MERCHANTS BANCORP, 10-Q filed on 8/11/2025
Quarterly Report
v3.25.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2025
Aug. 01, 2025
Document Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2025  
Document Transition Report false  
Securities Act File Number 001-38258  
Entity Registrant Name MERCHANTS BANCORP  
Entity Incorporation, State or Country Code IN  
Entity Tax Identification Number 20-5747400  
Entity Address, Address Line One 410 Monon Blvd  
Entity Address, City or Town Carmel  
Entity Address, State or Province IN  
Entity Address, Postal Zip Code 46032  
City Area Code 317  
Local Phone Number 569-7420  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   45,885,458
Entity Central Index Key 0001629019  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Common Class A    
Document Information    
Title of 12(b) Security Common Stock, without par value  
Trading Symbol MBIN  
Security Exchange Name NASDAQ  
Series C Preferred Stock    
Document Information    
Title of 12(b) Security Depositary Shares, each representing a 1/40th interest in a share of Series C Preferred Stock, without par value  
Trading Symbol MBINN  
Security Exchange Name NASDAQ  
Series D Preferred Stock    
Document Information    
Title of 12(b) Security Depositary Shares, each representing a 1/40th interest in a share of Series D Preferred Stock, without par value  
Trading Symbol MBINM  
Security Exchange Name NASDAQ  
Series E Preferred Stock    
Document Information    
Title of 12(b) Security Depositary Shares, each representing a 1/40th interest in a share of Series E Preferred Stock, without par value  
Trading Symbol MBINL  
Security Exchange Name NASDAQ  
v3.25.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Assets    
Cash and due from banks $ 15,419 $ 10,989 [1]
Interest-earning demand accounts 631,746 465,621 [1]
Cash and cash equivalents 647,165 476,610 [1]
Securities purchased under agreements to resell 1,539 1,559 [1]
Mortgage loans in process of securitization 402,427 428,206 [1]
Securities available for sale ($602,962 and $635,946 utilizing fair value option, respectively) 936,343 980,050 [1]
Securities held to maturity ($1,547,525 and $1,664,674 at fair value, respectively) 1,548,211 1,664,686 [1]
Federal Home Loan Bank (FHLB) stock and other equity securities 217,850 217,804 [1]
Loans held for sale (includes $91,930 and $78,170 at fair value, respectively) 4,105,765 3,771,510 [1]
Loans receivable, net of allowance for credit losses on loans of $91,811 and $84,386, respectively 10,432,117 10,354,002 [1]
Premises and equipment, net 71,050 58,617 [1]
Servicing rights 193,037 189,935 [1]
Interest receivable 82,391 83,409 [1]
Goodwill 8,014 8,014 [1]
Other assets and receivables 495,295 571,330 [1]
Total assets 19,141,204 18,805,732 [1]
Deposits    
Noninterest-bearing 315,523 239,005 [1]
Interest-bearing 12,371,312 11,680,971 [1]
Total deposits 12,686,835 11,919,976 [1]
Borrowings 4,009,474 4,386,122 [1]
Deferred tax liabilities 29,228 25,289 [1]
Other liabilities 231,035 231,035 [1]
Total liabilities 16,956,572 16,562,422 [1]
Commitments and Contingencies [1]
Shareholders' Equity    
Common stock, without par value Authorized - 75,000,000 shares Issued and outstanding - 45,885,458 shares at June 30, 2025 and 45,767,166 shares at December 31, 2024 241,452 240,313 [1]
Retained earnings 1,392,136 1,330,995 [1]
Accumulated other comprehensive loss (247) (133) [1]
Total shareholders' equity 2,184,632 2,243,310 [1]
Total liabilities and shareholders' equity 19,141,204 18,805,732 [1]
6% Series B Preferred Stock    
Shareholders' Equity    
Preferred stock [1]   120,844
6% Series C Preferred Stock    
Shareholders' Equity    
Preferred stock 191,084 191,084 [1]
8.25% Series D Preferred Stock    
Shareholders' Equity    
Preferred stock 137,459 137,459 [1]
7.625% Series E Preferred Stock    
Shareholders' Equity    
Preferred stock $ 222,748 $ 222,748 [1]
[1] Derived from audited consolidated financial statements
v3.25.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Securities available for sale $ 602,962 $ 635,946
Securities held to maturity, fair value 1,547,525 1,664,674
Loans held for sale at fair value 91,930 78,170
Net of allowance for credit losses on loans $ 91,811 $ 84,386
Stockholders' Equity    
Common stock, shares authorized 75,000,000 75,000,000
Common stock, shares issued 45,885,458 45,767,166
