized

​

Fair

​

    

Cost

    

Value

    

Cost

    

Value

Securities available for sale:

​

(In thousands)

Within one year

​

$

209,146

​

$

207,796

​

$

308,474

​

$

305,406

After one through five years

​

 

140,000

​

 

139,808

​

 

71,518

​

 

71,317

​

​

 

349,146

​

 

347,604

​

 

379,992

​

 

376,723

Mortgage-backed - Agency

​

​

13,044

​

​

13,044

​

​

14,465

​

​

14,467

Mortgage-backed - Non-Agency residential - fair value option

​

​

472,192

​

​

472,192

​

​

485,500

​

​

485,500

Mortgage-backed - Agency - residential - fair value option

​

​

228,448

​

​

228,448

​

​

236,997

​

​

236,997

​

​

$

1,062,830

​

$

1,061,288

​

$

1,116,954

​

$

1,113,687

Securities held to maturity:

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed - Non-Agency - multi-family

​

$

710,024

​

$

709,605

​

$

719,662

​

$

719,247

Mortgage-backed - Non-Agency - residential

​

​

453,167

​

​

455,465

​

​

472,539

​

​

473,094

Mortgage-backed - Agency

​

​

11,976

​

 

11,108

​

 

12,016

​

 

11,194

​

​

$

1,175,167

​

$

1,176,178

​

$

1,204,217

​

$

1,203,535
Schedule of gross unrealized losses and fair value of investments with unrealized losses have been in continuous

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

​

​

​

​

​

​

​

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)

Securities available for sale:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

3,092

​

$

1

​

$

26,938

​

$

57

​

$

30,030

​

$

58

Federal agencies

​

​

139,808

​

​

192

​

​

98,693

​

​

1,307

​

​

238,501

​

​

1,499

​

​

$

142,900

​

$

193

​

$

125,631

​

$

1,364

​

$

268,531

​

$

1,557

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

​

​

​

​

​

​

​

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)

Securities available for sale:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

3,052

​

$

6

​

$

32,080

​

$

332

​

$

35,132

​

$

338

Federal agencies

​

​

60,541

​

​

189

​

​

167,213

​

​

2,787

​

​

227,754

​

​

2,976

Mortgage-backed - Agency

​

​

364

​

​

1

​

​

186

​

​

2

​

​

550

​

​

3

​

​

$

63,957

​

$

196

​

$

199,479

​

$

3,121

​

$

263,436

​

$

3,317

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
v3.24.1.1.u2
Loans and Allowance for Credit Losses on Loans (Tables)
 3 Months Ended
Mar. 31, 2024
Loans and Allowance for Credit Losses on Loans  
Summary of loans

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

    

2024

    

2023

​

​

(In thousands)

​

​

​

​

​

​

​

Mortgage warehouse repurchase agreements

​

$

1,142,994

​

$

752,468

Residential real estate(1)

​

 

1,321,300

​

 

1,324,305

Multi-family financing

​

 

4,096,606

​

 

4,006,160

Healthcare financing

​

​

2,464,685

​

​

2,356,689

Commercial and commercial real estate(2)(3)

​

 

1,666,751

​

 

1,643,081

Agricultural production and real estate

​

 

65,977

​

 

103,150

Consumer and margin loans

​

 

7,912

​

 

13,700

​

​

 

10,766,225

​

 

10,199,553

Less:

​

 

  

​

 

  

ACL-Loans

​

 

75,712

​

 

71,752

​

​

​

​

​

​

​

Loans Receivable

​

$

10,690,513

​

$

10,127,801

(1)Includes $1.2 billion and $1.2 billion of All-in-One© first-lien home equity lines of credit at March 31, 2024 and December 31, 2023, respectively.
(2)Includes $1.1 billion and $1.1 billion of revolving lines of credit collateralized primarily by single-family mortgage servicing rights as of March 31, 2024 and December 31, 2023, respectively.
(3)Includes only $6.8 million and $8.4 million of non-owner occupied commercial real estate as of March 31, 2024 and December 31, 2023, respectively.
Schedule of allowance for credit loss on loan methodology by loan portfolio segment

​

Loan Portfolio Segment

​

ACL-Loans Methodology

​

 

​

Mortgage warehouse repurchase agreements

​

Remaining Life Method

Residential real estate loans

​

Discounted Cash Flow

Multi-family financing

​

Discounted Cash Flow

Healthcare financing

​

Discounted Cash Flow

Commercial and commercial real estate

​

Discounted Cash Flow

Agricultural production and real estate

​

Remaining Life Method

Consumer and margin loans

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended March 31, 2024

​

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

ACL-Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

2,070

​

$

7,323

 

$

26,874

​

$

22,454

​

$

12,243

​

$

619

​

$

169

​

$

71,752

FMBI's ACL for loans sold

​

​

—

​

​

(55)

​

​

(186)

​

​

(2)

​

​

(92)

​

​

(246)

​

​

(12)

​

​

(593)

Provision for credit losses

​

 

952

​

 

(363)

 

​

1,976

​

​

2,135

​

 

763

​

 

77

​

 

(63)

​

 

5,477

Loans charged to the allowance

​

 

—

​

 

—

 

​

—

​

​

—

​

 

(925)

​

 

—

​

 

—

​

 

(925)

Recoveries of loans previously charged-off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

1

​

 

—

​

 

—

​

 

1

Balance, end of period

​

$

3,022

​

$

6,905

​

$

28,664

​

$

24,587

​

$

11,990

​

$

450

​

$

94

​

$

75,712

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended March 31, 2023

​

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

ACL-Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,249

​

$

7,029

 

$

16,781

​

$

9,882

​

$

8,326

​

$

565

​

$

182

​

$

44,014

Provision for credit losses

​

 

415

​

 

349

 

​

3,070

​

​

1,871

​

 

2,149

​

 

(22)

​

 

(15)

​

 

7,817

Loans charged to the allowance

​

 

—

​

 

—

 

​

—

​

​

—

​

 

—

​

 

—

​

 

—

​

 

—

Recoveries of loans previously charged-off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

7

​

 

—

​

 

—

​

 

7

Balance, end of period

​

$

1,664

​

$

7,378

​

$

19,851

​

$

11,753

​

$

10,482

​

$

543

​

$

167

​

$

51,838
Summary of activity in the allowance for loans losses by loan portfolio

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Year Ended December 31, 2023

​

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

​

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

​

​

(In thousands)

ACL-Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,249

​

$

7,029

 

$

16,781

​

$

9,882

​

$

8,326

​

$

565

​

$

182

​

$

44,014

Provision for credit losses

​

 

821

​

 

328

 

​

18,493

​

​

12,572

​

 

5,232

​

 

54

​

 

(12)

​

 

37,488

Loans charged to the allowance

​

 

—

​

 

(34)

 

​

(8,400)

​

​

—

​

 

(1,356)

​

 

—

​

 

(1)

​

 

(9,791)

Recoveries of loans previously charged-off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

41

​

 

—

​

 

—

​

 

41

Balance, end of period

​

$

2,070

​

$

7,323

​

$

26,874

​

$

22,454

​

$

12,243

​

$

619

​

$

169

​

$

71,752
Schedule of amortized cost basis and ACL-Loans allocated for collateral dependent loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

    

Real Estate

    

Accounts Receivable / Equipment

    

Other

    

Total

    

ACL-Loans Allocation

​

​

(In thousands)

RES RE

​

$

1,272

​

$

—

​

$

—

​

$

1,272

​

$

8

MF FIN

​

​

53,200

​

​

—

​

​

—

​

​

53,200

​

​

581

HC FIN

​

 

63,283

​

 

—

​

 

—

​

 

63,283

​

 

5,652

CML & CRE

​

 

168

​

 

2,628

​

 

2,657

​

 

5,453

​

 

1,780

AG & AGRE

​

 

147

​

 

—

​

 

—

​

 

147

​

 

1

CON & MAR

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total collateral dependent loans

​

$

118,070

​

$

2,628

​

$

2,657

​

$

123,355

​

$

8,022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

 

Real Estate

 

Accounts Receivable / Equipment

 

Other

 

Total

 

ACL-Loans Allocation

​

​

(In thousands)

RES RE

​

$

1,557

​

$

—

 

$

3

​

$

1,560

​

$

21

MF FIN

​

 

46,575

​

 

—

 

​

—

​

 

46,575

​

 

521

HC FIN

​

​

73,909

​

​

—

​

​

—

​

​

73,909

​

​

6,289

CML & CRE

​

 

146

​

 

3,603

 

​

2,684

​

 

6,433

​

 

1,132

AG & AGRE

​

 

147

​

 

—

 

​

—

​

 

147

​

 

1

CON & MAR

​

​

—

​

​

—

​

​

3

​

​

3

​

​

—

Total collateral dependent loans

​

$

122,334

​

$

3,603

​

$

2,690

​

$

128,627

​

$

7,964
Schedule of credit risk profile of loan portfolio

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

    

2024

    

2023

    

2022

​

2021

    

2020

    

Prior

    

Revolving Loans

    

TOTAL

​

​

(In thousands)

MTG WHRA

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1,142,994

​

$

1,142,994

Total

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1,142,994

​

$

1,142,994

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

RES RE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

1,780

​

$

32,353

​

$

9,793

​

$

6,175

​

$

21,315

​

$

7,400

​

$

1,240,994

​

$

1,319,810

Special Mention

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

218

​

​

—

​

​

218

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

1,272

​

​

1,272

Total

​

$

1,780

​

$

32,353

​

$

9,793

​

$

6,175

​

$

21,315

​

$

7,618

​

$

1,242,266

​

$

1,321,300

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

298,730

​

$

957,019

​

$

734,071

​

$

114,353

​

$

9,070

​

$

34,587

​

$

1,731,470

​

$

3,879,300

Special Mention

​

​

8,000

​

​

96,900

​

​

28,559

​

​

8,400

​

​

—

​

​

1,470

​

​

20,777

​

​

164,106

Substandard

​

​

—

​

​

11,667

​

​

28,360

​

​

6,534

​

​

—

​

​

—

​

​

6,639

​

​

53,200

Total

​

$

306,730

​

$

1,065,586

​

$

790,990

​

$

129,287

​

$

9,070

​

$

36,057

​

$

1,758,886

​

$

4,096,606

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

258,604

​

$

626,388

​

$

936,880

​

$

98,815

​

$

—

​

$

14,459

​

$

398,904

​

$

2,334,050

Special Mention

​

​

24,319

​

​

20,900

​

​

9,502

​

​

—

​

​

—

​

​

—

​

​

12,631

​

​

67,352

Substandard

​

​

—

​

​

25,600

​

​

—

​

​

28,783

​

​

—

​

​

—

​

​

8,900

​

​

63,283

Total

​

$

282,923

​

$

672,888

​

$

946,382

​

$

127,598

​

$

—

​

$

14,459

​

$

420,435

​

$

2,464,685

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

CML & CRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

4,469

​

$

54,002

​

$

116,479

​

$

71,824

​

$

19,203

​

$

34,169

​

$

1,360,706

​

$

1,660,852

Special Mention

​

​

—

​

​

—

​

​

—

​

​

289

​

​

157

​

​

—

​

​

—

​

​

446

Substandard

​

​

—

​

​

—

​

​

92

​

​

776

​

​

850

​

​

60

​

​

3,675

​

​

5,453

Total

​

$

4,469

​

$

54,002

​

$

116,571

​

$

72,889

​

$

20,210

​

$

34,229

​

$

1,364,381

​

$

1,666,751

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

925

​

$

—

​

$

—

​

$

—

​

$

925

AG & AGRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

7,833

​

$

7,875

​

$

5,103

​

$

2,722

​

$

8,566

​

$

15,515

​

$

18,216

​

$

65,830

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

147

​

​

—

​

​

147

Total

​

$

7,833

​

$

7,875

​

$

5,103

​

$

2,722

​

$

8,566

​

$

15,662

​

$

18,216

​

$

65,977

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

CON & MAR

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

—

​

$

109

​

$

28

​

$

25

​

$

2

​

$

4,268

​

$

3,480

​

$

7,912

Total

​

$

—

​

$

109

​

$

28

​

$

25

​

$

2

​

$

4,268

​

$

3,480

​

$

7,912

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Pass

​

$

571,416

​

$

1,677,746

​

$

1,802,354

​

$

293,914

​

$

58,156

​

$

110,398

​

$

5,896,764

​

$

10,410,748

Total Special Mention

​

$

32,319

​

$

117,800

​

$

38,061

​

$

8,689

​

$

157

​

$

1,688

​

$

33,408

​

$

232,122

Total Substandard

​

$

—

​

$

37,267

​

$

28,452

​

$

36,093

​

$

850

​

$

207

​

$

20,486

​

$

123,355

Total Doubtful

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Total Loans

​

$

603,735

​

$

1,832,813

​

$

1,868,867

​

$

338,696

​

$

59,163

​

$

112,293

​

$

5,950,658

​

$

10,766,225

Total Charge-offs

​

$

—

​

$

—

​

$

—

​

$

925

​

$

—

​

$

—

​

$

—

​

$

925

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

    

2023

    

2022

    

2021

    

2020

    

2019

    

Prior

    

Revolving Loans

    

TOTAL

​

​

(In thousands)

