MERCHANTS BANCORP, 10-K filed on 3/5/2021
Annual Report
v3.20.4
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Feb. 25, 2021
Jun. 30, 2020
Document Information      
Entity Registrant Name MERCHANTS BANCORP    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2020    
Document Transition Report false    
Entity File Number 001-38258    
Amendment Flag false    
Entity Incorporation, State or Country Code IN    
Entity Tax Identification Number 20-5747400    
Entity Address, Address Line One 410 Monon Blvd.    
Entity Address, City or Town Carmel    
Entity Address, State or Province IN    
Entity Address, Postal Zip Code 46032    
City Area Code 317    
Local Phone Number 569-7420    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company true    
Entity Ex Transition Period false    
ICFR Auditor Attestation Flag false    
Entity Shell Company false    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Public Float     $ 301.3
Entity Common Stock, Shares Outstanding   28,782,139  
Entity Central Index Key 0001629019    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
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    
Depositary Shares      
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    
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Assets    
Cash and due from banks $ 10,063 $ 13,909
Interest-earning demand accounts 169,665 492,800
Cash and cash equivalents 179,728 506,709
Securities purchased under agreements to resell 6,580 6,723
Mortgage loans in process of securitization 338,733 269,891
Available for sale securities 269,802 290,243
Federal Home Loan Bank (FHLB) stock 70,656 20,369
Loans held for sale (includes $40,044 and $19,592 at fair value, respectively) 3,070,154 2,093,789
Loans receivable, net of allowance for loan losses of $27,500 and $15,842, respectively 5,507,926 3,012,468
Premises and equipment, net 29,761 29,274
Mortgage servicing rights 82,604 74,387
Interest receivable 21,770 18,359
Goodwill 15,845 15,845
Intangible assets, net 2,283 3,799
Other assets and receivables 49,533 30,072
Total assets 9,645,375 6,371,928
Deposits    
Noninterest-bearing 853,648 272,037
Interest-bearing 6,554,418 5,206,038
Total deposits 7,408,066 5,478,075
Borrowings 1,348,256 181,439
Deferred and current tax liabilities, net 20,405 16,917
Other liabilities 58,027 41,769
Total liabilities 8,834,754 5,718,200
Commitments and Contingencies
Shareholders' Equity    
Common stock, without par value Authorized - 50,000,000 shares Issued and outstanding - 28,747,083 shares at December 31, 2020 and 28,706,438 shares at December 31, 2019 135,857 135,640
Preferred stock
Retained earnings 461,744 304,984
Accumulated other comprehensive income 374 458
Total shareholders' equity 810,621 653,728
Total liabilities and shareholders' equity 9,645,375 6,371,928
8% Preferred Stock    
Shareholders' Equity    
Preferred stock 41,581 41,581
7% Preferred Stock    
Shareholders' Equity    
Preferred stock 50,221 50,221
6% Preferred Stock    
Shareholders' Equity    
Preferred stock $ 120,844 $ 120,844
v3.20.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Loans held for sale at fair value $ 40,044 $ 19,592
Allowance for loans losses $ 27,500 $ 15,842
Stockholders' Equity:    
Common stock, without par value (in dollars per share)
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 28,747,083 28,706,438
Common stock, shares outstanding 28,747,083 28,706,438
Preferred stock, shares authorized 5,000,000 5,000,000
8% Preferred Stock    
Stockholders' Equity:    
Preferred stock, dividend rate (as a percent) 8.00% 8.00%
Preferred stock liquidation preference (in dollars per share) $ 1,000 $ 1,000
Preferred stock, shares authorized 50,000 50,000
Preferred stock, shares issued 41,625 41,625
Preferred stock, shares outstanding 41,625 41,625
7% Preferred Stock    
Stockholders' Equity:    
Preferred stock, dividend rate (as a percent) 7.00% 7.00%
Preferred stock liquidation preference (in dollars per share) $ 25 $ 25
Preferred stock, shares authorized 3,500,000 3,500,000
Preferred stock, shares issued 2,081,800 2,081,800
Preferred stock, shares outstanding 2,081,800 2,081,800
6% 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
v3.20.4
Consolidated Statements of Income - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Interest Income      
Loans $ 263,915,000 $ 186,428,000 $ 119,457,000
Mortgage loans in process of securitization 11,122,000 6,690,000 5,012,000
Investment securities:      
Available for sale - taxable 3,147,000 6,208,000 6,448,000
Available for sale - tax exempt 123,000 272,000  
Federal Home Loan Bank stock 1,558,000 932,000 385,000
Other 2,925,000 11,465,000 9,261,000
Total interest income 282,790,000 211,995,000 140,563,000
Interest Expense      
Deposits 52,238,000 84,661,000 42,216,000
Borrowed funds 6,406,000 5,036,000 8,376,000
Total interest expense 58,644,000 89,697,000 50,592,000
Net Interest Income 224,146,000 122,298,000 89,971,000
Provision for loan losses 11,838,000 3,940,000 4,629,000
Net Interest Income After Provision for Loan Losses 212,308,000 118,358,000 85,342,000
Noninterest Income      
Gain on sale of loans 96,578,000 35,411,000 39,266,000
Loan servicing fees, net (1,801,000) (1,118,000) 5,741,000
Mortgage warehouse fees 20,980,000 7,145,000 2,550,000
Gains on sale of investments available for sale (includes $441, $476, and $0, respectively, related to accumulated other comprehensive earnings reclassifications) 441,000 476,000  
Other income 11,275,000 5,175,000 2,028,000
Total noninterest income 127,473,000 47,089,000 49,585,000
Noninterest Expense      
Salaries and employee benefits 59,200,000 38,093,000 32,240,000
Loan expenses 9,085,000 4,534,000 4,621,000
Occupancy and equipment 5,733,000 4,609,000 2,788,000
Professional fees 3,664,000 2,326,000 2,585,000
Deposit insurance expense 5,800,000 2,747,000 1,024,000
Technology expense 3,061,000 2,623,000 1,544,000
Other expense 9,881,000 8,381,000 6,098,000
Total noninterest expense 96,424,000 63,313,000 50,900,000
Income Before Income Taxes 243,357,000 102,134,000 84,027,000
Provision for income taxes (includes $(97), $(117), and $0, respectively, related to income tax (expense)/benefit for reclassification items) 62,824,000 24,805,000 21,153,000
Net Income 180,533,000 77,329,000 62,874,000
Dividends on preferred stock (14,473,000) (9,216,000) (3,330,000)
Net Income Allocated to Common Shareholders $ 166,060,000 $ 68,113,000 $ 59,544,000
Basic earnings per common share $ 5.78 $ 2.37 $ 2.08
Diluted earnings per common share $ 5.77 $ 2.37 $ 2.07
Weighted-Average Shares Outstanding Basic (in Shares) 28,742,494 28,705,125 28,692,955
Weighted-Average Shares Outstanding Diluted (in Shares) 28,778,075 28,745,707 28,724,419
v3.20.4
Consolidated Statements of Income (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Consolidated Statements of Income      
Reclassifications included in gains/(losses) on sale of investment available for sale $ 441 $ 476 $ 0
Provision for income taxes related to income tax (expense)/benefit for reclassification items $ (97) $ (117) $ 0
v3.20.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Consolidated Statements of Comprehensive Income      
Net Income $ 180,533 $ 77,329 $ 62,874
Other Comprehensive Income (Loss):      
Net change in unrealized gains (losses) on investment securities available for sale, net of tax (expense)/benefits of $(81), $(386), and $(294), respectively 260 1,127 939
Less: Reclassification adjustment for gains included in net income, net of tax (expense)/benefits of $(97), $(117), and $0, respectively 344 359  
Other comprehensive income (loss) for the period (84) 768 939
Comprehensive Income $ 180,449 $ 78,097 $ 63,813
v3.20.4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Consolidated Statements of Comprehensive Income      
Net change in unrealized gains (losses) on investment securities available for sale, net of tax (expense)/benefits of $(81), $(386), and $(294), respectively $ (81) $ (386) $ (294)
Less: Reclassification adjustment for gains included in net income, net of tax (expense)/benefits of $(97), $(117), and $0, respectively $ (97) $ 0 $ 0
v3.20.4
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Common Stock
Preferred Stock
8% Preferred Stock
Preferred Stock
7% Preferred Stock
Preferred Stock
6% Preferred Stock
Retained Earnings
8% Preferred Stock
Retained Earnings
7% Preferred Stock
Retained Earnings
6% Preferred Stock
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
8% Preferred Stock
7% Preferred Stock
6% Preferred Stock
Total
Balance at beginning of the period at Dec. 31, 2017 $ 134,891 $ 41,581           $ 192,008 $ (1,006)       $ 367,474
Balance at beginning of the period (in shares) at Dec. 31, 2017 28,685,167 41,625                      
Condensed Consolidated Statements of Shareholders' Equity                          
Net income               62,874         62,874
Shares issued for stock compensation plans $ 166                       166
Shares issued for stock compensation plans (in shares) 8,869                        
Dividends on preferred stock, annually               (3,330)         (3,330)
Dividends on common stock, annually               (6,886)         (6,886)
Reclassification of deferred tax asset due to tax reform               243 (243)        
Other comprehensive income                 939       939
Balance at end of the period at Dec. 31, 2018 $ 135,057 $ 41,581           244,909 (310)       421,237
Balance at end of the period (in shares) at Dec. 31, 2018 28,694,036 41,625                      
Condensed Consolidated Statements of Shareholders' Equity                          
Net income               77,329         77,329
Shares issued for stock compensation plans $ 583                       583
Shares issued for stock compensation plans (in shares) 12,402                        
Issuance of shares     $ 72,071 $ 120,844             $ 72,071 $ 120,844  
Issuance of shares (in shares)     2,955,800 125,000                  
Repurchase of 7% preferred stock     $ (21,850)               (21,850)    
Repurchase of 7% preferred stock (in shares)     (874,000)                    
Dividends on 8% preferred stock, annually         $ (3,330)         $ (3,330)      
Dividends on 7% preferred stock, annually           $ (3,115)         (3,115)    
Dividends on 6% preferred stock, annually             $ (2,771)         (2,771)  
Dividends on common stock, annually               (8,038)         (8,038)
Other comprehensive income                 768       768
Balance at end of the period at Dec. 31, 2019 $ 135,640 $ 41,581 $ 50,221 $ 120,844       304,984 458       653,728
Balance at end of the period (in shares) at Dec. 31, 2019 28,706,438 41,625 2,081,800 125,000                  
Condensed Consolidated Statements of Shareholders' Equity                          
Net income               180,533         180,533
Shares issued for stock compensation plans $ 367                       367
Shares issued for stock compensation plans (in shares) 55,645                        
Treasury shares constructively retired $ (150)             (102)         (252)
Treasury shares constructively retired (in shares) (15,000)                        
Dividends on 8% preferred stock, annually         $ (3,330)         $ (3,330)      
Dividends on 7% preferred stock, annually           $ (3,643)         $ (3,643)    
Dividends on 6% preferred stock, annually             $ (7,500)         $ (7,500)  
Dividends on common stock, annually               (9,198)         (9,198)
Other comprehensive income                 (84)       (84)
Balance at end of the period at Dec. 31, 2020 $ 135,857 $ 41,581 $ 50,221 $ 120,844       $ 461,744 $ 374       $ 810,621
Balance at end of the period (in shares) at Dec. 31, 2020 28,747,083 41,625 2,081,800 125,000                  
v3.20.4
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dividends on common stock per share $ 0.32 $ 0.28 $ 0.24
8% Preferred Stock      
Preferred stock, dividend rate (as a percent) 8.00% 8.00%  
8% Preferred Stock | Preferred Stock      
Preferred stock, dividend rate (as a percent) 8.00% 8.00% 8.00%
Dividends on preferred stock per share $ 80.00 $ 80.00 $ 80.00
7% Preferred Stock      
Preferred stock, dividend rate (as a percent) 7.00% 7.00%  
7% 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  
Offering expenses on issuance of stock   $ 1,824  
6% Preferred Stock      
Preferred stock, dividend rate (as a percent) 6.00% 6.00%  
6% 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  
Offering expenses on issuance of stock   $ 4,156  
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating activities:      
Net income $ 180,533 $ 77,329 $ 62,874
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation 1,896 852 461
Provision for loan losses 11,838 3,940 4,629
Deferred income tax, net (692) (978) 2,313
Gain on sale of securities (441) (476)  
Gain on sale of loans (96,578) (35,411) (39,266)
Proceeds from sales of loans 83,788,217 32,792,977 18,027,460
Loans and participations originated and purchased for sale (84,692,696) (34,025,666) (17,832,035)
Change in mortgage servicing rights for paydowns and fair value adjustments 13,672 10,789 2,348
Net change in:      
Mortgage loans in process of securitization (68,842) (106,472) (22,582)
Other assets and receivables (16,415) (3,663) (10,023)
Other liabilities 2,408 24,046 4,164
Other 2,212 5,730 3,992
Net cash provided by (used in) operating activities (874,888) (1,257,003) 204,335
Investing activities:      
Net change in securities purchased under agreements to resell 143 152 168
Purchases of available for sale securities (596,839) (647,374) (47,040)
Proceeds from the sale of available for sale securities 4,347 37,817 6,431
Proceeds from calls, maturities and paydowns of available for sale securities 612,612 651,798 188,252
Purchases of loans (385,820) (87,302) (138,965)
Net change in loans receivable (2,119,214) (885,150) (484,102)
Purchase of Federal Home Loan Bank stock (50,854) (15,875) (956)
Proceeds from sale of Federal Home Loan Bank stock 567 3,481 700
Proceeds from sale of assets     10
Purchases of premises and equipment (3,623) (13,983) (9,195)
Purchases of mortgage servicing rights     (6,313)
Purchase of limited partnership interests and other tax credits (4,181) (1,365) (3,810)
Proceeds from sale of limited partnership interests and other tax credits 10,651    
Cash paid in acquisition of subsidiary     (14,320)
Other investing activities (17) 126 74
Net cash used in investing activities (2,532,228) (957,675) (509,066)
Financing activities:      
Net change in deposits 1,929,991 2,247,064 155,002
Proceeds from borrowings 61,088,465 8,917,286 1,089,107
Repayment of borrowings (59,924,409) (8,907,917) (931,994)
Proceeds from notes payable 2,760 6,318 19,116
Payments on notes payable   (29,700) (38,534)
Payments of contingent consideration (501) (1,999) (745)
Proceeds from issuance of preferred stock   192,915  
Repurchase of preferred stock   (21,850)  
Dividends (23,671) (17,254) (10,216)
Other financing activities 7,500    
Net cash provided by financing activities 3,080,135 2,384,863 281,736
Net Change in Cash and Cash Equivalents (326,981) 170,185 (22,995)
Cash and Cash Equivalents, Beginning of Period 506,709 336,524 359,519
Cash and Cash Equivalents, End of Period 179,728 506,709 336,524
Additional Cash Flows Information:      
Interest paid 69,106 81,892 49,276
Income taxes paid 57,322 $ 19,326 16,965
Redemption of common shares related to sale of limited partnership interests $ (150)    
The Company purchased all of the capital stock of FMBI on January 2, 2018, the capital stock of FMNBP on October 1, 2018, and the assets of NattyMac, LLC on December 31, 2018. The Company also purchased all of the capital stock for MCS on August 15, 2017. In conjunction with the acquisitions, liabilities were assumed as follows:      
Fair value of assets acquired     168,153
Cash paid for the capital stock/fair value common stock issued     29,872
Fair value of liabilities assumed     $ 138,281
v3.20.4
Nature of Operations and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2020
Nature of Operations and Summary of Significant Accounting Policies  
Nature of Operations and Summary of Significant Accounting Policies

Note 1: Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations and Principles of Consolidation

The accompanying 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”) and Farmers-Merchants Bank of Illinois (“FMBI”). Merchants Bank’s primary operating subsidiaries include Merchants Capital Corp. (“MCC”) and Merchants Capital Servicing, LLC (“MCS”). All direct and indirectly owned subsidiaries owned by Merchants Bancorp are collectively referred to as the “Company”. All significant intercompany accounts and transactions have been eliminated in consolidation.

Merchants Bank operates under an Indiana state bank charter and provides full banking services. As a state bank and non-Federal Reserve member, it is subject to the regulation of the Indiana Department of Financial Institutions (“IDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). The Company is further subject to regulations of the Board of Governors of the Federal Reserve System (“Federal Reserve”) governing bank holding companies. Merchants Bank operates from six locations in Indiana, including Lynn, Spartanburg, Richmond, Carmel and Indianapolis. Merchants Bank generates commercial, mortgage and consumer loans and receives deposits from customers located primarily in Hamilton, Marion, Wayne, Randolph and surrounding counties in Indiana. Merchants Bank’s loans are generally secured by specific items of collateral including real property, consumer assets and business assets. Merchants Bank’s Mortgage Warehousing segment funds and participates in single-family and multi-family, agency eligible loans across the nation.

FMBI operates under an Illinois state bank charter and provides full banking services. As a state bank and non-Federal Reserve member, it is subject to the regulation of the Illinois Department of Financial and Professional Regulation (“IDFPR”) and the FDIC. FMBI operates from four offices located in Joy, Paxton, Melvin, and Piper City, Illinois.

MCC is primarily engaged in mortgage banking, specializing in lending for multi-family rental properties and healthcare facilities. It is a Federal Housing Authority (“FHA”) approved mortgagee and a Government National Mortgage Association (“Ginnie Mae”), Federal National Mortgage Association (“Fannie Mae”), and Federal Home Loan Mortgage Corporation (“Freddie Mac”) issuer.

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.

In March 2020, COVID-19 was identified as a global pandemic and began affecting the health of large populations around the world. As a result of the spread of COVID-19, economic uncertainties have arisen which may negatively affect the financial position, results of operations and cash flows of the Company. As of this Form 10-K, management is not aware of any known effects that have impacted the financial viability and going concern of the Company. The duration of these uncertainties and the ultimate financial effects cannot be reasonably known at this time.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, loan servicing rights and fair values of financial instruments. The uncertainties related to the COVID-19 pandemic could cause significant changes to these estimates compared to what was known at the time these consolidated financial statements were prepared.

Cash and Cash Equivalents

The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of cash amounts due from depository institutions, interest-bearing deposits in other banks, money market accounts, and federal funds sold.

At December 31, 2020, the Company’s cash accounts exceeded federally insured limits by approximately $165.9 million. Included in this amount is approximately $157.2 million with the Federal Reserve and $2.7 million with the Federal Home Loan Bank of Indianapolis (“FHLBI”), and $23,000 with the Federal Home Loan Bank of Chicago (“FHLBC”).

At December 31, 2019, the Company’s cash accounts exceeded federally insured limits by approximately $492.1 million. Included in this amount is approximately $478.8 million with the Federal Reserve and $2.3 million with the FHLBI, and $20,000 with the FHLBC.

Securities purchased under agreements to resell

Securities purchased pursuant to a simultaneous agreement (RRA) to resell the same securities at a specified price and date generally have maturity dates of 90 days or less and are carried at cost. Every 90 days the RRAs rollover.

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 settlement with firm investor commitments to purchase the securities, typically occurring within 30 days.

Available for Sale Securities

Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. The Company had no securities held to maturity at December 31, 2020 or 2019. Securities not classified as held to maturity or trading are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held to maturity debt securities, the amount of other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security.

Loans Held for Sale under Mortgage Banking Activities

The Company uses participation agreements to fund mortgage loans held for sale from closing or purchase until sold to an investor. Under a participation agreement the Company elects to purchase a participation interest of up to 100% in individual loans. The Company shares proportionately in the interest income and the credit risk until the loan is sold to an investor. The Company holds the collateral until it is sent under a bailee arrangement to the investor. Typical investors are large financial institutions or government agencies. These loans are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance and included in noninterest income.

Other mortgage loans originated and intended for sale in the secondary market, for which the fair value option has been elected, are carried at fair value at each balance sheet date. The Company believes that the fair value is the best indicator of the resolution of these loans. The difference between the cost and fair value was not material at December 31, 2020.

For all loans held for sale, interest earned from the time of funding to the time of sale is accrued and recognized as interest income. Gains and losses on loan sales are recorded in noninterest income, and generally direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income and noninterest expense upon sale of the loan. 

The gain on sale of loans in the income statement may include placement and origination fees, capitalized mortgage servicing rights, trading gains and losses and other related income.

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 allowance for loan losses, any unamortized deferred fees or costs on originated loans, and unamortized premiums or discounts on purchased loans.

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

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. For impaired loans that are considered to be solely collateral dependent, a partial charge-off occurs or a specific reserve is assigned.

When cash payments for accrued interest are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms.

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

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to net interest income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of 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. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, (collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge off experience and expected loss from default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due pursuant to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by the fair value of the collateral if the loan is collateral dependent, the loan’s obtainable market price, or present value of expected future cash flows discounted at the loan’s effective interest rate. For impaired loans where the Company utilizes discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense.

Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience, adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

In the course of negotiating with borrowers, the Company may choose to restructure the contractual terms of certain loans. In restructuring the loan, the Company attempts to work out an alternative payment schedule with the borrower in order to optimize collectability of the loan. A troubled debt restructuring (“TDR”) occurs when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status, and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two.

Nonaccrual loans, including TDRs that have not met the six-month minimum performance criterion, are reported as nonperforming loans. For all loan classes, it is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until three months of satisfactory borrower performance, at which time management would consider its return to accrual status. A loan is generally classified as nonaccrual when the Company believes that receipt of principal and interest is doubtful under the terms of the loan agreement. Most generally, this is at 90 or more days past due.

With regard to determination of the amount of the allowance for credit losses, restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously above.

Premises and Equipment

Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets.

The estimated useful lives for premises and equipment are as follows:

​

​

​

​

​

Buildings

    

7 to 40

years

Leasehold improvements

 

5 to 11

years

Software and intangible assets

​

3 to 10

years

Furniture, fixtures and equipment

 

3 to 15

years

Vehicles

 

5

years

​

Expenditures for property and equipment and for renewals or betterments that extend the originally estimated economic life of the assets are capitalized. Expenditures for maintenance and repairs are charged to expense. When an asset is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the results of operations.

Federal Home Loan Bank Stock

Federal Home Loan Bank (FHLB) stock is a required investment for institutions that are members of a FHLB. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment.

Other Real Estate Owned

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from other real estate.

Mortgage Servicing Rights

Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860-50), servicing rights resulting from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company has elected to initially and subsequently measure the mortgage servicing rights for mortgage loans using the fair value method. Under the fair value method, the servicing rights are carried in the balance sheet at fair value and the changes in fair value are reported in earnings in the period in which the changes occur.

Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model is from an independent third party and it incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, prepayment penalties, and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage-servicing right and may result in a reduction to noninterest income.

Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The change in the fair value of the mortgage-servicing rights is netted against loan servicing fee income.

Goodwill and Intangible Assets

Goodwill is tested annually for impairment or more frequently if impairment indicators are present. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements.

Intangible assets, which include licenses and trade names, are amortized over a period ranging from 84 to 120 months using a straight-line method of amortization. Customer list intangible assets were amortized over 21 months using a straight-line method of amortization. Also included are core deposit intangibles that are amortized over a 10 year period using the accelerated sum of the years digits method of amortization. On a periodic basis, the Company evaluates events and circumstances that may indicate a change in the recoverability of the carrying value.

Investment in Qualified Affordable Housing Limited Partnerships

The Company has elected to account for its investment in affordable housing tax credit limited partnerships using the proportional amortization method described in FASB ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (A Consensus of the FASB Emerging Issues Task Force).” Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The investment in the limited partnerships is included in other assets in the consolidated balance sheets. During the year ended December 31, 2020, the Company sold some of these assets to a fund in which it is a general partner and holds a minority interest in the limited partnership.

Income Taxes

The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2017.

The Company recognizes interest and penalties, if any, on income taxes as a component of income tax expense.

The Company files consolidated income tax returns with its subsidiaries.

Earnings Per Share

Basic earnings per share is the Company’s net income available to common shareholders, which represents net income less dividends paid or payable to preferred stock shareholders, if any, divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is calculated in the same manner as basic earnings per share, but also reflects the issuance of additional common shares that would have been diluted if such shares had been outstanding, as well as any adjustment to income that would result from the assumed issuance.

Share-based Compensation Plans

The Company has an equity incentive plan that provides for annual awards of shares to certain members of senior management based upon the Company’s performance and attainment of certain performance goals established by the Board of Directors. Share awards are valued at the estimated fair value on the date of the award and generally vest over three years. Compensation expense for the awards is recognized in the consolidated financial statements ratably over the vesting period.

In 2018, the Compensation Committee of the Board of Directors also approved a plan for non-executive directors to receive a portion of their annual fees in the form of restricted common stock, which has been issued once per year, subsequent to the annual meeting of shareholders. This plan was amended to issue allocated shares on a quarterly basis, beginning after the Company’s 2021 annual meeting of shareholders.

During 2020, the Company established an employee stock ownership plan (“ESOP”) to provide certain benefits for all employees who meet certain requirements.

Revenue Recognition

​

The Company’s principal source of revenue is interest income from loans, investment securities and other financial instruments that are not within the scope of Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers”. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers.

The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured.

Interest income on loans is accrued as earned using the interest method based on unpaid principal balances, except for interest on loans in nonaccrual status. Interest on loans in nonaccrual status is recorded as a reduction of loan principal when received.

The Company also earns other noninterest income through a variety of financial and transaction services provided to corporate and consumer clients such as deposit service charges, debit card network fees, collection fees, safe deposit box rental fees and gain/(loss) on sale of other real estate owned. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed.

Comprehensive Income

​

Comprehensive income consists of net income and other comprehensive income (loss), net of applicable income taxes. Other comprehensive income (loss) and accumulated other comprehensive income consist of unrealized appreciation (depreciation) on available for sale investment securities and reclassification adjustments for investment gains/(losses) on the sale of available for sale investment securities.

Derivative Financial Instruments

The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies. These derivative financial instruments consist primarily of interest rate locks and forward sale commitments. These derivative instruments are recorded on the Consolidated Statements of Financial Condition, as either an asset or liability, at their fair value. Changes in fair value are recognized in noninterest income on the Consolidated Statements of Income. The Company also offers interest rate swaps to some customers through a third-party dealer. These derivatives generally work together as an economic interest rate hedge, but the Company does not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability are recorded as either a charge or credit to current earnings during the period in which the changes occurred, typically resulting in no net earnings impact.

Reclassifications

Certain reclassifications may have been made to the 2019 and 2018 financial statements to conform to the financial statement presentation as of and for the year ended December 31, 2020. These reclassifications had no effect on net income.
v3.20.4
Restriction on Cash and Due From Banks
 12 Months Ended
Dec. 31, 2020
Restriction on Cash and Due From Banks  
Restriction on Cash and Due From Banks

Note 2: Restriction on Cash and Due From Banks

The Company is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve. Effective March 26, 2020, the Federal Reserve reduced all banks’ reserve requirements to 0% due to COVID-19 uncertainties. The reserve required at December 31, 2020 and 2019 was $0 and $184.5 million, respectively.
v3.20.4
Securities Available For Sale
 12 Months Ended
Dec. 31, 2020
Securities Available For Sale  
Securities Available For Sale

Note 3: Securities Available For Sale

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

​

​

​

​

Gross

​

Gross

​

Approximate

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

6,535

​

$

24

​

$

—

​

$

6,559

Federal agencies

​

 

234,954

​

 

103

​

 

17

​

 

235,040

Municipals

​

 

5,935

​

 

90

​

 

—

​

 

6,025

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

 

21,899

​

 

279

​

 

—

​

 

22,178

Total available for sale securities

​

$

269,323

​

$

496

​

$

17

​

$

269,802

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

​

​

​

​

Gross

​

Gross

​

Approximate

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

4,744

​

$

21

​

$

—

​

$

4,765

Federal agencies

​

 

244,986

​

 

24

​

 

37

​

 

244,973

Municipals

​

 

5,577

​

 

360

​

 

—

​

 

5,937

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

 

34,357

​

 

213

​

 

2

​

 

34,568

Total available for sale securities

​

$

289,664

​

$

618

​

$

39

​

$

290,243

​

The amortized cost and fair value of available for sale securities at December 31, 2020 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.

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

​

​

Amortized

​

Fair

​

​

    

Cost

    

Value

    

Contractual Maturity

​

(In thousands)

Within one year

​

$

6,288

​

$

6,302

​

After one through five years

​

 

239,770

​

 

239,877

​

After five through ten years

​

 

515

​

 

549

​

After ten years

​

 

851

​

 

896

​

​

​

 

247,424

​

 

247,624

​

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

 

21,899

​

 

22,178

​

​

​

$

269,323

​

$

269,802

​

​

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2020 and 2019 was $69.9 million and $95.8 million, respectively, which is approximately 26%, and 33%, respectively, of the Company’s available for sale investment portfolio.

The following tables show the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2020, and 2019:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

​

​

​

​

​

​

​

12 Months or

​

​

​

​

​

​

​

​

Less than 12 Months

​

 Longer

​

Total

​

​

​

​

​

Gross

​

​

​

​

Gross

​

​

​

​

Gross

​

​

Fair

​

  Unrealized  

​

      Fair      

​

Unrealized

​

Fair

​

Unrealized

​

    

Value

    

Losses

    

      Value      

    

Losses

    

Value

    

Losses

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Federal agencies

​

$

69,939

​

$

17

​

$

—

​

$

—

​

$

69,939

​

$

17

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

​

​

​

​

​

​

​

12 Months or

​

​

​

​

​

​

​

​

Less than 12 Months

​

Longer

​

Total

​

    

​

​

    

Gross

    

​

​

    

Gross

    

​

​

    

Gross

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

​

Value

​

Losses

​

Value

​

Losses

​

Value

​

Losses

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Federal agencies

​

$

94,963

​

$

37

​

$

​

​

$

​

​

$

94,963

​

$

37

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

​

809

​

​

2

​

​

​

​

​

​

​

​

809

​

​

2

​

​

$

95,772

​

$

39

​

$

—

​

$

—

​

$

95,772

​

$

39

​

Unrealized losses on securities have not been recognized to income because the Company has the intent and ability to hold the securities for the foreseeable future, and the decline in fair value is primarily due to increased market interest rates. The fair value is expected to recover as the bonds approach the maturity date.

During the year ended December 31, 2020, proceeds from the sale of securities available for sale were $4.3 million, and a net gain of $441,000 was recognized, consisting of $441,000 in gross gains and $0 of losses. During the year ended December 31, 2019, proceeds from the sale of securities available for sale were $37.8 million, and a net gain of $476,000 was recognized, consisting of gross gains of $713,000 and gross losses of $237,000. During the year ended December 31, 2018, proceeds from the sale of securities available for sale were $6.4 million, and no gains or losses were recognized.