Common stock, shares outstanding 45,885,458 45,767,166
Preferred stock, shares authorized 5,000,000 5,000,000
6% Series B Preferred Stock    
Stockholders' Equity    
Preferred stock, dividend rate (as a percent) 6.00% 6.00%
Preferred stock liquidation preference (in dollars per share) $ 1,000 $ 1,000
Preferred stock, shares authorized 0 125,000
Preferred stock, shares issued 0 125,000
Preferred stock, shares outstanding 0 125,000
Depositary shares   5,000,000
6% Series C Preferred Stock    
Stockholders' Equity    
Preferred stock, dividend rate (as a percent) 6.00% 6.00%
Preferred stock liquidation preference (in dollars per share) $ 1,000 $ 1,000
Preferred stock, shares authorized 200,000 200,000
Preferred stock, shares issued 196,181 196,181
Preferred stock, shares outstanding 196,181 196,181
Depositary shares 7,847,233 7,847,233
8.25% Series D Preferred Stock    
Stockholders' Equity    
Preferred stock, dividend rate (as a percent) 8.25% 8.25%
Preferred stock liquidation preference (in dollars per share) $ 1,000 $ 1,000
Preferred stock, shares authorized 300,000 300,000
Preferred stock, shares issued 142,500 142,500
Preferred stock, shares outstanding 142,500 142,500
Depositary shares 5,700,000 5,700,000
7.625% Series E Preferred Stock    
Stockholders' Equity    
Preferred stock, dividend rate (as a percent) 7.625% 7.625%
Preferred stock liquidation preference (in dollars per share) $ 1,000 $ 1,000
Preferred stock, shares authorized 230,000 230,000
Preferred stock, shares issued 230,000 230,000
Preferred stock, shares outstanding 230,000 230,000
Depositary shares 9,200,000 9,200,000
v3.25.2
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Interest Income        
Loans $ 255,641,000 $ 284,421,000 $ 494,921,000 $ 556,419,000
Mortgage loans in process of securitization 5,304,000 3,044,000 9,047,000 4,764,000
Investment securities:        
Available for sale 12,095,000 14,784,000 24,453,000 29,172,000
Held to maturity 23,166,000 19,799,000 47,524,000 40,321,000
FHLB stock and other equity securities (dividends) 4,641,000 1,277,000 9,013,000 2,121,000
Other 3,552,000 4,948,000 6,645,000 9,649,000
Total interest income 304,399,000 328,273,000 591,603,000 642,446,000
Interest Expense        
Deposits 131,375,000 179,651,000 255,316,000 350,673,000
Short-term borrowings 36,981,000 11,612,000 70,345,000 18,834,000
Long-term borrowings 7,324,000 8,891,000 15,027,000 17,764,000
Total interest expense 175,680,000 200,154,000 340,688,000 387,271,000
Net Interest Income 128,719,000 128,119,000 250,915,000 255,175,000
Provision for credit losses 53,027,000 9,965,000 60,754,000 14,691,000
Net Interest Income After Provision for Credit Losses 75,692,000 118,154,000 190,161,000 240,484,000
Noninterest Income        
Gain on sale of loans 23,342,000 11,168,000 34,961,000 20,524,000
Loan servicing fees, net 6,138,000 10,827,000 10,148,000 30,229,000
Mortgage warehouse fees 2,039,000 1,524,000 3,552,000 2,506,000
Losses on sale of investments available for sale (includes $0, $0, $0 and $(108), respectively, related to accumulated other comprehensive loss reclassifications)       (108,000)
Syndication and asset management fees 9,707,000 3,233,000 13,096,000 8,536,000
Other income 9,254,000 4,599,000 12,416,000 10,538,000
Total noninterest income 50,480,000 31,351,000 74,173,000 72,225,000
Noninterest Expense        
Salaries and employee benefits 43,566,000 28,373,000 79,985,000 57,969,000
Loan expense 1,142,000 993,000 1,940,000 1,949,000
Occupancy and equipment 2,494,000 2,239,000 4,845,000 4,476,000
Professional fees 3,159,000 3,556,000 6,053,000 7,655,000
Deposit insurance expense 7,152,000 5,579,000 14,380,000 10,704,000
Technology expense 2,446,000 1,859,000 4,820,000 3,713,000
Credit risk transfer premium expense 4,767,000 2,294,000 8,629,000 2,294,000
Other expense 12,611,000 5,487,000 18,349,000 10,532,000
Total noninterest expense 77,337,000 50,380,000 139,001,000 99,292,000
Income Before Income Taxes 48,835,000 99,125,000 125,333,000 213,417,000
Provision for income taxes (includes $0, $0, $0 and $26, respectively, of income tax benefit related to accumulated other comprehensive loss reclassifications) 10,854,000 22,732,000 29,113,000 49,970,000
Net Income 37,981,000 76,393,000 96,220,000 163,447,000
Dividends on preferred stock (10,266,000) (7,757,000) (20,531,000) (16,424,000)
Impact of preferred stock redemption   (1,823,000) (5,371,000) (1,823,000)