MTG WHRA

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

752,468

​

$

752,468

Total

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

752,468

​

$

752,468

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

RES RE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

31,011

​

$

10,086

​

$

6,573

​

$

22,725

​

$

3,298

​

$

9,340

​

$

1,239,161

​

$

1,322,194

Special Mention

​

​

—

​

​

—

​

​

—

​

​

—

​

​

59

​

​

492

​

​

—

​

​

551

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

288

​

​

1,272

​

​

1,560

Total

​

$

31,011

​

$

10,086

​

$

6,573

​

$

22,725

​

$

3,357

​

$

10,120

​

$

1,240,433

​

$

1,324,305

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

21

​

$

13

​

$

34

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

1,094,698

​

$

762,448

​

$

208,343

​

$

77,340

​

$

29,764

​

$

8,455

​

$

1,646,445

​

$

3,827,493

Special Mention

​

​

94,973

​

​

3,189

​

​

8,400

​

​

—

​

​

—

​

​

1,477

​

​

24,052

​

​

132,091

Substandard

​

​

11,682

​

​

28,360

​

​

6,534

​

​

—

​

​

—

​

​

—

​

​

—

​

​

46,576

Total

​

$

1,201,353

​

$

793,997

​

$

223,277

​

$

77,340

​

$

29,764

​

$

9,932

​

$

1,670,497

​

$

4,006,160

Charge-offs

​

$

—

​

$

8,400

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

8,400

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

752,591

​

$

996,273

​

$

110,197

​

$

—

​

$

14,563

​

$

—

​

$

351,110

​

$

2,224,734

Special Mention

​

​

35,869

​

​

9,520

​

​

—

​

​

—

​

​

—

​

​

—

​

​

12,658

​

​

58,047

Substandard

​

​

25,600

​

​

10,625

​

​

28,783

​

​

—

​

​

—

​

​

—

​

​

8,900

​

​

73,908

Total

​

$

814,060

​

$

1,016,418

​

$

138,980

​

$

—

​

$

14,563

​

$

—

​

$

372,668

​

$

2,356,689

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

CML & CRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

51,110

​

$

119,386

​

$

77,316

​

$

21,154

​

$

21,088

​

$

17,066

​

$

1,328,980

​

$

1,636,100

Special Mention

​

​

—

​

​

—

​

​

292

​

​

172

​

​

—

​

​

84

​

​

—

​

​

548

Substandard

​

​

—

​

​

70

​

​

1,701

​

​

878

​

​

62

​

​

—

​

​

3,672

​

​

6,383

Doubtful

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

50

​

​

—

​

​

50

Total

​

$

51,110

​

$

119,456

​

$

79,309

​

$

22,204

​

$

21,150

​

$

17,200

​

$

1,332,652

​

$

1,643,081

Charge-offs

​

$

—

​

$

496

​

$

274

​

$

586

​

$

—

​

$

—

​

$

—

​

$

1,356

AG & AGRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

16,850

​

$

9,825

​

$

6,490

​

$

14,267

​

$

5,237

​

$

16,606

​

$

33,728

​

$

103,003

Special Mention

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

147

​

​

—

​

​

147

Total

​

$

16,850

​

$

9,825

​

$

6,490

​

$

14,267

​

$

5,237

​

$

16,753

​

$

33,728

​

$

103,150

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

CON & MAR

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

748

​

$

4,329

​

$

247

​

$

115

​

$

27

​

$

4,339

​

$

3,862

​

$

13,667

Special Mention

​

​

—

​

​

—

​

​

—

​

​

15

​

​

15

​

​

—

​

​

—

​

​

30

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

3

​

​

—

​

​

3

Total

​

$

748

​

$

4,329

​

$

247

​

$

130

​

$

42

​

$

4,342

​

$

3,862

​

$

13,700

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1

​

$

—

​

$

1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Pass

​

$

1,947,008

​

$

1,902,347

​

$

409,166

​

$

135,601

​

$

73,977

​

$

55,806

​

$

5,355,754

​

$

9,879,659

Total Special Mention

​

$

130,842

​

$

12,709

​

$

8,692

​

$

187

​

$

74

​

$

2,053

​

$

36,710

​

$

191,267

Total Substandard

​

$

37,282

​

$

39,055

​

$

37,018

​

$

878

​

$

62

​

$

438

​

$

13,844

​

$

128,577

Total Doubtful

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

50

​

$

—

​

$

50

Total Loans

​

$

2,115,132

​

$

1,954,111

​

$

454,876

​

$

136,666

​

$

74,113

​

$

58,347

​

$

5,406,308

​

$

10,199,553

Total Charge-offs

​

$

—

​

$

8,896

​

$

274

​

$

586

​

$

—

​

$

22

​

$

13

​

$

9,791
Schedule of aging analysis of the recorded investment in loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHRA

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1,142,994

​

$

1,142,994

RES RE

​

 

4,588

​

​

682

​

 

218

​

 

5,488

​

 

1,315,812

​

 

1,321,300

MF FIN

​

 

24,870

​

​

—

​

 

78,910

​

 

103,780

​

 

3,992,826

​

 

4,096,606

HC FIN

​

​

—

​

​

25,600

​

​

48,733

​

​

74,333

​

​

2,390,352

​

​

2,464,685

CML & CRE

​

 

1,922

​

​

—

​

 

3,006

​

 

4,928

​

 

1,661,823

​

 

1,666,751

AG & AGRE

​

 

44

​

​

10

​

 

159

​

 

213

​

 

65,764

​

 

65,977

CON & MAR

​

 

—

​

​

—

​

 

—

​

 

—

​

 

7,912

​

 

7,912

​

​

$

31,424

​

$

26,292

​

$

131,026

​

$

188,742

​

$

10,577,483

​

$

10,766,225

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHRA

​

$

—

 

$

—

​

$

—

​

$

—

​

$

752,468

​

$

752,468

RES RE

​

 

4,557

 

​

—

​

 

2,379

​

 

6,936

​

 

1,317,369

​

 

1,324,305

MF FIN

​

 

38,218

 

​

11,055

​

 

39,609

​

 

88,882

​

 

3,917,278

​

 

4,006,160

HC FIN

​

​

—

​

​

47,275

​

​

35,999

​

​

83,274

​

​

2,273,415

​

​

2,356,689

CML & CRE

​

 

172

 

​

393

​

 

3,665

​

 

4,230

​

 

1,638,851

​

 

1,643,081

AG & AGRE

​

 

27

 

​

11

​

 

147

​

 

185

​

 

102,965

​

 

103,150

CON & MAR

​

 

1

 

​

3

​

 

18

​

 

22

​

 

13,678

​

 

13,700

​

​

$

42,975

​

$

58,737

​

$

81,817

​

$

183,529

​

$

10,016,024

​

$

10,199,553
Schedule of nonaccrual loans and loans past due 90 days or more and still accruing

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

2024

​

2023

​

​

​

​

​

Total Loans >

​

​

​

​

Total Loans >

​

​

​

​

​

90 Days &

​

​

​

​

90 Days &

​

    

Nonaccrual

    

Accruing

    

Nonaccrual

    

Accruing

​

​

(In thousands)

RES RE

​

$

760

​

$

218

​

$

1,486

​

$

894

MF FIN

​

 

46,248

​

 

32,662

​

 

39,608

​

 

—

HC FIN

​

​

28,783

​

​

19,950

​

​

28,783

​

​

7,216

CML & CRE

​

 

2,866

​

​

140

​

 

3,820

​

​

43

AG & AGRE

​

 

147

​

 

12

​

 

147

​

 

—

CON & MAR

​

 

—

​

 

—

​

 

3

​

 

15

​

​

$

78,804

​

$

52,982

​

$

73,847

​

$

8,168
v3.24.1.1.u2
Variable Interest Entities (Tables)
 3 Months Ended
Mar. 31, 2024
Variable Interest Entities.  
Schedule of assets and liabilities of the VIEs as well as maximum exposure to loss in connection with VIEs

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investments

​

Bridge loans

​

Securities

​

Maximum

​

Liabilities

Assets

    

in VIEs

    

to VIEs

​

for VIEs

​

Exposure to Loss

​

for VIEs

​

​

($ in thousands)

March 31, 2024

​

 

  

​

 

​

​

​

​

​

​

​

​

 

  

Low-income housing tax credit investments

​

$

96,675

​

$

136,197

​

$

—

​

$

232,872

​

$

32,171

Debt funds

​

​

33,997

​

​

305,998

​

​

—

​

​

339,995

​

​

2,752

Off-balance-sheet REMIC trusts

​

​

—

​

​

—

​

​

1,163,191

​

​

1,163,191

​

​

—

Total Unconsolidated VIEs

​

$

130,672

​

$

442,195

​

$

1,163,191

​

$

1,736,058

​

$

34,923

December 31, 2023

​

 

  

​

 

​

​

 

​

​

 

  

​

 

  

Low-income housing tax credit investments

​

$

118,741

​

$

232,407

​

$

—

​

$

351,148

​

$

35,099

Debt funds

​

​

33,221

​

​

86,416

​

​

—

​

​

119,637

​

​

2,752

Off-balance-sheet REMIC trusts

​

​

—

​

​

—

​

​

1,192,201

​

​

1,192,201

​

​

—

Total Unconsolidated VIEs

​

$

151,962

​

$

318,823

​

$

1,192,201

​

$

1,662,986

​

$

37,851

​
v3.24.1.1.u2
Regulatory Matters (Tables)
 3 Months Ended
Mar. 31, 2024
Regulatory Matters  
Summary of bank's actual capital amounts and ratios

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum

​

​

​

​

​

​

​

​

​

​

Amount to be Well

​

Minimum Amount

​

​

​

​

​

​

​

​

Capitalized with

​

To Be Well

​

​

​

Actual

​

Basel III Buffer(1)

​

Capitalized(1)

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

​

Amount

    

Ratio

    

​

​

(Dollars in thousands)

​

March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total capital(1) (to risk-weighted assets)

 

​

  

 

  

 

​

​

​

​

​

​

  

 

  

 

Company

​

$

1,858,348

 

11.7

%  

$

1,662,302

 

10.5

%  

$

—

 

N/A

%  

Merchants Bank

​

​

1,801,020

 

11.4

%  

 

1,660,561

 

10.5

%  

 

1,581,487

 

10.0

​

Tier I capital(1) (to risk-weighted assets)

​

 

  

 

  

​

 

  

 

  

​

 

  

 

  

​

Company

​

 

1,768,553

 

11.2

%  

 

1,345,673

 

8.5

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,711,225

 

10.8

%  

 

1,344,264

 

8.5

%  

 

1,265,189

 

8.0

​

Common Equity Tier I capital(1) (to risk-weighted assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Company

​

 

1,268,945

 

8.0

%  

 

1,108,202

 

7.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,711,225

 

10.8

%  

 

1,107,041

 

7.0

%  

 

1,027,966

 

6.5

​

Tier I capital(1) (to average assets)

​

 

​

 

  

​

 

  

 

​

​

 

  

 

  

​

Company

​

 

1,768,553

 

10.5

%  

 

839,199

 

5.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,711,225

 

10.2

%  

 

837,560

 

5.0

%  

 

837,560

 

5.0

​

(1)As defined by regulatory agencies.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum

​

​

​

​

​

​

​

​

​

​

Amount to be Well

​

Minimum Amount

​

​

​

​

​

​

​

​

Capitalized with

​

To Be Well

​

​

​

Actual

​

Basel III Buffer(1)

​

Capitalized(1)

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

​

Amount

​

Ratio

​

​

​

(Dollars in thousands)

​

​

​

​

​

December 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total capital(1) (to risk-weighted assets)

 

​

  

 

  

 

​

​

​

​

​

​

  

 

  

 

Company

​

$

1,772,195

 

11.6

%  

$

1,598,260

 

10.5

%  

$

—

 

N/A

%  

Merchants Bank

​

​

1,724,505

 

11.5

%  

 

1,577,434

 

10.5

%  

 

1,502,318

 

10.0

%  

FMBI

​

 

40,613

 

21.1

%  

 

20,209

 

10.5

%  

 

19,247

 

10.0

%  

Tier I capital(1) (to risk-weighted assets)

​

 

  

 

  

​

 

  

 

  

​

 

  

 

  

​

Company

​

 

1,686,202

 

11.1

%  

 

1,293,830

 

8.5

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,639,171

 

10.9

%  

 

1,276,970

 

8.5

%  

 

1,201,854

 

8.0

%  

FMBI

​

 

39,953

 

20.8

%  

 

16,360

 

8.5

%  

 

15,398

 

8.0

%  

Common Equity Tier I capital(1) (to risk-weighted assets)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Company

​

 

1,186,594

 

7.8

%  

 

1,065,507

 

7.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,639,171

 

10.9

%  

 

1,051,623

 

7.0

%  

 

976,507

 

6.5

%  

FMBI

​

 

39,953

 

20.8

%  

 

13,473

 

7.0

%  

 

12,511

 

6.5

%  

Tier I capital(1) (to average assets)

​

 

​

 

  

​

 

  

 

​

​

 

  

 

  

​

Company

​

 

1,686,202

 

10.1

%  

 

832,706

 

5.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

1,639,171

 

10.1

%  

 

815,191

 

5.0

%  

 

815,191

 

5.0

%  

FMBI

​

 

39,953

 

11.5

%  

 

17,391

 

5.0

%  

 

17,391

 

5.0

%  

​

(1)As defined by regulatory agencies.
v3.24.1.1.u2
Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Derivative Financial Instruments  
Summary of notional amount and fair value of derivative assets and liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