The carrying value of securities pledged as collateral, to secure borrowings, public deposits and for other purposes, was $269.8 million, and $290.2 million at December 31, 2020 and 2019, respectively.
v3.20.4
Mortgage Loans in Process of Securitization
 12 Months Ended
Dec. 31, 2020
Mortgage Loans in Process of Securitization  
Mortgage Loans in Process of Securitization

Note 4: 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 settlement with firm investor commitments to purchase the securities, typically occurring within 30 days. The fair value increases recorded in earnings for mortgage loans in process of securitization totaled $2.4 million and $3.1 million at December 31, 2020 and 2019, respectively.
v3.20.4
Loans and Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2020
Loans and Allowance for Loan Losses  
Loans and Allowance for Loan Losses

Note 5: Loans and Allowance for Loan Losses

Classes of loans at December 31, 2020 and 2019, include:

​

​

​

​

​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

​

    

2020

    

2019

    

​

​

(In thousands)

​

​

​

​

​

​

​

​

Mortgage warehouse lines of credit

​

$

1,605,745

​

$

765,151

​

Residential real estate

​

 

678,848

​

 

413,835

​

Multi-family and healthcare financing

​

 

2,749,020

​

 

1,347,125

​

Commercial and commercial real estate

​

 

387,294

​

 

398,601

​

Agricultural production and real estate

​

 

101,268

​

 

85,210

​

Consumer and margin loans

​

 

13,251

​

 

18,388

​

​

​

 

5,535,426

​

 

3,028,310

​

Less:

​

 

  

​

 

  

​

Allowance for loan losses

​

 

27,500

​

 

15,842

​

​

​

​

​

​

​

​

​

Loans Receivable

​

$

5,507,926

​

$

3,012,468

​

​

In response to the COVID-19 global pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) established the Paycheck Protection Program (“PPP”) to provide loans for eligible businesses/not-for-profits. These loans qualify for forgiveness when used for qualifying expenses during the appropriate period. Loans funded through the PPP are fully guaranteed by the U.S. government. Commercial and commercial real estate loans at December 31, 2020 include $60.2 million of PPP loans that had not yet been forgiven.

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

Mortgage Warehouse Lines of Credit (MTG WHLOC): Under its warehouse program, the Company provides warehouse financing arrangements to approved mortgage companies for the origination and sale of residential mortgage loans and to a lesser extent multi-family loans. Agency eligible, governmental and jumbo residential mortgage loans that are secured by mortgages placed on existing one-to-four family dwellings may be originated or purchased and placed on each mortgage warehouse line.

As a secured line of credit, collateral pledged to the Company secures each individual mortgage until the lender sells the loan in the secondary market. A traditional secured warehouse line of credit typically carries a base interest rate of 30-day LIBOR, or mortgage note rate plus or minus a margin.

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

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

Multi-Family and Healthcare Financing (MF RE): The Company engages in multi-family and healthcare financing, including construction loans, specializing in originating and servicing loans for multi-family rental and senior living properties. In addition, the Company originates loans secured by an assignment of federal income tax credits by partnerships invested in multi-family real estate projects. Construction and land loans are generally based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent agency-eligible financing is obtained. These loans are considered to be higher risk than single-family real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economy in the Company’s market area. Repayment of these loans depends on the successful operation of a business or property and the borrower’s cash flows.

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

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.

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.

The following tables present, by loan portfolio segment, the activity in the allowance for loan losses for the years ended December 31, 2020, 2019 and 2018 and the recorded investment in loans and impairment method as of December 31, 2020, 2019 and 2018:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At or For the Year Ended December 31, 2020

​

  

MTG WHLOC

  

RES RE

  

MF RE

  

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,913

​

$

2,042

 

$

7,018

​

$

4,173

​

$

523

​

$

173

​

$

15,842

Provision for loan losses

​

 

2,105

​

 

1,248

 

​

7,713

​

 

681

​

 

113

​

 

(22)

​

 

11,838

Loans charged to the allowance

​

 

—

​

 

(31)

 

​

—

​

 

(319)

​

 

—

​

 

(11)

​

 

(361)

Recoveries of loans previously charged off

​

 

—

​

 

75

 

​

—

​

 

106

​

 

—

​

 

—

​

 

181

Balance, end of period

​

$

4,018

​

$

3,334

​

$

14,731

​

$

4,641

​

$

636

​

$

140

​

$

27,500

Ending balance: individually evaluated for impairment

​

$

—

​

$

7

​

$

—

​

$

1,606

​

$

—

​

$

—

​

$

1,613

Ending balance: collectively evaluated for impairment

​

$

4,018

​

$

3,327

​

$

14,731

​

$

3,035

​

$

636

​

$

140

​

$

25,887

Loans

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Ending balance

​

$

1,605,745

​

$

678,848

​

$

2,749,020

​

$

387,294

​

$

101,268

​

$

13,251

​

$

5,535,426

Ending balance individually evaluated for impairment

​

$

—

​

$

2,761

​

$

—

​

$

9,591

​

$

2,100

​

$

12

​

$

14,464

Ending balance collectively evaluated for impairment

​

$

1,605,745

​

$

676,087

​

$

2,749,020

​

$

377,703

​

$

99,168

​

$

13,239

​

$

5,520,962

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At or For the Year Ended December 31, 2019

​

  

MTG WHLOC

  

RES RE

  

MF RE

  

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,068

​

$

1,986

 

$

6,030

​

$

3,051

​

$

429

​

$

140

​

$

12,704

Provision for loan losses

​

 

952

​

 

56

 

​

988

​

 

1,817

​

 

94

​

 

33

​

 

3,940

Loans charged to the allowance

​

 

(107)

​

 

—

 

​

—

​

 

(857)

​

 

—

​

 

—

​

 

(964)

Recoveries of loans previously charged off

​

 

—

​

 

—

 

​

—

​

 

162

​

 

—

​

 

—

​

 

162

Balance, end of period

​

$

1,913

​

$

2,042

​

$

7,018

​

$

4,173

​

$

523

​

$

173

​

$

15,842

Ending balance: individually evaluated for impairment

​

$

—

​

$

23

​

$

—

​

$

650

​

$

—

​

$

8

​

$

681

Ending balance: collectively evaluated for impairment

​

$

1,913

​

$

2,019

​

$

7,018

​

$

3,523

​

$

523

​

$

165

​

$

15,161

Loans

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Ending balance

​

$

765,151

​

$

413,835

​

$

1,347,125

​

$

398,601

​

$

85,210

​

$

18,388

​

$

3,028,310

Ending balance individually evaluated for impairment

​

$

233

​

$

3,109

​

$

—

​

$

9,152

​

$

—

​

$

23

​

$

12,517

Ending balance collectively evaluated for impairment

​

$

764,918

​

$

410,726

​

$

1,347,125

​

$

389,449

​

$

85,210

​

$

18,365

​

$

3,015,793

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Year Ended December 31, 2018

​

  

MTG WHLOC

  

RES RE

  

MF RE

  

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of year

​

$

283

​

$

1,587

 

$

3,502

​

$

2,362

​

$

320

​

$

257

​

$

8,311

Provision for loan losses

​

 

785

​

 

399

 

​

2,528

​

 

779

​

 

109

​

 

29

​

 

4,629

Loans charged to the allowance

​

 

—

​

 

—

 

​

—

​

 

(90)

​

 

—

​

 

(146)

​

 

(236)

Recoveries of loans previously charged off

​

 

—

​

 

—

 

​

—

​

 

—

​

 

—

​

 

—

​

 

—

Balance, end of year

​

$

1,068

​

$

1,986

​

$

6,030

​

$

3,051

​

$

429

​

$

140

​

$

12,704

​

Internal Risk Categories

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

Average or above - Loans to borrowers of satisfactory financial strength or better. Earnings performance is consistent with primary and secondary sources of repayment that are well defined and adequate to retire the debt in a timely and orderly fashion. These businesses would generally exhibit satisfactory asset quality and liquidity with

moderate leverage, average performance to their peer group and experienced management in key positions. These loans are disclosed as “Acceptable and Above” in the following table.

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

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

Special Mention (Watch) – COVID-19 Deferrals – This is a loan that is sound and collectable but contains potential risk because the borrower has requested to defer payments, typically for 90 days, in response to COVID-related hardships. Interest is still accruing on these loans and they were not more than 30 days late at the time the deferral was granted. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

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

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

The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of December 31, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

    

MTG WHLOC

    

RES RE

    

MF RE

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Special Mention (Watch)

​

$

222

​

$

853

​

$

145,050

​

$

2,620

​

$

4,160

​

$

34

​

$

152,939

Special Mention (Watch) - COVID-19 Deferrals

​

​

—

​

​

383

​

​

185

​

​

110

​

​

—

​

​

—

​

​

678

Substandard

​

 

—

​

 

2,761

​

 

—

​

 

9,591

​

 

2,100

​

 

12

​

 

14,464

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Acceptable and Above

​

 

1,605,523

​

 

674,851

​

 

2,603,785

​

 

374,973

​

 

95,008

​

 

13,205

​

 

5,367,345

Total

​

$

1,605,745

​

$

678,848

​

$

2,749,020

​

$

387,294

​

$

101,268

​

$

13,251

​

$

5,535,426

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

    

MTG WHLOC

    

   RES RE      

    

     MF RE       

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Special Mention (Watch)

​

$

—

​

$

2,472

​

$

41,882

​

$

13,806

​

$

2,114

​

$

31

​

$

60,305

Substandard

​

 

233

​

 

3,109

​

 

—

​

 

9,152

​

 

—

​

 

23

​

 

12,517

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Acceptable and Above

​

 

764,918

​

 

408,254

​

 

1,305,243

​

 

375,643

​

 

83,096

​

 

18,334

​

 

2,955,488

Total

​

$

765,151

​

$

413,835

​

$

1,347,125

​

$

398,601

​

$

85,210

​

$

18,388

​

$

3,028,310

​

​

The Company evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. No significant changes were made to either during the past year beyond the addition of a new category, Special Mention (Watch) – COVID-19 Deferrals. This new category includes loans not already in the traditional Special Mention (Watch) category that have been granted deferrals in response to the COVID-19 pandemic.

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2020 and 2019. There were 11 loans totaling $937,000 at December 31, 2020 that have been modified in accordance with the CARES Act and therefore not classified as delinquent. These loans have been granted extended dates to make payments and no payments were due as of December 31, 2020.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHLOC

​

$

—

 

$

—

​

$

—

​

$

—

​

$

1,605,745

​

$

1,605,745

RES RE

​

 

364

 

​

80

​

 

630

​

 

1,074

​

 

677,774

​

 

678,848

MF RE

​

 

—

 

​

36,760

​

 

—

​

 

36,760

​

 

2,712,260

​

 

2,749,020

CML & CRE

​

 

608

 

​

76

​

 

3,582

​

 

4,266

​

 

383,028

​

 

387,294

AG & AGRE

​

 

3,769

 

​

—

​

 

1,934

​

 

5,703

​

 

95,565

​

 

101,268

CON & MAR

​

 

7

 

​

—

​

 

19

​

 

26

​

 

13,225

​

 

13,251

​

​

$

4,748

​

$

36,916

​

$

6,165

​

$

47,829

​

$

5,487,597

​

$

5,535,426

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHLOC

​

$

—

 

$

—

​

$

—

​

$

—

​

$

765,151

​

$

765,151

RES RE

​

 

3,089

 

​

562

​

 

2,324

​

 

5,975

​

 

407,860

​

 

413,835

MF RE

​

 

—

 

​

—

​

 

—

​

 

—

​

 

1,347,125

​

 

1,347,125

CML & CRE

​

 

2,293

 

​

335

​

 

1,663

​

 

4,291

​

 

394,310

​

 

398,601

AG & AGRE

​

 

2,047

 

​

—

​

 

195

​

 

2,242

​

 

82,968

​

 

85,210

CON & MAR

​

 

50

 

​

31

​

 

19

​

 

100

​

 

18,288

​

 

18,388

​

​

$

7,479

​

$

928

​

$

4,201

​

$

12,608

​

$

3,015,702

​

$

3,028,310

​

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in TDRs.

The following tables present impaired loans and specific valuation allowance information based on class level as of December 31, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

    

MTG WHLOC

    

RES RE

    

MF RE

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

Impaired loans without a specific allowance:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Recorded investment

​

$

—

​

$

2,704

​

$

—

​

$

3,319

​

$

2,100

​

$

7

​

$

8,130

Unpaid principal balance

​

 

—

​

 

2,704

​

 

—

​

 

3,319

​

 

2,100

​

 

7

​

 

8,130

Impaired loans with a specific allowance:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Recorded investment

​

 

—

​

 

57

​

 

—

​

 

6,272

​

 

—

​

 

5

​

 

6,334

Unpaid principal balance

​

 

—

​

 

57

​

 

—

​

 

6,272

​

 

—

​

 

5

​

 

6,334

Specific allowance

​

 

—

​

 

7

​

 

—

​

 

1,606

​

 

—

​

 

—

​

 

1,613

Total impaired loans:

​

 

​

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Recorded investment

​

 

—

​

 

2,761

​

 

—

​

 

9,591

​

 

2,100

​

 

12

​

 

14,464

Unpaid principal balance

​

 

—

​

 

2,761

​

 

—

​

 

9,591

​

 

2,100

​

 

12

​

 

14,464

Specific allowance

​

 

—

​

 

7

​

 

—

​

 

1,606

​

 

—

​

 

—

​

 

1,613

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

    

MTG WHLOC

    

RES RE

    

MF RE

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

Impaired loans without a specific allowance:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Recorded investment

​

$

233

​

$

2,899

​

$

—

​

$

6,662

​

$

—

​

$

12

​

$

9,806

Unpaid principal balance

​

 

233

​

 

2,899

​

 

—

​

 

6,662

​

 

—

​

 

12

​

 

9,806

Impaired loans with a specific allowance:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

​

​

 

  

​

 

  

Recorded investment

​

 

—

​

 

210

​

 

—

​

 

2,490

​

 

—

​

 

11

​

 

2,711

Unpaid principal balance

​

 

—

​

 

210

​

 

—

​

 

2,490

​

 

—

​

 

11

​

 

2,711

Specific allowance

​

 

—

​

 

23

​

 

—

​

 

650

​

 

—

​

 

8

​

 

681

Total impaired loans:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Recorded investment

​

 

233

​

 

3,109

​

 

—

​

 

9,152

​

 

—

​

 

23

​

 

12,517

Unpaid principal balance

​

 

233

​

 

3,109

​

 

—

​

 

9,152

​

 

—

​

 

23

​

 

12,517

Specific allowance

​

 

—

​

 

23

​

 

—

​

 

650

​

 

—

​

 

8

​

 

681

​

The following tables present by portfolio class, information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2020, 2019 and 2018:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

    

MTG

    

​

​

    

​

​

    

CML &

    

AG &

    

CON &

    

​

​

​

​

WHLOC

​

RES RE

​

MF RE

​

CRE

​

AGRE

​

MAR

​

TOTAL

​

​

(In thousands)

Average recorded investment in impaired loans

​

$

106

​

$

3,002

​

$

—

​

$

9,913

​

$

1,662

​

$

17

​

$

14,700

Interest income recognized

​

 

—

​

 

57

​

 

—

​

 

371

​

 

1

​

 

—

​

 

429

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

​

MTG

    

​

​

    

​

​

    

CML &

    

AG &

    

CON &

    

​

​

​

    

WHLOC

​

RES RE

​

MF RE

​

CRE

​

AGRE

​

MAR

​

TOTAL

​

​

(In thousands)

Average recorded investment in impaired loans

​

$

242

​

$

3,175

​

$

—

​

$

8,675

​

$

—

​

$

25

​

$

12,117

Interest income recognized

​

 

—

​

 

71

​

 

—

​

 

463

​

 

—

​

 

—

​

 

534

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2018

​

    

MTG

    

​

    

​

    

CML &

    

​

AG &

    

CON &

    

​

​

​

WHLOC

​

RES RE

​

MF RE

​

CRE

​

​

AGRE

​

MAR

​

TOTAL

​

​

(In thousands)

Average recorded investment in impaired loans

​

$

932

​

$

1,485

​

$

—

​

$

8,872

​

$

489

​

$

52

​

$

11,830

Interest income recognized

​

 

59

​

 

50

​

 

—

​

 

375

​

 

43

​

 

1

​

 

528

​

The following table presents the Company’s nonaccrual loans and loans past due 90 days or more and still accruing at December 31, 2020 and 2019.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

​

2020

​

2019

​

​

​

​

​

Total Loans >

​

​

​

​

Total Loans >

​

​

​

​

​

90 Days &

​

​

​

​

90 Days &

​

    

Nonaccrual

    

Accruing

    

Nonaccrual

    

Accruing

​

​

(In thousands)

MTG WHLOC

​

$

—

​

$

—

​

$

233

​

$

—

RES RE

​

 

578

​

 

69

​

 

740

​

 

1,851

MF RE

​

 

—

​

 

—

​

 

—

​

 

—

CML & CRE

​

 

2,052

​

​

1,240

​

 

1,118

​

 

486

AG & AGRE

​

 

181

​

 

2,181

​

 

—

​

 

231

CON & MAR

​

 

12

​

 

8

​

 

18

​

 

1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

2,823

​

$

3,498

​

$

2,109

​

$

2,569

​

During 2020, the Company had one newly classified troubled debt restructuring in the AG & AGRE loan class. The loan had a pre and post modification balance of $180,000. The only term of the loan that changed was an extension of time to pay. There were no troubled loans restructured during 2019. During 2018, the Company had one newly classified troubled debt restructuring in the CML & CRE loan class. The loan had a pre and post modification balance of $2.0 million. For 2020, 2019 and 2018, no restructured loans defaulted. Loan modifications or forbearances related to the COVID-19 pandemic will generally not be considered TDRs.

​

The CARES Act included several provisions designed to help financial institutions like the Company in working with their customers. Section 4013 of the CARES Act, as extended, allows a financial institution to elect to suspend generally accepted accounting principles and regulatory determinations with respect to qualifying loan modifications related to COVID-19 that would otherwise be categorized as a TDR until January 1, 2022. The Company has taken advantage of this provision to extend certain payment modifications to loan customers in need. As of December 31, 2020, the Company has $937,000 of outstanding loans that were modified during 2020 under the CARES Act guidance, that remain on modified terms. The Company modified other loans during 2020 under the guidance that have since returned to normal repayment status as of December 31, 2020.

​

There was one customer with a residential loan balance of $725,000 in the process of foreclosure at December 31, 2019 that was paid in full at March 31, 2020, and there were no residential loans in process of foreclosures as of December 31, 2020.

​
v3.20.4
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2020
Derivative Financial Instruments  
Derivative Financial Instruments

​

Note 6: Derivative Financial Instruments

​

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

Forward Sales Commitments and Interest Rate Lock Commitments

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.

Each 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 consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in other assets in the consolidated balance sheets while derivative instruments with a negative fair value are reported in other liabilities in the consolidated balance sheets.

The following table presents the notional amount and fair value of interest rate locks and forward contracts utilized by the Company at December 31, 2020 and December 31, 2019.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

(Liability)

December 31, 2020

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

412,043

​

​

Derivative assets/liabilities

​

$

6,131

​

$

—

Forward contracts

 

304,024

​

​

Derivative assets/liabilities

​

 

—

​

​

2,682

​

​

​

​

​

​

​

$

6,131

​

$

2,682

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

(Liability)

December 31, 2019

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

17,826

​

​

Derivative assets/liabilities

​

$

186

​

$

—

Forward contracts

 

34,268

​

​

Derivative assets/liabilities

​

 

—

​

​

27

​

​

​

​

​

​

​

$

186

​

$

27

​

Fair values of derivative financial instruments were estimated using changes in mortgage interest rates from the date the Company entered into the interest rate lock commitment and the balance sheet date. The following tables summarizes the periodic changes in the fair value of the derivative financial instruments on the consolidated statements of income for the years ended December 31, 2020, 2019, and 2018.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

​

December 31, 

​

    

    

2020

​

2019

    

2018

​

​

​

​

(In thousands)

Interest rate lock commitments

​

​

$

5,945

​

$

116

​

$

70

Forward contracts (includes pair-off settlements)

​

​

 

(11,078)

​

​

(53)

​

​

(64)

Net derivative gains (loss)

​

​

$

(5,133)

​

$

63

​

$

6

​

​

​

​

​

​

​

​

​

​

​

​

Derivatives on Behalf of Customers

The Company offers derivative contracts to some customers in connection with their risk management needs. These derivatives include interest rate swaps. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party dealer. These derivatives generally work together as an

economic interest rate hedge, but the Company does not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred, typically resulting in no net earnings impact. The fair values of derivative assets and liabilities related to derivatives for customers with interest rate swaps were recorded in the condensed consolidated balance sheets as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

​

​

(In thousands)

​

​

​

​

​

(In thousands)

December 31, 2020

$

82,726

​

​

Other assets/liabilities

​

$

3,170

​

$

3,170

December 31, 2019

$

58,067

​

​

Other assets/liabilities

​

$

511

​

$

511

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

​

December 31, 

​

    

    

2020

    

2019

​

2018

​

​

​

​

(In thousands)

​

​

​

Gross swap gains

​

​

$

2,659

​

$

511

​

$

—

Gross swap losses

​

​

 

(2,659)

​

​

(511)

​

​

—

Net swap gains (losses)

​

​

$

—

​

$

—

​

$

—

​

The Company pledged $3.9 million and $590,000 in collateral to secure its obligations under swap contracts at December 31, 2020 and December 31, 2019, respectively.
v3.20.4
Loan Servicing
 12 Months Ended
Dec. 31, 2020
Loan Servicing  
Loan Servicing

Note 7: Loan Servicing

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets and represent agency eligible multi-family and single-family loans. The risks inherent in mortgage servicing assets relate primarily to changes in prepayments that result from shifts in mortgage interest rates. Call protection is in place on multi-family loans to deter from prepayments on a 10-year sliding scale. The unpaid principal balances of mortgage and other loans serviced for others were $8.7 billion and $6.3 billion at December 31, 2020 and 2019, respectively. Loans sub-serviced for others are not included in the accompanying balance sheets. The unpaid principal balances of loans sub-serviced for others were $5.6 billion and $3.8 billion at December 31, 2020 and 2019, respectively.

The following summarizes the activity in mortgage servicing rights measured using the fair value method for the years ended December 31, 2020, 2019, and 2018:

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Year Ended

​

​

December 31, 

​

    

2020

​

2019

    

2018

​

 

​

(In thousands)

Balance, beginning of period

​

$

74,387

​

$

77,844

​

$

66,079

Additions

​

 

  

​

 

  

​

 

  

Originated and purchased servicing

​

 

21,889

​

 

7,332

​

 

14,113

Subtractions

​

 

​

​

 

​

​

 

​

Paydowns

​

 

(7,838)

​

 

(5,994)

​

 

(4,196)

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

​

 

(5,834)

​

 

(4,795)

​

 

1,848

Balance, end of period

​

$

82,604

​

$

74,387

​

$

77,844

​

Contractually specified servicing fees for retained, purchased and sub-serviced loans were $11.9 million, $9.7 million, and $8.7 million for the years ended December 31, 2020, 2019 and 2018, respectively.

In connection with certain loan servicing and sub-servicing agreements, the Company is to reconcile the payments received monthly on these loans, for principal and interest, taxes, insurance, and reserves for replacements. The funds are required to be maintained in separate trust accounts and not commingled with the Company’s general operating funds. At December 31, 2020 and 2019, the Company held restricted escrow funds for these loans at the Bank or other financial institution, amounting to $498.2 million and $459.3 million, respectively.
v3.20.4
Goodwill and Intangibles
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangibles  
Goodwill and Intangibles

Note 8: Goodwill and Intangibles

Goodwill at December 31, 2020 remained unchanged compared to December 31, 2019. As of December 31, 2020, the Company’s market capitalization was above its book value, despite stock market volatility related to the adverse effects of the COVID-19 pandemic on the global economy. Goodwill represents the amount by which the cost of an acquisition exceeded the fair value of net assets acquired. Goodwill is tested for impairment annually, or more frequently if events and circumstances exist that indicate a goodwill impairment test should be performed. Based upon management’s assessment and evaluation of goodwill at year-end, the likelihood that an impairment of the current carrying amount of goodwill has occurred is considered remote.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

​

2019

​

​

2018

​

Multifamily

    

Banking

    

Warehouse

    

Total

    

Multifamily

    

Banking

    

Warehouse

    

Total

    

Multifamily

    

Banking

    

Warehouse

    

Total

​

(In thousands)

​

(In thousands)

​

(In thousands)

Balance, beginning of period

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

​

$

3,791

​

$

8,686

​

$

5,000

​

$

17,477

​

$

3,379

​

$

523

​

$

—

​

$

3,902

Goodwill acquired during the period

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

8,163

​

​

5,000

​

​

13,163

Post-acquisition adjustments

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

(333)

​

​

(1,299)

​

​

(1,632)

​

​

412

​

​

—

​

​

—

​

​

412

Impairment losses

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Balance, end of period

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

​

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

​

$

3,791

​

$

8,686

​

$

5,000

​

$

17,477

​

In conjunction with the acquisition of MCS on August 15, 2017, the Company recorded goodwill of $3.8 million in the Multi-family segment, after reflecting a purchase accounting adjustment of $412,000, related to contingent consideration for loans closed after the acquisition date, that increased goodwill during the year ended December 31, 2018. The Company also recorded intangible assets for licenses and trade names as summarized below. The licenses are being amortized over 84 months and trade names are being amortized over 120 months, both using the straight-line method. Amortization of these intangible assets was $218,000 for the years ended December 31, 2020, 2019, and 2018.

​

In conjunction with the acquisition of FMBI on January 2, 2018, the Company recorded goodwill of $988,000 in the Banking segment during the year ended December 31, 2018. The Company also recorded intangible assets for core deposits, as summarized below. The core deposit intangibles are being amortized over 10 years using the accelerated sum of the years digits method. Amortization for these intangible assets was $75,000, $82,000 and $84,000 for the years ended December 31, 2020, 2019 and 2018, respectively.

​

In conjunction with the acquisition of FMNBP on October 1, 2018, the Company recorded goodwill of $6.9 million in the Banking segment during the year ended December 31, 2018. A $333,000 purchase accounting adjustment, primarily related to the valuation of securities decreased goodwill during 2019. The Company also recorded intangible assets for core deposits, as summarized below. The core deposit intangibles are being amortized over 10 years using the accelerated sum of the years digits method. Amortization for these intangible assets was $326,000, 339,000 and $85,000 for the years ended December 31, 2020, 2019 and 2018, respectively.

​

In conjunction with the acquisition of the assets of NattyMac, LLC on December 31, 2018, the Company recorded goodwill of $3.7 million in the Warehouse segment, after reflecting a $1.6 million transfer to intangible assets and a $271,000 purchase accounting adjustment related to contingent consideration that increased goodwill during 2019. Intangible assets of $1.6 million, related to customer lists, were recorded and amortized over 21 months using the

straight-line method. Accumulated amortization of these intangible assets was $1.6 million and are fully amortized as of December 31, 2020.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

2020

         

2019

         

2018

​

​

Gross

    

​

​

    

​

​

​

Gross

    

​

​

    

​

​

    

Gross

    

​

​

    

​

​

​

​

Carrying

​

Accumulated

​

​

​

​

Carrying

​

Accumulated

​

​

​

​

Carrying

​

Accumulated

​

​

​

​

​

Amount

​

Amortization

​

Total

    

Amount

​

Amortization

​

Total

    

Amount

​

Amortization

​

Total

​

​

(In thousands)

​

(In thousands)

​

(In thousands)

Licenses

​

$

1,370

​

$

(661)

​

$

709

​

$

1,370

​

$

(465)

​

$

905

​

$

1,370

​

$

(269)

​

$

1,101

Trade names

​

​

224

​

​

(75)

​

​

149

​

​

224

​

​

(53)

​

​

171

​

​

224

​

​

(31)

​

​

193

Customer list

​

​

1,570

​

​

(1,570)

​

​

—

​

​

1,570

​

​

(673)

​

​

897

​

​

—

​

​

—

​

​

—

Core deposit intangible

​

​

2,417

​

​

(992)

​

​

1,425

​

​

2,417

​

​

(591)

​

​

1,826

​

​

2,417

​

​

(169)

​

​

2,248

Total intangible Assets

​

$

5,581

​

$

(3,298)

​

$

2,283

​

$

5,581

​

$

(1,782)

​

$

3,799

​

$

4,011

​

$

(469)

​

$

3,542

​

Estimated amortization expense for future years is as follows (in thousands):

​

​

​

​

​

Year ending December 31,

    

​

​

2021

​

$

577

2022

​

​

521

2023

​

​

462

2024

​

​

335

2025

​

​

166

Thereafter

​

​

222

Total

​

$

2,283

​
v3.20.4
Premises and Equipment
 12 Months Ended
Dec. 31, 2020
Premises and Equipment  
Premises and Equipment

​

Note 9: Premises and Equipment

Major classifications of premises and equipment, stated at cost, are as follows:

​

​

​

​

​

​

​

​

​

​

December 31, 

​

    

2020

    

2019

​

​

(In thousands)

Land

​

$

3,072

​

$

3,072

Buildings

​

 

23,946

​

 

22,775

Leasehold improvements

​

 

227

​

 

53

Furniture, fixtures, equipment and software

​

 

7,429

​

 

6,445

Total cost

​

 

34,674

​

 

32,345

Accumulated depreciation

​

 

(4,913)

​

 

(3,071)

Net premises and equipment

​

$

29,761

​

$

29,274

​
v3.20.4
Other Assets and Receivables
 12 Months Ended
Dec. 31, 2020
Other Assets and Receivables.  
Other Assets and Receivables

Note 10: Other Assets and Receivables

The following items are included in other assets and receivables in the consolidated balance sheets.

Investment in Qualified Affordable Housing Limited Partnerships

The Company invests in qualified affordable housing limited partnerships. At December 31, 2020 and 2019, the balance of the investments for qualified affordable housing limited partnerships was $14.9 million and $14.9 million, respectively. The Company could make additional contributions to certain existing partnerships, but has no obligation unless certain development, operation, and/or tax credit benchmarks are achieved. The Company also became a minority investor in the limited partnership of a syndicated fund during 2020 in which it is obligated to invest an additional $9 million over the next several years, and this expected amount is reflected in the $14.9 million investment balance at December 31, 2020. During the years ended December 31, 2020 and 2019, the Company recorded amortization expense of $1.8 million and $2.3 million, respectively. Tax credits related to these investments were $2.0 million for the 2020 tax

year and was $2.5 for the 2019 tax year. The Company expects to receive additional tax credits and other benefits in 2021 and will continue to amortize this investment based on the proportional amortization method.

Other Receivables

​

At December 31, 2020 and 2019, the Company had other receivables of $11.5 million and $5.6 million, respectively. These other receivables consisted of short-term receivables of $4.6 million and $3.1 million, for the years ended December 31, 2020 and 2019 respectively, that represent prepaid trading and settlement fees paid to non-affiliated originators that were collected at the time of applicable mortgage backed security settlements, with the remaining amounts collected in the normal course of business. Other receivables also included $3.9 million and $590,000 of receivable collateral recorded against outstanding hedges for back-to-back swaps for the years ended December 31, 2020 and 2019, respectively, as well as $2.1 million for margins called on forward trades in single family mortgages at December 31, 2020.

​

Other items included in other assets and receivables on the balance sheet are disclosed elsewhere, or are not individually significant.
v3.20.4
Deposits
 12 Months Ended
Dec. 31, 2020
Deposits  
Deposits

Note 11: Deposits

Deposits were comprised of the following at and December 31, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

December 31,

​

    

2020

    

2019

​

​

(In thousands)

Demand deposits

​

$

5,072,552

​

$

2,099,373

Savings deposits

​

 

1,978,861

​

 

1,204,363

Certificates of deposit

​

 

356,653

​

 

2,174,339

Total deposits

​

$

7,408,066

​

$

5,478,075

​

At December 31, 2020, the scheduled maturities of time deposits are as follows:

​

nna

​

​

​

​

    

December 31, 2020

​

​

(In thousands)

Due within one year

​

$

239,998

Due in one year to two years

​

 

103,575

Due in two years to three years

​

 

10,485

Due in three years to four years

​

 

2,014

Due in four years to five years

​

 

581

​

​

$

356,653

​

Certificates of deposit of $250,000 or more totaled $258.5 million at December 31, 2020 and $128.9 million at December 31, 2019.