Net Income Allocated to Common Shareholders $ 27,715,000 $ 66,813,000 $ 70,318,000 $ 145,200,000
Basic Earnings Per Share (in dollars per share) $ 0.6 $ 1.5 $ 1.53 $ 3.3
Diluted Earnings Per Share (in dollars per share) $ 0.6 $ 1.49 $ 1.53 $ 3.29
Weighted-Average Shares Outstanding        
Basic (in shares) 45,883,644 44,569,345 45,853,998 43,937,665
Diluted (in shares) 45,929,563 44,698,324 45,921,988 44,082,485
v3.25.2
Condensed Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Condensed Consolidated Statements of Income (Unaudited)        
Reclassifications included in gains on sale of investment available for sale $ 0 $ 0 $ 0 $ (108)
Provision for income taxes related to income tax expense for reclassification items $ 0 $ 0 $ 0 $ 26
v3.25.2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Condensed Consolidated Statements of Comprehensive Income (Unaudited)        
Net Income $ 37,981 $ 76,393 $ 96,220 $ 163,447
Other Comprehensive Income:        
Net unrealized (losses) gains on investment securities available for sale, net of tax (benefit) expense of $53, $(209), $36 and $(593), respectively (170) 663 (114) 1,896
Add: Reclassification adjustment for losses included in net income, net of tax benefit of $0, $0, $0 and $26, respectively       82
Other comprehensive (loss) income for the period (170) 663 (114) 1,978
Comprehensive Income $ 37,811 $ 77,056 $ 96,106 $ 165,425
v3.25.2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Condensed Consolidated Statements of Comprehensive Income (Unaudited)        
Net of tax expense/(benefit) on net change in unrealized gains/(losses) on investment securities available for sale $ 53 $ (209) $ 36 $ (593)
Net of tax expense/(benefit) on reclassification adjustment for gains include in net income $ 0 $ 0 $ 0 $ 26
v3.25.2
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($)
$ in Thousands
Common stock
Preferred stock
7% Series A Preferred Stock
Preferred stock
6% Series B Preferred Stock
Preferred stock
6% Series C Preferred Stock
Preferred stock
8.25% Series D Preferred Stock
Preferred stock
7.625% Series E Preferred Stock
Retained Earnings
7% Series A Preferred Stock
Retained Earnings
6% Series B Preferred Stock
Retained Earnings
Accumulated Other Comprehensive Loss
Total
Balance beginning of period at Dec. 31, 2023 $ 140,365 $ 50,221 $ 120,844 $ 191,084 $ 137,459       $ 1,063,599 $ (2,488)  
Balance beginning of period (in shares) at Dec. 31, 2023 43,242,928 2,081,800 125,000 196,181 142,500            
Consolidated Statements of Shareholders' Equity                      
Distribution to employee stock ownership plan $ 997                    
Distribution to employee stock ownership plan (in shares) 23,414                    
Issuance of common stock, net of $5.5 million in offering expenses $ 97,655                    
Issuance of common stock, net of $5.5 million in offering expenses (in shares) 2,400,000                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ (525)                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 91,225                    
Net Income                 163,447   $ 163,447
Dividends on 7% Series A preferred stock, $1.75 per share, annually                 (910)    
Dividends on 6% Series B preferred stock, $60.00 per share, annually                 (3,750)    
Dividends on 6% Series C preferred stock, $60.00 per share, annually                 (5,886)    
Dividends on 8.25% Series D preferred stock, $82.50 per share, annually                 (5,878)    
Dividends on common stock, $0.40 per share, annually in 2025 and $0.36 per share, annually in 2024                 (8,021)    
Redemption of preferred stock   $ (50,221)         $ (1,823)        
Redemption of preferred stock (in shares)   (2,081,800)                  
Other comprehensive (loss) income                   1,978 1,978
Balance end of period at Jun. 30, 2024 $ 238,492   $ 120,844 $ 191,084 $ 137,459       1,200,778 (510) 1,888,147
Balance end of period (in shares) at Jun. 30, 2024 45,757,567   125,000 196,181 142,500            
Balance beginning of period at Mar. 31, 2024 $ 139,950 $ 50,221 $ 120,844 $ 191,084 $ 137,459       1,138,083 (1,173)  
Balance beginning of period (in shares) at Mar. 31, 2024 43,354,718 2,081,800 125,000 196,181 142,500            
Consolidated Statements of Shareholders' Equity                      