March 31, 2024

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

31,888

​

​

Other assets/liabilities

​

$

174

​

$

22

Forward contracts

​

33,375

​

​

Other assets/liabilities

​

​

9

​

​

110

Interest rate swaps

​

57,531

​

​

Other assets/liabilities

​

​

3,985

​

​

—

Put options

​

734,130

​

​

Other assets

​

​

33,490

​

​

—

Interest rate floors

​

1,229,918

​

​

Other assets

​

 

8,910

​

​

—

Credit derivatives

​

76,092

​

​

Other liabilities

​

​

—

​

​

—

​

​

​

​

​

​

​

$

46,568

​

$

132

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

December 31, 2023

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

16,526

​

​

Other assets/liabilities

​

$

140

​

$

4

Forward contracts

​

25,500

​

​

Other assets/liabilities

​

​

4

​

​

391

Interest rate swaps

​

57,540

​

​

Other assets/liabilities

​

​

2,610

​

​

—

Put options

​

748,374

​

​

Other assets

​

​

25,877

​

​

—

Interest rate floors

​

748,374

​

​

Other assets

​

​

6,576

​

​

—

​

​

​

​

​

​

​

$

35,207

​

$

395
Summarizes the periodic changes in the fair value of the derivative financial instruments on the consolidated statements of income

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

    

2024

    

2023

​

​

(In thousands)

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

​

​

​

​

​

​

Interest rate lock commitments

​

$

16

​

$

209

Forward contracts (includes pair-off settlements)

​

​

94

​

​

(96)

Interest rates swaps

​

​

1,375

​

​

(1,336)

Net gain (loss)

​

$

1,485

​

$

(1,223)

​

​

​

​

​

​

​

Derivative gain (loss) included in other income:

​

​

​

​

​

​

Put options

​

​

7,613

​

​

—

Interest rate floors

​

​

2,334

​

​

—

Net gain (loss)

​

$

9,947

​

$

—

​

​

​

​

​

​

​
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)

March 31, 2024

$

657,572

​

​

Other assets/liabilities

​

$

15,259

​

$

15,259

December 31, 2023

$

607,169

​

​

Other assets/liabilities

​

$

12,426

​

$

12,426
Summarizes the periodic changes in the fair value of the derivative financial instruments on the consolidated statements of income

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

​

    

2024

    

2023

​

​

(In thousands)

Gross swap gains

​

$

2,833

​

$

580

Gross swap losses

​

​

2,833

​

​

580

Net swap gains (losses)

​

$

—

​

$

—

​

​

​

​

​

​

​
v3.24.1.1.u2
Disclosures about Fair Value of Assets and Liabilities (Tables)
 3 Months Ended
Mar. 31, 2024
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)

March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

142,629

​

$

—

​

$

142,629

​

$

—

Securities available for sale:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

109,103

​

 

109,103

​

 

—

​

 

—

Federal agencies

​

 

238,501

​

 

—

​

 

238,501

​

 

—

Mortgage-backed - Agency

​

​

13,044

​

​

—

​

 

13,044

​

 

—

Mortgage-backed - Non-agency residential - fair value option

​

​

472,192

​

​

—

​

 

—

​

 

472,192

Mortgage-backed - Agency - fair value option

​

 

228,448

​

 

—

​

 

228,448

​

 

—

Loans held for sale

​

 

84,513

​

 

—

​

 

84,513

​

 

—

Servicing rights

​

 

172,200

​

 

—

​

 

—

​

 

172,200

Derivative assets:

​

 

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

 

174

​

 

—

​

 

—

​

 

174

Forward contracts

​

​

9

​

 

—

​

 

9

​

 

—

Interest rate swaps

​

​

3,985

​

​

—

​

​

3,985

​

​

—

Interest rate swaps (back-to-back)

​

​

15,259

​

​

—

​

​

15,259

​

​

—

Put options

​

​

33,490

​

​

—

​

​

10,514

​

​

22,976

Interest rate floors

​

​

8,910

​

​

—

​

​

—

​

​

8,910

Derivative liabilities:

​

 

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

 

22

​

​

—

​

​

—

​

​

22

Forward contracts

​

 

110

​

​

—

​

​

110

​

​

—

Interest rate swaps (back-to-back)

​

 

15,259

​

​

—

​

​

15,259

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

 

  

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

110,599

​

$

—

​

$

110,599

​

$

—

Securities available for sale:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

128,968

​

 

128,968

​

 

—

​

 

—

Federal agencies

​

 

247,755

​

 

—

​

 

247,755

​

 

—

Mortgage-backed - Agency

​

​

14,467

​

​

—

​

 

14,467

​

 

—

Mortgage-backed - Non-agency residential - fair value option

​

​

485,500

​

​

—

​

 

—

​

 

485,500

Mortgage-backed - Agency - fair value option

​

 

236,997

​

 

—

​

 

236,997

​

 

—

Loans held for sale

​

 

86,663

​

 

—

​

 

86,663

​

 

—

Servicing rights

​

 

158,457

​

 

—

​

 

—

​

 

158,457

Derivative assets:

​

 

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

 

140

​

 

—

​

 

—

​

 

140

Forward contracts

​

​

4

​

 

—

​

 

4

​

 

—

Interest rate swaps

​

​

2,610

​

​

—

​

​

2,610

​

​

—

Interest rate swaps (back-to-back)

​

​

12,426

​

​

—

​

​

12,426

​

​

—

Put options

​

​

25,877

​

​

—

​

​

7,223

​

​

18,654

Interest rate floors

​

​

6,576

​

​

—

​

​

—

​

​

6,576

Derivative liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

​

4

​

​

—

​

​

—

​

​

4

Forward contracts

​

​

391

​

​

—

​

​

391

​

​

—

Interest rate swaps (back-to-back)

​

​

12,426

​

​

—

​

​

12,426

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​
Schedule of Level 3 reconciliation of recurring fair value measurements

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 

​

    

2024

    

2023

​

​

(In thousands)

Servicing rights

​

​

​

​

​

​

Balance, beginning of period

​

$

158,457

​

$

146,248

Additions

​

 

  

​

 

  

Originated servicing

​

 

2,166

​

 

2,173

Subtractions

​

 

  

​

 

  

Paydowns

​

 

(2,387)

​

 

(1,698)

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

​

 

13,964

​

 

(2,856)

Balance, end of period

​

$

172,200

​

$

143,867

​

​

​

​

​

​

​

Available for sale securities - Mortgage-backed - Non-Agency residential - fair value option

​

​

​

​

​

​

Balance, beginning of period

​

$

485,500

​

$

—

Paydowns

​

​

(8,986)

​

​

—

Changes in fair value

​

 

(4,322)

​

 

—

Balance, end of period

​

$

472,192

​

$

—

​

​

​

​

​

​

​

Derivative Assets - put options

​

​

​

​

​

​

Balance, beginning of period

​

$

18,654

​

$

—

Changes in fair value

​

 

4,322

​

 

—

Balance, end of period

​

$

22,976

​

$

—

​

​

​

​

​

​

​

Derivative Assets - interest rate floors

​

​

​

​

​

​

Balance, beginning of period

​

$

6,576

​

$

—

Changes in fair value

​

 

2,334

​

 

—

Balance, end of period

​

$

8,910

​

$

—

​

​

​

​

​

​

​

Derivative Assets - interest rate lock commitments

​

​

​

​

​

​

Balance, beginning of period

​

$

140

​

$

28

Changes in fair value

​

 

34

​

 

190

Balance, end of period

​

$

174

​

$

218

​

​

​

​

​

​

​

Derivative Liabilities - interest rate lock commitments

​

​

​

​

​

​

Balance, beginning of period

​

$

4

​

$

23

Changes in fair value

​

 

18

​

 

(19)

Balance, end of period

​

$

22

​

$

4
Schedule of fair value measurement of assets and liabilities measured at fair value on nonrecurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

Quoted Prices in

​

Significant

​

Significant

​

​

​

​

​

Active Markets for

​

Other Observable

​

Unobservable 

​

​

Fair

​

Identical Assets

​

Inputs

​

Inputs

Assets

​

Value

​

(Level 1)

​

(Level 2)

​

(Level 3)

​

​

(In thousands)

March 31, 2024

​

 

  

​

 

  

​

 

  

​

 

  

Collateral dependent loans

​

$

420

​

$

—

​

$

—

​

$

420

December 31, 2023

​

 

  

​

 

  

​

 

  

​

 

  

Collateral dependent loans

​

$

47,026

​

$

—

​

$

—

​

$

47,026
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 March 31, 2024:

 

​

  

 

  

​

​

​

​

 

​

Available for sale securities - Mortgage-backed - Non-Agency residential - fair value option

​

$

472,192

​

Discounted cash flow

​

Market credit spread

​

2%

​

2%

Collateral dependent loans

​

$

420

 

Market comparable properties

 

Marketability discount

​

24% - 27%

 

26%

Servicing rights - Multi-family

​

$

135,314

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

0% - 73%

 

7%

Servicing rights - Single-family

​

$

31,898

 

Discounted cash flow

 

Discount rate

​

10% - 11%

​

10%

​

​

​

​

​

​

​

Constant prepayment rate

​

6% - 15%

​

7%

Servicing rights - SBA

​

$

4,988

 

Discounted cash flow

 

Discount rate

​

16%

 

16%

​

​

​

​

​

​

​

Constant prepayment rate

​

3% - 14%

​

9%

Derivative assets:

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

$

174

 

Discounted cash flow

 

Loan closing rates

​

50% - 99%

 

82%

Put options

​

$

22,976

​

Intrinsic option value

​

Market credit spread

​

2%

​

2%

Interest rate floors

​

$

8,910

​

Discounted cash flow

​

Discount rate

​

6%-8%

​

7%

Derivative liabilities - interest rate lock commitments

​

$

22

 

Discounted cash flow

 

Loan closing rates

​

50% - 99%

 

82%

​

​

​

​

​

​

​

​

​

​

​

​

At December 31, 2023:

​

 

  

 

  

​

​

​

​

 

​

Available for sale securities - Mortgage-backed - Non-Agency residential - fair value option

​

$

485,500

​

Discounted cash flow

​

Market credit spread

​

2%

​

2%

Collateral dependent loans

​

$

47,026

 

Market comparable properties

 

Marketability discount

​

0% - 100%

 

2%

Servicing rights - Multi-family

​

$

122,218

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

0% - 50%

 

7%

Servicing rights - Single-family

​

$

30,959

 

Discounted cash flow

 

Discount rate

​

10% - 11%

​

10%

​

​

​

​

​

​

​

Constant prepayment rate

​

6% - 16%

​

7%

Servicing rights - SBA

​

$

5,280

 

Discounted cash flow

 

Discount rate

​

16%

​

16%

​

​

​

​

​

​

​

Constant prepayment rate

​

3% - 14%

​

9%

Derivative assets:

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

$

140

 

Discounted cash flow

 

Loan closing rates

​

45% - 99%

 

78%

Put options

​

$

18,654

​

Intrinsic option value

​

Market credit spread

​

2%

​

2%

Interest rate floors

​

$

6,576

​

Discounted cash flow

​

Discount rate

​

6%-7%

​

7%

Derivative liabilities - interest rate lock commitments

​

$

4

 

Discounted cash flow

 

Loan closing rates

​

45% - 99%

 

78%
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)

March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

508,755

​

$

508,755

​

$

508,755

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

3,329

​

 

3,329

​

 

—

​

 

3,329

​

 

—

Securities held to maturity

​

 

1,175,167

​

 

1,176,178

​

 

—

​

 

466,573

​

 

709,605

FHLB stock

​

 

64,215

​

 

64,215

​

 

—

​

 

64,215

​

 

—

Loans held for sale

​

 

3,418,618

​

 

3,418,618

​

 

—

​

 

3,418,618

​

 

—

Loans receivable, net

​

 

10,690,513

​

 

10,646,477

​

 

—

​

 

—

​

 

10,646,477

Interest receivable

​

 

90,303

​

 

90,303

​

 

—

​

 

90,303

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

Deposits

​

 

13,975,661

​

 

13,973,624

​

 

8,018,126

​

 

5,955,498

​

 

—

Short-term subordinated debt

​

 

64,922

​

 

64,922

​

 

—

​

 

64,922

​

 

—

FHLB advances

​

 

1,426,299

​

 

1,425,888

​

 

—

​

 

1,425,888

​

 

—

Other borrowing

​

​

232,934

​

​

232,934

​

​

—

​

​

232,934

​

​

—

Credit linked notes

​

​

111,830

​

​

111,828

​

​

—

​

​

111,828

​

​

—

Interest payable

​

 

51,790

​

 

51,790

​

 

—

​

 

51,790

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

584,422

​

$

584,422

​

$

584,422

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

3,349

​

 

3,349

​

 

—

​

 

3,349

​

 

—

Securities held to maturity

​

​

1,204,217

​

​

1,203,535

​

 

—

​

 

484,288

​

 

719,247

FHLB stock

​

 

48,578

​

 

48,578

​

 

—

​

 

48,578

​

 

—

Loans held for sale

​

 

3,058,093

​

 

3,058,093

​

 

—

​

 

3,058,093

​

 

—

Loans receivable, net

​

 

10,127,801

​

 

10,088,468

​

 

—

​

 

—

​

 

10,088,468

Interest receivable

​

 

91,346

​

 

91,346

​

 

—

​

 

91,346

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

Deposits

​

 

14,061,460

​

 

14,062,457

​

 

8,894,058

​

 

5,168,399

​

 