Brokered deposit amounts at December 31, 2020 and 2019, were as follows:

​

​

​

​

​

​

​

​

​

​

December 31,

​

    

2020

    

2019

​

​

(In thousands)

Brokered certificates of deposit

​

$

29,164

​

$

1,962,389

Brokered savings deposits

​

 

324,408

​

 

184,603

Brokered deposit on demand accounts

​

 

820,165

​

 

10,001

​

​

$

1,173,737

​

$

2,156,993

​
v3.20.4
Borrowings
 12 Months Ended
Dec. 31, 2020
Borrowings  
Borrowings

Note 12: Borrowings

Borrowings were comprised of the following at December 31, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

December 31, 

​

    

2020

    

2019

​

​

(In thousands)

Lines of credit

​

$

—

​

$

6,540

Federal Reserve discount window borrowings

​

​

50,000

​

​

—

Paycheck Protection Program Liquidity Facility

​

​

62,225

​

​

—

Short-term subordinated debt

​

 

14,960

​

 

12,200

FHLB advances

​

 

1,221,071

​

 

162,699

Total borrowings

​

$

1,348,256

​

$

181,439

​

The Company had a revolving line of credit (“LOC”) with the FHLB during the year 2019. This arrangement had a maximum borrowing limit of collateral pledged, with an outstanding balance at December 31, 2019 of $6.5 million. The floating interest rate on the LOC was set daily at a fixed spread to the actual Federal Funds rate earned by the FHLB, and was 1.77% at December 31, 2019. The Company did not have an outstanding balance on any LOC at December 31, 2020.

The Company began borrowing from the Federal Reserve discount window during the year ended December 31, 2020. This arrangement has a maximum borrowing limit of collateral pledged multiplied by an advance rate. Borrowing maturities can range from 24 hours to up to a term of 90 days. As of December 31, 2020, the outstanding balance was $50.0 million. This 24-hour advance was based on a fixed interest rate of 0.25% set by the Federal Reserve for Primary Credit institutions. These borrowings are secured by commercial, agricultural and construction loans totaling $2.3 billion.

During the year ended December 31, 2020, the Company began borrowing from the Paycheck Protection Program Liquidity Facility (“PPPLF”) established as a result of the CARES Act. This arrangement has a maximum borrowing limit of collateral pledged in the form of PPP loans and will be reduced as PPP loans are forgiven, per SBA guidelines. Borrowing terms require repayments that coincide with maturity dates or early payment of PPP loans as payments are made or loans are forgiven by the SBA. As of December 31, 2020, maturity dates range from April 1, 2022 to July 1, 2025.  This borrowing facility was based on a fixed interest rate of 0.35% set by the Federal Reserve. The borrowings are secured by the related PPP loans that totaled $60.3 million at December 31, 2020.

The Company entered into a warehouse financing arrangement in April 24, 2018, whereby a customer agreed to invest up to $30 million in the Company’s subordinated debt. The subordinated debt balance as of December 31, 2020 and 2019 was $15.0 million and $12.2 million, respectively. Interest on the debt is paid quarterly by the Company at a rate equal to one-month LIBOR, plus 300 basis points, plus additional interest equal to 50% of the earnings generated. The agreement is automatically renewed annually on April 30th, unless either party notifies the other party at least 180 days prior to its renewable date, of its desire not to continue the relationship. As of December 31, 2020, neither party had made a notification of its intent to cancel this arrangement.

FHLB advances and the LOC are secured by mortgage loans totaling $1.5 billion and $1.4 billion at December 31, 2020 and 2019, respectively. In addition, available for sale securities and securities purchased under agreements to resell with a carrying value of $261.4 million and $276.7 million were pledged as of December 31, 2020 and 2019, respectively. At December 31, 2020, the FHLB advances had interest rates ranging from 0.00% to 4.74%, and at December 31, 2019, the FHLB advances had interest rates ranging from 1.58% to 4.74%, and were subject to restrictions or penalties in the event of prepayment. FHLB advances include an advance in the amount of $400.0 million at December 31, 2020 that is subject to a put option. The put option can be exercised by the FHLB on a quarterly basis until November 2029. The next opportunity FHLB has to exercise the put option will be May 25, 2021.

Maturities of borrowings were as follows at December 31, 2020:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Year Ended December 31, 2020

​

​

Federal Reserve

​

​

​

Short-Term

​

FHLB

​

Borrowings

​

​

Discount Window

​

PPPLF

​

Subordinated Debt

​

Advances

​

Total

​

​

(In thousands)

Due within one year

​

$

50,000

​

$

—

​

$

—

​

$

819,077

​

$

869,077

Due in one year to two years

​

 

—

​

 

62,128

​

 

14,960

​

 

59

​

 

77,147

Due in two years to three years

​

 

—

​

 

—

​

 

—

​

 

342

​

 

342

Due in three years to four years

​

 

—

​

 

—

​

 

—

​

 

61

​

 

61

Due in four years to five years

​

 

—

​

 

97

​

 

—

​

 

—

​

 

97

Thereafter

​

 

—

​

 

—

​

 

—

​

 

401,532

​

 

401,532

​

​

$

50,000

​

$

62,225

​

$

14,960

​

$

1,221,071

​

$

1,348,256

​

​

At December 31, 2020, the Company had excess borrowing capacity of approximately $2.6 billion with the FHLB, the Federal Reserve discount window, and PPPLF, based on available collateral.
v3.20.4
Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Taxes  
Income Taxes

Note 13: Income Taxes

The provision for income taxes includes these components for the years ended December 31, 2020, 2019 and 2018:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

 

​

​

December 31, 

 

​

    

2020

    

​

2019

​

2018

 

​

 

​

(In thousands)

​

Income tax expense

​

​

​

​

​

​

​

​

​

​

Current tax payable

 

​

  

 

​

​

​

​

  

​

Federal

​

$

48,409

​

$

21,396

​

$

13,312

​

State

​

 

15,107

​

 

4,387

​

 

5,528

​

Deferred tax payable

​

 

  

​

 

  

​

 

  

​

Federal

​

 

(529)

​

 

(375)

​

 

1,583

​

State

​

 

(163)

​

 

(603)

​

 

730

​

Income tax expense

​

$

62,824

​

$

24,805

​

$

21,153

​

Effective tax rate

​

 

25.8

%  

 

24.3

%

 

29.1

%

​

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense for the years ended December 31, 2020, 2019 and 2018, is shown below:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

December 31, 

​

    

2020

​

    

2019

​

2018

​

 

(In thousands)

Computed at the statutory rate -21%

​

$

51,105

​

$

21,448

​

$

17,646

Increase resulting from

​

 

​

​

 

  

​

 

  

State income taxes

​

 

11,805

​

 

2,989

​

 

4,944

Tax Credits net of related amortization

​

 

(123)

​

 

(190)

​

 

(1,533)

Other

​

 

37

​

 

558

​

 

96

Actual tax expense

​

$

62,824

​

$

24,805

​

$

21,153

​

The tax effects of temporary differences related to deferred taxes shown on the balance sheet were:

​

​

​

​

​

​

​

​

​

​

December 31, 

​

    

2020

    

2019

​

​

(In thousands)

Deferred tax assets

​

​

​

​

​

​

Allowance for loan losses

​

$

7,090

​

$

4,069

Fair value adjustments on acquisitions

​

 

174

​

 

228

Other

​

 

1,330

​

 

1,309

Total assets

​

 

8,594

​

 

5,606

Deferred tax liabilities

​

 

  

​

 

  

Depreciation

​

 

(2,460)

​

 

(1,374)

Intangible assets

​

 

(254)

​

 

(466)

Mortgage servicing rights

​

 

(19,751)

​

 

(17,035)

Limited partnership investments

​

 

(497)

​

 

(1,791)

Unrealized gain on available for sale securities

​

 

(105)

​

 

(121)

Total liabilities

​

 

(23,067)

​

 

(20,787)

Net deferred tax liability

​

$

(14,473)

​

$

(15,181)

​
v3.20.4
Regulatory Matters
 12 Months Ended
Dec. 31, 2020
Regulatory Matters  
Regulatory Matters

Note 14: Regulatory Matters

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

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

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

​

In April 2020, under the CARES Act, the 9% leverage ratio threshold was temporarily reduced to 8% in response to the COVID-19 pandemic. The threshold increased to 8.5% in 2021 and will return to 9% in 2022. The Company, Merchants Bank, and FMBI elected to begin using CBLR in the first quarter of 2020 and all intend to utilize this measure for the foreseeable future and thus will not calculate or report risk-based capital ratios.

On December 2, 2020 the Federal Deposit Insurance Corporation (“FDIC”) issued an interim final rule related to COVID-19 as it pertains to eligibility to utilize CBLR. The rule allows organizations with less than $10 billion in total assets as of December 31, 2019, to use the assets on that date to determine the applicability of various regulatory asset thresholds during 2020 and 2021.

Management believes, as of December 31, 2020 and 2019, that the Company, Merchants Bank, and FMBI met all the regulatory capital adequacy requirements with CBLR to be classified as well-capitalized, and management is not aware of any conditions or events since the most recent regulatory notification that would change the Company’s, Merchants Bank’s, or FMBI’s category.

As of December 31, 2020 and 2019, the most recent notifications from the Board of Governors of the Federal Reserve System (“Federal Reserve”) categorized the Company as well capitalized and most recent notifications from the FDIC categorized Merchants Bank and FMBI as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Company’s, Merchants Bank’s, or FMBI’s category.

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum Amount

​

​

​

​

​

​

​

​

To Be Well

​

​

​

Actual

​

Capitalized(1)

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

    

​

​

(Dollars in thousands)

​

December 31, 2020

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

(i.e., CBLR - leverage ratio)

 

​

  

 

  

 

​

  

 

  

 

Company

​

$

792,456

 

8.6

%  

$

738,019

 

> 8

%  

Merchants Bank

​

 

781,221

 

8.7

%  

 

718,120

 

> 8

%  

FMBI

​

​

24,456

 

9.8

%  

 

19,979

 

> 8

%  

(1)As defined by regulatory agencies.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum

​

Minimum

 

​

​

​

​

​

​

​

Amount Required

​

Amount To Be

 

​

​

​

​

​

​

​

for Adequately

​

Well

 

​

​

Actual

​

Capitalized(1)

​

Capitalized(1)

 

​

    

Amount

    

Ratio

    

Amount

    

Ratio

​

Amount

    

Ratio

 

​

​

(Dollars in thousands)

 

December 31, 2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

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

 

​

  

 

  

 

​

  

 

  

 

​

  

 

  

​

Company

​

$

637,472

 

11.6

%  

$

440,063

 

8.0

%  

$

—

 

N/A

​

Merchants Bank

​

 

639,104

 

12.0

%  

 

426,748

 

8.0

%  

 

533,435

 

10.0

%

FMBI

​

​

21,726

 

13.1

%  

 

13,306

 

8.0

%  

 

16,632

 

10.0

%

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

​

 

  

 

  

​

 

  

 

  

​

 

  

 

  

​

Company

​

 

621,630

 

11.3

%  

 

330,047

 

6.0

%  

 

—

 

N/A

​

Merchants Bank

​

 

623,716

 

11.7

%  

 

320,061

 

6.0

%  

 

426,748

 

8.0

%

FMBI

​

​

21,272

 

12.8

%  

 

9,979

 

6.0

%  

 

13,306

 

8.0

%

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Company

​

 

408,984

 

7.4

%  

 

247,536

 

4.5

%  

 

—

 

N/A

​

Merchants Bank

​

 

623,716

 

11.7

%  

 

240,046

 

4.5

%  

 

346,733

 

6.5

%

FMBI

​

​

21,272

 

12.8

%  

 

7,484

 

4.5

%  

 

10,811

 

6.5

%

Tier 1 capital(1) (to average assets)

​

 

​

 

  

​

 

  

 

​

​

 

  

 

  

​

Company

​

 

621,630

 

9.4

%  

 

264,324

 

4.0

%  

 

—

 

N/A

​

Merchants Bank

​

​

623,716

 

9.7

%  

 

257,487

 

4.0

%  

 

321,859

 

5.0

%

FMBI

​

 

21,272

 

11.7

%  

 

7,302

 

4.0

%  

 

9,128

 

5.0

%

(1)As defined by regulatory agencies.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

Prior to adopting the new CBLR regulatory capital rule, which became effective on January 1, 2020, the Basel III capital rules applied to Merchants Bank.

The Basel III capital rules, among other things, (i) introduced a new capital measure called “Common Equity Tier 1” (CET1), (ii) specified that Tier 1 capital consist of CET1 and “Additional Tier 1 Capital” instruments meeting specified requirements, (iii) defined CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital and (iv) expanded the scope of the deductions/adjustments as compared to existing regulations.

Implementation of the deductions and other adjustments to CET1 began on January 1, 2015, and were phased in over a four-year period, becoming fully phased in on January 1, 2019. Additionally, under the Basel III Capital Rules, in order to avoid limitations on capital distributions of dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a capital conservation buffer composed of capital above its minimum risk-based capital requirements. On January 1, 2019 the capital conservation buffer became fully phased in at 2.5%.

The Company’s principal source of funds for dividend payments to shareholders is dividends received from Merchants Bank and FMBI. Banking statutes and regulations limit the maximum amount of dividends that a bank may pay without requesting prior approval of regulatory agencies. Under Indiana law, Merchants Bank may not pay a dividend if such dividend would be greater than retained net income (as defined) for the current year plus those for the previous two years, subject to the capital requirements described above. Under Illinois law, FMBI may not pay dividends in an amount greater than its current net profits after deducting losses and bad debts out of undivided profits provided that its surplus equals or exceeds its capital. At December 31, 2020, the amount available, without prior regulatory approval, for dividends which could be paid by Merchants Bank and FMBI to the Company was $227.0 million.
v3.20.4
Earnings Per Share
 12 Months Ended
Dec. 31, 2020
Earnings Per Share  
Earnings Per Share

Note 15: Earnings Per Share

Earnings per share were computed as follows for years ended December 31, 2020, 2019 and 2018.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

2020

​

2019

​

2018

​

​

​

​

​

Weighted-

​

Per

​

​

​

​

Weighted-

​

Per

​

​

​

​

Weighted-

​

Per

​

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

​

    

(In thousands)

    

​

    

​

​

(In thousands)

​

​

​

​

​

    

​

(In thousands)

​

​

    

​

​

Net income

​

$

180,533

​

​

​

​

​

​

$

77,329

​

​

​

​

​

​

$

62,874

 

  

​

​

​

Dividends on preferred stock

​

 

(14,473)

 

  

 

​

  

​

 

(9,216)

​

​

​

​

​

​

 

(3,330)

 

  

 

​

  

Net income allocated to common shareholders

​

$

166,060

 

  

 

​

  

​

$

68,113

​

​

​

​

​

​

$

59,544

 

  

 

​

  

Basic earnings per share

​

 

  

 

28,742,494

​

$

5.78

​

 

​

​

28,705,125

​

$

2.37

​

 

  

 

28,692,955

​

$

2.08

Effect of dilutive securities—restricted stock awards

​

 

  

 

35,581

​

 

  

​

​

​

​

40,582

​

 

  

​

 

  

 

31,464

​

 

  

Diluted earnings per share

​

 

  

 

28,778,075

​

$

5.77

​

​

​

​

28,745,707

​

$

2.37

​

 

  

 

28,724,419

​

$

2.07

​
v3.20.4
Stock Splits
 12 Months Ended
Dec. 31, 2020
Stock Splits  
Stock Splits

Note 16: Stock Splits

On July 5, 2017, the Company approved an increase of authorized common shares to 50.0 million shares, and declared a 2.5-for-1 stock split effective July 6, 2017. The presentation of authorized common shares has been retrospectively adjusted to give effect to the increase, and all share and per share amounts have been retrospectively adjusted to give effect to these splits.
v3.20.4
Common Stock
 12 Months Ended
Dec. 31, 2020
Common Stock  
Common Stock

Note 17: Common Stock

On October 26, 2017, the Company issued 6,250,000 shares of common stock in its initial public offering, and on November 2, 2017, the Company issued an additional 937,500 shares of common stock to the underwriters related to their exercise of an option to purchase additional shares. The aggregate gross offering proceeds for the shares issued by the Company was $115.0 million, and after deducting underwriting discounts and offering expenses of approximately $8.8 million paid to third parties, the Company received total net proceeds of $106.2 million.

On November 9, 2020, the Company received cash and 15,000 shares of Merchants Bancorp common stock owned by a shareholder, in exchange for the Company’s interest in a minority owned investment. These shares were retired as a result of the transaction.

v3.20.4
Preferred Stock
 12 Months Ended
Dec. 31, 2020
Preferred Stock  
Preferred Stock

Note 18: Preferred Stock

Public Offerings of Preferred Stock

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

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

Private Placement Offerings of Preferred Stock

The Company previously issued a total of 41,625 shares of 8% Non-Cumulative, Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000.00 per share (8% Preferred Stock”) in private placement offerings. The Company may redeem this Preferred Stock, in whole or in part, at our option, on any dividend payment date on or after December 31, 2020, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption.

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

Repurchase of Preferred Stock

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

v3.20.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2020
Related Party Transactions  
Related Party Transactions

Note 19: Related Party Transactions

The Company has entered into transactions with certain directors, executive officers, and their affiliates or associates (related parties). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features.

In 2016, the Company purchased a 30% ownership in one of its key loan processing vendors, and in 2019 its ownership increased 44.23%. On November 9, 2020, Merchants Bancorp exchanged its 44.23% investment in this company for Merchants common shares currently held by the company, plus cash. The shares were then constructively retired by Merchants. This company had owned 15,000 shares of common stock (with no par value) that were issued with a basis of $10 per share, totaling $150,000. The investment was accounted for using the equity method of accounting. Fees paid to this company during each of the years ended December 31, 2020, 2019, and 2018 were $2.7 million, $3.1 million, and $3.4 million, respectively. At December 31, 2019 and 2018, fees of $214,000 and $226,000 were accrued for services received.

In 2020, the Company purchased a 22.22% ownership in a limited partnership that provides capital to the senior housing and healthcare sectors. The investment is accounted for using the equity method of accounting. During the year

ended December 31, 2020, the Company received $6.5 million of origination fees paid by borrowers to the Company for loans referred by this limited partnership. The Company paid $4.5 million of those fees to the limited partnership when the loans were closed.

The Company retained a law firm of which a Board member of Merchants Bank is a partner. Services rendered are primarily related to documentation of current loan originations, and loan collections from Merchants Bank’s borrowers. Fees paid to the law firm totaled $5.3 million, $3.6 million, and $3.7 million for the years ended December 31, 2020, 2019 and 2018 respectively.

During 2019 the Company purchased technology equipment and services for its new corporate headquarters building from a company owned by a Board member of Merchants Bancorp. Fees paid directly and indirectly to this company totaled $13,000 and $641,000 for the years ended December 31, 2020 and 2019. No fees were incurred for the years ended December 31, 2018.

v3.20.4
Employee Benefits
 12 Months Ended
Dec. 31, 2020
Employee Benefits  
Employee Benefits

Note 20: Employee Benefits

The Company offers employees a 401(k) plan. Pursuant to the plan agreement, matching contributions equal to 100% of the employees’ elective deferrals which do not exceed 3% of the employees’ compensation will be made unless management elects to make either the alternative matching contribution or the non-elective contribution. Employer contributions to the plans were $859,000, $629,000, and $464,000 for the years ended December 31, 2020, 2019, and 2018, 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 $537,000 for the year ended December 31, 2020. The Company contributed 19,433 shares to the ESOP in January 2021.

v3.20.4
Share-Based Payment Plan
 12 Months Ended
Dec. 31, 2020
Share-Based Payment Plan  
Share-Based Payment Plan

Note 21: Share-Based Payment Plans

Equity-based incentive awards are currently issued pursuant to the 2017 Equity Incentive Plan (the “2017 Incentive Plan”). Prior to the adoption of the 2017 Incentive Plan, the equity awards issued historically consisted of restricted stock awards issued pursuant to the Incentive Plan for Merchants Bank Executive Officers (the “Prior Incentive Plan”). As of the effective date of the 2017 Equity Incentive Plan, no further awards will be granted under the Prior Incentive Plan. During the years ended December 31, 2020 and 2019, the Company issued 52,515 and 10,127 shares, respectively, pursuant under these plans. At December 31, 2020, there were no outstanding awards under the Prior Incentive Plan. Expense recognized for these plans totaled $602,000, $533,000, and $171,000 for the years ended December 31, 2020, 2019, and 2018, respectively. At December 31, 2020 and 2019, there were 177,046 and 91,266 unvested shares awarded under the 2017 Plan, respectively. Unrecognized compensation cost totaled $3.1 million and $1.3 million at December 31, 2020 and 2019, 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 fees in the form of restricted common stock equal to $10,000, rounded up to the nearest whole share. Accordingly, there were 3,130 shares issued during the year ended December 31, 2020, reflecting $50,000 in expenses. There were 2,275 total shares issued during the year ended December 31, 2019, reflecting $50,000 in expenses. There were 1,830 total shares issued during the year ended December 31, 2018, reflecting $50,000 in expenses. In January 2021, the Board of Directors amended the plan for nonexecutive directors to receive a portion of their annual fees, issued quarterly, in the form of restricted common stock equal to $50,000 per member, rounded up to the nearest whole share, to be effective after the Company’s next annual meeting of shareholders.

​
v3.20.4
Disclosures about Fair Value of Assets and Liabilities
 12 Months Ended
Dec. 31, 2020
Disclosures about Fair Value of Assets and Liabilities  
Disclosures about Fair Value of Assets and Liabilities

Note 22: Disclosures About Fair Value of Assets and Liabilities

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

​

​

​

Level 1

  

Quoted prices in active markets for identical assets or liabilities

​

Level 2

​

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

​

Level 3

​

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

​

Recurring Measurements

The following tables present the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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)

December 31, 2020

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

338,733

​

$

—

​

$

338,733

​

$

—

Available for sale securities:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

6,559

​

 

6,559

​

 

—

​

 

—

Federal agencies

​

 

235,040

​

 

—

​

 

235,040

​

 

—

Municipals

​

 

6,025

​

 

—

​

 

6,025

​

 

—

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

 

22,178

​

 

—

​

 

22,178

​

 

—

Loans held for sale

​

 

40,044

​

 

—

​

 

40,044

​

 

—

Mortgage servicing rights

​

 

82,604

​

 

—

​

 

—

​

 

82,604

Derivative assets - interest rate lock commitments

​

 

6,131

​

 

—

​

 

—

​

 

6,131

Derivative asset - interest rate swap

​

​

3,170

​

​

—

​

​

3,170

​

​

—

Derivative liabilities - forward contracts

​

 

2,682

​

​

—

​

​

2,682

​

​

—

Derivative liabilities - interest rate swap

​

 

3,170

​

​

—

​

​

3,170

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

 

  

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

269,891

​

$

—

​

$

269,891

​

$

—

Available for sale securities:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

4,765

​

 

4,765

​

 

—

​

 

—

Federal agencies

​

 

244,973

​

 

—

​

 

244,973

​

 

—

Municipals

​

 

5,937

​

​

—

​

 

5,937

​

 

—

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

 

34,568

​

 

​

​

​

34,568

​

​

—

Loans held for sale

​

 

19,592

​

 

—

​

 

19,592

​

 

—

Mortgage servicing rights

​

 

74,387

​

 

—

​

 

—

​

 

74,387

Derivative assets - interest rate lock commitments

​

 

186

​

 

—

​

 

—

​

 

186

Derivative assets - interest rate swap

​

 

511

​

 

—

​

 

511

​

 

—

Derivative liabilities - forward contracts

​

 

27

​

​

—

​

 

27

​

 

—

Derivative liabilities - interest rate swap

​

 

511

​

​

—

​

​

511

​

​

—

​

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the years ended December 31, 2020 and 2019. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Mortgage Loans in Process of Securitization and Available for Sale Securities

Where quoted market prices are available in an active market, securities such as U.S. Treasuries are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the

inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy including federal agencies, mortgage-backed securities, municipal securities and Federal Housing Administration participation certificates. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Loans Held for Sale

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

Mortgage Servicing Rights

Mortgage 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, mortgage servicing rights are classified within Level 3 of the hierarchy.

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

Derivative Financial Instruments

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

​

Level 3 Reconciliation

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

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

    

2020

    

2019

    

2018

​

​

(In thousands)

Mortgage servicing rights

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

74,387

​

$

77,844

​

$

66,079

Additions

​

 

  

​

 

  

​

 

  

Originated and purchased servicing

​

 

21,889

​

 

7,332

​

 

14,113

Subtractions

​

 

  

​

 

  

​

 

  

Paydowns

​

 

(7,838)

​

 

(5,994)

​

 

(4,196)

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

​

 

(5,834)

​

 

(4,795)

​

 

1,848

Balance, end of period

​

$

82,604

​

$

74,387

​

$

77,844

​

​

​

​

​

​

​

​

​

​

Available for sale securities - Municipals

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

—

​

$

—

​

$

6,688

Additions

​

 

  

​

 

  

​

 

  

Purchased securities

​

 

—

​

 

—

​

 

—

Subtractions

​

​

​

​

​

​

​

​

​

Paydowns

​

​

—

​

​

—

​

​

(257)

Sales

​

​

—

​

​

—

​

​

(6,431)

Unrealized gains (losses) included in other comprehensive income

​

 

—

​

 

—

​

 

—

Balance, end of period

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

Derivative Assets - interest rate lock commitments

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

186

​

$

70

​

$

—

Purchases

​

 

—

​

 

—

​

 

—

Changes in fair value

​

 

5,945

​

 

116

​

 

70

Balance, end of period

​

$

6,131

​

$

186

​

$

70

​

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 December 31, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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)

December 31, 2020

​

 

  

​

 

  

​

 

  

​

 

  

Impaired loans (collateral-dependent)

​

$

4,059

​

$

—

​

$

—

​

$

4,059

December 31, 2019

​

 

  

​

 

  

​

 

  

​

 

  

Impaired loans (collateral-dependent)

​

$

1,570

​

$

—

​

$

—

​

$

1,570

​

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

Collateral-Dependent Impaired Loans, Net of Allowance for Loan Losses

The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired 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 December 31, 2020:

 

​

  

 

  

​

​

​

​

 

​

Collateral-dependent impaired loans

​

$

4,059

 

Market comparable properties

 

Marketability discount

​

43%

 

43%

Mortgage servicing rights - Multi-family

​

$

73,569

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

9%

​

​

 

  

 

  

 

Constant prepayment rate

​

2% - 43%

 

4%

Mortgage servicing rights - Single-family

​

$

9,035

​

Discounted cash flow

​

Discount rate

​

11%

​

11%

​

​

​

​

​

​

​

Constant prepayment rate

​

8% - 35%

​

16%

Derivative assets - interest rate lock commitments

​

$

6,131

 

Discounted cash flow

 

Loan closing rates

​

55% - 99%

 

75%

​

​

​

​

​

​

​

​

​

​

​

​

At December 31, 2019:

​

 

  

 

  

​

​

​

​

 

​

Collateral-dependent impaired loans

​

$

1,570

 

Market comparable properties

 

Marketability discount

​

37% - 55%

 

N/A

Mortgage servicing rights

​

$

74,387

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

N/A

​

​

​

​

​

​

​

Constant prepayment rate

​

1% - 39%

 

N/A

Derivative assets - interest rate lock commitments

​

$

186

 

Discounted cash flow

 

loan closing rates

​

73% - 99%

 

N/A

​

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.

Mortgage Servicing Rights

The most significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are discount rates and constant prepayment rates. These two inputs can drive a significant amount of a market participant’s valuation of mortgage servicing rights. Significant increases (decreases) in the discount rate or assumed constant prepayment rates used to value mortgage 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 December 31, 2020 and 2019.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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)

December 31, 2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

179,728

​

$

179,728

​

$

179,728

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

6,580

​

 

6,580

​

 

—

​

 

6,580

​

 

—

FHLB stock

​

 

70,656

​

 

70,656

​

 

—

​

 

70,656

​

 

—

Loans held for sale

​

 

3,030,110

​

 

3,030,110

​

 

—

​

 

3,030,110

​

 

—

Loans, net

​

 

5,507,926

​

 

5,484,824

​

 

—

​

 

—

​

 

5,484,824

Interest receivable

​

 

21,770

​

 

21,770

​

 

—

​

 

21,770

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

Deposits

​

 

7,408,066

​

 

7,410,759

​

 

7,051,413

​

 

359,346

​

 

—

Short-term subordinated debt

​

 

14,960

​

 

14,960

​

 

—

​

 

14,960

​

 

—

FHLB advances

​

 

1,221,071

​

 

1,221,870

​

 

—

​

 

1,221,870

​

 

—

Federal Reserve discount window/PPPLF advances

​

​

112,225

​

​

112,225

​

​

—

​

​

112,225

​

​

—

Interest payable

​

 

1,476

​

 

1,476

​

 

—

​

 

1,476

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Financial assets:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Cash and cash equivalents

​

$

506,709

​

$

506,709

​

$

506,709

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

6,723

​

 

6,723

​

 

—

​

 

6,723

​

 

—

FHLB stock

​

 

20,369

​

 

20,369

​

 

—

​

 

20,369

​

 

—

Loans held for sale

​

 

2,074,197

​

 

2,074,197

​

 

—

​

 

2,074,197

​

 

—

Loans, net

​

 

3,012,468

​

 

2,999,580

​

 

—

​

 

—

​

 

2,999,580

Interest receivable

​

 

18,359

​

 

18,359

​

 

—

​

 

18,359

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

​

​

 

  

​

 

  

Deposits

​

 

5,478,075

​

 

5,478,682

​

 

3,303,736

​

 

2,174,946

​

 

—

Lines of credit

​

 

6,540

​

 

6,540

​

 

—

​

 

6,540

​

 

—

Short-term subordinated debt

​

 

12,200

​

 

12,200

​

 

—

​

​

12,200

​

 

—

FHLB advances

​

 

162,699

​

 

162,803

​

 

—

​

 

162,803

​

 

—

Interest payable

​

 

11,938

​

 

11,938

​

 

—

​

 

11,938

​

 

—

​
v3.20.4
Significant Estimates and Concentrations
 12 Months Ended
Dec. 31, 2020
Significant Estimates and Concentrations  
Significant Estimates and Concentrations

Note 23: Significant Estimates and Concentrations

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the provision and allowance for loan losses are reflected in the footnotes regarding loans and the allowance for loan losses (Notes 1 and 5). Estimates related to mortgage servicing rights are reflected in the notes on mortgage servicing rights and loan servicing (Notes 1 and 7). Estimates related to fair values are reflected in the footnote regarding fair values (Note 22). Current

vulnerabilities due to certain concentrations of credit risk are discussed in the footnote on commitments, credit risk, and contingencies (Note 24). Other significant estimates and concentrations not discussed in those footnotes include:

Mortgage-backed Securities and Secondary Mortgage Market Programs

The Company is involved in government programs for issuing mortgage-backed securities (MBS). The objective of these programs is to facilitate secondary market activities in order to provide funding for the multi-family mortgage market.

The Company is subject to cancellation of secondary mortgage market programs, rapid increases in general interest rates, and competition associated with conventional mortgage programs. In addition, the Company could be responsible for covering shortfalls in amounts due to investors for delinquencies or foreclosures. No amounts have been reported in the consolidated financial statements since management believes that no near term financial losses will be incurred and these MBS programs will not be significantly affected by the controlling regulatory bodies.