Issuance of common stock, net of $5.5 million in offering expenses $ 97,655                    
Issuance of common stock, net of $5.5 million in offering expenses (in shares) 2,400,000                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ 887                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 2,849                    
Net Income                 76,393   76,393
Dividends on 6% Series B preferred stock, $60.00 per share, annually                 (1,875)    
Dividends on 6% Series C preferred stock, $60.00 per share, annually                 (2,943)    
Dividends on 8.25% Series D preferred stock, $82.50 per share, annually                 (2,939)    
Dividends on common stock, $0.40 per share, annually in 2025 and $0.36 per share, annually in 2024                 (4,118)    
Redemption of preferred stock   $ (50,221)         $ (1,823)        
Redemption of preferred stock (in shares)   (2,081,800)                  
Other comprehensive (loss) income                   663 663
Balance end of period at Jun. 30, 2024 $ 238,492   $ 120,844 $ 191,084 $ 137,459       1,200,778 (510) 1,888,147
Balance end of period (in shares) at Jun. 30, 2024 45,757,567   125,000 196,181 142,500            
Balance beginning of period at Dec. 31, 2024 $ 240,313   $ 120,844 $ 191,084 $ 137,459 $ 222,748     1,330,995 (133) 2,243,310 [1]
Balance beginning of period (in shares) at Dec. 31, 2024 45,767,166   125,000 196,181 142,500 230,000          
Consolidated Statements of Shareholders' Equity                      
Distribution to employee stock ownership plan $ 1,124                    
Distribution to employee stock ownership plan (in shares) 30,802                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ 15                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 87,490                    
Net Income                 96,220   96,220
Dividends on 6% Series C preferred stock, $60.00 per share, annually                 (5,886)    
Dividends on 8.25% Series D preferred stock, $82.50 per share, annually                 (5,878)    
Dividends on 7.625% Series E preferred stock, $76.25 per share, annually                 (8,767)    
Dividends on common stock, $0.40 per share, annually in 2025 and $0.36 per share, annually in 2024                 (9,177)    
Redemption of preferred stock     $ (120,844)         $ (4,156)      
Redemption of preferred stock (in shares)     (125,000)                
Excise tax on preferred stock redemption                 (1,215)   (1,200)
Other comprehensive (loss) income                   (114) (114)
Balance end of period at Jun. 30, 2025 $ 241,452     $ 191,084 $ 137,459 $ 222,748     1,392,136 (247) 2,184,632
Balance end of period (in shares) at Jun. 30, 2025 45,885,458     196,181 142,500 230,000          
Balance beginning of period at Mar. 31, 2025 $ 240,512     $ 191,084 $ 137,459 $ 222,748     1,369,009 (77)  
Balance beginning of period (in shares) at Mar. 31, 2025 45,881,706     196,181 142,500 230,000          
Consolidated Statements of Shareholders' Equity                      
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ 940                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 3,752                    
Net Income                 37,981   37,981
Dividends on 6% Series C preferred stock, $60.00 per share, annually                 (2,943)    
Dividends on 8.25% Series D preferred stock, $82.50 per share, annually                 (2,939)    
Dividends on 7.625% Series E preferred stock, $76.25 per share, annually                 (4,384)    
Dividends on common stock, $0.40 per share, annually in 2025 and $0.36 per share, annually in 2024                 (4,588)    
Other comprehensive (loss) income                   (170) (170)
Balance end of period at Jun. 30, 2025 $ 241,452     $ 191,084 $ 137,459 $ 222,748     $ 1,392,136 $ (247) $ 2,184,632
Balance end of period (in shares) at Jun. 30, 2025 45,885,458     196,181 142,500 230,000          
[1] Derived from audited consolidated financial statements
v3.25.2
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Dividends on common stock per share $ 0.4 $ 0.36 $ 0.4 $ 0.36  
Offering expenses $ 5,500,000 $ 5,500,000 $ 5,500,000 $ 5,500,000  
7% Series A Preferred Stock          
Dividends on preferred stock per share $ 1.75 $ 1.75 $ 1.75 $ 1.75  
7% Series A Preferred Stock | Preferred stock          