—

Short-term subordinated debt

​

 

64,922

​

 

64,922

​

 

—

​

 

64,922

​

 

—

FHLB advances

​

 

771,392

​

 

771,029

​

 

—

​

 

771,029

​

 

—

Other borrowing

​

​

7,934

​

​

7,934

​

​

—

​

​

7,934

​

​

—

Credit linked notes

​

​

119,879

​

​

119,878

​

​

—

​

​

119,878

​

​

—

Interest payable

​

 

43,423

​

 

43,423

​

 

—

​

 

43,423

​

 

—

​
v3.24.1.1.u2
Leases (Tables)
 3 Months Ended
Mar. 31, 2024
Leases.  
Schedule of balance sheet, income statement and cash flow detail regarding operating leases

​

​

​

​

​

​

​

​

​

March 31, 2024

​

​

December 31, 2023

Balance Sheet

​

(In thousands)

​

​

(In thousands)

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

$

8,211

​

$

10,060

Operating lease liability (in other liabilities)

​

9,386

​

​

11,251

​

​

​

​

​

​

Weighted average remaining lease term (years)

​

4.8

​

​

6.0

Weighted average discount rate

​

3.19%

​

​

2.89%

​

​

​

​

​

​

Maturities of lease liabilities:

​

​

​

​

​

One year or less

$

2,359

​

$

2,441

Year two

​

2,073

​

​

2,064

Year three

​

1,951

​

​

2,100

Year four

​

1,805

​

​

2,046

Year five

​

1,123

​

​

1,438

Thereafter

​

824

​

​

2,128

Total future minimum lease payments

​

10,135

​

​

12,217

Less: imputed interest

​

749

​

​

966

Total

$

9,386

​

$

11,251

​

​

​

​

​

​

​

​

Three Months Ended

​

​

Three Months Ended

​

​

March 31, 2024

​

​

March 31, 2023

Income Statement

​

(In thousands)

​

​

(In thousands)

Components of lease expense:

​

​

​

​

​

Operating lease cost (in occupancy and equipment expense)

$

604

​

$

583

​

​

​

​

​

​

​

​

Three Months Ended

​

​

Three Months Ended

​

​

March 31, 2024

​

​

March 31, 2023

Cash Flow Statement

​

(In thousands)

​

​

(In thousands)

Supplemental cash flow information:

​

​

​

​

​

Operating cash flows from operating leases

$

594

​

$

426
v3.24.1.1.u2
Deposits (Tables)
 3 Months Ended
Mar. 31, 2024
Deposits  
Schedule of deposits

​

​

​

​

​

​

​

​

​

​

March 31,

​

December 31,

​

    

2024

    

2023

​

​

(In thousands)

Noninterest-bearing deposits

​

​

​

​

​

​

Demand deposits

​

$

319,872

​

$

520,070

Total noninterest-bearing deposits

​

​

319,872

​

​

520,070

Interest-bearing deposits

​

​

​

​

​

​

Demand deposits

​

$

4,680,405

​

$

5,381,067

Savings deposits

​

 

3,017,849

​

 

2,992,921

Certificates of deposit

​

 

5,957,535

​

 

5,167,402

Total interest-bearing deposits

​

​

13,655,789

​

​

13,541,390

Total deposits

​

$

13,975,661

​

$

14,061,460
Schedule of maturities of time deposits

​

​

​

​

​

​

    

March 31, 2024

​

​

(In thousands)

Due within one year

​

$

5,865,446

Due in one year to two years

​

 

76,281

Due in two years to three years

​

 

15,808

Due in three years to four years

​

 

—

Due in four years to five years

​

​

—

Due in five years to six years

​

 

—

​

​

$

5,957,535
Schedule of brokered deposit amounts

​

​

​

​

​

​

​

​

​

​

March 31,

​

December 31, 

​

    

2024

    

2023

​

​

(In thousands)

Brokered certificates of deposit

​

$

5,351,397

​

$

4,465,825

Brokered savings deposits

​

 

1,338

​

 

589

Brokered deposit on demand accounts

​

 

400,159

​

 

1,504,230

​

​

$

5,752,894

​

$

5,970,644

​
v3.24.1.1.u2
Borrowings (Tables)
 3 Months Ended
Mar. 31, 2024
Borrowings  
Schedule of borrowings

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

    

2024

    

2023

​

​

(In thousands)

Federal Reserve discount window borrowings

​

$

50,000

​

$

—

Short-term subordinated debt

​

 

64,922

​

 

64,922

FHLB advances

​

​

1,426,299

​

​

771,392

American Financial Exchange borrowing

​

​

175,000

​

​

—

Credit linked notes, net of debt discount

​

​

111,830

​

​

119,879

Other borrowings

​

 

7,934

​

 

7,934

Total borrowings

​

$

1,835,985

​

$

964,127
v3.24.1.1.u2
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2024
Earnings Per Share  
Schedule of computation of earnings per share

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Month Periods Ended March 31, 

​

​

2024

​

2023

​

​

​

​

​

Weighted-

​

Per 

​

​

​

​

Weighted-

​

Per 

​

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

​

​

(In thousands, except share data)

Net income

​

$

87,054

 

  

 

​

  

​

$

54,955

 

  

 

​

  

Dividends on preferred stock

​

 

(8,667)

 

  

 

​

  

​

 

(8,667)

 

  

 

​

  

Net income allocated to common shareholders

​

$

78,387

 

  

 

​

  

​

$

46,288

 

  

 

​

  

Basic earnings per share

​

 

  

 

43,305,985

​

$

1.81

​

 

  

 

43,179,604

​

$

1.07

Effect of dilutive securities-restricted stock awards

​

 

  

 

160,662

​

 

  

​

 

  

 

111,175

​

 

  

Diluted earnings per share

​

 

  

 

43,466,647

​

$

1.80

​

 

  

 

43,290,779

​

$

1.07
v3.24.1.1.u2
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2024
Segment Information  
Schedule of business segment financial information

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

    

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

Three Months Ended March 31, 2024

​

(In thousands)

Interest income

​

$

1,746

​

$

84,901

​

$

224,288

​

$

3,238

 

$

314,173

Interest expense

​

 

20

​

 

56,140

​

 

131,723

​

 

(766)

 

 

187,117

Net interest income

​

 

1,726

​

 

28,761

​

 

92,565

​

 

4,004

 

 

127,056

Provision for credit losses

​

 

—

​

 

940

​

 

3,786

​

 

—

 

 

4,726

Net interest income after provision for credit losses

​

 

1,726

​

 

27,821

​

 

88,779

​

 

4,004

 

 

122,330

Noninterest income

​

 

40,467

​

 

3,317

​

 

429

​

 

(3,339)

 

 

40,874

Noninterest expense

​

 

19,571

​

 

4,798

​

 

15,578

​

 

8,965

 

 

48,912

Income (loss) before income taxes

​

 

22,622

​

 

26,340

​

 

73,630

​

 

(8,300)

 

 

114,292

Income taxes

​

 

6,013

​

 

6,150

​

 

17,205

​

 

(2,130)

 

 

27,238

Net income (loss)

​

$

16,609

​

$

20,190

​

$

56,425

​

$

(6,170)

 

$

87,054

Total assets

​

$

416,454

​

$

5,369,299

​

$

11,760,028

​

$

276,795

 

$

17,822,576

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

Three Months Ended March 31, 2023

​

(In thousands)

Interest income

​

$

1,106

​

$

42,318

​

$

166,726

​

$

1,144

 

$

211,294

Interest expense

​

 

—

​

 

27,794

​

 

84,526

​

 

(1,719)

 

 

110,601

Net interest income

​

 

1,106

​

 

14,524

​

 

82,200

​

 

2,863

 

 

100,693

Provision for credit losses

​

 

—

​

 

1,364

​

 

5,503

​

 

—

 

 

6,867

Net interest income after provision for credit losses

​

 

1,106

​

 

13,160

​

 

76,697

​

 

2,863

 

 

93,826

Noninterest income

​

 

16,597

​

 

1,033

​

 

(1,189)

​

 

(2,177)

 

 

14,264

Noninterest expense

​

 

14,631

​

 

2,755

​

 

10,170

​

 

7,216

 

 

34,772

Income (loss) before income taxes

​

 

3,072

​

 

11,438

​

 

65,338

​

 

(6,530)

 

 

73,318

Income taxes

​

 

1,106

​

 

2,797

​

 

16,031

​

 

(1,571)

 

 

18,363

Net income (loss)

​

$

1,966

​

$

8,641

​

$

49,307

​

$

(4,959)

 

$

54,955

Total assets

​

$

341,487

​

$

3,318,491

​

$

10,430,293

​

$

150,695

 