Major Customer

The Company had no major customers whose business represented more than 10% of revenues during the year ended December 31, 2020, 2019 or 2018.

v3.20.4
Commitments, Credit Risk, and Contingencies
 12 Months Ended
Dec. 31, 2020
Commitments, Credit Risk, and Contingencies  
Commitments, Credit Risk, and Contingencies

Note 24: Commitments, Credit Risk, and Contingencies

Financial Instruments

Merchants offers certain financial instruments, including commitments with contracts that contain credit risk for the Company and others that are subject to certain performance criteria and cancellation by the Company. Such commitments were as follows at December 31, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

December 31, 

​

    

2020

    

2019

​

​

(In thousands)

Commitments subject to credit risk:

​

​

​

​

​

​

Commitments to extend credit

​

$

1,395,678

​

$

761,068

Standby letters of credit

​

 

50,951

​

 

26,944

Warehouse unfunded lines of warehouse credit

​

​

26,719

​

 

—

Total commitments subject to credit risk

​

$

1,473,348

​

$

788,012

​

​

​

​

​

​

​

Commitments subject to certain performance criteria and cancellation:

​

​

​

​

​

​

Outstanding commitments to originate loans

​

$

1,827,215

​

$

886,017

Unfunded construction draws

​

 

271,746

​

 

287,659

Unfunded lines of warehouse credit

​

​

970,891

​

 

774,424

Total commitments subject to certain performance criteria and cancellation

​

$

3,069,852

​

$

1,948,100

​

Included in the chart above are the following commitments that are subject to credit risk:

Commitments to extend credit. These are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include accounts receivable, inventory, property and equipment, and income-producing commercial properties.

Standby letters of credit. These instruments are irrevocable, conditional commitments issued by the Company or by another party on behalf of the Company, for a fee, to guarantee the performance of a customer to a third party and

they generally have fixed expiration dates or other termination clauses. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers. The Company’s policy for obtaining collateral and/or guarantees and the nature thereof is generally the same as that involved extending commitments to its customers. The Company has not been required to fund nor has it incurred any losses on any standby letter of credit commitment during the years ended December 31, 2020, 2019 or 2018.

Included in the chart above are the following commitments that are subject to certain performance criteria and can be denied by the Company:

Outstanding commitments to originate loans. The Company has entered into funding commitments with customers who have applied for loans that are awaiting closing. The customers must meet certain credit and underwriting criteria before the Company is required to fund the loans. Closing and funding of the majority of these loans is contingent upon various performance criteria by the potential borrower and the commitment may be rescinded by the Company. The Company may also enter into a corresponding sales commitment if it is the Company’s intent to close the loan and to sell the loan after closing.

Unfunded construction draws. Through the Multi-family Mortgage Banking segment, the Company has made commitments to fund certain FHA insured construction loans that are drawn upon throughout the construction period. These commitments are subject to certain performance criteria and inspections throughout the project, and funding can be denied by the Company. As construction draws are disbursed, the amounts are securitized and sold to Ginnie Mae, and the Company continues to service the loans.

Unfunded warehouse lines of credit. Through the Mortgage Warehousing segment, the Company has line of credit agreements with its non-depository financial institution customers engaged in mortgage lending. Funds drawn on the lines of credit are used by the borrowers to fund the loans they originate. The customers’ loans must meet certain credit and underwriting criteria before the Company will fund the draw requests on the lines of credit, and the draw requests can be denied by the Company.

Risk-Sharing Arrangements

As a Fannie Mae multifamily lender, Merchants assumes a limited portion of the risk of loss during the remaining term on each commercial mortgage loan that is sold to Fannie Mae. Under this loss sharing agreement, Merchants bears a risk of up to one-third of incurred losses resulting from borrower defaults. Accordingly, Merchants maintained a reserve liability for this risk-sharing obligation of $448,000 at December 31, 2020 and $277,000 at December 31, 2019. There have been no loans in default during the year ended December 31, 2020, 2019 or 2018.

Leases

The Company has several non-cancellable operating leases, primarily for office space, that expire over the next 1-10 years. Rental expense for these leases was $1.2 million, $1.8 million, and $1.1 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Future minimum lease payments under operating leases as of December 31, 2020 are as follows:

​

​

​

​

​

​

    

December 31,

​

​

2020

​

​

(In thousands)

Due within one year

​

$

1,278

Due in one year to two years

​

 

1,276

Due in two years to three years

​

 

1,231

Due in three years to four years

​

 

1,004

Due in four years to five years

​

 

295

Thereafter

​

 

1,255

Total minimum lease payments

​

$

6,339

​

Other

The Company and its subsidiaries can be parties to various claims and proceedings arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings and claims will not be material to the Company’s consolidated financial position or results of operations.
v3.20.4
Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Information  
Segment Information

Note 25: 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. 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 SBA lending. Other includes general and administrative expenses that provide services to all segments; internal funds transfer pricing offsets resulting from allocations to/from the other segments; certain elimination entries and investments in qualified affordable housing limited partnerships. All operations are domestic.

The tables below present selected business segment financial information for the years ended December 31, 2020, 2019 and 2018.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

    

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

​

​

(In thousands)

Year Ended December 31, 2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

1,163

​

$

163,488

​

$

115,304

​

$

2,835

 

$

282,790

Interest expense

​

 

—

​

 

27,325

​

 

35,749

​

 

(4,430)

 

 

58,644

Net interest income

​

 

1,163

​

 

136,163

​

 

79,555

​

 

7,265

 

 

224,146

Provision for loan losses

​

 

—

​

 

1,269

​

 

10,569

​

 

—

 

 

11,838

Net interest income after provision for loan losses

​

 

1,163

​

 

134,894

​

 

68,986

​

 

7,265

 

 

212,308

Noninterest income

​

 

80,690

​

 

21,163

​

 

29,443

​

 

(3,823)

 

 

127,473

Noninterest expense

​

 

41,386

​

 

13,367

​

 

26,537

​

 

15,134

 

 

96,424

Income before income taxes

​

 

40,467

​

 

142,690

​

 

71,892

​

 

(11,692)

 

 

243,357

Income taxes

​

 

11,295

​

 

36,361

​

 

18,255

​

 

(3,087)

 

 

62,824

Net income

​

$

29,172

​

$

106,329

​

$

53,637

​

$

(8,605)

 

$

180,533

Total assets

​

$

210,714

​

$

4,893,513

​

$

4,498,880

​

$

42,268

 

$

9,645,375

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

​

Total

​

​

(In thousands)

Year Ended December 31, 2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

1,328

​

$

102,157

​

$

106,443

​

$

2,067

 

$

211,995

Interest expense

​

 

—

​

 

50,880

​

 

45,681

​

 

(6,864)

 

 

89,697

Net interest income

​

 

1,328

​

 

51,277

​

 

60,762

​

 

8,931

 

 

122,298

Provision for loan losses

​

 

—

​

 

1,358

​

 

2,582

​

 

—

 

 

3,940

Net interest income after provision for loan losses

​

 

1,328

​

 

49,919

​

 

58,180

​

 

8,931

 

 

118,358

Noninterest income

​

 

41,682

​

 

7,178

​

 

1,005

​

 

(2,776)

 

 

47,089

Noninterest expense

​

 

22,556

​

 

11,397

​

 

17,738

​

 

11,622

 

 

63,313

Income before income taxes

​

 

20,454

​

 

45,700

​

 

41,447

​

 

(5,467)

 

 

102,134

Income taxes

​

 

5,691

​

 

10,934

​

 

9,593

​

 

(1,413)

 

 

24,805

Net income

​

$

14,763

​

$

34,766

​

$

31,854

​

$

(4,054)

 

$

77,329

Total assets

​

$

188,866

​

$

3,124,684

​

$

3,018,568

​

$

39,810

 

$

6,371,928

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

​

Total

​

​

(In thousands)

Year Ended December 31, 2018

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

712

​

$

58,784

​

$

79,332

​

$

1,735

 

$

140,563

Interest expense

​

 

—

​

 

24,369

​

 

29,508

​

 

(3,285)

 

 

50,592

Net interest income

​

 

712

​

 

34,415

​

 

49,824

​

 

5,020

 

 

89,971

Provision for loan losses

​

 

—

​

 

1,372

​

 

3,257

​

 

—

 

 

4,629

Net interest income after provision for loan losses

​

 

712

​

 

33,043

​

 

46,567

​

 

5,020

 

 

85,342

Noninterest income

​

 

45,831

​

 

2,550

​

 

3,150

​

 

(1,946)

 

 

49,585

Noninterest expense

​

 

19,205

​

 

7,721

​

 

14,876

​

 

9,098

 

 

50,900

Income before income taxes

​

 

27,338

​

 

27,872

​

 

34,841

​

 

(6,024)

 

 

84,027

Income taxes

​

 

7,528

​

 

6,872

​

 

8,572

​

 

(1,819)

 

 

21,153

Net income

​

$

19,810

​

$

21,000

​

$

26,269

​

$

(4,205)

 

$

62,874

Total assets

​

$

166,102

​

$

1,430,776

​

$

2,256,687

​

$

30,598

 

$

3,884,163

​
v3.20.4
Condensed Financial Information (Parent Company Only)
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information (Parent Company Only)  
Condensed Financial Information (Parent Company Only)

Note 26: Condensed Financial Information (Parent Company Only)

Presented below is condensed financial information of the Company as to financial position as of December 31, 2020 and 2019, and results of operations and cash flows for the years ended December 31, 2020, 2019 and 2018:

Condensed Balance Sheets

​

​

​

​

​

​

​

​

​

​

December 31, 

​

    

2020

​

2019

​

​

(In thousands)

Assets

 

​

  

​

​

  

Cash and cash equivalents

​

$

2,117

​

$

463

Investment in subsidiaries

​

 

823,842

​

 

664,878

Other assets

​

 

190

​

 

2,213

Total assets

​

$

826,149

​

$

667,554

Liabilities

​

 

  

​

 

  

Short-term subordinated debt

​

$

14,960

​

 

12,200

Other liabilities

​

 

568

​

 

1,626

Total liabilities

​

 

15,528

​

 

13,826

Shareholders’ Equity

​

 

810,621

​

 

653,728

Total liabilities and shareholders’ equity

​

$

826,149

​

$

667,554

​

Condensed Statements of Income and Comprehensive Income

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

December 31, 

​

    

2020

​

2019

    

2018

​

​

(In thousands)

Income

 

​

  

​

​

  

 

​

  

Dividends and return of capital from subsidiaries

​

 

29,773

​

 

43,903

​

 

37,816

Other Income

​

 

27

​

 

—

​

 

195

Total income

​

 

29,800

​

 

43,903

​

 

38,011

Expenses

​

 

  

​

 

  

​

 

  

Interest expense

​

 

3,972

​

 

3,641

​

 

8,055

Salaries and employee benefits

​

 

2,726

​

 

1,611

​

 

1,216

Professional fees

​

 

386

​

 

335

​

 

707

Other

​

 

383

​

 

423

​

 

420

Total expense

​

 

7,467

​

 

6,010

​

 

10,398

Income Before Income Tax and Equity in Undistributed Income of Subsidiaries

​

 

22,333

​

 

37,893

​

 

27,613

Income Tax Benefit

​

 

(1,911)

​

 

(1,433)

​

 

(2,542)

Income Before Equity in Undistributed Income of Subsidiaries

​

 

24,244

​

 

39,326

​

 

30,155

Equity in Undistributed Income of Subsidiaries

​

 

156,289

​

 

38,003

​

 

32,719

Net Income

​

$

180,533

​

$

77,329

​

$

62,874

Comprehensive Income

​

$

180,449

​

$

78,097

​

$

63,813

​

Condensed Statements of Cash Flows

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

December 31, 

​

    

2020

    

2019

​

​

2018

​

​

(In thousands)

Operating Activities

 

​

  

 

​

  

​

​

  

Net income

​

$

180,533

​

$

77,329

​

$

62,874

Adjustments to reconcile net income to net cash used in operating activities

​

 

(155,442)

​

 

(36,567)

​

​

(30,522)

Net cash provided by operating activities

​

 

25,091

​

 

40,762

​

​

32,352

Investing Activities

​

 

  

​

 

  

​

​

  

Return of capital from/(contributed capital to) subsidiaries

​

 

(2,760)

​

 

(173,078)

​

​

19,368

Net cash paid for acquisitions

​

 

—

​

 

—

​

​

(27,209)

Proceeds from sale of limited partnership interests

​

​

266

​

​

​

​

​

​

Other investing activity

​

 

(32)

​

 

126

​

​

74

Net cash used in investing activities

​

 

(2,526)

​

 

(172,952)

​

​

(7,767)

Financing Activities

​

 

  

​

 

  

​

​

  

Net change in lines of credit and subordinated debt

​

 

2,760

​

 

(23,382)

​

​

(19,418)

Dividends paid

​

 

(23,671)

​

 

(17,254)

​

​

(10,216)

Proceeds from issuance of preferred stock

​

 

—

​

 

192,915

​

​

—

Repurchase of preferred stock

​

 

—

​

 

(21,850)

​

​

—

Net cash provided by (used in) financing activities

​

 

(20,911)

​

 

130,429

​

​

(29,634)

Net Change in Cash and Due From Banks

​

 

1,654

​

 

(1,761)

​

​

(5,049)

Cash and Due From Banks at Beginning of Year

​

 

463

​

 

2,224

​

​

7,273

Cash and Due From Banks at End of Year

​

$

2,117

​

$

463

​

$

2,224

Additional Cash Flows Information:

​

​

​

​

​

​

​

​

​

Redemption of common shares related to sale of limited partnership interests

​

$

(150)

​

$

—

​

$

—

​
v3.20.4
Recent Accounting Pronouncements
 12 Months Ended
Dec. 31, 2020
Recent Accounting Pronouncements  
Recent Accounting Pronouncements

Note 27: Recent Accounting Pronouncements

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

FASB ASU 2016-02, Leases

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

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

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

As an emerging growth company, the amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2021, and for interim periods for years beginning after January 1, 2022. The Company is continuing to evaluate the impact of adopting this new guidance, but it does not expect the adoption to have a material impact on the Company’s financial position or results of operations.

FASB ASU 2016-13, Financial Instruments—Credit Losses

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses”, commonly referred to as “CECL”. The amendments in this ASU replace the incurred loss model with a methodology that reflects the “current expected credit losses” over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. ASU 2016-13 replaces the incurred loss impairment methodology with a new methodology that reflects expected credit losses over the lives of the loans and requires consideration of a broader range of information to form credit loss estimates. The ASU requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. Additional disclosures are required.

As an emerging growth company, the amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Because the Company’s status as an emerging growth company will expire as of December 31, 2022, at the latest, this standard will likely be implemented by December 31, 2022. The Company has established a cross-functional committee that has developed a project plan to review modeling data currently available and technology needed to ensure compliance of this standard. The committee has contracted with a vendor that provides both software and advisory services widely used in the banking industry. The software integration with our core systems and data validation is in process. Initial portfolio segmentation has been defined. Methodology selection and parallel testing will occur in 2021. While the Company generally expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, the Company cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial statements. Management continues to recognize that the implementation of this ASU may increase the balance of the allowance for loan losses and is continuing to evaluate the potential impact on the Company’s financial position and results of operations.

FASB ASU 2017-04, Intangibles—Goodwill and Other (Topic 350)

In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350).” This ASU simplifies the test for goodwill impairment. Specifically, these amendments eliminate Step 2 from the goodwill impairment test, and also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Management adopted the amended guidance as of December 31, 2020 and it did not have any material effect on the Company’s financial position and results of operations.

FASB ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes  

​

In December 2019, the FASB issued ASU No. 2019-12. This ASU removes specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: (1) exception to the incremental approach for intraperiod tax allocation; (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments; and (3) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: (1) franchise taxes that are partially based on income; (2) transactions with a government that result in a step up in the tax basis of goodwill; (3) separate financial statements of legal entities that are not subject to tax; and (4) enacted changes in tax laws in interim periods.

​

As an emerging growth company, the amendments in this update become effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. The Company is

currently evaluating the impact of adopting the new guidance but does not expect it to have a material impact on the consolidated financial statements.

​

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

​

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

​

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

​

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

​

Entities may apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022.  The Company is in the process of implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company believes the adoption of this guidance on activities subsequent to December 31, 2020 through December 31, 2022 would not have a material impact on the consolidated financial statements.

​

​

​
v3.20.4
Quarterly Condensed Financial Information (Unaudited)
 12 Months Ended
Dec. 31, 2020
Quarterly Condensed Financial Information (Unaudited)  
Quarterly Condensed Financial Information (Unaudited)

Note 28: Quarterly Condensed Financial Information (Unaudited)

The following tables present the unaudited quarterly condensed financial information for the years ended December 31, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020 Quarter Ended

(Dollars in thousands, except per share data)

    

March 31

    

June 30

    

September 30

    

December 31

​

 

​

  

 

​

  

 

​

  

 

​

  

Interest income

​

$

60,417

​

$

68,204

​

$

76,258

​

$

77,911

Interest expense

​

 

22,064

​

 

16,970

​

 

10,936

​

 

8,674

Net interest income

​

 

38,353

​

 

51,234

​

 

65,322

​

 

69,237

Provision for loan losses

​

 

2,998

​

 

1,745

​

 

2,981

​

 

4,114

Net interest income after provision for loan losses

​

​

35,355

​

​

49,489

​

​

62,341

​

​

65,123

Noninterest income

​

​

19,902

​

​

26,188

​

​

38,657

​

​

42,726

Noninterest expense

​

​

22,293

​

​

20,282

​

​

26,384

​

​

27,465

Income before income taxes

​

​

32,964

​

​

55,395

​

​

74,614

​

​

80,384

Income taxes

​

​

8,381

​

​

14,233

​

​

19,612

​

​

20,598

Net income

​

​

24,583

​

​

41,162

​

​

55,002

​

​

59,786

Less: preferred stock dividends

​

​

3,618

​

​

3,619

​

​

3,618

​

​

3,618

Net income allocated to common shareholders

​

$

20,965

​

$

37,543

​

$

51,384

​

$

56,168

Per common share data:

​

​

​

​

​

​

​

​

​

​

​

​

Basic earnings per common share

​

$

0.73

​

$

1.31

​

$

1.79

​

$

1.95

Diluted earnings per common share

​

​

0.73

​

 

1.31

​

 

1.79

​

 

1.95

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2019 Quarter Ended

(Dollars in thousands, except per share data)

    

March 31

    

June 30

    

September 30

    

December 31

​

 

​

  

 

​

  

 

​

  

 

​

  

Interest income

​

$

39,674

​

$

48,761

​

$

59,761

​

$

63,799

Interest expense

​

 

15,543

​

 

20,839

​

 

27,137

​

 

26,178

Net interest income

​

 

24,131

​

 

27,922

​

 

32,624

​

 

37,621

Provision for loan losses

​

 

649

​

 

105

​

 

1,193

​

 

1,993

Net interest income after provision for loan losses

​

​

23,482

​

​

27,817

​

​

31,431

​

​

35,628

Noninterest income

​

​

3,664

​

​

9,870

​

​

10,852

​

​

22,703

Noninterest expense

​

​

13,035

​

​

15,920

​

​

15,522

​

​

18,836

Income before income taxes

​

​

14,111

​

​

21,767

​

​

26,761

​

​

39,495

Income taxes

​

​

3,541

​

​

5,328

​

​

6,502

​

​

9,434

Net income

​

​

10,570

​

​

16,439

​

​

20,259

​

​

30,061

Less: preferred stock dividends

​

​

833

​

​

1,743

​

​

3,022

​

​

3,618

Net income allocated to common shareholders

​

$

9,737

​

$

14,696

​

$

17,237

​

$

26,443

Per common share data:

​

​

​

​

​

​

​

​

​

​

​

​

Basic earnings per common share

​

$

0.34

​

$

0.51

​

$

0.60

​

$

0.92

Diluted earnings per common share

​

 

0.34

​

 

0.51

​

 

0.60

​

 

0.92

​
v3.20.4
Subsequent Events
 12 Months Ended
Dec. 31, 2020
Subsequent Events  
Subsequent Events

Note 29: Subsequent Events

No material events were noted.
v3.20.4
Nature of Operations and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2020
Nature of Operations and Summary of Significant Accounting Policies  
Nature of Operations and Principles of Consolidation

Nature of Operations and Principles of Consolidation

The accompanying 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”) and Farmers-Merchants Bank of Illinois (“FMBI”). Merchants Bank’s primary operating subsidiaries include Merchants Capital Corp. (“MCC”) and Merchants Capital Servicing, LLC (“MCS”). All direct and indirectly owned subsidiaries owned by Merchants Bancorp are collectively referred to as the “Company”. All significant intercompany accounts and transactions have been eliminated in consolidation.

Merchants Bank operates under an Indiana state bank charter and provides full banking services. As a state bank and non-Federal Reserve member, it is subject to the regulation of the Indiana Department of Financial Institutions (“IDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). The Company is further subject to regulations of the Board of Governors of the Federal Reserve System (“Federal Reserve”) governing bank holding companies. Merchants Bank operates from six locations in Indiana, including Lynn, Spartanburg, Richmond, Carmel and Indianapolis. Merchants Bank generates commercial, mortgage and consumer loans and receives deposits from customers located primarily in Hamilton, Marion, Wayne, Randolph and surrounding counties in Indiana. Merchants Bank’s loans are generally secured by specific items of collateral including real property, consumer assets and business assets. Merchants Bank’s Mortgage Warehousing segment funds and participates in single-family and multi-family, agency eligible loans across the nation.

FMBI operates under an Illinois state bank charter and provides full banking services. As a state bank and non-Federal Reserve member, it is subject to the regulation of the Illinois Department of Financial and Professional Regulation (“IDFPR”) and the FDIC. FMBI operates from four offices located in Joy, Paxton, Melvin, and Piper City, Illinois.

MCC is primarily engaged in mortgage banking, specializing in lending for multi-family rental properties and healthcare facilities. It is a Federal Housing Authority (“FHA”) approved mortgagee and a Government National Mortgage Association (“Ginnie Mae”), Federal National Mortgage Association (“Fannie Mae”), and Federal Home Loan Mortgage Corporation (“Freddie Mac”) issuer.
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.

In March 2020, COVID-19 was identified as a global pandemic and began affecting the health of large populations around the world. As a result of the spread of COVID-19, economic uncertainties have arisen which may negatively affect the financial position, results of operations and cash flows of the Company. As of this Form 10-K, management is not aware of any known effects that have impacted the financial viability and going concern of the Company. The duration of these uncertainties and the ultimate financial effects cannot be reasonably known at this time.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, loan servicing rights and fair values of financial instruments. The uncertainties related to the COVID-19 pandemic could cause significant changes to these estimates compared to what was known at the time these consolidated financial statements were prepared.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of cash amounts due from depository institutions, interest-bearing deposits in other banks, money market accounts, and federal funds sold.

At December 31, 2020, the Company’s cash accounts exceeded federally insured limits by approximately $165.9 million. Included in this amount is approximately $157.2 million with the Federal Reserve and $2.7 million with the Federal Home Loan Bank of Indianapolis (“FHLBI”), and $23,000 with the Federal Home Loan Bank of Chicago (“FHLBC”).

At December 31, 2019, the Company’s cash accounts exceeded federally insured limits by approximately $492.1 million. Included in this amount is approximately $478.8 million with the Federal Reserve and $2.3 million with the FHLBI, and $20,000 with the FHLBC.
Securities purchased under agreements to resell

Securities purchased under agreements to resell

Securities purchased pursuant to a simultaneous agreement (RRA) to resell the same securities at a specified price and date generally have maturity dates of 90 days or less and are carried at cost. Every 90 days the RRAs rollover.
Mortgage Loans In Process of Securitization

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 settlement with firm investor commitments to purchase the securities, typically occurring within 30 days.
Available for Sale Securities

Available for Sale Securities

Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. The Company had no securities held to maturity at December 31, 2020 or 2019. Securities not classified as held to maturity or trading are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held to maturity debt securities, the amount of other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security.
Loans Held for Sale under Mortgage Banking Activities

Loans Held for Sale under Mortgage Banking Activities

The Company uses participation agreements to fund mortgage loans held for sale from closing or purchase until sold to an investor. Under a participation agreement the Company elects to purchase a participation interest of up to 100% in individual loans. The Company shares proportionately in the interest income and the credit risk until the loan is sold to an investor. The Company holds the collateral until it is sent under a bailee arrangement to the investor. Typical investors are large financial institutions or government agencies. These loans are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance and included in noninterest income.

Other mortgage loans originated and intended for sale in the secondary market, for which the fair value option has been elected, are carried at fair value at each balance sheet date. The Company believes that the fair value is the best indicator of the resolution of these loans. The difference between the cost and fair value was not material at December 31, 2020.

For all loans held for sale, interest earned from the time of funding to the time of sale is accrued and recognized as interest income. Gains and losses on loan sales are recorded in noninterest income, and generally direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income and noninterest expense upon sale of the loan. 

The gain on sale of loans in the income statement may include placement and origination fees, capitalized mortgage servicing rights, trading gains and losses and other related income.

Loans

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 allowance for loan losses, any unamortized deferred fees or costs on originated loans, and unamortized premiums or discounts on purchased loans.

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

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. For impaired loans that are considered to be solely collateral dependent, a partial charge-off occurs or a specific reserve is assigned.

When cash payments for accrued interest are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms.

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

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to net interest income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of 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. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, (collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge off experience and expected loss from default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due pursuant to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by the fair value of the collateral if the loan is collateral dependent, the loan’s obtainable market price, or present value of expected future cash flows discounted at the loan’s effective interest rate. For impaired loans where the Company utilizes discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense.

Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience, adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

In the course of negotiating with borrowers, the Company may choose to restructure the contractual terms of certain loans. In restructuring the loan, the Company attempts to work out an alternative payment schedule with the borrower in order to optimize collectability of the loan. A troubled debt restructuring (“TDR”) occurs when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status, and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two.

Nonaccrual loans, including TDRs that have not met the six-month minimum performance criterion, are reported as nonperforming loans. For all loan classes, it is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until three months of satisfactory borrower performance, at which time management would consider its return to accrual status. A loan is generally classified as nonaccrual when the Company believes that receipt of principal and interest is doubtful under the terms of the loan agreement. Most generally, this is at 90 or more days past due.

With regard to determination of the amount of the allowance for credit losses, restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously above.
Premises and Equipment

Premises and Equipment

Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets.

The estimated useful lives for premises and equipment are as follows:

​

​

​

​

​

Buildings

    

7 to 40

years

Leasehold improvements

 

5 to 11

years

Software and intangible assets

​

3 to 10

years

Furniture, fixtures and equipment

 

3 to 15

years

Vehicles

 

5

years

​

Expenditures for property and equipment and for renewals or betterments that extend the originally estimated economic life of the assets are capitalized. Expenditures for maintenance and repairs are charged to expense. When an asset is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the results of operations.
Federal Home Loan Bank Stock

Federal Home Loan Bank Stock

Federal Home Loan Bank (FHLB) stock is a required investment for institutions that are members of a FHLB. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment.
Other Real Estate Owned

Other Real Estate Owned

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from other real estate.
Mortgage Servicing Rights

Mortgage Servicing Rights

Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860-50), servicing rights resulting from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company has elected to initially and subsequently measure the mortgage servicing rights for mortgage loans using the fair value method. Under the fair value method, the servicing rights are carried in the balance sheet at fair value and the changes in fair value are reported in earnings in the period in which the changes occur.

Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model is from an independent third party and it incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, prepayment penalties, and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage-servicing right and may result in a reduction to noninterest income.

Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The change in the fair value of the mortgage-servicing rights is netted against loan servicing fee income.
Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill is tested annually for impairment or more frequently if impairment indicators are present. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements.

Intangible assets, which include licenses and trade names, are amortized over a period ranging from 84 to 120 months using a straight-line method of amortization. Customer list intangible assets were amortized over 21 months using a straight-line method of amortization. Also included are core deposit intangibles that are amortized over a 10 year period using the accelerated sum of the years digits method of amortization. On a periodic basis, the Company evaluates events and circumstances that may indicate a change in the recoverability of the carrying value.
Investment in Qualified Affordable Housing Limited Partnerships

Investment in Qualified Affordable Housing Limited Partnerships

The Company has elected to account for its investment in affordable housing tax credit limited partnerships using the proportional amortization method described in FASB ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (A Consensus of the FASB Emerging Issues Task Force).” Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The investment in the limited partnerships is included in other assets in the consolidated balance sheets. During the year ended December 31, 2020, the Company sold some of these assets to a fund in which it is a general partner and holds a minority interest in the limited partnership.
Income Taxes

Income Taxes

The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2017.

The Company recognizes interest and penalties, if any, on income taxes as a component of income tax expense.

The Company files consolidated income tax returns with its subsidiaries.
Earnings Per Share

Earnings Per Share

Basic earnings per share is the Company’s net income available to common shareholders, which represents net income less dividends paid or payable to preferred stock shareholders, if any, divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is calculated in the same manner as basic earnings per share, but also reflects the issuance of additional common shares that would have been diluted if such shares had been outstanding, as well as any adjustment to income that would result from the assumed issuance.
Share based Compensation Plan

Share-based Compensation Plans

The Company has an equity incentive plan that provides for annual awards of shares to certain members of senior management based upon the Company’s performance and attainment of certain performance goals established by the Board of Directors. Share awards are valued at the estimated fair value on the date of the award and generally vest over three years. Compensation expense for the awards is recognized in the consolidated financial statements ratably over the vesting period.

In 2018, the Compensation Committee of the Board of Directors also approved a plan for non-executive directors to receive a portion of their annual fees in the form of restricted common stock, which has been issued once per year, subsequent to the annual meeting of shareholders. This plan was amended to issue allocated shares on a quarterly basis, beginning after the Company’s 2021 annual meeting of shareholders.

During 2020, the Company established an employee stock ownership plan (“ESOP”) to provide certain benefits for all employees who meet certain requirements.

Revenue Recognition

Revenue Recognition

​

The Company’s principal source of revenue is interest income from loans, investment securities and other financial instruments that are not within the scope of Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers”. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers.

The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured.

Interest income on loans is accrued as earned using the interest method based on unpaid principal balances, except for interest on loans in nonaccrual status. Interest on loans in nonaccrual status is recorded as a reduction of loan principal when received.

The Company also earns other noninterest income through a variety of financial and transaction services provided to corporate and consumer clients such as deposit service charges, debit card network fees, collection fees, safe deposit box rental fees and gain/(loss) on sale of other real estate owned. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed.

Comprehensive Income

Comprehensive Income

​

Comprehensive income consists of net income and other comprehensive income (loss), net of applicable income taxes. Other comprehensive income (loss) and accumulated other comprehensive income consist of unrealized appreciation (depreciation) on available for sale investment securities and reclassification adjustments for investment gains/(losses) on the sale of available for sale investment securities.
Derivative Financial Instruments

Derivative Financial Instruments

The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies. These derivative financial instruments consist primarily of interest rate locks and forward sale commitments. These derivative instruments are recorded on the Consolidated Statements of Financial Condition, as either an asset or liability, at their fair value. Changes in fair value are recognized in noninterest income on the Consolidated Statements of Income. The Company also offers interest rate swaps to some customers through a third-party dealer. These derivatives generally work together as an economic interest rate hedge, but the Company does not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability are recorded as either a charge or credit to current earnings during the period in which the changes occurred, typically resulting in no net earnings impact.