$

14,240,966

​
v3.24.1.1.u2
Basis of Presentation (Details) - USD ($)
 3 Months Ended
Jan. 26, 2024
Mar. 31, 2024
Restricted cash   $ 39,200,000
Credit linked notes    
Notes issued   115,600,000
Farmers Merchants Bank Of Illinois Branches | Disposed by sale    
Assets $ 60,800,000  
Net Gain   715,000
Extinguishment Of Goodwill   7,800,000
Extinguishment Of Intangibles 500,000  
Liabilities 230,600,000  
Farmers-Merchants Bank of Illinois branch locations in Paxton, Melvin, and Piper City, Illinois | Bank of Pontiac    
Deposit premium   $ 10,100,000
Farmers-Merchants Bank of Illinois branch locations in Paxton, Melvin, and Piper City, Illinois | Disposed by sale | Bank of Pontiac    
Deposits 164,800,000  
Loans 19,200,000  
Farmers-Merchants Bank of Illinois branch located in Joy, Illinois | Disposed by sale | CBI Bank & Trust    
Deposits 65,100,000  
Loans $ 28,600,000  
v3.24.1.1.u2
Investment Securities - Amortized Cost to Approximate Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Available for sale securities:    
Amortized Cost $ 1,062,830 $ 1,116,954
Gross Unrealized Gains 15 50
Gross Unrealized Losses 1,557 3,317
Fair Value 1,061,288 1,113,687
Accrued interest on securities available for sale 5,100 6,700
Held to maturity securities:    
Amortized Cost 1,175,167 1,204,217
Gross Unrealized Gains 2,385 973
Gross Unrealized Losses 1,374 1,655
Fair Value 1,176,178 1,203,535
Accrued interest on securities held to maturity 5,600 5,800
Treasury notes    
Available for sale securities:    
Amortized Cost 109,146 129,261
Gross Unrealized Gains 15 45
Gross Unrealized Losses 58 338
Fair Value 109,103 128,968
Federal agencies    
Available for sale securities:    
Amortized Cost 240,000 250,731
Gross Unrealized Losses 1,499 2,976
Fair Value 238,501 247,755
Mortgage-backed - Agency    
Held to maturity securities:    
Amortized Cost 11,976 12,016
Gross Unrealized Losses 868 822
Fair Value 11,108 11,194
Mortgage-backed - Government Agency ("Agency")    
Available for sale securities:    
Amortized Cost 13,044 14,465
Gross Unrealized Gains   5
Gross Unrealized Losses   3
Fair Value 13,044 14,467
Mortgage-backed - Agency - fair value option    
Available for sale securities:    
Amortized Cost 228,448 236,997
Fair Value 228,448 236,997
Mortgage-backed - Non-Agency multi-family    
Held to maturity securities:    
Amortized Cost 710,024 719,662
Gross Unrealized Losses 419 415
Fair Value 709,605 719,247
Mortgage-backed - Non-Agency residential    
Available for sale securities:    
Amortized Cost 472,192 485,500
Fair Value 472,192 485,500
Held to maturity securities:    
Amortized Cost 453,167 472,539
Gross Unrealized Gains 2,385 973
Gross Unrealized Losses 87 418
Fair Value $ 455,465 $ 473,094
v3.24.1.1.u2
Investment Securities - Contractual Maturities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Available for Sale Securities, Amortized Cost    
Within one year $ 209,146 $ 308,474
After one through five years 140,000 71,518
Total, single maturity date 349,146 379,992
Total 1,062,830 1,116,954
Available for Sale Securities, Fair Value    
Within one year 207,796 305,406
After one through five years 139,808 71,317
Total, single maturity date 347,604 376,723
Total 1,061,288 1,113,687
Held to Maturity Securities, Amortized Cost    
Amortized Cost 1,175,167 1,204,217
Held to Maturity Securities, Fair Value    
Fair Value 1,176,178 1,203,535
Mortgage-backed - Agency    
Held to Maturity Securities, Amortized Cost    
Amortized Cost 11,976 12,016
Held to Maturity Securities, Fair Value    
Fair Value 11,108 11,194
Mortgage-backed - Government Agency ("Agency")    
Available for Sale Securities, Amortized Cost    
Without single maturity date 13,044 14,465
Total 13,044 14,465
Available for Sale Securities, Fair Value    
Without single maturity date 13,044 14,467
Total 13,044 14,467
Mortgage-backed - Agency - fair value option    
Available for Sale Securities, Amortized Cost    
Without single maturity date 228,448 236,997
Total 228,448 236,997
Available for Sale Securities, Fair Value    
Without single maturity date 228,448 236,997
Total 228,448 236,997
Mortgage-backed - Non-Agency multi-family    
Held to Maturity Securities, Amortized Cost    
Amortized Cost 710,024 719,662
Held to Maturity Securities, Fair Value    
Fair Value 709,605 719,247
Mortgage-backed - Non-Agency residential    
Available for Sale Securities, Amortized Cost    
Without single maturity date 472,192 485,500
Total 472,192 485,500
Available for Sale Securities, Fair Value    
Without single maturity date 472,192 485,500
Total 472,192 485,500
Held to Maturity Securities, Amortized Cost    
Amortized Cost 453,167 472,539
Held to Maturity Securities, Fair Value    
Fair Value $ 455,465 $ 473,094
v3.24.1.1.u2
Investment Securities - Sale of securities (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Investment Securities    
Proceeds from the sale of securities available for sale $ 9,983,000 $ 0
Net gain on sale of securities available for sale (108,000)  
Losses on sale of securities available for sale 10,000  
Gain on sale of securities available for sale $ 118,000  
v3.24.1.1.u2
Investment Securities - Continuous Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months $ 142,900 $ 63,957
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer 125,631 199,479
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 268,531 263,436
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 193 196
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer 1,364 3,121
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total 1,557 3,317
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 3,092 3,052
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer 26,938 32,080
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 30,030 35,132
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 1 6
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer 57 332
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total 58 338
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 139,808 60,541
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer 98,693 167,213
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 238,501 227,754
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 192 189
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer 1,307 2,787
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total $ 1,499 2,976
Mortgage-backed - Agency    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months   364
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer   186
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total   550
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   1
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer   2
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total   $ 3
v3.24.1.1.u2
Mortgage Loans in Process of Securitization (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mortgage Loans in Process of Securitization    
Positive (negative) fair market adjustment, mortgage loans in process of securitization $ 0.7 $ 4.0
v3.24.1.1.u2
Loans and Allowance for Credit Losses on Loans - Summary of Loans By Classification (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Loans and Allowance for Credit Losses on Loans        
Loans $ 10,766,225 $ 10,199,553    
ACL-Loans 75,712 71,752 $ 51,838 $ 44,014
Loans receivable 10,690,513 10,127,801    
Accrued interest on loans, excluded from amortized cost of loans 60,200 60,400    
Mortgage warehouse lines of credit        
Loans and Allowance for Credit Losses on Loans        
Loans 1,142,994 752,468    
ACL-Loans 3,022 2,070 1,664 1,249
Residential real estate        
Loans and Allowance for Credit Losses on Loans        
Loans 1,321,300 1,324,305    
ACL-Loans 6,905 7,323 7,378 7,029
Residential real estate | Home equity line of credit        
Loans and Allowance for Credit Losses on Loans        
Loans 1,200,000 1,200,000    
Healthcare financing        
Loans and Allowance for Credit Losses on Loans        
Loans 2,464,685 2,356,689    
ACL-Loans 24,587 22,454 11,753 9,882
Multi-family financing        
Loans and Allowance for Credit Losses on Loans        
Loans 4,096,606 4,006,160    
ACL-Loans 28,664 26,874 19,851 16,781
Commercial and commercial real estate        
Loans and Allowance for Credit Losses on Loans        
Loans 1,666,751 1,643,081    
ACL-Loans 11,990 12,243 10,482 8,326
Revolving lines of credit collateralized primarily by mortgage servicing rights 1,100,000 1,100,000    
Commercial and commercial real estate | Non-owner occupied commercial real estate        
Loans and Allowance for Credit Losses on Loans        
Loans $ 6,800 8,400    
Commercial and commercial real estate | Non-owner occupied commercial real estate | Minimum        
Loans and Allowance for Credit Losses on Loans        
Percentage of loans to be forgiven 1      
Agricultural production and real estate        
Loans and Allowance for Credit Losses on Loans        
Loans $ 65,977 103,150    
ACL-Loans 450 619 543 565
Consumer and margin loans        
Loans and Allowance for Credit Losses on Loans        
Loans 7,912 13,700    
ACL-Loans $ 94 $ 169 $ 167 $ 182
v3.24.1.1.u2
Loans and Allowance for Credit Losses on Loans - Allowance For Credit-Loan Losses (Details) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 31, 2024
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Allowance for credit losses        
Balance, beginning of period $ 71,752,000 $ 71,752,000 $ 44,014,000 $ 44,014,000
Provision for loan losses   4,900,000 7,800,000  
FMBI's ACL for loans sold (593,000) (593,000)    
Provision for credit losses   5,477,000 7,817,000 37,488,000
Loans charged to the allowance   (925,000)   (9,791,000)
Recoveries of loans previously charged-off   1,000 7,000 41,000
Balance, end of period   75,712,000 51,838,000 71,752,000
ACL Loans        
Provision for credit losses   4,726,000 6,867,000  
Provision for credit losses, ACL Loans   4,900,000 7,800,000  
Provision for credit losses, ACL-OBCE's   (200,000) (900,000)  
Elimination of FMBI's ACL for loans sold 593,000 593,000    
Mortgage warehouse lines of credit        
Allowance for credit losses        
Balance, beginning of period 2,070,000 2,070,000 1,249,000 1,249,000
Provision for credit losses   952,000 415,000 821,000
Balance, end of period   3,022,000 1,664,000 2,070,000
Residential real estate        
Allowance for credit losses        
Balance, beginning of period 7,323,000 7,323,000 7,029,000 7,029,000
FMBI's ACL for loans sold   (55,000)    
Provision for credit losses   (363,000) 349,000 328,000
Loans charged to the allowance       (34,000)
Balance, end of period   6,905,000 7,378,000 7,323,000
ACL Loans        
Elimination of FMBI's ACL for loans sold   55,000    
Multi-family financing        
Allowance for credit losses        
Balance, beginning of period 26,874,000 26,874,000 16,781,000 16,781,000
FMBI's ACL for loans sold   (186,000)    
Provision for credit losses   1,976,000 3,070,000 18,493,000
Loans charged to the allowance       (8,400,000)
Balance, end of period   28,664,000 19,851,000 26,874,000
ACL Loans        
Elimination of FMBI's ACL for loans sold   186,000    
Healthcare financing        
Allowance for credit losses        
Balance, beginning of period 22,454,000 22,454,000 9,882,000 9,882,000
FMBI's ACL for loans sold   (2,000)    
Provision for credit losses   2,135,000 1,871,000 12,572,000
Balance, end of period   24,587,000 11,753,000 22,454,000
ACL Loans        
Elimination of FMBI's ACL for loans sold   2,000    
Commercial and commercial real estate        
Allowance for credit losses        
Balance, beginning of period 12,243,000 12,243,000 8,326,000 8,326,000
FMBI's ACL for loans sold   (92,000)    
Provision for credit losses   763,000 2,149,000 5,232,000
Loans charged to the allowance   (925,000)   (1,356,000)
Recoveries of loans previously charged-off   1,000 7,000 41,000
Balance, end of period   11,990,000 10,482,000 12,243,000
ACL Loans        
Elimination of FMBI's ACL for loans sold   92,000    
Agricultural production and real estate        
Allowance for credit losses        
Balance, beginning of period 619,000 619,000 565,000 565,000
FMBI's ACL for loans sold   (246,000)    
Provision for credit losses   77,000 (22,000) 54,000
Balance, end of period   450,000 543,000 619,000
ACL Loans        
Elimination of FMBI's ACL for loans sold   246,000    
Consumer and margin loans        
Allowance for credit losses        
Balance, beginning of period $ 169,000 169,000 182,000 182,000
FMBI's ACL for loans sold   (12,000)    
Provision for credit losses   (63,000) (15,000) (12,000)
Loans charged to the allowance       (1,000)
Balance, end of period   94,000 $ 167,000 $ 169,000
ACL Loans        
Elimination of FMBI's ACL for loans sold   $ 12,000    
v3.24.1.1.u2
Loans and Allowance for Credit Losses on Loans - Amortized cost basis and ACL (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis $ 10,766,225 $ 10,199,553    
ACL-Loans 75,712 71,752 $ 51,838 $ 44,014
Collateral Dependent Loans        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 123,355 128,627    
ACL-Loans 8,022 7,964    
Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 118,070 122,334    
Accounts Receivable Or Equipment        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 2,628 3,603    
Other Collateralized Assets        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 2,657 2,690    
Residential real estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 1,321,300 1,324,305    
ACL-Loans 6,905 7,323 7,378 7,029
Residential real estate | Collateral Dependent Loans        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 1,272 1,560    
ACL-Loans 8 21    
Residential real estate | Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 1,272 1,557    
Residential real estate | Other Collateralized Assets        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis   3    
Multi-family financing        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 4,096,606 4,006,160    
ACL-Loans 28,664 26,874 19,851 16,781
Multi-family financing | Collateral Dependent Loans        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 53,200 46,575    
ACL-Loans 581 521    
Multi-family financing | Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 53,200 46,575    
Healthcare financing        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 2,464,685 2,356,689    
ACL-Loans 24,587 22,454 11,753 9,882
Healthcare financing | Collateral Dependent Loans        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 63,283 73,909    
ACL-Loans 5,652 6,289    
Healthcare financing | Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 63,283 73,909    
Commercial and commercial real estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 1,666,751 1,643,081    
ACL-Loans 11,990 12,243 10,482 8,326
Commercial and commercial real estate | Collateral Dependent Loans        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 5,453 6,433    
ACL-Loans 1,780 1,132    
Commercial and commercial real estate | Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 168 146    
Commercial and commercial real estate | Accounts Receivable Or Equipment        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 2,628 3,603    
Commercial and commercial real estate | Other Collateralized Assets        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 2,657 2,684    
Agricultural production and real estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 65,977 103,150    
ACL-Loans 450 619 543 565
Agricultural production and real estate | Collateral Dependent Loans        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 147 147    
ACL-Loans 1 1    
Agricultural production and real estate | Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 147 147    
Consumer and margin loans        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 7,912 13,700    
ACL-Loans $ 94 169 $ 167 $ 182
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    
v3.24.1.1.u2
Loans and Allowance for Credit Losses on Loans - Credit Risk Profile of Loan Portfolio (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Credit risk profile of portfolio    
2023 $ 603,735 $ 2,115,132
2022 1,832,813 1,954,111
2021 1,868,867 454,876
2020 338,696 136,666
2019 59,163 74,113
Prior 112,293 58,347
Revolving Loans 5,950,658 5,406,308
Loans 10,766,225 10,199,553
Net Charge-Offs    
2022   8,896
2021   274
2020 925 586
Prior   22
Revolving Loans   13
Net Charge-Offs 925 9,791
Pass    
Credit risk profile of portfolio    
2023 571,416 1,947,008
2022 1,677,746 1,902,347
2021 1,802,354 409,166
2020 293,914 135,601
2019 58,156 73,977
Prior 110,398 55,806
Revolving Loans 5,896,764 5,355,754
Loans 10,410,748 9,879,659
Special Mention    
Credit risk profile of portfolio    
2023 32,319 130,842
2022 117,800 12,709
2021 38,061 8,692
2020 8,689 187
2019 157 74
Prior 1,688 2,053
Revolving Loans 33,408 36,710
Loans 232,122 191,267
Substandard    
Credit risk profile of portfolio    
2023   37,282
2022 37,267 39,055
2021 28,452 37,018
2020 36,093 878
2019 850 62
Prior 207 438
Revolving Loans 20,486 13,844
Loans 123,355 128,577
Doubtful    
Credit risk profile of portfolio    
Prior   50
Loans   50
Mortgage warehouse lines of credit    
Credit risk profile of portfolio    
Revolving Loans 1,142,994 752,468
Loans 1,142,994 752,468
Mortgage warehouse lines of credit | Pass    
Credit risk profile of portfolio    
Revolving Loans 1,142,994 752,468
Loans 1,142,994 752,468
Residential real estate    
Credit risk profile of portfolio    
2023 1,780 31,011
2022 32,353 10,086
2021 9,793 6,573
2020 6,175 22,725
2019 21,315 3,357
Prior 7,618 10,120
Revolving Loans 1,242,266 1,240,433
Loans 1,321,300 1,324,305
Net Charge-Offs    
Prior   21
Revolving Loans   13
Net Charge-Offs   34
Residential real estate | Pass    
Credit risk profile of portfolio    
2023 1,780 31,011
2022 32,353 10,086
2021 9,793 6,573
2020 6,175 22,725
2019 21,315 3,298
Prior 7,400 9,340
Revolving Loans 1,240,994 1,239,161
Loans 1,319,810 1,322,194
Residential real estate | Special Mention    
Credit risk profile of portfolio    
2019   59
Prior 218 492
Loans 218 551
Residential real estate | Substandard    
Credit risk profile of portfolio    
Prior   288
Revolving Loans 1,272 1,272
Loans 1,272 1,560
Multi-family financing    
Credit risk profile of portfolio    
2023 306,730 1,201,353
2022 1,065,586 793,997
2021 790,990 223,277
2020 129,287 77,340
2019 9,070 29,764
Prior 36,057 9,932
Revolving Loans 1,758,886 1,670,497
Loans 4,096,606 4,006,160
Net Charge-Offs    
2022   8,400
Net Charge-Offs   8,400
Multi-family financing | Pass    
Credit risk profile of portfolio    
2023 298,730 1,094,698
2022 957,019 762,448
2021 734,071 208,343
2020 114,353 77,340
2019 9,070 29,764
Prior 34,587 8,455
Revolving Loans 1,731,470 1,646,445
Loans 3,879,300 3,827,493
Multi-family financing | Special Mention    
Credit risk profile of portfolio    
2023 8,000 94,973
2022 96,900 3,189
2021 28,559 8,400
2020 8,400  
Prior 1,470 1,477
Revolving Loans 20,777 24,052
Loans 164,106 132,091
Multi-family financing | Substandard    
Credit risk profile of portfolio    
2023   11,682
2022 11,667 28,360
2021 28,360 6,534
2020 6,534  
Revolving Loans 6,639  
Loans 53,200 46,576
Healthcare financing    
Credit risk profile of portfolio    
2023 282,923 814,060
2022 672,888 1,016,418
2021 946,382 138,980
2020 127,598  
2019   14,563
Prior 14,459  
Revolving Loans 420,435 372,668
Loans 2,464,685 2,356,689
Healthcare financing | Pass    
Credit risk profile of portfolio    
2023 258,604 752,591
2022 626,388 996,273
2021 936,880 110,197
2020 98,815  
2019   14,563
Prior 14,459  
Revolving Loans 398,904 351,110
Loans 2,334,050 2,224,734
Healthcare financing | Special Mention    
Credit risk profile of portfolio    
2023 24,319 35,869
2022 20,900 9,520
2021 9,502  
Revolving Loans 12,631 12,658
Loans 67,352 58,047
Healthcare financing | Substandard    
Credit risk profile of portfolio    
2023   25,600
2022 25,600 10,625
2021   28,783
2020 28,783  
Revolving Loans 8,900 8,900
Loans 63,283 73,908
Commercial and commercial real estate    
Credit risk profile of portfolio    
2023 4,469 51,110
2022 54,002 119,456
2021 116,571 79,309
2020 72,889 22,204
2019 20,210 21,150
Prior 34,229 17,200
Revolving Loans 1,364,381 1,332,652
Loans 1,666,751 1,643,081
Net Charge-Offs    
2022   496
2021   274
2020 925 586
Net Charge-Offs 925 1,356
Commercial and commercial real estate | Pass    
Credit risk profile of portfolio    
2023 4,469 51,110
2022 54,002 119,386
2021 116,479 77,316
2020 71,824 21,154
2019 19,203 21,088
Prior 34,169 17,066
Revolving Loans 1,360,706 1,328,980
Loans 1,660,852 1,636,100
Commercial and commercial real estate | Special Mention    
Credit risk profile of portfolio    
2021   292
2020 289 172
2019 157  
Prior   84
Loans 446 548
Commercial and commercial real estate | Substandard    
Credit risk profile of portfolio    
2022   70
2021 92 1,701
2020 776 878
2019 850 62
Prior 60  
Revolving Loans 3,675 3,672
Loans 5,453 6,383
Commercial and commercial real estate | Doubtful    
Credit risk profile of portfolio    
Prior   50
Loans   50
Agricultural production and real estate    
Credit risk profile of portfolio    
2023 7,833 16,850
2022 7,875 9,825
2021 5,103 6,490
2020 2,722 14,267
2019 8,566 5,237
Prior 15,662 16,753
Revolving Loans 18,216 33,728
Loans 65,977 103,150
Agricultural production and real estate | Pass    
Credit risk profile of portfolio    
2023 7,833 16,850
2022 7,875 9,825
2021 5,103 6,490
2020 2,722 14,267
2019 8,566 5,237
Prior 15,515 16,606
Revolving Loans 18,216 33,728
Loans 65,830 103,003
Agricultural production and real estate | Substandard    
Credit risk profile of portfolio    
Prior 147 147
Loans 147 147
Consumer and margin loans    
Credit risk profile of portfolio    
2023   748
2022 109 4,329
2021 28 247
2020 25 130
2019 2 42
Prior 4,268 4,342
Revolving Loans 3,480 3,862
Loans 7,912 13,700
Net Charge-Offs    
Prior   1
Net Charge-Offs   1
Consumer and margin loans | Pass    
Credit risk profile of portfolio    
2023   748
2022 109 4,329
2021 28 247
2020 25 115
2019 2 27
Prior 4,268 4,339
Revolving Loans 3,480 3,862
Loans $ 7,912 13,667
Consumer and margin loans | Special Mention    
Credit risk profile of portfolio    
2020   15
2019   15
Loans   30
Consumer and margin loans | Substandard    
Credit risk profile of portfolio    
Prior   3
Loans   $ 3
v3.24.1.1.u2
Loans and Allowance for Credit Losses on Loans - Aging Analysis Of The Recorded Investment In Loans (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
loan
Dec. 31, 2023
USD ($)
Aging analysis of loan portfolio    
Loans $ 10,766,225 $ 10,199,553
Number of delinquent loans classified as held for sale | loan 2  
Loan as held for sale $ 30,200  
Total Past Due    
Aging analysis of loan portfolio    
Loans 188,742 183,529
30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans 31,424 42,975
60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans 26,292 58,737
Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 131,026 81,817
Current.    
Aging analysis of loan portfolio    
Loans 10,577,483 10,016,024
Mortgage warehouse lines of credit    
Aging analysis of loan portfolio    
Loans 1,142,994 752,468
Mortgage warehouse lines of credit | Current.    
Aging analysis of loan portfolio    
Loans 1,142,994 752,468
Residential real estate    
Aging analysis of loan portfolio    
Loans 1,321,300 1,324,305
Residential real estate | Total Past Due    
Aging analysis of loan portfolio    
Loans 5,488 6,936
Residential real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans 4,588 4,557
Residential real estate | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans 682  
Residential real estate | Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 218 2,379
Residential real estate | Current.    
Aging analysis of loan portfolio    
Loans 1,315,812 1,317,369
Healthcare financing    
Aging analysis of loan portfolio    
Loans 2,464,685 2,356,689
Healthcare financing | Total Past Due    
Aging analysis of loan portfolio    
Loans 74,333 83,274
Healthcare financing | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans 25,600 47,275
Healthcare financing | Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 48,733 35,999
Healthcare financing | Current.    
Aging analysis of loan portfolio    
Loans 2,390,352 2,273,415
Multi-family financing    
Aging analysis of loan portfolio    
Loans 4,096,606 4,006,160
Multi-family financing | Total Past Due    
Aging analysis of loan portfolio    
Loans 103,780 88,882
Multi-family financing | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans 24,870 38,218
Multi-family financing | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans   11,055
Multi-family financing | Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 78,910 39,609
Multi-family financing | Current.    
Aging analysis of loan portfolio    
Loans 3,992,826 3,917,278
Commercial and commercial real estate    
Aging analysis of loan portfolio    
Loans 1,666,751 1,643,081
Commercial and commercial real estate | Total Past Due    
Aging analysis of loan portfolio    
Loans 4,928 4,230
Commercial and commercial real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans 1,922 172
Commercial and commercial real estate | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans   393
Commercial and commercial real estate | Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 3,006 3,665
Commercial and commercial real estate | Current.    
Aging analysis of loan portfolio    
Loans 1,661,823 1,638,851
Agricultural production and real estate    
Aging analysis of loan portfolio    
Loans 65,977 103,150
Agricultural production and real estate | Total Past Due    
Aging analysis of loan portfolio    
Loans 213 185
Agricultural production and real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans 44 27
Agricultural production and real estate | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans 10 11
Agricultural production and real estate | Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans 159 147
Agricultural production and real estate | Current.    
Aging analysis of loan portfolio    
Loans 65,764 102,965
Consumer and margin loans    
Aging analysis of loan portfolio    
Loans 7,912 13,700
Consumer and margin loans | Total Past Due    
Aging analysis of loan portfolio    
Loans   22
Consumer and margin loans | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans   1
Consumer and margin loans | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans   3
Consumer and margin loans | Greater Than 90 Days    
Aging analysis of loan portfolio    
Loans   18
Consumer and margin loans | Current.    
Aging analysis of loan portfolio    
Loans $ 7,912 $ 13,678
v3.24.1.1.u2
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
Mar. 31, 2024
Dec. 31, 2023
Loan portfolio past due loans    
Nonaccrual $ 78,804 $ 73,847
Total Loans Greater than 90 Days & Accruing 52,982 8,168
Residential real estate    
Loan portfolio past due loans    
Nonaccrual 760 1,486
Total Loans Greater than 90 Days & Accruing 218 894
Multi-family financing    
Loan portfolio past due loans    
Nonaccrual 46,248 39,608
Total Loans Greater than 90 Days & Accruing 32,662  
Healthcare financing    
Loan portfolio past due loans    
Nonaccrual 28,783 28,783
Total Loans Greater than 90 Days & Accruing 19,950 7,216
Commercial and commercial real estate    
Loan portfolio past due loans    
Nonaccrual 2,866 3,820
Total Loans Greater than 90 Days & Accruing 140 43
Agricultural production and real estate    
Loan portfolio past due loans    
Nonaccrual 147 147
Total Loans Greater than 90 Days & Accruing $ 12  
Consumer and margin loans    
Loan portfolio past due loans    
Nonaccrual   3
Total Loans Greater than 90 Days & Accruing   $ 15
v3.24.1.1.u2
Loans and Allowance for Credit Losses on Loans - Narrative (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
loan
Mar. 31, 2023
USD ($)
Dec. 31, 2023
loan
Loans and Allowance for Credit Losses on Loans      
Number of loans modified for borrowers 0    
Purchase of loans | $ $ 27,727 $ 98,791  
Residential real estate      
Loans and Allowance for Credit Losses on Loans      
Number of loans in the process of foreclosure 0   0
v3.24.1.1.u2
Variable Interest Entities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Variable Interest Entities    
Liabilities for VIEs $ 16,046,108 $ 15,251,432
Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Investments in VIEs 130,672 151,962
Bridge loans to VIEs 442,195 318,823
Securities for VIEs 1,163,191 1,192,201
Maximum Exposure to Loss 1,736,058 1,662,986
Liabilities for VIEs 34,923 37,851
Low-income housing tax credit investments | Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Investments in VIEs 96,675 118,741
Bridge loans to VIEs 136,197 232,407
Maximum Exposure to Loss 232,872 351,148
Liabilities for VIEs 32,171 35,099
Debt funds | Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Investments in VIEs 33,997 33,221
Bridge loans to VIEs 305,998 86,416
Maximum Exposure to Loss 339,995 119,637
Liabilities for VIEs 2,752 2,752
Off-balance-sheet REMIC trusts | Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Securities for VIEs 1,163,191 1,192,201
Maximum Exposure to Loss $ 1,163,191 $ 1,192,201
v3.24.1.1.u2
Regulatory Matters (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Company    
Total Capital (to risk-weighted assets)    
Total Capital (to risk-weighted assets), Actual, Amount $ 1,858,348 $ 1,772,195
Total Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.117 0.116
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,662,302 $ 1,598,260
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.105 0.105
Tier I Capital (to risk-weighted assets)    
Tier I Capital, (to risk-weighted assets), Actual, Amount $ 1,768,553 $ 1,686,202
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.112 0.111
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,345,673 $ 1,293,830
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.085 0.085
Common Equity Tier I Capital (to risk-weighted assets)    
Common Equity Tier I Capital (to risk weighted assets), Actual, Amount $ 1,268,945 $ 1,186,594
Common Equity Tier I Capital (to risk weighted assets), Ratio (as a percent) 0.080 0.078
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,108,202 $ 1,065,507
Common Equity Tier I Capital (to risk weighted assets, Minimum Amount Required to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.070 0.070
Tier 1 Capital (to average assets)    
Tier 1 Capital (to average assets), Actual, Amount $ 1,768,553 $ 1,686,202
Tier 1 Capital (to average assets), Actual, Ratio (as a percent) 0.105 0.101
Tier 1 Capital (to average assets), Minimum Amount Required to be Well Capitalized with Basel III Buffer, Amount $ 839,199 $ 832,706
Tier 1 Capital (to average assets), Minimum Amount Required to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.050 0.050
Merchants Bank    
Total Capital (to risk-weighted assets)    
Total Capital (to risk-weighted assets), Actual, Amount $ 1,801,020 $ 1,724,505
Total Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.114 0.115
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,660,561 $ 1,577,434
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.105 0.105
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Amount $ 1,581,487 $ 1,502,318
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.100 0.100
Tier I Capital (to risk-weighted assets)    
Tier I Capital, (to risk-weighted assets), Actual, Amount $ 1,711,225 $ 1,639,171
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.108 0.109
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,344,264 $ 1,276,970