Reclassifications

Reclassifications

Certain reclassifications may have been made to the 2019 and 2018 financial statements to conform to the financial statement presentation as of and for the year ended December 31, 2020. These reclassifications had no effect on net income.
v3.20.4
Nature of Operations and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2020
Nature of Operations and Summary of Significant Accounting Policies  
Schedule of estimated useful lives

​

​

​

​

​

Buildings

    

7 to 40

years

Leasehold improvements

 

5 to 11

years

Software and intangible assets

​

3 to 10

years

Furniture, fixtures and equipment

 

3 to 15

years

Vehicles

 

5

years
v3.20.4
Securities Available For Sale (Tables)
 12 Months Ended
Dec. 31, 2020
Securities Available For Sale  
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

​

​

​

​

Gross

​

Gross

​

Approximate

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

6,535

​

$

24

​

$

—

​

$

6,559

Federal agencies

​

 

234,954

​

 

103

​

 

17

​

 

235,040

Municipals

​

 

5,935

​

 

90

​

 

—

​

 

6,025

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

 

21,899

​

 

279

​

 

—

​

 

22,178

Total available for sale securities

​

$

269,323

​

$

496

​

$

17

​

$

269,802

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

​

​

​

​

Gross

​

Gross

​

Approximate

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

    

Cost

    

Gains

    

Losses

    

Value

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

Treasury notes

​

$

4,744

​

$

21

​

$

—

​

$

4,765

Federal agencies

​

 

244,986

​

 

24

​

 

37

​

 

244,973

Municipals

​

 

5,577

​

 

360

​

 

—

​

 

5,937

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

 

34,357

​

 

213

​

 

2

​

 

34,568

Total available for sale securities

​

$

289,664

​

$

618

​

$

39

​

$

290,243
Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

​

​

Amortized

​

Fair

​

​

    

Cost

    

Value

    

Contractual Maturity

​

(In thousands)

Within one year

​

$

6,288

​

$

6,302

​

After one through five years

​

 

239,770

​

 

239,877

​

After five through ten years

​

 

515

​

 

549

​

After ten years

​

 

851

​

 

896

​

​

​

 

247,424

​

 

247,624

​

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

 

21,899

​

 

22,178

​

​

​

$

269,323

​

$

269,802

​
Schedule of gross unrealized losses and fair value of investments with unrealized losses have been in continuous

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

​

​

​

​

​

​

​

12 Months or

​

​

​

​

​

​

​

​

Less than 12 Months

​

 Longer

​

Total

​

​

​

​

​

Gross

​

​

​

​

Gross

​

​

​

​

Gross

​

​

Fair

​

  Unrealized  

​

      Fair      

​

Unrealized

​

Fair

​

Unrealized

​

    

Value

    

Losses

    

      Value      

    

Losses

    

Value

    

Losses

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Federal agencies

​

$

69,939

​

$

17

​

$

—

​

$

—

​

$

69,939

​

$

17

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

​

​

​

​

​

​

​

12 Months or

​

​

​

​

​

​

​

​

Less than 12 Months

​

Longer

​

Total

​

    

​

​

    

Gross

    

​

​

    

Gross

    

​

​

    

Gross

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

​

Value

​

Losses

​

Value

​

Losses

​

Value

​

Losses

​

​

(In thousands)

Available for sale securities:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Federal agencies

​

$

94,963

​

$

37

​

$

​

​

$

​

​

$

94,963

​

$

37

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

​

809

​

​

2

​

​

​

​

​

​

​

​

809

​

​

2

​

​

$

95,772

​

$

39

​

$

—

​

$

—

​

$

95,772

​

$

39
v3.20.4
Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2020
Loans and Allowance for Loan Losses  
Summary of loans

​

​

​

​

​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

​

    

2020

    

2019

    

​

​

(In thousands)

​

​

​

​

​

​

​

​

Mortgage warehouse lines of credit

​

$

1,605,745

​

$

765,151

​

Residential real estate

​

 

678,848

​

 

413,835

​

Multi-family and healthcare financing

​

 

2,749,020

​

 

1,347,125

​

Commercial and commercial real estate

​

 

387,294

​

 

398,601

​

Agricultural production and real estate

​

 

101,268

​

 

85,210

​

Consumer and margin loans

​

 

13,251

​

 

18,388

​

​

​

 

5,535,426

​

 

3,028,310

​

Less:

​

 

  

​

 

  

​

Allowance for loan losses

​

 

27,500

​

 

15,842

​

​

​

​

​

​

​

​

​

Loans Receivable

​

$

5,507,926

​

$

3,012,468

​
Summary of activity in the allowance for loans and recorded investment by loan portfolio

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At or For the Year Ended December 31, 2020

​

  

MTG WHLOC

  

RES RE

  

MF RE

  

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,913

​

$

2,042

 

$

7,018

​

$

4,173

​

$

523

​

$

173

​

$

15,842

Provision for loan losses

​

 

2,105

​

 

1,248

 

​

7,713

​

 

681

​

 

113

​

 

(22)

​

 

11,838

Loans charged to the allowance

​

 

—

​

 

(31)

 

​

—

​

 

(319)

​

 

—

​

 

(11)

​

 

(361)

Recoveries of loans previously charged off

​

 

—

​

 

75

 

​

—

​

 

106

​

 

—

​

 

—

​

 

181

Balance, end of period

​

$

4,018

​

$

3,334

​

$

14,731

​

$

4,641

​

$

636

​

$

140

​

$

27,500

Ending balance: individually evaluated for impairment

​

$

—

​

$

7

​

$

—

​

$

1,606

​

$

—

​

$

—

​

$

1,613

Ending balance: collectively evaluated for impairment

​

$

4,018

​

$

3,327

​

$

14,731

​

$

3,035

​

$

636

​

$

140

​

$

25,887

Loans

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Ending balance

​

$

1,605,745

​

$

678,848

​

$

2,749,020

​

$

387,294

​

$

101,268

​

$

13,251

​

$

5,535,426

Ending balance individually evaluated for impairment

​

$

—

​

$

2,761

​

$

—

​

$

9,591

​

$

2,100

​

$

12

​

$

14,464

Ending balance collectively evaluated for impairment

​

$

1,605,745

​

$

676,087

​

$

2,749,020

​

$

377,703

​

$

99,168

​

$

13,239

​

$

5,520,962

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At or For the Year Ended December 31, 2019

​

  

MTG WHLOC

  

RES RE

  

MF RE

  

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

1,068

​

$

1,986

 

$

6,030

​

$

3,051

​

$

429

​

$

140

​

$

12,704

Provision for loan losses

​

 

952

​

 

56

 

​

988

​

 

1,817

​

 

94

​

 

33

​

 

3,940

Loans charged to the allowance

​

 

(107)

​

 

—

 

​

—

​

 

(857)

​

 

—

​

 

—

​

 

(964)

Recoveries of loans previously charged off

​

 

—

​

 

—

 

​

—

​

 

162

​

 

—

​

 

—

​

 

162

Balance, end of period

​

$

1,913

​

$

2,042

​

$

7,018

​

$

4,173

​

$

523

​

$

173

​

$

15,842

Ending balance: individually evaluated for impairment

​

$

—

​

$

23

​

$

—

​

$

650

​

$

—

​

$

8

​

$

681

Ending balance: collectively evaluated for impairment

​

$

1,913

​

$

2,019

​

$

7,018

​

$

3,523

​

$

523

​

$

165

​

$

15,161

Loans

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Ending balance

​

$

765,151

​

$

413,835

​

$

1,347,125

​

$

398,601

​

$

85,210

​

$

18,388

​

$

3,028,310

Ending balance individually evaluated for impairment

​

$

233

​

$

3,109

​

$

—

​

$

9,152

​

$

—

​

$

23

​

$

12,517

Ending balance collectively evaluated for impairment

​

$

764,918

​

$

410,726

​

$

1,347,125

​

$

389,449

​

$

85,210

​

$

18,365

​

$

3,015,793

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Year Ended December 31, 2018

​

  

MTG WHLOC

  

RES RE

  

MF RE

  

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

​

​

(In thousands)

Allowance for loan losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of year

​

$

283

​

$

1,587

 

$

3,502

​

$

2,362

​

$

320

​

$

257

​

$

8,311

Provision for loan losses

​

 

785

​

 

399

 

​

2,528

​

 

779

​

 

109

​

 

29

​

 

4,629

Loans charged to the allowance

​

 

—

​

 

—

 

​

—

​

 

(90)

​

 

—

​

 

(146)

​

 

(236)

Recoveries of loans previously charged off

​

 

—

​

 

—

 

​

—

​

 

—

​

 

—

​

 

—

​

 

—

Balance, end of year

​

$

1,068

​

$

1,986

​

$

6,030

​

$

3,051

​

$

429

​

$

140

​

$

12,704
Schedule of credit risk profile of loan portfolio

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

    

MTG WHLOC

    

RES RE

    

MF RE

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Special Mention (Watch)

​

$

222

​

$

853

​

$

145,050

​

$

2,620

​

$

4,160

​

$

34

​

$

152,939

Special Mention (Watch) - COVID-19 Deferrals

​

​

—

​

​

383

​

​

185

​

​

110

​

​

—

​

​

—

​

​

678

Substandard

​

 

—

​

 

2,761

​

 

—

​

 

9,591

​

 

2,100

​

 

12

​

 

14,464

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Acceptable and Above

​

 

1,605,523

​

 

674,851

​

 

2,603,785

​

 

374,973

​

 

95,008

​

 

13,205

​

 

5,367,345

Total

​

$

1,605,745

​

$

678,848

​

$

2,749,020

​

$

387,294

​

$

101,268

​

$

13,251

​

$

5,535,426

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

    

MTG WHLOC

    

   RES RE      

    

     MF RE       

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Special Mention (Watch)

​

$

—

​

$

2,472

​

$

41,882

​

$

13,806

​

$

2,114

​

$

31

​

$

60,305

Substandard

​

 

233

​

 

3,109

​

 

—

​

 

9,152

​

 

—

​

 

23

​

 

12,517

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Acceptable and Above

​

 

764,918

​

 

408,254

​

 

1,305,243

​

 

375,643

​

 

83,096

​

 

18,334

​

 

2,955,488

Total

​

$

765,151

​

$

413,835

​

$

1,347,125

​

$

398,601

​

$

85,210

​

$

18,388

​

$

3,028,310
Schedule of aging analysis of the recorded investment in loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHLOC

​

$

—

 

$

—

​

$

—

​

$

—

​

$

1,605,745

​

$

1,605,745

RES RE

​

 

364

 

​

80

​

 

630

​

 

1,074

​

 

677,774

​

 

678,848

MF RE

​

 

—

 

​

36,760

​

 

—

​

 

36,760

​

 

2,712,260

​

 

2,749,020

CML & CRE

​

 

608

 

​

76

​

 

3,582

​

 

4,266

​

 

383,028

​

 

387,294

AG & AGRE

​

 

3,769

 

​

—

​

 

1,934

​

 

5,703

​

 

95,565

​

 

101,268

CON & MAR

​

 

7

 

​

—

​

 

19

​

 

26

​

 

13,225

​

 

13,251

​

​

$

4,748

​

$

36,916

​

$

6,165

​

$

47,829

​

$

5,487,597

​

$

5,535,426

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

​

​

    

Total

​

​

Past Due

​

Past Due

​

90 Days

​

Past Due

​

Current

​

Loans

​

​

(In thousands)

MTG WHLOC

​

$

—

 

$

—

​

$

—

​

$

—

​

$

765,151

​

$

765,151

RES RE

​

 

3,089

 

​

562

​

 

2,324

​

 

5,975

​

 

407,860

​

 

413,835

MF RE

​

 

—

 

​

—

​

 

—

​

 

—

​

 

1,347,125

​

 

1,347,125

CML & CRE

​

 

2,293

 

​

335

​

 

1,663

​

 

4,291

​

 

394,310

​

 

398,601

AG & AGRE

​

 

2,047

 

​

—

​

 

195

​

 

2,242

​

 

82,968

​

 

85,210

CON & MAR

​

 

50

 

​

31

​

 

19

​

 

100

​

 

18,288

​

 

18,388

​

​

$

7,479

​

$

928

​

$

4,201

​

$

12,608

​

$

3,015,702

​

$

3,028,310
Schedule of components of impaired loans and specific valuation allowance

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

    

MTG WHLOC

    

RES RE

    

MF RE

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

Impaired loans without a specific allowance:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Recorded investment

​

$

—

​

$

2,704

​

$

—

​

$

3,319

​

$

2,100

​

$

7

​

$

8,130

Unpaid principal balance

​

 

—

​

 

2,704

​

 

—

​

 

3,319

​

 

2,100

​

 

7

​

 

8,130

Impaired loans with a specific allowance:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Recorded investment

​

 

—

​

 

57

​

 

—

​

 

6,272

​

 

—

​

 

5

​

 

6,334

Unpaid principal balance

​

 

—

​

 

57

​

 

—

​

 

6,272

​

 

—

​

 

5

​

 

6,334

Specific allowance

​

 

—

​

 

7

​

 

—

​

 

1,606

​

 

—

​

 

—

​

 

1,613

Total impaired loans:

​

 

​

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Recorded investment

​

 

—

​

 

2,761

​

 

—

​

 

9,591

​

 

2,100

​

 

12

​

 

14,464

Unpaid principal balance

​

 

—

​

 

2,761

​

 

—

​

 

9,591

​

 

2,100

​

 

12

​

 

14,464

Specific allowance

​

 

—

​

 

7

​

 

—

​

 

1,606

​

 

—

​

 

—

​

 

1,613

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

    

MTG WHLOC

    

RES RE

    

MF RE

    

CML & CRE

    

AG & AGRE

    

CON & MAR

    

TOTAL

​

​

(In thousands)

Impaired loans without a specific allowance:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Recorded investment

​

$

233

​

$

2,899

​

$

—

​

$

6,662

​

$

—

​

$

12

​

$

9,806

Unpaid principal balance

​

 

233

​

 

2,899

​

 

—

​

 

6,662

​

 

—

​

 

12

​

 

9,806

Impaired loans with a specific allowance:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

​

​

 

  

​

 

  

Recorded investment

​

 

—

​

 

210

​

 

—

​

 

2,490

​

 

—

​

 

11

​

 

2,711

Unpaid principal balance

​

 

—

​

 

210

​

 

—

​

 

2,490

​

 

—

​

 

11

​

 

2,711

Specific allowance

​

 

—

​

 

23

​

 

—

​

 

650

​

 

—

​

 

8

​

 

681

Total impaired loans:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Recorded investment

​

 

233

​

 

3,109

​

 

—

​

 

9,152

​

 

—

​

 

23

​

 

12,517

Unpaid principal balance

​

 

233

​

 

3,109

​

 

—

​

 

9,152

​

 

—

​

 

23

​

 

12,517

Specific allowance

​

 

—

​

 

23

​

 

—

​

 

650

​

 

—

​

 

8

​

 

681

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

    

MTG

    

​

​

    

​

​

    

CML &

    

AG &

    

CON &

    

​

​

​

​

WHLOC

​

RES RE

​

MF RE

​

CRE

​

AGRE

​

MAR

​

TOTAL

​

​

(In thousands)

Average recorded investment in impaired loans

​

$

106

​

$

3,002

​

$

—

​

$

9,913

​

$

1,662

​

$

17

​

$

14,700

Interest income recognized

​

 

—

​

 

57

​

 

—

​

 

371

​

 

1

​

 

—

​

 

429

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

​

MTG

    

​

​

    

​

​

    

CML &

    

AG &

    

CON &

    

​

​

​

    

WHLOC

​

RES RE

​

MF RE

​

CRE

​

AGRE

​

MAR

​

TOTAL

​

​

(In thousands)

Average recorded investment in impaired loans

​

$

242

​

$

3,175

​

$

—

​

$

8,675

​

$

—

​

$

25

​

$

12,117

Interest income recognized

​

 

—

​

 

71

​

 

—

​

 

463

​

 

—

​

 

—

​

 

534

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2018

​

    

MTG

    

​

    

​

    

CML &

    

​

AG &

    

CON &

    

​

​

​

WHLOC

​

RES RE

​

MF RE

​

CRE

​

​

AGRE

​

MAR

​

TOTAL

​

​

(In thousands)

Average recorded investment in impaired loans

​

$

932

​

$

1,485

​

$

—

​

$

8,872

​

$

489

​

$

52

​

$

11,830

Interest income recognized

​

 

59

​

 

50

​

 

—

​

 

375

​

 

43

​

 

1

​

 

528
Schedule of nonaccrual loans and loans past due 90 days or more and still accruing

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

​

2020

​

2019

​

​

​

​

​

Total Loans >

​

​

​

​

Total Loans >

​

​

​

​

​

90 Days &

​

​

​

​

90 Days &

​

    

Nonaccrual

    

Accruing

    

Nonaccrual

    

Accruing

​

​

(In thousands)

MTG WHLOC

​

$

—

​

$

—

​

$

233

​

$

—

RES RE

​

 

578

​

 

69

​

 

740

​

 

1,851

MF RE

​

 

—

​

 

—

​

 

—

​

 

—

CML & CRE

​

 

2,052

​

​

1,240

​

 

1,118

​

 

486

AG & AGRE

​

 

181

​

 

2,181

​

 

—

​

 

231

CON & MAR

​

 

12

​

 

8

​

 

18

​

 

1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

2,823

​

$

3,498

​

$

2,109

​

$

2,569
v3.20.4
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2020
Derivative Financial Instruments  
Summary of notional amount and fair value of derivative assets and liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

(Liability)

December 31, 2020

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

412,043

​

​

Derivative assets/liabilities

​

$

6,131

​

$

—

Forward contracts

 

304,024

​

​

Derivative assets/liabilities

​

 

—

​

​

2,682

​

​

​

​

​

​

​

$

6,131

​

$

2,682

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

(Liability)

December 31, 2019

​

(In thousands)

​

​

​

​

​

(In thousands)

Interest rate lock commitments

$

17,826

​

​

Derivative assets/liabilities

​

$

186

​

$

—

Forward contracts

 

34,268

​

​

Derivative assets/liabilities

​

 

—

​

​

27

​

​

​

​

​

​

​

$

186

​

$

27
Summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

​

December 31, 

​

    

    

2020

​

2019

    

2018

​

​

​

​

(In thousands)

Interest rate lock commitments

​

​

$

5,945

​

$

116

​

$

70

Forward contracts (includes pair-off settlements)

​

​

 

(11,078)

​

​

(53)

​

​

(64)

Net derivative gains (loss)

​

​

$

(5,133)

​

$

63

​

$

6

​

​

​

​

​

​

​

​

​

​

​
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)

December 31, 2020

$

82,726

​

​

Other assets/liabilities

​

$

3,170

​

$

3,170

December 31, 2019

$

58,067

​

​

Other assets/liabilities

​

$

511

​

$

511
Summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

​

December 31, 

​

    

    

2020

    

2019

​

2018

​

​

​

​

(In thousands)

​

​

​

Gross swap gains

​

​

$

2,659

​

$

511

​

$

—

Gross swap losses

​

​

 

(2,659)

​

​

(511)

​

​

—

Net swap gains (losses)

​

​

$

—

​

$

—

​

$

—
v3.20.4
Loan Servicing (Tables)
 12 Months Ended
Dec. 31, 2020
Loan Servicing  
Schedule of mortgage servicing rights measured using fair value method

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Year Ended

​

​

December 31, 

​

    

2020

​

2019

    

2018

​

 

​

(In thousands)

Balance, beginning of period

​

$

74,387

​

$

77,844

​

$

66,079

Additions

​

 

  

​

 

  

​

 

  

Originated and purchased servicing

​

 

21,889

​

 

7,332

​

 

14,113

Subtractions

​

 

​

​

 

​

​

 

​

Paydowns

​

 

(7,838)

​

 

(5,994)

​

 

(4,196)

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

​

 

(5,834)

​

 

(4,795)

​

 

1,848

Balance, end of period

​

$

82,604

​

$

74,387

​

$

77,844
v3.20.4
Goodwill and Intangibles (Tables)
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangibles  
Schedule of goodwill

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

​

2019

​

​

2018

​

Multifamily

    

Banking

    

Warehouse

    

Total

    

Multifamily

    

Banking

    

Warehouse

    

Total

    

Multifamily

    

Banking

    

Warehouse

    

Total

​

(In thousands)

​

(In thousands)

​

(In thousands)

Balance, beginning of period

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

​

$

3,791

​

$

8,686

​

$

5,000

​

$

17,477

​

$

3,379

​

$

523

​

$

—

​

$

3,902

Goodwill acquired during the period

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

8,163

​

​

5,000

​

​

13,163

Post-acquisition adjustments

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

(333)

​

​

(1,299)

​

​

(1,632)

​

​

412

​

​

—

​

​

—

​

​

412

Impairment losses

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Balance, end of period

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

​

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

​

$

3,791

​

$

8,686

​

$

5,000

​

$

17,477
Schedule of intangible assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

2020

         

2019

         

2018

​

​

Gross

    

​

​

    

​

​

​

Gross

    

​

​

    

​

​

    

Gross

    

​

​

    

​

​

​

​

Carrying

​

Accumulated

​

​

​

​

Carrying

​

Accumulated

​

​

​

​

Carrying

​

Accumulated

​

​

​

​

​

Amount

​

Amortization

​

Total

    

Amount

​

Amortization

​

Total

    

Amount

​

Amortization

​

Total

​

​

(In thousands)

​

(In thousands)

​

(In thousands)

Licenses

​

$

1,370

​

$

(661)

​

$

709

​

$

1,370

​

$

(465)

​

$

905

​

$

1,370

​

$

(269)

​

$

1,101

Trade names

​

​

224

​

​

(75)

​

​

149

​

​

224

​

​

(53)

​

​

171

​

​

224

​

​

(31)

​

​

193

Customer list

​

​

1,570

​

​

(1,570)

​

​

—

​

​

1,570

​

​

(673)

​

​

897

​

​

—

​

​

—

​

​

—

Core deposit intangible

​

​

2,417

​

​

(992)

​

​

1,425

​

​

2,417

​

​

(591)

​

​

1,826

​

​

2,417

​

​

(169)

​

​

2,248

Total intangible Assets

​

$

5,581

​

$

(3,298)

​

$

2,283

​

$

5,581

​

$

(1,782)

​

$

3,799

​

$

4,011

​

$

(469)

​

$

3,542
Estimated amortization expense

Estimated amortization expense for future years is as follows (in thousands):

​

​

​

​

​

Year ending December 31,

    

​

​

2021

​

$

577

2022

​

​

521

2023

​

​

462

2024

​

​

335

2025

​

​

166

Thereafter

​

​

222

Total

​

$

2,283
v3.20.4
Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2020
Premises and Equipment  
Schedule of premises and equipment stated at cost

​

​

​

​

​

​

​

​

​

​

December 31, 

​

    

2020

    

2019

​

​

(In thousands)

Land

​

$

3,072

​

$

3,072

Buildings

​

 

23,946

​

 

22,775

Leasehold improvements

​

 

227

​

 

53

Furniture, fixtures, equipment and software

​

 

7,429

​

 

6,445

Total cost

​

 

34,674

​

 

32,345

Accumulated depreciation

​

 

(4,913)

​

 

(3,071)

Net premises and equipment

​

$

29,761

​

$

29,274
v3.20.4
Deposits (Tables)
 12 Months Ended
Dec. 31, 2020
Deposits  
Schedule of deposits

​

​

​

​

​

​

​

​

​

​

December 31,

​

    

2020

    

2019

​

​

(In thousands)

Demand deposits

​

$

5,072,552

​

$

2,099,373

Savings deposits

​

 

1,978,861

​

 

1,204,363

Certificates of deposit

​

 

356,653

​

 

2,174,339

Total deposits

​

$

7,408,066

​

$

5,478,075
Schedule of maturities of time deposits

​

nna

​

​

​

​

    

December 31, 2020

​

​

(In thousands)

Due within one year

​

$

239,998

Due in one year to two years

​

 

103,575

Due in two years to three years

​

 

10,485

Due in three years to four years

​

 

2,014

Due in four years to five years

​

 

581

​

​

$

356,653
Schedule of brokered deposit amounts

​

​

​

​

​

​

​

​

​

​

December 31,

​

    

2020

    

2019

​

​

(In thousands)

Brokered certificates of deposit

​

$

29,164

​

$

1,962,389

Brokered savings deposits

​

 

324,408

​

 

184,603

Brokered deposit on demand accounts

​

 

820,165

​

 

10,001

​

​

$

1,173,737

​

$

2,156,993
v3.20.4
Borrowings (Tables)
 12 Months Ended
Dec. 31, 2020
Borrowings  
Schedule of borrowings

​

​

​

​

​

​

​

​

​

​

December 31, 

​

    

2020

    

2019

​

​

(In thousands)

Lines of credit

​

$

—

​

$

6,540

Federal Reserve discount window borrowings

​

​

50,000

​

​

—

Paycheck Protection Program Liquidity Facility

​

​

62,225

​

​

—

Short-term subordinated debt

​

 

14,960

​

 

12,200

FHLB advances

​

 

1,221,071

​

 

162,699

Total borrowings

​

$

1,348,256

​

$

181,439
Schedule of maturities of FHLB advances

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Year Ended December 31, 2020

​

​

Federal Reserve

​

​

​

Short-Term

​

FHLB

​

Borrowings

​

​

Discount Window

​

PPPLF

​

Subordinated Debt

​

Advances

​

Total

​

​

(In thousands)

Due within one year

​

$

50,000

​

$

—

​

$

—

​

$

819,077

​

$

869,077

Due in one year to two years

​

 

—

​

 

62,128

​

 

14,960

​

 

59

​

 

77,147

Due in two years to three years

​

 

—

​

 

—

​

 

—

​

 

342

​

 

342

Due in three years to four years

​

 

—

​

 

—

​

 

—

​

 

61

​

 

61

Due in four years to five years

​

 

—

​

 

97

​

 

—

​

 

—

​

 

97

Thereafter

​

 

—

​

 

—

​

 

—

​

 

401,532

​

 

401,532

​

​

$

50,000

​

$

62,225

​

$

14,960

​

$

1,221,071

​

$

1,348,256
v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Taxes  
Schedule of provision for income taxes includes components

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

 

​

​

December 31, 

 

​

    

2020

    

​

2019

​

2018

 

​

 

​

(In thousands)

​

Income tax expense

​

​

​

​

​

​

​

​

​

​

Current tax payable

 

​

  

 

​

​

​

​

  

​

Federal

​

$

48,409

​

$

21,396

​

$

13,312

​

State

​

 

15,107

​

 

4,387

​

 

5,528

​

Deferred tax payable

​

 

  

​

 

  

​

 

  

​

Federal

​

 

(529)

​

 

(375)

​

 

1,583

​

State

​

 

(163)

​

 

(603)

​

 

730

​

Income tax expense

​

$

62,824

​

$

24,805

​

$

21,153

​

Effective tax rate

​

 

25.8

%  

 

24.3

%

 

29.1

%
Schedule of a reconciliation of statutory federal tax rate and effective tax rate

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

December 31, 

​

    

2020

​

    

2019

​

2018

​

 

(In thousands)

Computed at the statutory rate -21%

​

$

51,105

​

$

21,448

​

$

17,646

Increase resulting from

​

 

​

​

 

  

​

 

  

State income taxes

​

 

11,805

​

 

2,989

​

 

4,944

Tax Credits net of related amortization

​

 

(123)

​

 

(190)

​

 

(1,533)

Other

​

 

37

​

 

558

​

 

96

Actual tax expense

​

$

62,824

​

$

24,805

​

$

21,153
Schedule of tax effects of temporary differences related to deferred taxes

​

​

​

​

​

​

​

​

​

​

December 31, 

​

    

2020

    

2019

​

​

(In thousands)

Deferred tax assets

​

​

​

​

​

​

Allowance for loan losses

​

$

7,090

​

$

4,069

Fair value adjustments on acquisitions

​

 

174

​

 

228

Other

​

 

1,330

​

 

1,309

Total assets

​

 

8,594

​

 

5,606

Deferred tax liabilities

​

 

  

​

 

  

Depreciation

​

 

(2,460)

​

 

(1,374)

Intangible assets

​

 

(254)

​

 

(466)

Mortgage servicing rights

​

 

(19,751)

​

 

(17,035)

Limited partnership investments

​

 

(497)

​

 

(1,791)

Unrealized gain on available for sale securities

​

 

(105)

​

 

(121)

Total liabilities

​

 

(23,067)

​

 

(20,787)

Net deferred tax liability

​

$

(14,473)

​

$

(15,181)
v3.20.4
Regulatory Matters (Tables)
 12 Months Ended
Dec. 31, 2020
Regulatory Matters  
Summary of bank's actual capital amounts and ratios

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum Amount

​

​

​

​

​

​

​

​

To Be Well

​

​

​

Actual

​

Capitalized(1)

​

​

    

Amount

    

Ratio

    

Amount

    

Ratio

    

​

​

(Dollars in thousands)

​

December 31, 2020

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

(i.e., CBLR - leverage ratio)

 

​

  

 

  

 

​

  

 

  

 

Company

​

$

792,456

 

8.6

%  

$

738,019

 

> 8

%  

Merchants Bank

​

 

781,221

 

8.7

%  

 

718,120

 

> 8

%  

FMBI

​

​

24,456

 

9.8

%  

 

19,979

 

> 8

%  

(1)As defined by regulatory agencies.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Minimum

​

Minimum

 

​

​

​

​

​

​

​

Amount Required

​

Amount To Be

 

​

​

​

​

​

​

​

for Adequately

​

Well

 

​

​

Actual

​

Capitalized(1)

​

Capitalized(1)

 

​

    

Amount

    

Ratio

    

Amount

    

Ratio

​

Amount

    

Ratio

 

​

​

(Dollars in thousands)

 

December 31, 2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

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

 

​

  

 

  

 

​

  

 

  

 

​

  

 

  

​

Company

​

$

637,472

 

11.6

%  

$

440,063

 

8.0

%  

$

—

 

N/A

​

Merchants Bank

​

 

639,104

 

12.0

%  

 

426,748

 

8.0

%  

 

533,435

 

10.0

%

FMBI

​

​

21,726

 

13.1

%  

 

13,306

 

8.0

%  

 

16,632

 

10.0

%

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

​

 

  

 

  

​

 

  

 

  

​

 

  

 

  

​

Company

​

 

621,630

 

11.3

%  

 

330,047

 

6.0

%  

 

—

 

N/A

​

Merchants Bank

​

 

623,716

 

11.7

%  

 

320,061

 

6.0

%  

 

426,748

 

8.0

%

FMBI

​

​

21,272

 

12.8

%  

 

9,979

 

6.0

%  

 

13,306

 

8.0

%

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Company

​

 

408,984

 

7.4

%  

 

247,536

 

4.5

%  

 

—

 

N/A

​

Merchants Bank

​

 

623,716

 

11.7

%  

 

240,046

 

4.5

%  

 

346,733

 

6.5

%

FMBI

​

​

21,272

 

12.8

%  

 

7,484

 

4.5

%  

 

10,811

 

6.5

%

Tier 1 capital(1) (to average assets)

​

 

​

 

  

​

 

  

 

​

​

 

  

 

  

​

Company

​

 

621,630

 

9.4

%  

 

264,324

 

4.0

%  

 

—

 

N/A

​

Merchants Bank

​

​

623,716

 

9.7

%  

 

257,487

 

4.0

%  

 

321,859

 

5.0

%

FMBI

​

 

21,272

 

11.7

%  

 

7,302

 

4.0

%  

 

9,128

 

5.0

%

(1)As defined by regulatory agencies.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 
v3.20.4
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2020
Earnings Per Share  
Schedule of computation of earnings per share

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

2020

​

2019

​

2018

​

​

​

​

​

Weighted-

​

Per

​

​

​

​

Weighted-

​

Per

​

​

​

​

Weighted-

​

Per

​

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

​

    

(In thousands)

    

​

    

​

​

(In thousands)

​

​

​

​

​

    

​

(In thousands)

​

​

    

​

​

Net income

​

$

180,533

​

​

​

​

​

​

$

77,329

​

​

​

​

​

​

$

62,874

 

  

​

​

​

Dividends on preferred stock

​

 

(14,473)

 

  

 

​

  

​

 

(9,216)

​

​

​

​

​

​

 

(3,330)

 

  

 

​

  

Net income allocated to common shareholders

​

$

166,060

 

  

 

​

  

​

$

68,113

​

​

​

​

​

​

$

59,544

 

  

 

​

  

Basic earnings per share

​

 

  

 

28,742,494

​

$

5.78

​

 

​

​

28,705,125

​

$

2.37

​

 

  

 

28,692,955

​

$

2.08

Effect of dilutive securities—restricted stock awards

​

 

  

 

35,581

​

 

  

​

​

​

​

40,582

​

 

  

​

 

  

 

31,464

​

 

  

Diluted earnings per share

​

 

  

 

28,778,075

​

$

5.77

​

​

​

​

28,745,707

​

$

2.37

​

 

  

 

28,724,419

​

$

2.07
v3.20.4
Disclosures about Fair Value of Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2020
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)

December 31, 2020

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

338,733

​

$

—

​

$

338,733

​

$

—

Available for sale securities:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

6,559

​

 

6,559

​

 

—

​

 

—

Federal agencies

​

 

235,040

​

 

—

​

 

235,040

​

 

—

Municipals

​

 

6,025

​

 

—

​

 

6,025

​

 

—

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

 

22,178

​

 

—

​

 

22,178

​

 

—

Loans held for sale

​

 

40,044

​

 

—

​

 

40,044

​

 

—

Mortgage servicing rights

​

 

82,604

​

 

—

​

 

—

​

 

82,604

Derivative assets - interest rate lock commitments

​

 

6,131

​

 

—

​

 

—

​

 

6,131

Derivative asset - interest rate swap

​

​

3,170

​

​

—

​

​

3,170

​

​

—

Derivative liabilities - forward contracts

​

 

2,682

​

​

—

​

​

2,682

​

​

—

Derivative liabilities - interest rate swap

​

 

3,170

​

​

—

​

​

3,170

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

 

  

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

269,891

​

$

—

​

$

269,891

​

$

—

Available for sale securities:

​

 

  

​

 

  

​

 

  

​

 

  

Treasury notes

​

 

4,765

​

 

4,765

​

 

—

​

 

—

Federal agencies

​

 

244,973

​

 

—

​

 

244,973

​

 

—

Municipals

​

 

5,937

​

​

—

​

 

5,937

​

 

—

Mortgage-backed - Government-sponsored entity (GSE) - residential

​

 

34,568

​

 

​

​

​

34,568

​

​

—

Loans held for sale

​

 

19,592

​

 

—

​

 

19,592

​

 

—

Mortgage servicing rights

​

 

74,387

​

 

—

​

 

—

​

 

74,387

Derivative assets - interest rate lock commitments

​

 

186

​

 

—

​

 

—

​

 

186

Derivative assets - interest rate swap

​

 

511

​

 

—

​

 

511

​

 

—

Derivative liabilities - forward contracts

​

 

27

​

​

—

​

 

27

​

 

—

Derivative liabilities - interest rate swap

​

 

511

​

​

—

​

​

511

​

​

—
Schedule of Level 3 reconciliation of recurring fair value measurements

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

    

2020

    

2019

    

2018

​

​

(In thousands)

Mortgage servicing rights

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

74,387

​

$

77,844

​

$

66,079

Additions

​

 

  

​

 

  

​

 

  

Originated and purchased servicing

​

 

21,889

​

 

7,332

​

 

14,113

Subtractions

​

 

  

​

 

  

​

 

  

Paydowns

​

 

(7,838)

​

 

(5,994)

​

 

(4,196)

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

​

 

(5,834)

​

 

(4,795)

​

 

1,848

Balance, end of period

​

$

82,604

​

$

74,387

​

$

77,844

​

​

​

​

​

​

​

​

​

​

Available for sale securities - Municipals

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

—

​

$

—

​

$

6,688

Additions

​

 

  

​

 

  

​

 

  

Purchased securities

​

 

—

​

 

—

​

 

—

Subtractions

​

​

​

​

​

​

​

​

​

Paydowns

​

​

—

​

​

—

​

​

(257)

Sales

​

​

—

​

​

—

​

​

(6,431)

Unrealized gains (losses) included in other comprehensive income

​

 

—

​

 

—

​

 

—

Balance, end of period

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

Derivative Assets - interest rate lock commitments

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

186

​

$

70

​

$

—

Purchases

​

 

—

​

 

—

​

 

—

Changes in fair value

​

 

5,945

​

 

116

​

 

70

Balance, end of period

​

$

6,131

​

$

186

​

$

70
Schedule of fair value measurement of assets and liabilities measured at fair value on nonrecurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

Quoted Prices in

​

Significant

​

 

​

​

​

​

​

​

Active Markets 

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable 

​

​

Fair

​

Assets

​

Inputs

​

Inputs

Assets

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

​

​

(In thousands)

December 31, 2020

​

 

  

​

 

  

​

 

  

​

 

  

Impaired loans (collateral-dependent)

​

$

4,059

​

$

—

​

$

—

​

$

4,059

December 31, 2019

​

 

  

​

 

  

​

 

  

​

 

  

Impaired loans (collateral-dependent)

​

$

1,570

​

$

—

​

$

—

​

$

1,570
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 December 31, 2020:

 

​

  

 

  

​

​

​

​

 

​

Collateral-dependent impaired loans

​

$

4,059

 

Market comparable properties

 

Marketability discount

​

43%

 

43%

Mortgage servicing rights - Multi-family

​

$

73,569

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

9%

​

​

 

  

 

  

 

Constant prepayment rate

​

2% - 43%

 

4%

Mortgage servicing rights - Single-family

​

$

9,035

​

Discounted cash flow

​

Discount rate

​

11%

​

11%

​

​

​

​

​

​

​

Constant prepayment rate

​

8% - 35%

​

16%

Derivative assets - interest rate lock commitments

​

$

6,131

 

Discounted cash flow

 

Loan closing rates

​

55% - 99%

 

75%

​

​

​

​

​

​

​

​

​

​

​

​

At December 31, 2019:

​

 

  

 

  

​

​

​

​

 

​

Collateral-dependent impaired loans

​

$

1,570

 

Market comparable properties

 

Marketability discount

​

37% - 55%

 

N/A

Mortgage servicing rights

​

$

74,387

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

N/A

​

​

​

​

​

​

​

Constant prepayment rate

​

1% - 39%

 

N/A

Derivative assets - interest rate lock commitments

​

$

186

 

Discounted cash flow

 

loan closing rates

​

73% - 99%

 

N/A
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)

December 31, 2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

179,728

​

$

179,728

​

$

179,728

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

6,580

​

 

6,580

​

 

—

​

 

6,580

​

 

—

FHLB stock

​

 

70,656

​

 

70,656

​

 

—

​

 

70,656

​

 

—

Loans held for sale

​

 

3,030,110

​

 

3,030,110

​

 

—

​

 

3,030,110

​

 

—

Loans, net

​

 

5,507,926

​

 

5,484,824

​

 

—

​

 

—

​

 

5,484,824

Interest receivable

​

 

21,770

​

 

21,770

​

 

—

​

 

21,770

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

Deposits

​

 

7,408,066

​

 

7,410,759

​

 

7,051,413

​

 

359,346

​

 

—

Short-term subordinated debt

​

 

14,960

​

 

14,960

​

 

—

​

 

14,960

​

 

—

FHLB advances

​

 

1,221,071

​

 

1,221,870

​

 

—

​

 

1,221,870

​

 

—

Federal Reserve discount window/PPPLF advances

​

​

112,225

​

​

112,225

​

​

—

​

​

112,225

​

​

—

Interest payable

​

 

1,476

​

 

1,476

​

 

—

​

 

1,476

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Financial assets:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Cash and cash equivalents

​

$

506,709

​

$

506,709

​

$

506,709

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

6,723

​

 

6,723

​

 

—

​

 

6,723

​

 

—

FHLB stock

​

 

20,369

​

 

20,369

​

 

—

​

 

20,369

​

 

—

Loans held for sale

​

 

2,074,197

​

 

2,074,197

​

 

—

​

 

2,074,197

​

 

—

Loans, net

​

 

3,012,468

​

 

2,999,580

​

 

—

​

 

—

​

 

2,999,580

Interest receivable

​

 

18,359

​

 

18,359

​

 

—

​

 

18,359

​

 

—

Financial liabilities:

​

 

  

​

 

​

​

 

​

​

 

  

​

 

  

Deposits

​

 

5,478,075

​

 

5,478,682

​

 

3,303,736

​

 

2,174,946

​

 

—

Lines of credit

​

 

6,540

​

 

6,540

​

 

—

​

 

6,540

​

 

—

Short-term subordinated debt

​

 

12,200

​

 

12,200

​

 

—

​

​

12,200

​

 

—

FHLB advances

​

 

162,699

​

 

162,803

​

 

—

​

 

162,803

​

 

—

Interest payable

​

 

11,938

​

 

11,938

​

 

—

​

 

11,938

​

 

—
v3.20.4
Commitments, Credit Risk, and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2020
Commitments, Credit Risk, and Contingencies  
Schedule of business segment financial information

​

​

​

​

​

​

​

​

​

​

December 31, 

​

    

2020

    

2019

​

​

(In thousands)

Commitments subject to credit risk:

​

​

​

​

​

​

Commitments to extend credit

​

$

1,395,678

​

$

761,068

Standby letters of credit

​

 

50,951

​

 

26,944

Warehouse unfunded lines of warehouse credit

​

​

26,719

​

 

—

Total commitments subject to credit risk

​

$

1,473,348

​

$

788,012

​

​

​

​

​

​

​

Commitments subject to certain performance criteria and cancellation:

​

​

​

​

​

​

Outstanding commitments to originate loans

​

$

1,827,215

​

$

886,017

Unfunded construction draws

​

 

271,746

​

 

287,659

Unfunded lines of warehouse credit

​

​

970,891

​

 

774,424

Total commitments subject to certain performance criteria and cancellation

​

$

3,069,852

​

$

1,948,100
Schedule of future minimum lease payments under operating leases

​

​

​

​

​

​

    

December 31,

​

​

2020

​

​

(In thousands)

Due within one year

​

$

1,278

Due in one year to two years

​

 

1,276

Due in two years to three years

​

 

1,231

Due in three years to four years

​

 

1,004

Due in four years to five years

​

 

295

Thereafter

​

 

1,255

Total minimum lease payments

​

$

6,339
v3.20.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2020
Segment Information  
Schedule of business segment financial information

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

    

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

​

​

(In thousands)

Year Ended December 31, 2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

1,163

​

$

163,488

​

$

115,304

​

$

2,835

 

$

282,790

Interest expense

​

 

—

​

 

27,325

​

 

35,749

​

 

(4,430)

 

 

58,644

Net interest income

​

 

1,163

​

 

136,163

​

 

79,555

​

 

7,265

 

 

224,146

Provision for loan losses

​

 

—

​

 

1,269

​

 

10,569

​

 

—

 

 

11,838

Net interest income after provision for loan losses

​

 

1,163

​

 

134,894

​

 

68,986

​

 

7,265

 

 

212,308

Noninterest income

​

 

80,690

​

 

21,163

​

 

29,443

​

 

(3,823)

 

 

127,473

Noninterest expense

​

 

41,386

​

 

13,367

​

 

26,537

​

 

15,134

 

 

96,424

Income before income taxes

​

 

40,467

​

 

142,690

​

 

71,892

​

 

(11,692)

 

 

243,357

Income taxes

​

 

11,295

​

 

36,361

​

 

18,255

​

 

(3,087)

 

 

62,824

Net income

​

$

29,172

​

$

106,329

​

$

53,637

​

$

(8,605)

 

$

180,533

Total assets

​

$

210,714

​

$

4,893,513

​

$

4,498,880

​

$

42,268

 

$

9,645,375

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

​

Total

​

​

(In thousands)

Year Ended December 31, 2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

1,328

​

$

102,157

​

$

106,443

​

$

2,067

 

$

211,995

Interest expense

​

 

—

​

 

50,880

​

 

45,681

​

 

(6,864)

 

 

89,697

Net interest income

​

 

1,328

​

 

51,277

​

 

60,762

​

 

8,931

 

 

122,298

Provision for loan losses

​

 

—

​

 

1,358

​

 

2,582

​

 

—

 

 

3,940

Net interest income after provision for loan losses

​

 

1,328

​

 

49,919

​

 

58,180

​

 

8,931

 

 

118,358

Noninterest income

​

 

41,682

​

 

7,178

​

 

1,005

​

 

(2,776)

 

 

47,089

Noninterest expense

​

 

22,556

​

 

11,397

​

 

17,738

​

 

11,622

 

 

63,313

Income before income taxes

​

 

20,454

​

 

45,700

​

 

41,447

​

 

(5,467)

 

 

102,134

Income taxes

​

 

5,691

​

 

10,934

​

 

9,593

​

 

(1,413)

 

 

24,805

Net income

​

$

14,763

​

$

34,766

​

$

31,854

​

$

(4,054)

 

$

77,329

Total assets

​

$

188,866

​

$

3,124,684

​

$

3,018,568

​

$

39,810

 

$

6,371,928

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

    

Banking

    

Warehousing

    

Banking

    

Other

    

​

Total

​

​

(In thousands)

Year Ended December 31, 2018

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

712

​

$

58,784

​

$

79,332

​

$

1,735

 

$

140,563

Interest expense

​

 

—

​

 

24,369

​

 

29,508

​

 

(3,285)

 

 

50,592

Net interest income

​

 

712

​

 

34,415

​

 

49,824

​

 

5,020

 

 

89,971

Provision for loan losses

​

 

—

​

 

1,372

​

 

3,257

​

 

—

 

 

4,629

Net interest income after provision for loan losses

​

 

712

​

 

33,043

​

 

46,567

​

 

5,020

 

 

85,342

Noninterest income

​

 

45,831

​

 

2,550

​

 

3,150

​

 

(1,946)

 

 

49,585

Noninterest expense

​

 

19,205

​

 

7,721

​

 

14,876

​

 

9,098

 

 

50,900

Income before income taxes

​

 

27,338

​

 

27,872

​

 

34,841

​

 

(6,024)

 

 

84,027

Income taxes

​

 

7,528

​

 

6,872

​

 

8,572

​

 

(1,819)

 

 

21,153

Net income

​

$

19,810

​

$

21,000

​

$

26,269

​

$

(4,205)

 

$

62,874

Total assets

​

$

166,102

​

$

1,430,776

​

$

2,256,687

​

$

30,598

 

$

3,884,163
v3.20.4
Condensed Financial Information (Parent Company Only) (Tables)
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information (Parent Company Only)  
Summary of condensed balance sheets

​

​

​

​

​

​

​

​

​

​

December 31, 

​

    

2020

​

2019

​

​

(In thousands)

Assets

 

​

  

​

​

  

Cash and cash equivalents

​

$

2,117

​

$

463

Investment in subsidiaries

​

 

823,842

​

 

664,878

Other assets

​

 

190

​

 

2,213

Total assets

​

$

826,149

​

$

667,554

Liabilities

​

 

  

​

 

  

Short-term subordinated debt

​

$

14,960

​

 

12,200

Other liabilities

​

 

568

​

 

1,626

Total liabilities

​

 

15,528

​

 

13,826

Shareholders’ Equity

​

 

810,621

​

 

653,728

Total liabilities and shareholders’ equity

​

$

826,149

​

$

667,554
Summary of condensed statements of income and comprehensive income

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

December 31, 

​

    

2020

​

2019

    

2018

​

​

(In thousands)

Income

 

​

  

​

​

  

 

​

  

Dividends and return of capital from subsidiaries

​

 

29,773

​

 

43,903

​

 

37,816

Other Income

​

 

27

​

 

—

​

 

195

Total income

​

 

29,800

​

 

43,903

​

 

38,011

Expenses

​

 

  

​

 

  

​

 

  

Interest expense

​

 

3,972

​

 

3,641

​

 

8,055

Salaries and employee benefits

​

 

2,726

​

 

1,611

​

 

1,216

Professional fees

​

 

386

​

 

335

​

 

707

Other

​

 

383

​

 

423

​

 

420

Total expense

​

 

7,467

​

 

6,010

​

 

10,398

Income Before Income Tax and Equity in Undistributed Income of Subsidiaries

​

 

22,333

​

 

37,893

​

 

27,613

Income Tax Benefit

​

 

(1,911)

​

 

(1,433)

​

 

(2,542)

Income Before Equity in Undistributed Income of Subsidiaries

​

 

24,244

​

 

39,326

​

 

30,155

Equity in Undistributed Income of Subsidiaries

​

 

156,289

​

 

38,003

​

 

32,719

Net Income

​

$

180,533

​

$

77,329

​

$

62,874

Comprehensive Income

​

$

180,449

​

$

78,097

​

$

63,813
Summary of condensed statements of cash flows

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

​

December 31, 

​

    

2020

    

2019

​

​

2018

​

​

(In thousands)

Operating Activities

 

​

  

 

​

  

​

​

  

Net income

​

$

180,533

​

$

77,329

​

$

62,874

Adjustments to reconcile net income to net cash used in operating activities

​

 

(155,442)

​

 

(36,567)

​

​

(30,522)

Net cash provided by operating activities

​

 

25,091

​

 

40,762

​

​

32,352

Investing Activities

​

 

  

​

 

  

​

​

  

Return of capital from/(contributed capital to) subsidiaries

​

 

(2,760)

​

 

(173,078)

​

​

19,368

Net cash paid for acquisitions

​

 

—

​

 

—

​

​

(27,209)

Proceeds from sale of limited partnership interests

​

​

266

​

​

​

​

​

​

Other investing activity

​

 

(32)

​

 

126

​

​

74

Net cash used in investing activities

​

 

(2,526)

​

 

(172,952)

​

​

(7,767)

Financing Activities

​

 

  

​

 

  

​

​

  

Net change in lines of credit and subordinated debt

​

 

2,760

​

 

(23,382)

​

​

(19,418)

Dividends paid

​

 

(23,671)

​

 

(17,254)

​

​

(10,216)

Proceeds from issuance of preferred stock

​

 

—

​

 

192,915

​

​

—

Repurchase of preferred stock

​

 

—

​

 

(21,850)

​

​

—

Net cash provided by (used in) financing activities

​

 

(20,911)

​

 

130,429

​

​

(29,634)

Net Change in Cash and Due From Banks

​

 

1,654

​

 

(1,761)

​

​

(5,049)

Cash and Due From Banks at Beginning of Year

​

 

463

​

 

2,224

​

​

7,273

Cash and Due From Banks at End of Year

​

$

2,117

​

$

463

​

$

2,224

Additional Cash Flows Information:

​

​

​

​

​

​

​

​

​

Redemption of common shares related to sale of limited partnership interests

​

$

(150)

​

$

—

​

$

—
v3.20.4
Quarterly Condensed Financial Information (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2020
Quarterly Condensed Financial Information (Unaudited)  
Schedule of quarterly condensed financial information (unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020 Quarter Ended

(Dollars in thousands, except per share data)

    

March 31

    

June 30

    

September 30

    

December 31

​

 

​

  

 

​

  

 

​

  

 

​

  

Interest income

​

$

60,417

​

$

68,204

​

$

76,258

​

$

77,911

Interest expense

​

 

22,064

​

 

16,970

​

 

10,936

​

 

8,674

Net interest income

​

 

38,353

​

 

51,234

​

 

65,322

​

 

69,237

Provision for loan losses

​

 

2,998

​

 

1,745

​

 

2,981

​

 

4,114

Net interest income after provision for loan losses

​

​

35,355

​

​

49,489

​

​

62,341

​

​

65,123

Noninterest income

​

​

19,902

​

​

26,188

​

​

38,657

​

​

42,726

Noninterest expense

​

​

22,293

​

​

20,282

​

​

26,384

​

​

27,465

Income before income taxes

​

​

32,964

​

​

55,395

​

​

74,614

​

​

80,384

Income taxes

​

​

8,381

​

​

14,233

​

​

19,612

​

​

20,598

Net income

​

​

24,583

​

​

41,162

​

​

55,002

​

​

59,786

Less: preferred stock dividends

​

​

3,618

​

​

3,619

​

​

3,618

​

​

3,618

Net income allocated to common shareholders

​

$

20,965

​

$

37,543

​

$

51,384

​

$

56,168

Per common share data:

​

​

​

​

​

​

​

​

​

​

​

​

Basic earnings per common share

​

$

0.73

​

$

1.31

​

$

1.79

​

$

1.95

Diluted earnings per common share

​

​

0.73

​

 

1.31

​

 

1.79

​

 

1.95

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2019 Quarter Ended

(Dollars in thousands, except per share data)

    

March 31

    

June 30

    

September 30

    

December 31

​

 

​

  

 

​

  

 

​

  

 

​

  

Interest income

​

$

39,674

​

$

48,761

​

$

59,761

​

$

63,799

Interest expense

​

 

15,543

​

 

20,839

​

 

27,137

​

 

26,178

Net interest income

​

 

24,131

​

 

27,922

​

 

32,624

​

 

37,621

Provision for loan losses

​

 

649

​

 

105

​

 

1,193

​

 

1,993

Net interest income after provision for loan losses

​

​

23,482

​

​

27,817

​

​

31,431

​

​

35,628

Noninterest income

​

​

3,664

​

​

9,870

​

​

10,852

​

​

22,703

Noninterest expense

​

​

13,035

​

​

15,920

​

​

15,522

​

​

18,836

Income before income taxes

​

​

14,111

​

​

21,767

​

​

26,761

​

​

39,495

Income taxes

​

​

3,541

​

​

5,328

​

​

6,502

​

​

9,434

Net income

​

​

10,570

​

​

16,439

​

​

20,259

​

​

30,061

Less: preferred stock dividends

​

​

833

​

​

1,743

​

​

3,022

​

​

3,618

Net income allocated to common shareholders

​

$

9,737

​

$

14,696

​

$

17,237

​

$

26,443

Per common share data:

​

​

​

​

​

​

​

​

​

​

​

​

Basic earnings per common share

​

$

0.34

​

$

0.51

​

$

0.60

​

$

0.92

Diluted earnings per common share

​

 

0.34

​

 

0.51

​

 

0.60

​

 