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.085 0.085
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Amount $ 1,265,189 $ 1,201,854
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.080 0.080
Common Equity Tier I Capital (to risk-weighted assets)    
Common Equity Tier I Capital (to risk weighted assets), Actual, Amount $ 1,711,225 $ 1,639,171
Common Equity Tier I Capital (to risk weighted assets), Ratio (as a percent) 0.108 0.109
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,107,041 $ 1,051,623
Common Equity Tier I Capital (to risk weighted assets, Minimum Amount Required to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.070 0.070
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Amount $ 1,027,966 $ 976,507
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.065 0.065
Tier 1 Capital (to average assets)    
Tier 1 Capital (to average assets), Actual, Amount $ 1,711,225 $ 1,639,171
Tier 1 Capital (to average assets), Actual, Ratio (as a percent) 0.102 0.101
Tier 1 Capital (to average assets), Minimum Amount Required to be Well Capitalized with Basel III Buffer, Amount $ 837,560 $ 815,191
Tier 1 Capital (to average assets), Minimum Amount Required to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.050 0.050
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Amount $ 837,560 $ 815,191
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.050 0.050
FMBI    
Total Capital (to risk-weighted assets)    
Total Capital (to risk-weighted assets), Actual, Amount   $ 40,613
Total Capital (to risk weighted assets), Actual, Ratio (as a percent)   0.211
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount   $ 20,209
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Ratio (as a percent)   0.105
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Amount   $ 19,247
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   0.100
Tier I Capital (to risk-weighted assets)    
Tier I Capital, (to risk-weighted assets), Actual, Amount   $ 39,953
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)   0.208
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount   $ 16,360
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Ratio (as a percent)   0.085
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Amount   $ 15,398
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   0.080
Common Equity Tier I Capital (to risk-weighted assets)    
Common Equity Tier I Capital (to risk weighted assets), Actual, Amount   $ 39,953
Common Equity Tier I Capital (to risk weighted assets), Ratio (as a percent)   0.208
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount   $ 13,473
Common Equity Tier I Capital (to risk weighted assets, Minimum Amount Required to be Well Capitalized with Basel III Buffer, Ratio (as a percent)   0.070
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Amount   $ 12,511
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   0.065
Tier 1 Capital (to average assets)    
Tier 1 Capital (to average assets), Actual, Amount   $ 39,953
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)   0.115
Tier 1 Capital (to average assets), Minimum Amount Required to be Well Capitalized with Basel III Buffer, Amount   $ 17,391
Tier 1 Capital (to average assets), Minimum Amount Required to be Well Capitalized with Basel III Buffer, Ratio (as a percent)   0.050
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Amount   $ 17,391
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   0.050
v3.24.1.1.u2
Derivative Financial Instruments (Details)
$ in Thousands
 1 Months Ended 3 Months Ended
Mar. 31, 2024
USD ($)
customer
Mar. 31, 2024
USD ($)
customer
Mar. 31, 2023
USD ($)
Mar. 27, 2024
USD ($)
Dec. 31, 2023
USD ($)
Derivative Financial Instruments          
Number of warehouse loan customers | customer 2 2      
Derivative assets, fair value       $ 0  
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses)   $ 9,947      
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]   Noninterest Income, Other Noninterest Income, Other    
Pledged in collateral $ 0 $ 0     $ 0
Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 46,568 46,568     35,207
Derivative liabilities          
Derivative Financial Instruments          
Derivative liabilities, fair value 132 132     395
Derivative          
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses)   $ 1,485 $ (1,223)    
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]   Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net    
Interest rate lock commitments          
Derivative Financial Instruments          
Notional amount 31,888 $ 31,888     16,526
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses)   16 $ 209    
Interest rate lock commitments | Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 174 174     140
Interest rate lock commitments | Derivative liabilities          
Derivative Financial Instruments          
Derivative liabilities, fair value 22 22     4
Forward contracts          
Derivative Financial Instruments          
Notional amount 33,375 33,375     25,500
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses)   94 (96)    
Forward contracts | Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 9 9     4
Forward contracts | Derivative liabilities          
Derivative Financial Instruments          
Derivative liabilities, fair value 110 110     391
Interest rate swaps          
Derivative Financial Instruments          
Notional amount 57,531 57,531     57,540
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses)   1,375 (1,336)    
Interest rate swaps | Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 3,985 3,985     2,610
Interest rate swaps (back-to-back)          
Derivative Financial Instruments          
Notional amount 657,572 657,572     607,169
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Gross swap gains   2,833 580    
Gross swap losses   2,833 $ 580    
Interest rate swaps (back-to-back) | Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 15,259 15,259     12,426
Interest rate swaps (back-to-back) | Derivative liabilities          
Derivative Financial Instruments          
Derivative liabilities, fair value 15,259 15,259     12,426
Put Option          
Derivative Financial Instruments          
Notional amount 734,130 734,130     748,374
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses)   7,613      
Put Option | Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 33,490 33,490     25,877
Interest Rate Floor          
Derivative Financial Instruments          
Notional amount 1,229,918 1,229,918     748,374
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income          
Net swap gains (losses)   2,334      
Interest Rate Floor | Derivative assets          
Derivative Financial Instruments          
Derivative assets, fair value 8,910 8,910     $ 6,576
Credit derivatives          
Derivative Financial Instruments          
Notional amount 76,092 $ 76,092      
Credit Default Swap | Multifamily mortgage loans          
Derivative Financial Instruments          
Aggregate collateral obligation $ 76,100        
v3.24.1.1.u2
Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Mar. 27, 2024
Dec. 31, 2023
Disclosures about Fair Value of Assets and Liabilities      
Mortgage loans in process of securitization $ 142,629   $ 110,599
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 1,061,288   1,113,687
Loans held for sale 84,513   86,663
Servicing rights 172,200   158,457
Derivative assets   $ 0  
Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Mortgage loans in process of securitization 142,629   110,599
Loans held for sale 84,513   86,663
Servicing rights 172,200   158,457
Recurring | Interest rate lock commitments      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 174   140
Derivative liabilities 22   4
Recurring | Forward contracts      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 9   4
Derivative liabilities 110   391
Recurring | Interest rate swaps      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 3,985   2,610
Recurring | Interest rate swaps (back-to-back)      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 15,259   12,426
Derivative liabilities 15,259   12,426
Recurring | Put Option      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 33,490   25,877
Recurring | Interest Rate Floor      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 8,910   6,576
Level 2 | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Mortgage loans in process of securitization 142,629   110,599
Loans held for sale 84,513   86,663
Level 2 | Recurring | Forward contracts      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 9   4
Derivative liabilities 110   391
Level 2 | Recurring | Interest rate swaps      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 3,985   2,610
Level 2 | Recurring | Interest rate swaps (back-to-back)      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 15,259   12,426
Derivative liabilities 15,259   12,426
Level 2 | Recurring | Put Option      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 10,514   7,223
Level 3 | Interest rate lock commitments      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 174   140
Derivative liabilities 22   4
Level 3 | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Servicing rights 172,200   158,457
Level 3 | Recurring | Interest rate lock commitments      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 174   140
Derivative liabilities 22   4
Level 3 | Recurring | Put Option      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 22,976   18,654
Level 3 | Recurring | Interest Rate Floor      
Disclosures about Fair Value of Assets and Liabilities      
Derivative assets 8,910   6,576
Treasury notes      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 109,103   128,968
Treasury notes | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 109,103   128,968
Treasury notes | Level 1 | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 109,103   128,968
Federal agencies      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 238,501   247,755
Federal agencies | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 238,501   247,755
Federal agencies | Level 2 | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 238,501   247,755
Mortgage-backed - Government Agency ("Agency")      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 13,044   14,467
Mortgage-backed - Government Agency ("Agency") | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 13,044   14,467
Mortgage-backed - Government Agency ("Agency") | Level 2 | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 13,044   14,467
Mortgage-backed - Non-Agency residential      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 472,192   485,500
Mortgage-backed - Non-Agency residential | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 472,192   485,500
Mortgage-backed - Non-Agency residential | Level 3 | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 472,192   485,500
Mortgage-backed - Agency - fair value option      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 228,448   236,997
Mortgage-backed - Agency - fair value option | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) 228,448   236,997
Mortgage-backed - Agency - fair value option | Level 2 | Recurring      
Disclosures about Fair Value of Assets and Liabilities      
Securities available for sale ($700,640 and $722,497 utilizing fair value option, respectively) $ 228,448   $ 236,997
v3.24.1.1.u2
Disclosures about Fair Value of Assets and Liabilities - Reconciliation of Unobservable Inputs (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Put Option    
Reconciliation of significant unobservable inputs, assets:    
Balance, beginning of period $ 18,654  
Subtractions    
Changes in fair value $ 4,322  
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Noninterest Expense, Noninterest Income.  
Balance, end of period $ 22,976  
Interest Rate Floor    
Reconciliation of significant unobservable inputs, assets:    
Balance, beginning of period 6,576  
Subtractions    
Changes in fair value 2,334  
Balance, end of period 8,910  
Derivative Liabilities - interest rate lock commitments | Interest rate lock commitments    
Reconciliation of significant unobservable inputs, liabilities:    
Balance, beginning of period 4 $ 23
Change in fair value $ 18 $ (19)
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Noninterest Expense, Noninterest Income. Noninterest Expense, Noninterest Income.
Balance, end of period $ 22 $ 4
Servicing rights.    
Reconciliation of significant unobservable inputs, assets:    
Balance, beginning of period 158,457 146,248
Additions    
Originated servicing 2,166 2,173
Subtractions    
Paydowns (2,387) (1,698)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model 13,964 (2,856)
Balance, end of period 172,200 143,867
Available for sale securities    
Reconciliation of significant unobservable inputs, assets:    
Balance, beginning of period 485,500  
Subtractions    
Paydowns (8,986)  
Changes in fair value (4,322)  
Balance, end of period 472,192  
Derivative Assets - interest rate lock commitments | Interest rate lock commitments    
Reconciliation of significant unobservable inputs, assets:    
Balance, beginning of period 140 28
Subtractions    
Gains (losses) included in other noninterest income $ (34) $ (190)
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Noninterest Expense, Noninterest Income. Noninterest Expense, Noninterest Income.
Balance, end of period $ 174 $ 218
v3.24.1.1.u2
Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Disclosures about Fair Value of Assets and Liabilities    
Collateral-dependent loans $ 420 $ 47,026
Level 3    
Disclosures about Fair Value of Assets and Liabilities    
Collateral-dependent loans $ 420 $ 47,026
v3.24.1.1.u2
Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Mar. 27, 2024
USD ($)
Dec. 31, 2023
USD ($)
Quantitative information about unobservable inputs      
Servicing rights $ 172,200   $ 158,457
Derivative assets   $ 0  
Level 3 | Servicing rights | Loans funded through PPP, CARES Act      
Quantitative information about unobservable inputs      
Servicing rights $ 4,988   $ 5,280
Level 3 | Servicing rights | Loans funded through PPP, CARES Act | Discount Rate      
Quantitative information about unobservable inputs      
Servicing asset, measurement input 0.16   0.16
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   0.16
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   0.03
Level 3 | Servicing rights | Loans funded through PPP, CARES Act | Constant Prepayment Rate | Maximum      
Quantitative information about unobservable inputs      
Servicing asset, measurement input 0.14   0.14
Level 3 | Servicing rights | Loans funded through PPP, CARES Act | Constant Prepayment Rate | Weighted average      
Quantitative information about unobservable inputs      
Servicing asset, measurement input 0.09   0.09
Level 3 | Servicing rights | Single Family      
Quantitative information about unobservable inputs      
Servicing rights $ 31,898   $ 30,959
Level 3 | Servicing rights | Single Family | Discount Rate | Minimum      
Quantitative information about unobservable inputs      
Servicing asset, measurement input 0.10   0.10
Level 3 | Servicing rights | Single Family | Discount Rate | Maximum      
Quantitative information about unobservable inputs      
Servicing asset, measurement input 0.11   0.11
Level 3 | Servicing rights | Single Family | Discount Rate | Weighted average      
Quantitative information about unobservable inputs      
Servicing asset, measurement input 0.10   0.10
Level 3 | Servicing rights | Single Family | Constant Prepayment Rate | Minimum      
Quantitative information about unobservable inputs      
Servicing asset, measurement input 0.06   0.06
Level 3 | Servicing rights | Single Family | Constant Prepayment Rate | Maximum      