0.92
v3.20.4
Nature of Operations and Summary of Significant Accounting Policies - Operations (Details)
 12 Months Ended
Dec. 31, 2020
USD ($)
item
Merchants Bank  
Nature of Operations and Principles of Consolidation  
Number of locations of operation | item 6
FMBI  
Nature of Operations and Principles of Consolidation  
Number of locations of operation | $ 4
v3.20.4
Nature of Operations and Summary of Significant Accounting Policies - Cash, Cash Equivalents and Other (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Cash and Cash Equivalents    
Cash accounts in excess of federally insured limits $ 165,900,000 $ 492,100,000
Cash accounts in excess of federally insured limits with Federal Reserve Bank 157,200,000 478,800,000
Cash accounts in excess of federally insured limits with Federal Home Loan Bank of Indianapolis 2,700,000 2,300,000
Cash accounts in excess of federally insured limits with Federal Home Loan Bank of Chicago 23,000 20,000
Securities    
Securities, held-to-maturity $ 0 $ 0
Loans Held for Sale under Mortgage Banking Activities    
Maximum participation interest to be purchased in individual loans (as a percent) 100.00%  
v3.20.4
Nature of Operations and Summary of Significant Accounting Policies - Premises and Equipment (Details)
 12 Months Ended
Dec. 31, 2020
Vehicles  
Premises and Equipment  
Estimated useful lives 5 years
Minimum | Buildings  
Premises and Equipment  
Estimated useful lives 10 years
Minimum | Leasehold improvements  
Premises and Equipment  
Estimated useful lives 5 years
Minimum | Software and intangible assets  
Premises and Equipment  
Estimated useful lives 3
Minimum | Furniture, fixtures and equipment  
Premises and Equipment  
Estimated useful lives 3 years
Maximum | Buildings  
Premises and Equipment  
Estimated useful lives 40 years
Maximum | Leasehold improvements  
Premises and Equipment  
Estimated useful lives 39 years
Maximum | Software and intangible assets  
Premises and Equipment  
Estimated useful lives 10
Maximum | Furniture, fixtures and equipment  
Premises and Equipment  
Estimated useful lives 10 years
v3.20.4
Nature of Operations and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Customer list    
Intangible assets    
Amortization period   21 months
Core deposit intangible    
Intangible assets    
Amortization period 10 years  
Minimum | Licenses and Trade Names    
Intangible assets    
Amortization period 84 months  
Maximum | Licenses and Trade Names    
Intangible assets    
Amortization period 120 months  
v3.20.4
Nature of Operations and Summary of Significant Accounting Policies - Shared-based Compensation (Details)
 12 Months Ended
Dec. 31, 2020
Share-based Compensation Plan  
Share awards vesting period 3 years
v3.20.4
Restriction on Cash and Due From Banks (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Restriction on Cash and Due From Banks    
Reserve required for restriction on cash and due from banks $ 0.0 $ 184.5
v3.20.4
Securities Available For Sale - Amortized Cost to Approximate Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Available-for-sale securities:    
Amortized Cost $ 269,323 $ 289,664
Gross Unrealized Gains 496 618
Gross Unrealized Losses 17 39
Fair Value of available for sale securities 269,802 290,243
Treasury notes    
Available-for-sale securities:    
Amortized Cost 6,535 4,744
Gross Unrealized Gains 24 21
Fair Value of available for sale securities 6,559 4,765
Federal agencies    
Available-for-sale securities:    
Amortized Cost 234,954 244,986
Gross Unrealized Gains 103 24
Gross Unrealized Losses 17 37
Fair Value of available for sale securities 235,040 244,973
Municipals    
Available-for-sale securities:    
Amortized Cost 5,935 5,577
Gross Unrealized Gains 90 360
Fair Value of available for sale securities 6,025 5,937
Mortgage-backed - Government-sponsored entity (GSE) - residential    
Available-for-sale securities:    
Amortized Cost 21,899 34,357
Gross Unrealized Gains 279 213
Gross Unrealized Losses   2
Fair Value of available for sale securities $ 22,178 $ 34,568
v3.20.4
Securities Available For Sale - Contractual Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Contractual Maturities, Amortized Cost    
Within one year $ 6,288  
After one through five years 239,770  
After five through ten years 515  
After ten years 851  
Amortized Costs, Gross 247,424  
Amortized Costs, Net 269,323 $ 289,664
Contractual Maturities, Fair Value    
Within one year 6,302  
After one through five years 239,877  
After five through ten years 549  
After ten years 896  
Fair Value, Gross 247,624  
Available-for-sale Securities, Debt Securities, Total 269,802 290,243
Mortgage-backed - Government-sponsored entity (GSE) - residential    
Contractual Maturities, Amortized Cost    
Amortized Costs, Mortgage-backed - Government-sponsored entity (GSE) - residential 21,899  
Amortized Costs, Net 21,899 34,357
Contractual Maturities, Fair Value    
Fair Value, Mortgage-backed - Government-sponsored entity (GSE) - residential 22,178  
Available-for-sale Securities, Debt Securities, Total $ 22,178 $ 34,568
v3.20.4
Securities Available For Sale - Sale of securities (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Securities Available For Sale      
Proceeds from the sale of available for sale securities $ 4,347,000 $ 37,817,000 $ 6,431,000
Net gain on sale of securities available for sale 441,000 476,000  
Gains on sale of securities available for sale 441,000 713,000  
Losses on sale of securities available for sale 0 237,000  
Gain loss recognized     $ 0
Investment securities pledged as collateral $ 269,800,000 $ 290,200,000  
v3.20.4
Securities Available For Sale - Continuous Unrealized Loss Position (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Securities    
Percentage of investment portfolio 26.00% 33.00%
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months $ 69,939 $ 95,772
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 69,939 95,772
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 17 39
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total $ 17 39
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   94,963
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total   94,963
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   37
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total   37
Mortgage-backed - Government-sponsored entity (GSE) - residential    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months   809
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total   809
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   2
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total   $ 2
v3.20.4
Mortgage Loans in Process of Securitization (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Mortgage Loans in Process of Securitization    
Unrealized gains included in mortgage loans $ 2.4 $ 3.1
v3.20.4
Loans and Allowance for Loan Losses - Summary of Loans By Classification (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Loans and Allowance for Loan Losses        
Loans $ 5,535,426 $ 3,028,310    
Allowance for loan losses 27,500 15,842 $ 12,704 $ 8,311
Loans and Leases Receivable, Net Amount, Total 5,507,926 3,012,468    
Mortgage warehouse lines of credit        
Loans and Allowance for Loan Losses        
Loans 1,605,745 765,151    
Allowance for loan losses 4,018 1,913 1,068 283
Residential real estate        
Loans and Allowance for Loan Losses        
Loans 678,848 413,835    
Allowance for loan losses 3,334 2,042 1,986 1,587
Multi-family and healthcare financing        
Loans and Allowance for Loan Losses        
Loans 2,749,020 1,347,125    
Allowance for loan losses 14,731 7,018 6,030 3,502
Commercial and commercial real estate        
Loans and Allowance for Loan Losses        
Loans 387,294 398,601    
Allowance for loan losses 4,641 4,173 3,051 2,362
Commercial and commercial real estate | Loans funded through PPP, CARES Act        
Loans and Allowance for Loan Losses        
Loans 60,200      
Agricultural production and real estate        
Loans and Allowance for Loan Losses        
Loans 101,268 85,210    
Allowance for loan losses 636 523 429 320
Consumer and margin loans        
Loans and Allowance for Loan Losses        
Loans 13,251 18,388    
Allowance for loan losses $ 140 $ 173 $ 140 $ 257
v3.20.4
Loans and Allowance for Loan Losses - Allowance For Loan Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Allowance for loan losses      
Balance, beginning of period $ 15,842 $ 12,704 $ 8,311
Provision for loan losses (11,838) (3,940) (4,629)
Loans charged to the allowance (361) (964) (236)
Recoveries of loans previously charged off 181 162  
Balance, end of period 27,500 15,842 12,704
Ending balance: individually evaluated for impairment 1,613 681  
Ending balance: collectively evaluated for impairment 25,887 15,161  
Loans      
Ending balance 5,535,426 3,028,310  
Ending balance individually evaluated for impairment 14,464 12,517  
Ending balance: collectively evaluated for impairment 5,520,962 3,015,793  
Mortgage warehouse lines of credit      
Allowance for loan losses      
Balance, beginning of period 1,913 1,068 283
Provision for loan losses (2,105) (952) (785)
Loans charged to the allowance   (107)  
Balance, end of period 4,018 1,913 1,068
Ending balance: collectively evaluated for impairment 4,018 1,913  
Loans      
Ending balance 1,605,745 765,151  
Ending balance individually evaluated for impairment   233  
Ending balance: collectively evaluated for impairment 1,605,745 764,918  
Residential real estate      
Allowance for loan losses      
Balance, beginning of period 2,042 1,986 1,587
Provision for loan losses (1,248) (56) (399)
Loans charged to the allowance (31)    
Recoveries of loans previously charged off 75    
Balance, end of period 3,334 2,042 1,986
Ending balance: individually evaluated for impairment 7 23  
Ending balance: collectively evaluated for impairment 3,327 2,019  
Loans      
Ending balance 678,848 413,835  
Ending balance individually evaluated for impairment 2,761 3,109  
Ending balance: collectively evaluated for impairment 676,087 410,726  
Multi-family and healthcare financing      
Allowance for loan losses      
Balance, beginning of period 7,018 6,030 3,502
Provision for loan losses (7,713) (988) (2,528)
Balance, end of period 14,731 7,018 6,030
Ending balance: collectively evaluated for impairment 14,731 7,018  
Loans      
Ending balance 2,749,020 1,347,125  
Ending balance: collectively evaluated for impairment 2,749,020 1,347,125  
Commercial and commercial real estate      
Allowance for loan losses      
Balance, beginning of period 4,173 3,051 2,362
Provision for loan losses (681) (1,817) (779)
Loans charged to the allowance (319) (857) (90)
Recoveries of loans previously charged off 106 162  
Balance, end of period 4,641 4,173 3,051
Ending balance: individually evaluated for impairment 1,606 650  
Ending balance: collectively evaluated for impairment 3,035 3,523  
Loans      
Ending balance 387,294 398,601  
Ending balance individually evaluated for impairment 9,591 9,152  
Ending balance: collectively evaluated for impairment 377,703 389,449  
Agricultural production and real estate      
Allowance for loan losses      
Balance, beginning of period 523 429 320
Provision for loan losses (113) (94) (109)
Balance, end of period 636 523 429
Ending balance: collectively evaluated for impairment 636 523  
Loans      
Ending balance 101,268 85,210  
Ending balance individually evaluated for impairment 2,100    
Ending balance: collectively evaluated for impairment 99,168 85,210  
Consumer and margin loans      
Allowance for loan losses      
Balance, beginning of period 173 140 257
Provision for loan losses 22 (33) (29)
Loans charged to the allowance (11)   (146)
Balance, end of period 140 173 $ 140
Ending balance: individually evaluated for impairment   8  
Ending balance: collectively evaluated for impairment 140 165  
Loans      
Ending balance 13,251 18,388  
Ending balance individually evaluated for impairment 12 23  
Ending balance: collectively evaluated for impairment $ 13,239 $ 18,365  
v3.20.4
Loans and Allowance for Loan Losses - Credit Risk Profile of Loan Portfolio (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Credit risk profile of portfolio    
Loans $ 5,535,426 $ 3,028,310
Special Mention (Watch)    
Credit risk profile of portfolio    
Loans 152,939 60,305
Special Mention (Watch) Covid 19 Deferrals    
Credit risk profile of portfolio    
Loans 678  
Substandard    
Credit risk profile of portfolio    
Loans 14,464 12,517
Acceptable and Above    
Credit risk profile of portfolio    
Loans 5,367,345 2,955,488
Mortgage warehouse lines of credit    
Credit risk profile of portfolio    
Loans 1,605,745 765,151
Mortgage warehouse lines of credit | Special Mention (Watch)    
Credit risk profile of portfolio    
Loans 222  
Mortgage warehouse lines of credit | Substandard    
Credit risk profile of portfolio    
Loans   233
Mortgage warehouse lines of credit | Acceptable and Above    
Credit risk profile of portfolio    
Loans 1,605,523 764,918
Residential real estate    
Credit risk profile of portfolio    
Loans 678,848 413,835
Residential real estate | Special Mention (Watch)    
Credit risk profile of portfolio    
Loans 853 2,472
Residential real estate | Special Mention (Watch) Covid 19 Deferrals    
Credit risk profile of portfolio    
Loans 383  
Residential real estate | Substandard    
Credit risk profile of portfolio    
Loans 2,761 3,109
Residential real estate | Acceptable and Above    
Credit risk profile of portfolio    
Loans 674,851 408,254
Multi-family and healthcare financing    
Credit risk profile of portfolio    
Loans 2,749,020 1,347,125
Multi-family and healthcare financing | Special Mention (Watch)    
Credit risk profile of portfolio    
Loans 145,050 41,882
Multi-family and healthcare financing | Special Mention (Watch) Covid 19 Deferrals    
Credit risk profile of portfolio    
Loans 185  
Multi-family and healthcare financing | Acceptable and Above    
Credit risk profile of portfolio    
Loans 2,603,785 1,305,243
Commercial and commercial real estate    
Credit risk profile of portfolio    
Loans 387,294 398,601
Commercial and commercial real estate | Special Mention (Watch)    
Credit risk profile of portfolio    
Loans 2,620 13,806
Commercial and commercial real estate | Special Mention (Watch) Covid 19 Deferrals    
Credit risk profile of portfolio    
Loans 110  
Commercial and commercial real estate | Substandard    
Credit risk profile of portfolio    
Loans 9,591 9,152
Commercial and commercial real estate | Acceptable and Above    
Credit risk profile of portfolio    
Loans 374,973 375,643
Agricultural production and real estate    
Credit risk profile of portfolio    
Loans 101,268 85,210
Agricultural production and real estate | Special Mention (Watch)    
Credit risk profile of portfolio    
Loans 4,160 2,114
Agricultural production and real estate | Substandard    
Credit risk profile of portfolio    
Loans 2,100  
Agricultural production and real estate | Acceptable and Above    
Credit risk profile of portfolio    
Loans 95,008 83,096
Consumer and margin loans    
Credit risk profile of portfolio    
Loans 13,251 18,388
Consumer and margin loans | Special Mention (Watch)    
Credit risk profile of portfolio    
Loans 34 31
Consumer and margin loans | Substandard    
Credit risk profile of portfolio    
Loans 12 23
Consumer and margin loans | Acceptable and Above    
Credit risk profile of portfolio    
Loans $ 13,205 $ 18,334
v3.20.4
Loans and Allowance for Loan Losses - Aging Analysis Of The Recorded Investment In Loans (Details)
Dec. 31, 2020
USD ($)
loan
Dec. 31, 2019
USD ($)
Aging analysis of loan portfolio    
Past due loans $ 47,829,000 $ 12,608,000
Current loans 5,487,597,000 3,015,702,000
Loans and Leases Receivable, Net of Deferred Income, Total $ 5,535,426,000 3,028,310,000
Number of loans modified in accordance with CARES Act | loan 11  
Amount of outstanding loans modified in accordance with CARES Act $ 937,000  
Loans modified in accordance with CARES Act, payments due 0  
30-59 Days Past Due    
Aging analysis of loan portfolio    
Past due loans 4,748,000 7,479,000
60-89 Days Past Due    
Aging analysis of loan portfolio    
Past due loans 36,916,000 928,000
Greater Than 90 Days    
Aging analysis of loan portfolio    
Past due loans 6,165,000 4,201,000
Mortgage warehouse lines of credit    
Aging analysis of loan portfolio    
Current loans 1,605,745,000 765,151,000
Loans and Leases Receivable, Net of Deferred Income, Total 1,605,745,000 765,151,000
Residential real estate    
Aging analysis of loan portfolio    
Past due loans 1,074,000 5,975,000
Current loans 677,774,000 407,860,000
Loans and Leases Receivable, Net of Deferred Income, Total 678,848,000 413,835,000
Residential real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Past due loans 364,000 3,089,000
Residential real estate | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Past due loans 80,000 562,000
Residential real estate | Greater Than 90 Days    
Aging analysis of loan portfolio    
Past due loans 630,000 2,324,000
Multi-family and healthcare financing    
Aging analysis of loan portfolio    
Past due loans 36,760,000  
Current loans 2,712,260,000 1,347,125,000
Loans and Leases Receivable, Net of Deferred Income, Total 2,749,020,000 1,347,125,000
Multi-family and healthcare financing | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Past due loans 36,760,000  
Commercial and commercial real estate    
Aging analysis of loan portfolio    
Past due loans 4,266,000 4,291,000
Current loans 383,028,000 394,310,000
Loans and Leases Receivable, Net of Deferred Income, Total 387,294,000 398,601,000
Commercial and commercial real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Past due loans 608,000 2,293,000
Commercial and commercial real estate | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Past due loans 76,000 335,000
Commercial and commercial real estate | Greater Than 90 Days    
Aging analysis of loan portfolio    
Past due loans 3,582,000 1,663,000
Agricultural production and real estate    
Aging analysis of loan portfolio    
Past due loans 5,703,000 2,242,000
Current loans 95,565,000 82,968,000
Loans and Leases Receivable, Net of Deferred Income, Total 101,268,000 85,210,000
Agricultural production and real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Past due loans 3,769,000 2,047,000
Agricultural production and real estate | Greater Than 90 Days    
Aging analysis of loan portfolio    
Past due loans 1,934,000 195,000
Consumer and margin loans    
Aging analysis of loan portfolio    
Past due loans 26,000 100,000
Current loans 13,225,000 18,288,000
Loans and Leases Receivable, Net of Deferred Income, Total 13,251,000 18,388,000
Consumer and margin loans | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Past due loans 7,000 50,000
Consumer and margin loans | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Past due loans   31,000
Consumer and margin loans | Greater Than 90 Days    
Aging analysis of loan portfolio    
Past due loans $ 19,000 $ 19,000
v3.20.4
Loans and Allowance for Loan Losses - Impaired Loans and Specific Valuation Allowance (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Impaired loans without a specific allowance:    
Recorded investment $ 8,130 $ 9,806
Unpaid principal balance 8,130 9,806
Impaired loans with a specific allowance:    
Recorded investment 6,334 2,711
Unpaid principal balance 6,334 2,711
Specific allowance 1,613 681
Total impaired loans:    
Recorded investments 14,464 12,517
Unpaid principal balance 14,464 12,517
Specific allowance 1,613 681
Mortgage warehouse lines of credit    
Impaired loans without a specific allowance:    
Recorded investment   233
Unpaid principal balance   233
Total impaired loans:    
Recorded investments   233
Unpaid principal balance   233
Residential real estate    
Impaired loans without a specific allowance:    
Recorded investment 2,704 2,899
Unpaid principal balance 2,704 2,899
Impaired loans with a specific allowance:    
Recorded investment 57 210
Unpaid principal balance 57 210
Specific allowance 7 23
Total impaired loans:    
Recorded investments 2,761 3,109
Unpaid principal balance 2,761 3,109
Specific allowance 7 23
Commercial and commercial real estate    
Impaired loans without a specific allowance:    
Recorded investment 3,319 6,662
Unpaid principal balance 3,319 6,662
Impaired loans with a specific allowance:    
Recorded investment 6,272 2,490
Unpaid principal balance 6,272 2,490
Specific allowance 1,606 650
Total impaired loans:    
Recorded investments 9,591 9,152
Unpaid principal balance 9,591 9,152
Specific allowance 1,606 650
Agricultural production and real estate    
Impaired loans without a specific allowance:    
Recorded investment 2,100  
Unpaid principal balance 2,100  
Total impaired loans:    
Recorded investments 2,100  
Unpaid principal balance 2,100  
Consumer and margin loans    
Impaired loans without a specific allowance:    
Recorded investment 7 12
Unpaid principal balance 7 12
Impaired loans with a specific allowance:    
Recorded investment 5 11
Unpaid principal balance 5 11
Specific allowance   8
Total impaired loans:    
Recorded investments 12 23
Unpaid principal balance $ 12 23
Specific allowance   $ 8
v3.20.4
Loans and Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Impaired Loans      
Average recorded investment in impaired loans $ 14,700 $ 12,117 $ 11,830
Interest income recognized 429 534 528
Mortgage warehouse lines of credit      
Impaired Loans      
Average recorded investment in impaired loans 106 242 932
Interest income recognized     59
Residential real estate      
Impaired Loans      
Average recorded investment in impaired loans 3,002 3,175 1,485
Interest income recognized 57 71 50
Commercial and commercial real estate      
Impaired Loans      
Average recorded investment in impaired loans 9,913 8,675 8,872
Interest income recognized 371 463 375
Agricultural production and real estate      
Impaired Loans      
Average recorded investment in impaired loans 1,662   489
Interest income recognized 1   43
Consumer and margin loans      
Impaired Loans      
Average recorded investment in impaired loans $ 17 $ 25 52
Interest income recognized     $ 1
v3.20.4
Loans and Allowance for Loan Losses - Non Accrual Loans and Loans Past Due 90 Days Or More and Still Accruing (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Loan portfolio past due loans    
Nonaccrual $ 2,823 $ 2,109
Total Loans Greater than 90 Days & Accruing 3,498 2,569
Mortgage warehouse lines of credit    
Loan portfolio past due loans    
Nonaccrual   233
Residential real estate    
Loan portfolio past due loans    
Nonaccrual 578 740
Total Loans Greater than 90 Days & Accruing 69 1,851
Commercial and commercial real estate    
Loan portfolio past due loans    
Nonaccrual 2,052 1,118
Total Loans Greater than 90 Days & Accruing 1,240 486
Agricultural production and real estate    
Loan portfolio past due loans    
Nonaccrual 181  
Total Loans Greater than 90 Days & Accruing 2,181 231
Consumer and margin loans    
Loan portfolio past due loans    
Nonaccrual 12 18
Total Loans Greater than 90 Days & Accruing $ 8 $ 1
v3.20.4
Loans and Allowance for Loan Losses - Troubled Debt and Modifications (Details)
 12 Months Ended
Dec. 31, 2020
USD ($)
loan
item
Dec. 31, 2019
USD ($)
item
loan
Dec. 31, 2018
USD ($)
item
Troubled debt and modifications      
Number of troubled debt restructuring | item   0  
Number of loans restructured defaulted | item 0 0 0
Amount of outstanding loans modified in accordance with CARES Act $ 937,000    
Commercial and commercial real estate      
Troubled debt and modifications      
Number of troubled debt restructuring | item     1
Commercial and commercial real estate | Modification of terms      
Troubled debt and modifications      
Recorded investment, before modification     $ 2,000,000.0
Recorded investment, after modification     $ 2,000,000
Residential real estate      
Troubled debt and modifications      
Number of loans in the process of foreclosure | loan 0 1  
Value of residential loans in process of foreclosure   $ 725,000  
Agricultural production and real estate      
Troubled debt and modifications      
Number of troubled debt restructuring | item 1    
Agricultural production and real estate | Modification of terms      
Troubled debt and modifications      
Recorded investment, before modification $ 180,000    
Recorded investment, after modification $ 180,000    
v3.20.4
Derivative Financial Instruments (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Gross swap gains $ (2,659,000) $ (511,000)  
Gross swap losses 2,659,000 511,000  
Net derivative gains (loss) (5,133,000) 63,000 $ 6,000
Pledged in collateral 3,900,000 590,000  
Derivative assets      
Derivative Financial Instruments      
Derivative assets, fair value 6,131,000 186,000  
Derivative liabilities      
Derivative Financial Instruments      
Derivative liabilities, fair value 2,682,000 27,000  
Interest Rate Lock Commitments      
Derivative Financial Instruments      
Notional amount 412,043,000 17,826,000  
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Net derivative gains (loss) 5,945,000 116,000 70,000
Interest Rate Lock Commitments | Derivative assets      
Derivative Financial Instruments      
Derivative assets, fair value 6,131,000 186,000  
Forward Contracts      
Derivative Financial Instruments      
Notional amount 304,024,000 34,268,000  
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Net derivative gains (loss) (11,078,000) (53,000) $ (64,000)
Forward Contracts | Derivative liabilities      
Derivative Financial Instruments      
Derivative liabilities, fair value 2,682,000 27,000  
Interest rate swaps      
Derivative Financial Instruments      
Notional amount 82,726,000 58,067,000  
Interest rate swaps | Derivative assets      
Derivative Financial Instruments      
Derivative assets, fair value 3,170,000 511,000  
Interest rate swaps | Derivative liabilities      
Derivative Financial Instruments      
Derivative liabilities, fair value $ 3,170,000 $ 511,000  
v3.20.4
Loan Servicing (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Loan Servicing      
Balance, beginning of period $ 74,387 $ 77,844 $ 66,079
Paydowns (7,838) (5,994) (4,196)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model (5,834) (4,795) 1,848
Balance, end of period 82,604 74,387 77,844
Revenue from specified servicing fee 11,900 9,700 8,700
Escrow funds 498,200 459,300  
Originated and purchased servicing      
Loan Servicing      
Additions $ 21,889 7,332 $ 14,113
Mortgage Loans      
Loan Servicing      
Sliding scale to deter prepayments (in years) 10 years    
Unpaid principal balances of mortgage and other loans serviced for others $ 8,700,000 6,300,000  
Unpaid principal balances of loans subserviced for others $ 5,600,000 $ 3,800,000  
v3.20.4
Goodwill and Intangibles - Goodwill (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Changes in goodwill:      
Balance, beginning of period $ 15,845,000 $ 17,477,000 $ 3,902,000
Goodwill acquired during the period 13,163,000
Post-acquisition adjustments (1,632,000) 412,000
Impairment losses
Balance, end of the period 15,845,000 15,845,000 17,477,000
NattyMac, LLC      
Goodwill      
Transfer to intangible assets   1,600,000 1,600,000
Changes in goodwill:      
Post-acquisition adjustments   271,000  
Multifamily      
Changes in goodwill:      
Balance, beginning of period 3,791,000 3,791,000 3,379,000
Goodwill acquired during the period
Post-acquisition adjustments 412,000
Impairment losses
Balance, end of the period 3,791,000 3,791,000 3,791,000
Banking      
Changes in goodwill:      
Balance, beginning of period 8,353,000 8,686,000 523,000
Goodwill acquired during the period 8,163,000
Post-acquisition adjustments (333,000)
Impairment losses
Balance, end of the period 8,353,000 8,353,000 8,686,000
Mortgage Warehousing      
Changes in goodwill:      
Balance, beginning of period 3,701,000 5,000,000  
Goodwill acquired during the period 5,000,000
Post-acquisition adjustments (1,299,000)
Impairment losses
Balance, end of the period $ 3,701,000 $ 3,701,000 5,000,000
Mortgage Warehousing | NattyMac, LLC      
Changes in goodwill:      
Goodwill acquired during the period     $ 3,700,000
v3.20.4
Goodwill and Intangibles - Acquisitions, Goodwill (Details) - USD ($)
 12 Months Ended
Oct. 01, 2018
Jan. 02, 2018
Aug. 15, 2017
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Goodwill            
Goodwill acquired during the period       $ 13,163,000
Post-acquisition adjustments       (1,632,000) 412,000
Finite-Lived Intangible Assets, Net       2,283,000 3,799,000 3,542,000
Multifamily            
Goodwill            
Goodwill acquired during the period      
Post-acquisition adjustments       412,000
Banking            
Goodwill            
Goodwill acquired during the period       8,163,000
Post-acquisition adjustments       (333,000)
Mortgage Warehousing            
Goodwill            
Goodwill acquired during the period       5,000,000
Post-acquisition adjustments       (1,299,000)
NattyMac, LLC            
Goodwill            
Post-acquisition adjustments         271,000  
Transfer to intangible assets         $ 1,600,000 1,600,000
NattyMac, LLC | Mortgage Warehousing            
Goodwill            
Goodwill acquired during the period           3,700,000
FMNBP | Banking            
Goodwill            
Goodwill acquired during the period $ 6,900,000          
Post-acquisition adjustments $ 333,000          
FMBI | Banking            
Goodwill            
Goodwill acquired during the period   $ 988,000        
MCS | Multifamily            
Goodwill            
Goodwill acquired during the period     $ 3,800,000      
Post-acquisition adjustments           $ 412,000
v3.20.4
Goodwill and Intangibles - Intangible assets - (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Intangible assets      
Amortization of intangible assets $ 218,000 $ 218,000 $ 218,000
Summary      
Gross Carrying Amount 5,581,000 5,581,000 4,011,000
Accumulated Amortization (3,298,000) (1,782,000) (469,000)
Total $ 2,283,000 3,799,000 3,542,000
Licenses      
Intangible assets      
Amortization period 84 months    
Summary      
Gross Carrying Amount $ 1,370,000 1,370,000 1,370,000
Accumulated Amortization (661,000) (465,000) (269,000)
Total $ 709,000 905,000 1,101,000
Trade names      
Intangible assets      
Amortization period 120 months    
Summary      
Gross Carrying Amount $ 224,000 224,000 224,000
Accumulated Amortization (75,000) (53,000) (31,000)
Total 149,000 $ 171,000 193,000
Customer list      
Intangible assets      
Amortization period   21 months  
Summary      
Gross Carrying Amount 1,570,000 $ 1,570,000  
Accumulated Amortization $ (1,570,000) (673,000)  
Total   897,000  
Core deposit intangible      
Intangible assets      
Amortization period 10 years    
Summary      
Gross Carrying Amount $ 2,417,000 2,417,000 2,417,000
Accumulated Amortization (992,000) (591,000) (169,000)
Total $ 1,425,000 1,826,000 2,248,000
NattyMac, LLC | Customer list      
Intangible assets      
Amortization period 21 months    
Summary      
Total $ 1,600,000    
FMNBP | Core deposit intangible      
Intangible assets      
Amortization period 10 years    
Amortization of intangible assets $ 326,000 339,000 85,000
FMBI | Core deposit intangible      
Intangible assets      
Amortization period 10 years    
Amortization of intangible assets $ 75,000 $ 82,000 $ 84,000
v3.20.4
Goodwill and Intangibles - Estimated amortization expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Estimated amortization expense      
2021 $ 577    
2022 521    
2023 462    
2024 335    
2025 166    
Thereafter 222    
Total $ 2,283 $ 3,799 $ 3,542
v3.20.4
Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Premises and Equipment    
Total cost $ 34,674 $ 32,345
Accumulated depreciation (4,913) (3,071)
Net premises and equipment 29,761 29,274
Land    
Premises and Equipment    
Total cost 3,072 3,072
Buildings    
Premises and Equipment    
Total cost 23,946 22,775
Leasehold improvements    
Premises and Equipment    
Total cost 227 53
Furniture, Fixtures, Equipment and Software    
Premises and Equipment    
Total cost $ 7,429 $ 6,445
v3.20.4
Other Assets and Receivables (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Investment in Qualified Affordable Housing Limited Partnerships    
Investments for qualified affordable housing limited partnerships $ 14,900,000 $ 14,900,000
Additional contribution on qualified affordable housing limited partnerships 9,000,000  
Amortization expense 1,800,000 2,300,000
Tax credit 2,000,000.0 2,500,000
Other Receivables    
Other receivables 11,500,000 5,600,000
Short term receivables 4,600,000 3,100,000
Other receivables, collateral recorded against outstanding hedges 3,900,000 $ 590,000
Other receivables, margins called on forward trades $ 2,100,000  
v3.20.4
Deposits - Components (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Deposits    
Demand deposits $ 5,072,552 $ 2,099,373
Savings deposits 1,978,861 1,204,363
Certificates of deposit 356,653 2,174,339
Total deposits $ 7,408,066 $ 5,478,075
v3.20.4
Deposits - Maturities of deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Deposits    
Due within one year $ 239,998  
Due in one year to two years 103,575  
Due in two years to three years 10,485  
Due in three years to four years 2,014  
Due in four years to five years 581  
Total time deposits 356,653 $ 2,174,339
Certificates of deposit of 250,000 or more $ 258,500 $ 128,900
v3.20.4
Deposits - Brokered deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Deposits    
Brokered certificates of deposit $ 29,164 $ 1,962,389
Brokered savings deposits 324,408 184,603
Brokered deposit on demand accounts 820,165 10,001
Total brokered deposits $ 1,173,737 $ 2,156,993
v3.20.4
Borrowings - Components (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Borrowings    
Borrowings $ 1,348,256 $ 181,439
Lines of credit    
Borrowings    
Borrowings   6,540
Federal Reserve Discount Window    
Borrowings    
Borrowings 50,000  
PPPLF    
Borrowings    
Borrowings 62,225  
Short-Term Subordinated Debt    
Borrowings    
Borrowings 14,960 12,200
FHLB Advances    
Borrowings    
Borrowings $ 1,221,071 $ 162,699
v3.20.4
Borrowings - Other (Details)
 3 Months Ended 12 Months Ended
Dec. 31, 2020
USD ($)
D
period
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Apr. 24, 2018
USD ($)
Borrowings        
Amount outstanding $ 1,348,256,000 $ 1,348,256,000 $ 181,439,000  
Amount of borrowings secured 3,900,000 3,900,000 590,000  
Mortgage loans pledged as collateral 1,500,000 1,500,000 1,400,000  
Available for sale securities and securities purchased under agreements to resell pledged as collateral 261,400,000 261,400,000 276,700,000  
Lines of credit        
Borrowings        
Amount outstanding     6,540,000  
Federal Reserve Discount Window        
Borrowings        
Outstanding balance 50,000,000.0 50,000,000.0    
Amount outstanding $ 50,000,000 $ 50,000,000    
Interest rate of preferred stock 0.25% 0.25%    
Maturity period, minimum (in hours) | period 1      
Maturity period, maximum (in dats) | D 90      
Fixed rate (as a percent) 0.25% 0.25%    
PPPLF        
Borrowings        
Amount outstanding $ 62,225,000 $ 62,225,000    
Short-Term Subordinated Debt        
Borrowings        
Amount outstanding 14,960,000 $ 14,960,000 12,200,000  
Short-Term Subordinated Debt | Home point | LIBOR        
Borrowings        
Basis spread on variable rate (as a percent)   3.00%    
Short-Term Subordinated Debt | Customer        
Borrowings        
Amount outstanding 15,000,000.0 $ 15,000,000.0    
Additional interest as a percentage of earnings   50.00%    
Notice period of Non-renewal   180 days    
Maximum investment by counterparty in Company's subordinated debt       $ 30,000,000
FHLB Advances        
Borrowings        
Amount outstanding $ 1,221,071,000 $ 1,221,071,000 $ 162,699,000  
FHLB Advances | Minimum        
Borrowings        
FHLB advances interest rate 0.00% 0.00% 1.58%  
FHLB Advances | Maximum        
Borrowings        
FHLB advances interest rate 4.74% 4.74% 4.74%  
Federal Home Loan Bank | Lines of credit        
Borrowings        
Maximum borrowing capacity $ 0 $ 0 $ 6,500,000  
Interest rate of preferred stock     1.77%  
Fixed rate (as a percent)     1.77%  
commercial, agricultural and construction loans        
Borrowings        
Amount of borrowings secured 2,300,000,000 2,300,000,000    
CARES Act | PPPLF        
Borrowings        
Amount of borrowings secured $ 60,300,000 $ 60,300,000    
Interest rate of preferred stock 0.35% 0.35%    
Fixed rate (as a percent) 0.35% 0.35%    
v3.20.4
Borrowings - Maturities of borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Borrowings    
Excess borrowing capacity $ 2,600,000  
Maturities of borrowings    
Due within one year 869,077  
Due in one year to two years 77,147  
Due in two years to three years 342  
Due in three years to four years 61  
Due in four years to five years 97  
Thereafter 401,532  
Total 1,348,256 $ 181,439
Federal Reserve Discount Window    
Maturities of borrowings    
Due within one year 50,000  
Total 50,000  
PPPLF    
Maturities of borrowings    
Due in one year to two years 62,128  
Due in four years to five years 97  
Total 62,225  
Short-Term Subordinated Debt    
Maturities of borrowings    
Due in one year to two years 14,960  
Total 14,960 12,200
FHLB Advances    
Maturities of borrowings    
Due within one year 819,077  
Due in one year to two years 59  
Due in two years to three years 342  
Due in three years to four years 61  
Thereafter 401,532  
Total $ 1,221,071 $ 162,699
v3.20.4
Income Taxes - Components (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current tax payable                      
Federal                 $ 48,409 $ 21,396 $ 13,312
State                 15,107 4,387 5,528
Deferred tax payable                      
Federal                 (529) (375) 1,583
State                 (163) (603) 730
Income tax expense $ 20,598 $ 19,612 $ 14,233 $ 8,381 $ 9,434 $ 6,502 $ 5,328 $ 3,541 $ 62,824 $ 24,805 $ 21,153
Effective tax rate                 25.80% 24.30% 29.10%
v3.20.4
Income Taxes - Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Taxes                      
Computed at the statutory rate (21% for 2019 and 2018, and 35% for 2017)                 $ 51,105 $ 21,448 $ 17,646
Increase resulting from                      
State income taxes                 11,805 2,989 4,944
Tax Credits net of related amortization                 (123) (190) (1,533)
Other                 37 558 96
Income tax expense $ 20,598 $ 19,612 $ 14,233 $ 8,381 $ 9,434 $ 6,502 $ 5,328 $ 3,541 $ 62,824 $ 24,805 $ 21,153
v3.20.4
Income Taxes - Temporary differences (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Deferred tax assets    
Allowance for loan losses $ 7,090 $ 4,069
Fair value adjustments on acquisitions 174 228
Other 1,330 1,309
Total assets 8,594 5,606
Deferred tax liabilities    
Depreciation (2,460) (1,374)
Intangible assets (254) (466)
Mortgage-servicing rights (19,751) (17,035)
Limited partnership investments (497) (1,791)
Unrealized loss on available for sale securities (105) (121)
Total liabilities (23,067) (20,787)
Net deferred tax liability $ (14,473) $ (15,181)
v3.20.4
Regulatory Matters (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Tier 1 Capital (to average assets)    
Amount available without prior regulatory approval for dividends $ 227,000  
Company    
Total Capital (to risk-weighted assets)    
Total Capital (to risk-weighted assets), Actual, Capital Amount $ 792,456 $ 637,472
Total Capital (to risk weighted assets), Actual, Ratio (as a percent) 8.6 11.6
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount $ 738,019 $ 440,063
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   8.0
Tier I Capital (to risk-weighted assets)    
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount   $ 621,630
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)   11.3
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount   $ 330,047
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   6.0
Common Equity Tier I Capital 1 (to risk-weighted assets)    
Common Equity Tier I Capital 1, Actual, Capital Amount   $ 408,984
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)   7.4
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount   $ 247,536
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   4.50%
Tier 1 Capital (to average assets)    
Tier 1 Capital, Actual, Capital Amount   $ 621,630
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)   9.4
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount   $ 264,324
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   4.0
Company | Minimum    
Total Capital (to risk-weighted assets)    
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent) 8  
Federal Deposit Corporation And Federal Reserve Board    
Tier 1 Capital (to average assets)    
Basel III Capital Rules related to CET1, period (in years) 4 years  
Additional capital conservation buffer requirement subsequent years Ratio 2.50%  
Merchants Bank    
Total Capital (to risk-weighted assets)    
Total Capital (to risk-weighted assets), Actual, Capital Amount $ 781,221 $ 639,104
Total Capital (to risk weighted assets), Actual, Ratio (as a percent) 8.7 12.0
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount $ 718,120 $ 426,748
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   8.0
Total capital, Minimum Amount To Be Well Capitalized, Capital Amount   $ 533,435
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   10.0
Tier I Capital (to risk-weighted assets)    
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount   $ 623,716
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)   11.7
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount   $ 320,061
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   6.0
Tier I Capital, Minimum Amount To Be Well Capitalized, Capital Amount   $ 426,748
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   8.0
Common Equity Tier I Capital 1 (to risk-weighted assets)    
Common Equity Tier I Capital 1, Actual, Capital Amount   $ 623,716
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)   11.7
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount   $ 240,046
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   4.50%
Common Equity Tier I Capital 1, Minimum Amount To Be Well Capitalized, Capital Amount   $ 346,733
Common Equity Tier I Capital 1 (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   6.50%
Tier 1 Capital (to average assets)    
Tier 1 Capital, Actual, Capital Amount   $ 623,716
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)   9.7
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount   $ 257,487
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   4.0
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount   $ 321,859
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   5.0
Merchants Bank | Minimum    
Total Capital (to risk-weighted assets)    
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent) 8  
FMBI    
Total Capital (to risk-weighted assets)    
Total Capital (to risk-weighted assets), Actual, Capital Amount $ 24,456 $ 21,726
Total Capital (to risk weighted assets), Actual, Ratio (as a percent) 9.8 13.1
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount $ 19,979 $ 13,306
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   8.0
Total capital, Minimum Amount To Be Well Capitalized, Capital Amount   $ 16,632
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   10.0
Tier I Capital (to risk-weighted assets)    
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount   $ 21,272
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)   12.8
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount   $ 9,979
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   6.0
Tier I Capital, Minimum Amount To Be Well Capitalized, Capital Amount   $ 13,306
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   8.0
Common Equity Tier I Capital 1 (to risk-weighted assets)    
Common Equity Tier I Capital 1, Actual, Capital Amount   $ 21,272
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)   12.8
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount   $ 7,484
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   4.50%
Common Equity Tier I Capital 1, Minimum Amount To Be Well Capitalized, Capital Amount   $ 10,811
Common Equity Tier I Capital 1 (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   6.50%
Tier 1 Capital (to average assets)    
Tier 1 Capital, Actual, Capital Amount   $ 21,272
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)   11.7
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount   $ 7,302
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)   4.0
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount   $ 9,128
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)   5.0
FMBI | Minimum    
Total Capital (to risk-weighted assets)    
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent) 8  
v3.20.4
Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Net Income                      
Net income $ 59,786 $ 55,002 $ 41,162 $ 24,583 $ 30,061 $ 20,259 $ 16,439 $ 10,570 $ 180,533 $ 77,329 $ 62,874
Dividends on preferred stock (3,618) (3,618) (3,619) (3,618) (3,618) (3,022) (1,743) (833) (14,473) (9,216) (3,330)
Net Income Allocated to Common Shareholders $ 56,168 $ 51,384 $ 37,543 $ 20,965 $ 26,443 $ 17,237 $ 14,696 $ 9,737 $ 166,060 $ 68,113 $ 59,544
Weighted-Average Shares                      
Weighted average shares - Basic                 28,742,494 28,705,125 28,692,955
Effect of dilutive securities-restricted stock awards                 35,581 40,582 31,464
Weighted average shares - diluted                 28,778,075 28,745,707 28,724,419
Per Share Amount                      
Basic earnings per share $ 1.95 $ 1.79 $ 1.31 $ 0.73 $ 0.92 $ 0.60 $ 0.51 $ 0.34 $ 5.78 $ 2.37 $ 2.08
Diluted earnings per share $ 1.95 $ 1.79 $ 1.31 $ 0.73 $ 0.92 $ 0.60 $ 0.51 $ 0.34 $ 5.77 $ 2.37 $ 2.07
v3.20.4
Stock Splits (Details)
Jul. 06, 2017
Dec. 31, 2020
shares
Dec. 31, 2019
shares
Jul. 05, 2017
shares
Stock Splits        
Authorized common shares   50,000,000 50,000,000 50,000,000.0
Stock split ratio 2.5      
v3.20.4
Common Stock (Details) - USD ($)
$ in Millions
Nov. 09, 2020
Nov. 02, 2017
Oct. 26, 2017
Initial Public Offering of Common Stock      
Gross proceeds from offering   $ 115.0  
Proceeds from common stock offerings, net   106.2  
Offering costs   $ 8.8  
Number of shares received in exchange for the Company's interest in a minority owend investment and retired 15,000    
IPO      
Initial Public Offering of Common Stock      
Shares issued (in shares)     6,250,000
Over-Allotment Option      
Initial Public Offering of Common Stock      
Shares issued (in shares)   937,500  
v3.20.4
Preferred Stock (Details)
 12 Months Ended 24 Months Ended
Sep. 23, 2019
USD ($)
$ / shares
shares
Aug. 19, 2019
USD ($)
$ / shares
shares
Jun. 27, 2019
USD ($)
$ / shares
shares
Apr. 12, 2019
USD ($)
shares
Mar. 28, 2019
USD ($)
$ / shares
shares
Nov. 02, 2017
USD ($)
Dec. 31, 2020
$ / shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
Dec. 31, 2016
$ / shares
Dec. 31, 2015
$ / shares
Dec. 31, 2016
$ / shares
shares
Public Offering of Preferred Stock                        
Offering costs           $ 8,800,000            
Net proceeds               $ 192,915,000        
8% Preferred Stock                        
Public Offering of Preferred Stock                        
Preferred stock, dividend rate (as a percent)             8.00% 8.00%        
Preferred stock liquidation preference (in dollars per share) | $ / shares             $ 1,000 $ 1,000        
8% Preferred Stock | Private Placement                        
Public Offering of Preferred Stock                        
Shares issued (in shares) | shares                       41,625
Preferred stock, dividend rate (as a percent)                   8.00% 8.00%  
Preferred stock liquidation preference (in dollars per share) | $ / shares                   $ 1,000.00 $ 1,000.00 $ 1,000.00
Series A Preferred Stock | Public Offering                        
Public Offering of Preferred Stock                        
Shares issued (in shares) | shares       81,800                
Net proceeds       $ 2,000,000.0                
Underwriting discounts       $ 41,000                
7% Preferred Stock                        
Public Offering of Preferred Stock                        
Shares redeemed (in shares) | shares 874,000                      
Preferred stock, dividend rate (as a percent) 7.00%           7.00% 7.00%        
Preferred stock liquidation preference (in dollars per share) | $ / shares $ 25           $ 25 $ 25        
Aggregate cost $ 21,850,000                      
Brokerage fees $ 0                      
7% Preferred Stock | Public Offering                        
Public Offering of Preferred Stock                        
Shares issued (in shares) | shares         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              
Offering costs         1,700,000              
Net proceeds         $ 48,300,000              
7% Preferred Stock | Private Placement                        
Public Offering of Preferred Stock                        
Shares issued (in shares) | shares     874,000                  
Preferred stock, dividend rate (as a percent)     7.00%                  
Preferred stock liquidation preference (in dollars per share) | $ / shares     $ 25.00                  
Aggregate gross offering proceeds for the shares issued     $ 21,850,000                  
6% 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% 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                    
Offering costs   $ 125,000,000.0                    
Net proceeds   120,800,000                    
Underwriting discounts   $ 4,200,000                    
Preferred Stock | 8% Preferred Stock                        
Public Offering of Preferred Stock                        
Preferred stock, dividend rate (as a percent)             8.00% 8.00% 8.00%      
Preferred Stock | 7% Preferred Stock                        
Public Offering of Preferred Stock                        
Shares issued (in shares) | shares               2,955,800        
Preferred stock, dividend rate (as a percent)             7.00% 7.00%        
Offering costs               $ 1,824,000        
Preferred Stock | 6% Preferred Stock                        
Public Offering of Preferred Stock                        
Shares issued (in shares) | shares               125,000        
Preferred stock, dividend rate (as a percent)             6.00% 6.00%        
Offering costs               $ 4,156,000        
v3.20.4
Related Party Transactions (Details) - USD ($)
 12 Months Ended
Nov. 09, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2016
Related Party Transactions          
Total assets   $ 9,645,375,000 $ 6,371,928,000 $ 3,884,163,000  
Total deposits   $ 7,408,066,000 5,478,075,000    
Investment in Arcline Lending, LLC          
Related Party Transactions          
Sale of Stock, Percentage of Ownership before Transaction 44.23%        
Key loan processing vendor, equity method investee          
Related Party Transactions          
Ownership interest as a percentage   44.23%     30.00%
Fees paid to related party   $ 2,700,000 3,100,000 3,400,000  
Amount accrued for services received     214,000 226,000  
Investment in Arcline Lending, LLC          
Related Party Transactions          
Stock Issued During Period, Shares, New Issues 15,000        
Stock Issued During Period, Value, Issued for Services $ 150,000        
Share Price $ 10        
Common Stock, Par or Stated Value Per Share $ 0        
Law firm          
Related Party Transactions          
Fees paid to related party   5,300,000 3,600,000 3,700,000  
Company owned by Board Member          
Related Party Transactions          
Fees paid to related party   $ 13,000 $ 641,000 $ 0  
Limited Partnership          
Related Party Transactions          
Ownership interest as a percentage   22.22%      
Fees paid to related party   $ 4,500,000      
Origination fees received   $ 6,500,000      
v3.20.4
Employee Benefits (Details) - USD ($)
 1 Months Ended 12 Months Ended
Jan. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Employee benefits        
Matching contribution equals to employees deferrals   100.00%    
Employer contributions to contribution plans   $ 859,000 $ 629,000 $ 464,000
Expense recognized for the contribution   537,000    
Number of shares contributed to the ESOP $ 19,433      
Maximum        
Employee benefits        
Matching contribution as a percentage of employees compensation   3.00%    
v3.20.4
Share-Based Payment Plan (Details) - USD ($)
 1 Months Ended 12 Months Ended
Jan. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Non executive directors        
Plan disclosures        
Shares issued   3,130 2,275 1,830
Value of shares available for issuance for compensation related to annual fees $ 50,000     $ 10,000
Expense recognized   $ 50,000 $ 50,000 50,000
Restricted stock        
Plan disclosures        
Shares issued   52,515 10,127  
Expense recognized   $ 602,000 $ 533,000 $ 171,000
Prior Equity Incentive Plan | Restricted stock        
Plan disclosures        
Awards granted   0    
2017 Plan | Restricted stock        
Plan disclosures        
Unvested shares awarded   177,046 91,266  
Unrecognized compensation cost   $ 3,100,000 $ 1,300,000  
v3.20.4
Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Disclosures about Fair Value of Assets and Liabilities        
Mortgage loans in process of securitization $ 338,733 $ 269,891    
Available for sale securities 269,802 290,243    
Loans held for sale 40,044 19,592    
Mortgage servicing rights 82,604 74,387 $ 77,844 $ 66,079
Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Mortgage loans in process of securitization 338,733 269,891    
Loans held for sale 40,044 19,592    
Mortgage servicing rights 82,604 74,387    
Recurring | Interest Rate Lock Commitments        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 6,131 186    
Recurring | Forward Contracts        
Disclosures about Fair Value of Assets and Liabilities        
Derivative liabilities 2,682 27    
Recurring | Interest rate swaps        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 3,170 511    
Derivative liabilities 3,170 511    
Level 2 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Mortgage loans in process of securitization 338,733 269,891    
Loans held for sale 40,044 19,592    
Level 2 | Recurring | Forward Contracts        
Disclosures about Fair Value of Assets and Liabilities        
Derivative liabilities 2,682 27    
Level 2 | Recurring | Interest rate swaps        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 3,170 511    
Derivative liabilities 3,170 511    
Level 3 | Interest Rate Lock Commitments        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 6,131 186    
Level 3 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Mortgage servicing rights 82,604 74,387    
Level 3 | Recurring | Interest Rate Lock Commitments        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 6,131 186    
Treasury notes | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Available for sale securities 6,559 4,765    
Treasury notes | Level 1 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Available for sale securities 6,559 4,765    
Federal agencies        
Disclosures about Fair Value of Assets and Liabilities        
Available for sale securities 235,040 244,973    
Federal agencies | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Available for sale securities 235,040 244,973    
Federal agencies | Level 2 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Available for sale securities 235,040 244,973    
Municipals | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Available for sale securities 6,025 5,937    
Municipals | Level 2 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Available for sale securities 6,025 5,937    
Mortgage-backed - Government-sponsored entity (GSE) - residential        
Disclosures about Fair Value of Assets and Liabilities        
Available for sale securities 22,178 34,568    
Mortgage-backed - Government-sponsored entity (GSE) - residential | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Available for sale securities 22,178 34,568    
Mortgage-backed - Government-sponsored entity (GSE) - residential | Level 2 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Available for sale securities $ 22,178 $ 34,568    
v3.20.4
Disclosures about Fair Value of Assets and Liabilities - Reconciliation of Unobservable Inputs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Mortgage servicing rights.      
Reconciliation of significant unobservable inputs, assets:      
Balance, beginning of period $ 74,387 $ 77,844 $ 66,079
Additions      
Originated and purchased servicing 21,889 7,332 14,113
Subtractions      
Paydowns (7,838) (5,994) (4,196)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model (5,834) (4,795) 1,848
Balance, end of period 82,604 74,387 77,844
Available-for-sale Securities. | Municipals      
Reconciliation of significant unobservable inputs, assets:      
Balance, beginning of period   6,688  
Subtractions      
Paydowns     (257)
Sales     (6,431)
Balance, end of period     6,688
Derivative assets | Interest Rate Lock Commitments      
Reconciliation of significant unobservable inputs, assets:      
Balance, beginning of period 186 70  
Subtractions      
Changes in fair value 5,945 116 70
Balance, end of period $ 6,131 $ 186 $ 70
v3.20.4
Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Disclosures about Fair Value of Assets and Liabilities    
Impaired loans (collateral dependent) $ 4,059 $ 1,570
Level 3    
Disclosures about Fair Value of Assets and Liabilities    
Impaired loans (collateral dependent) $ 4,059 $ 1,570
v3.20.4
Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs (Details)
$ in Thousands
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Quantitative information about unobservable inputs        
Mortgage servicing rights $ 82,604 $ 74,387 $ 77,844 $ 66,079
Available for sale securities 269,802 290,243    
Mortgage servicing rights | Level 3        
Quantitative information about unobservable inputs        
Mortgage servicing rights   74,387    
Mortgage servicing rights | Single Family | Level 3        
Quantitative information about unobservable inputs        
Mortgage servicing rights 9,035      
Mortgage servicing rights | Multi-family | Level 3        
Quantitative information about unobservable inputs        
Mortgage servicing rights 73,569      
Collateral-dependent impaired loans | Level 3        
Quantitative information about unobservable inputs        
Collateral-dependent impaired loans $ 4,059 1,570    
Collateral-dependent impaired loans | Level 3 | Minimum        
Quantitative information about unobservable inputs        
Marketability discount (as a percent) 0.43      
Collateral-dependent impaired loans | Level 3 | Weighted average        
Quantitative information about unobservable inputs        
Marketability discount (as a percent) 0.43      
Municipals        
Quantitative information about unobservable inputs        
Available for sale securities $ 6,025 $ 5,937    
Discount Rate | Mortgage servicing rights | Level 3 | Minimum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.09 0.08    
Discount Rate | Mortgage servicing rights | Level 3 | Maximum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input   0.13    
Discount Rate | Mortgage servicing rights | Single Family | Level 3        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.11      
Discount Rate | Mortgage servicing rights | Single Family | Level 3 | Weighted average        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.11      
Discount Rate | Mortgage servicing rights | Multi-family | Maximum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.13      
Discount Rate | Mortgage servicing rights | Multi-family | Level 3 | Minimum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.08      
Discount Rate | Mortgage servicing rights | Multi-family | Level 3 | Weighted average        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.09      
Constant Prepayment Rate | Mortgage servicing rights | Level 3 | Minimum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.04 0.01    
Constant Prepayment Rate | Mortgage servicing rights | Level 3 | Maximum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input   0.39    
Constant Prepayment Rate | Mortgage servicing rights | Single Family | Level 3 | Minimum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.08      
Constant Prepayment Rate | Mortgage servicing rights | Single Family | Level 3 | Maximum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.35      
Constant Prepayment Rate | Mortgage servicing rights | Single Family | Level 3 | Weighted average        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.16      
Constant Prepayment Rate | Mortgage servicing rights | Multi-family | Level 3 | Minimum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.02      
Constant Prepayment Rate | Mortgage servicing rights | Multi-family | Level 3 | Maximum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.43      
Constant Prepayment Rate | Mortgage servicing rights | Multi-family | Level 3 | Weighted average        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.04      
Interest Rate Lock Commitments | Level 3        
Quantitative information about unobservable inputs        
Derivative assets $ 6,131 $ 186    
Interest Rate Lock Commitments | Level 3 | Minimum        
Quantitative information about unobservable inputs        
Marketability discount (as a percent)   0.37    
Interest Rate Lock Commitments | Level 3 | Maximum        
Quantitative information about unobservable inputs        
Marketability discount (as a percent)   0.55    
Interest Rate Lock Commitments | Measurement Input, Maturity | Level 3 | Minimum        
Quantitative information about unobservable inputs        
Loan closing rates (as a percent) 0.55 0.73    
Interest Rate Lock Commitments | Measurement Input, Maturity | Level 3 | Maximum        
Quantitative information about unobservable inputs        
Loan closing rates (as a percent) 0.99 0.99    
Interest Rate Lock Commitments | Measurement Input, Maturity | Level 3 | Weighted average        
Quantitative information about unobservable inputs        
Loan closing rates (as a percent) 0.75      
v3.20.4
Disclosures about Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Financial assets:    
Loans held for sale $ 40,044 $ 19,592
Carrying Value    
Financial assets:    
Cash and cash equivalents 179,728 506,709
Securities purchased under agreements to resell 6,580 6,723
FHLB stock 70,656 20,369
Loans held for sale 3,030,110 2,074,197
Loans, net 5,507,926 3,012,468
Interest receivable 21,770 18,359
Financial liabilities:    
Deposits 7,408,066 5,478,075
Lines of credit   6,540
Short-term subordinated debt 14,960 12,200
FHLB advances 1,221,071 162,699
Federal Reserve discount window/PPPLF advances 112,225  
Interest payable 1,476 11,938
Fair Value    
Financial assets:    
Cash and cash equivalents 179,728 506,709
Securities purchased under agreements to resell 6,580 6,723
FHLB stock 70,656 20,369
Loans held for sale 3,030,110 2,074,197
Loans, net 5,484,824 2,999,580
Interest receivable 21,770 18,359
Financial liabilities:    
Deposits 7,410,759 5,478,682
Lines of credit   6,540
Short-term subordinated debt 14,960 12,200
FHLB advances 1,221,870 162,803
Federal Reserve discount window/PPPLF advances 112,225  
Interest payable 1,476 11,938
Level 1 | Fair Value    
Financial assets:    
Cash and cash equivalents 179,728 506,709
Financial liabilities:    
Deposits 7,051,413 3,303,736
Level 2 | Fair Value    
Financial assets:    
Securities purchased under agreements to resell 6,580 6,723
FHLB stock 70,656 20,369
Loans held for sale 3,030,110 2,074,197
Interest receivable 21,770 18,359
Financial liabilities:    
Deposits 359,346 2,174,946
Lines of credit   6,540
Short-term subordinated debt 14,960 12,200
FHLB advances 1,221,870 162,803
Federal Reserve discount window/PPPLF advances 112,225  
Interest payable 1,476 11,938
Level 3 | Fair Value    
Financial assets:    
Loans, net $ 5,484,824 $ 2,999,580
v3.20.4
Significant Estimates and Concentrations (Details)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Revenue | Major Customer      
Major Customer      
Concentration risk (as a percent) 10.00% 10.00% 10.00%
v3.20.4
Commitments, Credit Risk, and Contingencies - Financial Instrument (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Total commitments subject to credit risk    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument whose contract amount represents credit risk $ 1,473,348 $ 788,012
Total commitments subject to certain performance criteria and cancellation    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument whose contract amount represents credit risk 3,069,852 1,948,100
Commitments to extend credit    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument whose contract amount represents credit risk 1,395,678 761,068
Standby letters of credit issued by Merchants    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument whose contract amount represents credit risk 50,951 26,944
Standby letters of credit issued by another party on Merchants' behalf    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument whose contract amount represents credit risk 26,719  
Outstanding commitments to originate loans    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument whose contract amount represents credit risk 1,827,215 886,017
Unfunded construction draws    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument whose contract amount represents credit risk 271,746 287,659
Unfunded lines of warehouse credit    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument whose contract amount represents credit risk $ 970,891 $ 774,424
v3.20.4
Commitments, Credit Risk, and Contingencies (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Commitments and Credit Risk      
Reserve liability $ 448,000 $ 277,000  
Rental expenses 1,200,000 $ 1,800,000 $ 1,100,000
Due within one year 1,278,000    
Due in one year to two years 1,276,000    
Due in two years to three years 1,231,000    
Due in three years to four years 1,004,000    
Due in four years to five years 295,000    
Thereafter 1,255,000    
Total minimum lease payments $ 6,339,000    
Minimum      
Commitments and Credit Risk      
Lease period 1 year    
Maximum      
Commitments and Credit Risk      
Lease period 10 years    
v3.20.4
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Information                      
Interest income $ 77,911 $ 76,258 $ 68,204 $ 60,417 $ 63,799 $ 59,761 $ 48,761 $ 39,674 $ 282,790 $ 211,995 $ 140,563
Interest expense 8,674 10,936 16,970 22,064 26,178 27,137 20,839 15,543 58,644 89,697 50,592
Net Interest Income 69,237 65,322 51,234 38,353 37,621 32,624 27,922 24,131 224,146 122,298 89,971
Provision for loan losses 4,114 2,981 1,745 2,998 1,993 1,193 105 649 11,838 3,940 4,629
Net Interest Income After Provision for Loan Losses 65,123 62,341 49,489 35,355 35,628 31,431 27,817 23,482 212,308 118,358 85,342
Noninterest income 42,726 38,657 26,188 19,902 22,703 10,852 9,870 3,664 127,473 47,089 49,585
Noninterest expense 27,465 26,384 20,282 22,293 18,836 15,522 15,920 13,035 96,424 63,313 50,900
Income Before Income Taxes 80,384 74,614 55,395 32,964 39,495 26,761 21,767 14,111 243,357 102,134 84,027
Income taxes 20,598 19,612 14,233 8,381 9,434 6,502 5,328 3,541 62,824 24,805 21,153
Net Income 59,786 $ 55,002 $ 41,162 $ 24,583 30,061 $ 20,259 $ 16,439 $ 10,570 180,533 77,329 62,874
Total assets 9,645,375       6,371,928       9,645,375 6,371,928 3,884,163
Other                      
Segment Information                      
Interest income                 2,835 2,067 1,735
Interest expense                 (4,430) (6,864) (3,285)
Net Interest Income                 7,265 8,931 5,020
Net Interest Income After Provision for Loan Losses                 7,265 8,931 5,020
Noninterest income                 (3,823) (2,776) (1,946)
Noninterest expense                 15,134 11,622 9,098
Income Before Income Taxes                 (11,692) (5,467) (6,024)
Income taxes                 (3,087) (1,413) (1,819)
Net Income                 (8,605) (4,054) (4,205)
Total assets 42,268       39,810       42,268 39,810 30,598
Multifamily | Operating Segments                      
Segment Information                      
Interest income                 1,163 1,328 712
Net Interest Income                 1,163 1,328 712
Net Interest Income After Provision for Loan Losses                 1,163 1,328 712
Noninterest income                 80,690 41,682 45,831
Noninterest expense                 41,386 22,556 19,205
Income Before Income Taxes                 40,467 20,454 27,338
Income taxes                 11,295 5,691 7,528
Net Income                 29,172 14,763 19,810
Total assets 210,714       188,866       210,714 188,866 166,102
Mortgage Warehousing | Operating Segments                      
Segment Information                      
Interest income                 163,488 102,157 58,784
Interest expense                 27,325 50,880 24,369
Net Interest Income                 136,163 51,277 34,415
Provision for loan losses                 1,269 1,358 1,372
Net Interest Income After Provision for Loan Losses                 134,894 49,919 33,043
Noninterest income                 21,163 7,178 2,550
Noninterest expense                 13,367 11,397 7,721
Income Before Income Taxes                 142,690 45,700 27,872
Income taxes                 36,361 10,934 6,872
Net Income                 106,329 34,766 21,000
Total assets 4,893,513       3,124,684       4,893,513 3,124,684 1,430,776
Banking | Operating Segments                      
Segment Information                      
Interest income                 115,304 106,443 79,332
Interest expense                 35,749 45,681 29,508
Net Interest Income                 79,555 60,762 49,824
Provision for loan losses                 10,569 2,582 3,257
Net Interest Income After Provision for Loan Losses                 68,986 58,180 46,567
Noninterest income                 29,443 1,005 3,150
Noninterest expense                 26,537 17,738 14,876
Income Before Income Taxes                 71,892 41,447 34,841
Income taxes                 18,255 9,593 8,572
Net Income                 53,637 31,854 26,269
Total assets $ 4,498,880       $ 3,018,568       $ 4,498,880 $ 3,018,568 $ 2,256,687
v3.20.4
Condensed Financial Information (Parent Company Only) (Balance sheets) (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Assets        
Cash and cash equivalents $ 10,063 $ 13,909    
Total assets 9,645,375 6,371,928 $ 3,884,163  
Liabilities        
Other liabilities 58,027 41,769    
Total liabilities 8,834,754 5,718,200    
Total shareholders' equity 810,621 653,728 $ 421,237 $ 367,474
Total liabilities and shareholders' equity 9,645,375 6,371,928    
Reportable Legal Entities | Company        
Assets        
Cash and cash equivalents 2,117 463    
Investment in subsidiaries 823,842 664,878    
Other assets 190 2,213    
Total assets 826,149 667,554    
Liabilities        
Short-term subordinated debt 14,960 12,200    
Other liabilities 568 1,626    
Total liabilities 15,528 13,826    
Total shareholders' equity 810,621 653,728    
Total liabilities and shareholders' equity $ 826,149 $ 667,554    
v3.20.4
Condensed Financial Information (Parent Company Only) (Income statement) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Expenses                      
Interest expense $ 8,674 $ 10,936 $ 16,970 $ 22,064 $ 26,178 $ 27,137 $ 20,839 $ 15,543 $ 58,644 $ 89,697 $ 50,592
Salaries and employee benefits                 59,200 38,093 32,240
Professional fees                 3,664 2,326 2,585
Income taxes 20,598 19,612 14,233 8,381 9,434 6,502 5,328 3,541 62,824 24,805 21,153
Net Income $ 59,786 $ 55,002 $ 41,162 $ 24,583 $ 30,061 $ 20,259 $ 16,439 $ 10,570 180,533 77,329 62,874
Comprehensive Income                 180,449 78,097 63,813
Reportable Legal Entities | Company                      
Income                      
Dividends and return of capital from subsidiaries                 29,773 43,903 37,816
Other Income                 27   195
Total income                 29,800 43,903 38,011
Expenses                      
Interest expense                 3,972 3,641 8,055
Salaries and employee benefits                 2,726 1,611 1,216
Professional fees                 386 335 707
Other                 383 423 420
Total expense                 7,467 6,010 10,398
Income Before Income Tax and Equity in Undistributed Income of Subsidiaries                 22,333 37,893 27,613
Income taxes                 (1,911) (1,433) (2,542)
Income Before Equity in Undistributed Income of Subsidiaries                 24,244 39,326 30,155
Equity in Undistributed Income of Subsidiaries                 156,289 38,003 32,719
Net Income                 180,533 77,329 62,874
Comprehensive Income                 $ 180,449 $ 78,097 $ 63,813
v3.20.4
Condensed Financial Information (Parent Company Only) (Cash flows) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Nov. 02, 2017
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating Activities        
Net income   $ 180,533 $ 77,329 $ 62,874
Net cash provided by (used in) operating activities   (874,888) (1,257,003) 204,335
Investing Activities        
Proceeds from sale of limited partnership interests   10,651    
Other investing activity   (17) 126 74
Net cash used in investing activities   (2,532,228) (957,675) (509,066)
Financing Activities        
Dividends paid   (23,671) (17,254) (10,216)
Proceeds from issuance of common stock $ 106,200      
Proceeds from issuance of preferred stock     192,915  
Repurchase of preferred stock     (21,850)  
Net cash provided by financing activities   3,080,135 2,384,863 281,736
Net Change in Cash and Cash Equivalents   (326,981) 170,185 (22,995)
Cash and Cash Equivalents, Beginning of Period   506,709 336,524 359,519
Cash and Cash Equivalents, End of Period   179,728 506,709 336,524
Additional Cash Flows Information:        
Redemption of common shares related to sale of limited partnership interests   (150)    
Reportable Legal Entities | Company        
Operating Activities        
Net income   180,533 77,329 62,874
Adjustments to reconcile net income to net cash used in operating activities   (155,442) (36,567) (30,522)
Net cash provided by (used in) operating activities   25,091 40,762 32,352
Investing Activities        
Return of capital from/(contributed capital to) subsidiaries   (2,760) (173,078) 19,368
Net cash paid for acquisitions       (27,209)
Proceeds from sale of limited partnership interests   266    
Other investing activity   (32) 126 74
Net cash used in investing activities   (2,526) (172,952) (7,767)
Financing Activities        
Net change in lines of credit and subordinated debt   (2,760) 23,382 19,418
Dividends paid   (23,671) (17,254) (10,216)
Proceeds from issuance of preferred stock     (192,915)  
Repurchase of preferred stock     (21,850)  
Net cash provided by financing activities   (20,911) 130,429 (29,634)
Net Change in Cash and Cash Equivalents   1,654 (1,761) (5,049)
Cash and Cash Equivalents, Beginning of Period   463 2,224 7,273
Cash and Cash Equivalents, End of Period   2,117 $ 463 $ 2,224
Additional Cash Flows Information:        
Redemption of common shares related to sale of limited partnership interests   $ (150)    
v3.20.4
Quarterly Condensed Financial Information (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Quarterly Condensed Financial Information (Unaudited)                      
Interest income $ 77,911 $ 76,258 $ 68,204 $ 60,417 $ 63,799 $ 59,761 $ 48,761 $ 39,674 $ 282,790 $ 211,995 $ 140,563
Interest expense 8,674 10,936 16,970 22,064 26,178 27,137 20,839 15,543 58,644 89,697 50,592
Net Interest Income 69,237 65,322 51,234 38,353 37,621 32,624 27,922 24,131 224,146 122,298 89,971
Provision for loan losses 4,114 2,981 1,745 2,998 1,993 1,193 105 649 11,838 3,940 4,629
Net Interest Income After Provision for Loan Losses 65,123 62,341 49,489 35,355 35,628 31,431 27,817 23,482 212,308 118,358 85,342
Noninterest income 42,726 38,657 26,188 19,902 22,703 10,852 9,870 3,664 127,473 47,089 49,585
Noninterest expense 27,465 26,384 20,282 22,293 18,836 15,522 15,920 13,035 96,424 63,313 50,900
Income Before Income Taxes 80,384 74,614 55,395 32,964 39,495 26,761 21,767 14,111 243,357 102,134 84,027
Income taxes 20,598 19,612 14,233 8,381 9,434 6,502 5,328 3,541 62,824 24,805 21,153
Net Income 59,786 55,002 41,162 24,583 30,061 20,259 16,439 10,570 180,533 77,329 62,874
Less: preferred stock dividends 3,618 3,618 3,619 3,618 3,618 3,022 1,743 833 14,473 9,216 3,330
Net Income Allocated to Common Shareholders $ 56,168 $ 51,384 $ 37,543 $ 20,965 $ 26,443 $ 17,237 $ 14,696 $ 9,737 $ 166,060 $ 68,113 $ 59,544
Per common share data:                      
Basic earnings per common share $ 1.95 $ 1.79 $ 1.31 $ 0.73 $ 0.92 $ 0.60 $ 0.51 $ 0.34 $ 5.78 $ 2.37 $ 2.08
Diluted earnings per common share $ 1.95 $ 1.79 $ 1.31 $ 0.73 $ 0.92 $ 0.60 $ 0.51 $ 0.34 $ 5.77 $ 2.37 $ 2.07
v3.20.4
Nature of Operations and Summary of Significant Accounting Policies - Other (Details) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Acquisitions        
Goodwill $ 15,845,000 $ 15,845,000 $ 17,477,000 $ 3,902,000
Total assets 9,645,375,000 6,371,928,000 $ 3,884,163,000  
Fair Value of available for sale securities 269,802,000 290,243,000    
Cash and Cash Equivalents        
Cash accounts in excess of federally insured limits 165,900,000 492,100,000    
Cash accounts in excess of federally insured limits with Federal Reserve Bank 157,200,000 478,800,000    
Cash accounts in excess of federally insured limits with Federal Home Loan Bank of Indianapolis 2,700,000 2,300,000    
Cash accounts in excess of federally insured limits with Federal Home Loan Bank of Chicago 23,000 20,000    
Securities        
Securities, held-to-maturity $ 0 $ 0    
Loans Held for Sale under Mortgage Banking Activities        
Maximum participation interest to be purchased in individual loans (as a percent) 100.00%      
Core deposit intangible        
Acquisitions        
Useful life 10 years      
Customer list        
Acquisitions        
Useful life   21 months    
FMBI | Core deposit intangible        
Acquisitions        
Useful life 10 years      
NattyMac, LLC | Customer list        
Acquisitions        
Useful life 21 months