Quantitative information about unobservable inputs      
Servicing asset, measurement input 0.15   0.16
Level 3 | Servicing rights | Single Family | Constant Prepayment Rate | Weighted average      
Quantitative information about unobservable inputs      
Servicing asset, measurement input 0.07   0.07
Level 3 | Servicing rights | Multi-family      
Quantitative information about unobservable inputs      
Servicing rights $ 135,314   $ 122,218
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 0.09   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 0.73   0.50
Level 3 | Servicing rights | Multi-family | Constant Prepayment Rate | Weighted average      
Quantitative information about unobservable inputs      
Servicing asset, measurement input 0.07   0.07
Level 3 | Collateral-dependent impaired loans      
Quantitative information about unobservable inputs      
Collateral-dependent loans $ 420   $ 47,026
Level 3 | Collateral-dependent impaired loans | Minimum      
Quantitative information about unobservable inputs      
Marketability discount (as a percent) 0.24   0
Level 3 | Collateral-dependent impaired loans | Maximum      
Quantitative information about unobservable inputs      
Marketability discount (as a percent) 0.27   1
Level 3 | Collateral-dependent impaired loans | Weighted average      
Quantitative information about unobservable inputs      
Marketability discount (as a percent) 0.26   0.02
Level 3 | Available for sale securities | Measurement Input, Credit Spread      
Quantitative information about unobservable inputs      
Mortgage-backed - Non-agency residential- fair value option $ 472,192   $ 485,500
Mortgage-backed - Non-agency residential- fair value option (as a percent) 0.02   0.02
Level 3 | Available for sale securities | Measurement Input, Credit Spread | Weighted average      
Quantitative information about unobservable inputs      
Mortgage-backed - Non-agency residential- fair value option (as a percent) 0.02   0.02
Level 3 | Interest rate lock commitments      
Quantitative information about unobservable inputs      
Derivative assets $ 174   $ 140
Derivative liabilities $ 22   $ 4
Level 3 | Interest rate lock commitments | Measurement Input, Maturity | Minimum      
Quantitative information about unobservable inputs      
Derivative assets, (as a percent) 0.50   0.45
Derivative liabilities (as a percent) 0.50   0.45
Level 3 | Interest rate lock commitments | Measurement Input, Maturity | Maximum      
Quantitative information about unobservable inputs      
Derivative assets, (as a percent) 0.99   0.99
Derivative liabilities (as a percent) 0.99   0.99
Level 3 | Interest rate lock commitments | Measurement Input, Maturity | Weighted average      
Quantitative information about unobservable inputs      
Derivative assets, (as a percent) 0.82   0.78
Derivative liabilities (as a percent) 0.82   0.78
Level 3 | Put Option | Measurement Input, Credit Spread      
Quantitative information about unobservable inputs      
Derivative assets $ 22,976   $ 18,654
Derivative assets, (as a percent) 0.02   0.02
Level 3 | Put Option | Measurement Input, Credit Spread | Weighted average      
Quantitative information about unobservable inputs      
Derivative assets, (as a percent) 0.02   0.02
Level 3 | Interest Rate Floor | Discount Rate      
Quantitative information about unobservable inputs      
Derivative assets $ 8,910   $ 6,576
Level 3 | Interest Rate Floor | Discount Rate | Minimum      
Quantitative information about unobservable inputs      
Derivative assets, (as a percent) 0.06   0.06
Level 3 | Interest Rate Floor | Discount Rate | Maximum      
Quantitative information about unobservable inputs      
Derivative assets, (as a percent) 0.08   0.07
Level 3 | Interest Rate Floor | Discount Rate | Weighted average      
Quantitative information about unobservable inputs      
Derivative assets, (as a percent) 0.07   0.07
v3.24.1.1.u2
Disclosures about Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Financial assets:    
Securities held to maturity $ 1,176,178 $ 1,203,535
Loans held for sale 84,513 86,663
Carrying value per balance sheet    
Financial assets:    
Cash and cash equivalents 508,755 584,422
Securities purchased under agreements to resell 3,329 3,349
Securities held to maturity 1,175,167 1,204,217
FHLB stock 64,215 48,578
Loans held for sale 3,418,618 3,058,093
Loans receivable, net 10,690,513 10,127,801
Interest receivable 90,303 91,346
Financial liabilities:    
Deposits 13,975,661 14,061,460
Short-term subordinated debt 64,922 64,922
FHLB advances 1,426,299 771,392
Other borrowing 232,934 7,934
Credit linked notes 111,830 119,879
Interest payable 51,790 43,423
Estimated fair value    
Financial assets:    
Cash and cash equivalents 508,755 584,422
Securities purchased under agreements to resell 3,329 3,349
Securities held to maturity 1,176,178 1,203,535
FHLB stock 64,215 48,578
Loans held for sale 3,418,618 3,058,093
Loans receivable, net 10,646,477 10,088,468
Interest receivable 90,303 91,346
Financial liabilities:    
Deposits 13,973,624 14,062,457
Short-term subordinated debt 64,922 64,922
FHLB advances 1,425,888 771,029
Other borrowing 232,934 7,934
Credit linked notes 111,828 119,878
Interest payable 51,790 43,423
Level 1 | Estimated fair value    
Financial assets:    
Cash and cash equivalents 508,755 584,422
Financial liabilities:    
Deposits 8,018,126 8,894,058
Level 2 | Estimated fair value    
Financial assets:    
Securities purchased under agreements to resell 3,329 3,349
Securities held to maturity 466,573 484,288
FHLB stock 64,215 48,578
Loans held for sale 3,418,618 3,058,093
Interest receivable 90,303 91,346
Financial liabilities:    
Deposits 5,955,498 5,168,399
Short-term subordinated debt 64,922 64,922
FHLB advances 1,425,888 771,029
Other borrowing 232,934 7,934
Credit linked notes 111,828 119,878
Interest payable 51,790 43,423
Level 3 | Estimated fair value    
Financial assets:    
Securities held to maturity 709,605 719,247
Loans receivable, net $ 10,646,477 $ 10,088,468
v3.24.1.1.u2
Leases - Other (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Leases    
Operating lease right-of-use assets $ 8,211 $ 10,060
Operating lease liabilities $ 9,386 $ 11,251
Maximum    
Leases    
Lease period 7 years  
Minimum    
Leases    
Lease period 1 year  
v3.24.1.1.u2
Leases - Balance sheet, Income Statement and Cash Flow Detail Regarding Operating Leases (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Leases.      
Operating lease right-of-of use asset (in other assets) $ 8,211   $ 10,060
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets and Receivables   Other Assets and Receivables
Operating lease liability (in other liabilities) $ 9,386   $ 11,251
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities.   Other Liabilities.
Weighted average remaining lease term (years) 4 years 9 months 18 days   6 years
Weighted average discount rate 3.19%   2.89%
Maturities of lease liabilities:      
One year or less $ 2,359   $ 2,441
Year two 2,073   2,064
Year three 1,951   2,100
Year four 1,805   2,046
Year five 1,123   1,438
Thereafter 824   2,128
Total future minimum lease payments 10,135   12,217
Less: imputed interest 749   966
Total 9,386   $ 11,251
Components of lease expense:      
Operating lease cost (in occupancy and equipment expense) 604 $ 583  
Operating cash flows from operating leases $ 594 $ 426  
v3.24.1.1.u2
Deposits - Components (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Noninterest-bearing deposits    
Total noninterest-bearing deposits $ 319,872 $ 520,070
Interest-bearing deposits    
Demand deposits 4,680,405 5,381,067
Savings deposits 3,017,849 2,992,921
Certificates of deposit 5,957,535 5,167,402
Total interest-bearing deposits 13,655,789 13,541,390
Total deposits $ 13,975,661 $ 14,061,460
v3.24.1.1.u2
Deposits - Maturities of deposits (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Deposits    
Due within one year $ 5,865,446  
Due in one year to two years 76,281  
Due in two years to three years 15,808  
Total time deposits $ 5,957,535 $ 5,167,402
v3.24.1.1.u2
Deposits - Brokered deposits (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Deposits    
Brokered certificates of deposit $ 5,351,397 $ 4,465,825
Brokered savings deposits 1,338 589
Brokered deposit on demand accounts 400,159 1,504,230
Total brokered deposits $ 5,752,894 $ 5,970,644
v3.24.1.1.u2
Borrowings - Components (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Borrowings    
Other borrowings $ 7,934 $ 7,934
Borrowings 1,835,985 964,127
Federal Reserve discount window borrowings    
Borrowings    
Borrowings 50,000  
Short-term subordinated debt    
Borrowings    
Borrowings 64,922 64,922
FHLB advances    
Borrowings    
Borrowings 1,426,299 771,392
American Financial Exchange borrowing    
Borrowings    
Borrowings 175,000  
Credit linked notes, net of debt discount    
Borrowings    
Borrowings $ 111,830 $ 119,879
v3.24.1.1.u2
Borrowings - Other (Details) - FHLB Advances - USD ($)
$ in Millions
 3 Months Ended
Mar. 22, 2024
Mar. 31, 2024
Borrowings    
Outstanding balance   $ 500.0
Basis spread on variable rate (as a percent)   0.10%
FHLB advances interest rate   5.43%
FHLB has an option to cancel the agreement 60 days  
Number of days prior notice required for cancellation of debt agreement. 1 day  
v3.24.1.1.u2
Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Net Income    
Net Income $ 87,054 $ 54,955
Dividends on preferred stock (8,667) (8,667)
Net income allocated to common shareholders $ 78,387 $ 46,288
Weighted-Average Shares    
Weighted average shares - Basic 43,305,985 43,179,604
Effect of dilutive securities-restricted stock awards 160,662 111,175
Weighted average shares - diluted 43,466,647 43,290,779
Per Share Amount    
Basic earnings per share $ 1.81 $ 1.07
Diluted earnings per share $ 1.80 $ 1.07
v3.24.1.1.u2
Share-Based Payment Plans - Incentive Plan (Details) - USD ($)
 1 Months Ended 3 Months Ended
Nov. 30, 2023
Mar. 31, 2024
Mar. 31, 2023
Non executive directors      
Plan disclosures      
Value of shares available for issuance for compensation related to annual fees $ 70,000    
Shares issued   3,164 2,863
2017 Plan      
Plan disclosures      
Shares issued   85,212 84,335
v3.24.1.1.u2
Share-Based Payment Plans - ESOP (Details) - ESOP - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Employee Stock Ownership Plan    
Expense recognized for the contribution to the plan $ 287,000 $ 267,000
Shares contributed to the plan 23,414 33,293
v3.24.1.1.u2
Preferred Stock (Details)
 3 Months Ended 12 Months Ended
Sep. 30, 2022
USD ($)
shares
Sep. 27, 2022
USD ($)
$ / shares
shares
Mar. 23, 2021
USD ($)
$ / shares
shares
Aug. 19, 2019
USD ($)
$ / shares
shares
Apr. 12, 2019
USD ($)
shares
Mar. 28, 2019
USD ($)
$ / shares
shares
Mar. 31, 2024
$ / shares
Dec. 31, 2023
$ / shares
Feb. 28, 2024
$ / shares
7% Series A Preferred Stock                  
Public Offering of Preferred Stock                  
Preferred stock, dividend rate (as a percent)             7.00% 7.00%  
Preferred stock liquidation preference (in dollars per share) | $ / shares             $ 25 $ 25 $ 25.00
7% Series A 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        
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                  
Depositary shares issued (in shares) | shares       5,000,000          
Depositary shares equivalent preferred stock interest per share       0.025          
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                  
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 C Preferred Stock | Public Offering                  
Public Offering of Preferred Stock                  
Depositary shares issued (in shares) | shares     6,000,000            
Depositary shares equivalent preferred stock interest per share     0.025            
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            
8.25% Series D Preferred Stock                  
Public Offering of Preferred Stock                  
Preferred stock, dividend rate (as a percent)             8.25% 8.25%  
Preferred stock liquidation preference (in dollars per share) | $ / shares             $ 1,000 $ 1,000  
8.25% Series D Preferred Stock | Public Offering                  
Public Offering of Preferred Stock                  
Depositary shares issued (in shares) | shares   5,200,000              
Preferred stock, dividend rate (as a percent)   8.25%              
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   $ 130,000,000.0              
Net proceeds   125,400,000              
Underwriting discounts   $ 4,600,000              
Series D Preferred Stock | Public Offering                  
Public Offering of Preferred Stock                  
Shares issued (in shares) | shares 500,000                
Net proceeds $ 12,100,000                
Underwriting discounts $ 400,000                
v3.24.1.1.u2
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Segment Information      
Interest income $ 314,173 $ 211,294  
Interest expense 187,117 110,601  
Net Interest Income 127,056 100,693  
Provision for credit losses 4,726 6,867  
Net Interest Income After Provision for Credit Losses 122,330 93,826  
Noninterest income 40,874 14,264  
Noninterest expense 48,912 34,772  
Income Before Income Taxes 114,292 73,318  
Income taxes 27,238 18,363  
Net Income 87,054 54,955  
Total assets 17,822,576 14,240,966 $ 16,952,516
Other      
Segment Information      
Interest income 3,238 1,144  
Interest expense (766) (1,719)  
Net Interest Income 4,004 2,863  
Net Interest Income After Provision for Credit Losses 4,004 2,863  
Noninterest income (3,339) (2,177)  
Noninterest expense 8,965 7,216  
Income Before Income Taxes (8,300) (6,530)  
Income taxes (2,130) (1,571)  
Net Income (6,170) (4,959)  
Total assets 276,795 150,695  
Multi-family Mortgage Banking | Operating Segments      
Segment Information      
Interest income 1,746 1,106  
Interest expense 20    
Net Interest Income 1,726 1,106  
Net Interest Income After Provision for Credit Losses 1,726 1,106  
Noninterest income 40,467 16,597  
Noninterest expense 19,571 14,631  
Income Before Income Taxes 22,622 3,072  
Income taxes 6,013 1,106  
Net Income 16,609 1,966  
Total assets 416,454 341,487  
Mortgage Warehousing | Operating Segments      
Segment Information      
Interest income 84,901 42,318  
Interest expense 56,140 27,794  
Net Interest Income 28,761 14,524  
Provision for credit losses 940 1,364  
Net Interest Income After Provision for Credit Losses 27,821 13,160  
Noninterest income 3,317 1,033  
Noninterest expense 4,798 2,755  
Income Before Income Taxes 26,340 11,438  
Income taxes 6,150 2,797  
Net Income 20,190 8,641  
Total assets 5,369,299 3,318,491  
Banking | Operating Segments      
Segment Information      
Interest income 224,288 166,726  
Interest expense 131,723 84,526  
Net Interest Income 92,565 82,200  
Provision for credit losses 3,786 5,503  
Net Interest Income After Provision for Credit Losses 88,779 76,697  
Noninterest income 429 (1,189)  
Noninterest expense 15,578 10,170  
Income Before Income Taxes 73,630 65,338  
Income taxes 17,205 16,031  
Net Income 56,425 49,307  
Total assets $ 11,760,028 $ 10,430,293  
v3.24.1.1.u2
Subsequent Events (Details) - 7% Series A Preferred Stock - USD ($)
$ / shares in Units, $ in Millions
Apr. 01, 2024
Mar. 31, 2024
Feb. 28, 2024
Dec. 31, 2023
Subsequent events        
Preferred stock liquidation preference (in dollars per share)   $ 25 $ 25.00 $ 25
Subsequent event        
Subsequent events        
Preferred stock liquidation preference (in dollars per share) $ 25.00      
Preferred stock liquidation preference value $ 52      
v3.24.1.1.u2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net Income (Loss) $ 87,054 $ 54,955
v3.24.1.1.u2
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false