Preferred stock, dividend rate (as a percent) 7.00% 7.00% 7.00% 7.00%  
6% Series B Preferred Stock          
Preferred stock, dividend rate (as a percent)     6.00%   6.00%
Dividends on preferred stock per share $ 60 $ 60 $ 60 $ 60  
6% Series B Preferred Stock | Preferred stock          
Preferred stock, dividend rate (as a percent) 6.00% 6.00% 6.00% 6.00%  
6% Series C Preferred Stock          
Preferred stock, dividend rate (as a percent)     6.00%   6.00%
Dividends on preferred stock per share $ 60 $ 60 $ 60 $ 60  
6% Series C Preferred Stock | Preferred stock          
Preferred stock, dividend rate (as a percent) 6.00% 6.00% 6.00% 6.00%  
8.25% Series D Preferred Stock          
Preferred stock, dividend rate (as a percent)     8.25%   8.25%
Dividends on preferred stock per share $ 82.5 $ 82.5 $ 82.5 $ 82.5  
8.25% Series D Preferred Stock | Preferred stock          
Preferred stock, dividend rate (as a percent) 8.25% 8.25% 8.25% 8.25%  
7.625% Series E Preferred Stock          
Preferred stock, dividend rate (as a percent)     7.625%   7.625%
Dividends on preferred stock per share $ 76.25 $ 76.25 $ 76.25 $ 76.25  
7.625% Series E Preferred Stock | Preferred stock          
Preferred stock, dividend rate (as a percent) 7.625% 7.625% 7.625% 7.625%  
v3.25.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Operating activities:    
Net Income (Loss) $ 96,220 $ 163,447
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation 1,540 1,471
Provision for credit losses 60,754 14,691
Loss on sale of securities   108
Gain on sale of loans (34,961) (20,524)
Proceeds from sales of loans 18,150,631 11,889,091
Loans and participations originated and purchased for sale (18,254,897) (12,260,927)
Proceeds from sale of low-income housing tax credits 9,777 27,564
Purchases of low-income housing tax credits for sale (22,987) (32,106)
Change in servicing rights for paydowns and fair value adjustments 5,550 (14,392)
Net change in:    
Mortgage loans in process of securitization 25,779 (98,645)
Other assets and receivables (14,219) (8,493)
Other liabilities (1,865) 5,592
Other 5,564 470
Net cash provided by (used in) operating activities 26,886 (332,653)
Investing activities:    
Net change in securities purchased under agreements to resell 20 45
Purchases of securities available for sale (344,503) (302,783)
Purchases of securities held to maturity   (155,268)
Purchases of mortgage servicing rights (70)  
Proceeds from the sale of securities available for sale 0 9,983
Proceeds from calls, maturities and paydowns of securities available for sale 391,790 382,840
Proceeds from calls, maturities and paydowns of securities held to maturity 116,573 68,376
Purchases of loans (30,408) (68,468)
Net change in loans receivable (503,358) (745,744)
Proceeds from loans held for sale previously classified as loans receivable 386,604 1,600
Purchase of FHLB stock (46) (19,316)
Proceeds from sale of FHLB stock   395
Purchases of premises and equipment (11,358) (7,590)
Purchase of limited partnership interests (35,210) (10,488)
Net cash paid on sale of branches   (170,594)
Other investing activities 2,737 4,839
Net cash used in investing activities (27,229) (1,012,173)
Financing activities:    
Net change in deposits 577,652 1,085,442
Proceeds from borrowings 141,830,587 47,606,878
Repayment of borrowings (142,197,028) (47,404,262)
Proceeds from notes payable   3,592
Proceeds from issuance of common stock   97,655
Payment of credit linked notes (10,605) (11,529)
Repurchase of preferred stock   (52,045)
Dividends (29,708) (24,445)
Net cash provided by financing activities 170,898 1,301,286
Net Change in Cash and Cash Equivalents 170,555 (43,540)
Cash and Cash Equivalents, Beginning of Period 476,610 [1] 584,422
Cash and Cash Equivalents, End of Period 647,165 540,882
Supplemental Cash Flows Information:    
Interest paid 344,939 371,467
Income taxes paid, net of refunds 41,093 46,043
Change in payable for limited partnership interest of LLCs 2,752  
Change in ROU assets due to lease renegotiation   (1,063)
Investments received in securitization of loans sold 3,583  
Liabilities accrued for additions in premises and equipment 2,627  
Beneficial interests received in exchange for LIHTC's sold 4,227  
Liabilities accrued for excise tax on preferred stock repurchase 1,215  
Change in prepaid assets for preferred stock repurchase 125,000  
Deposits received upon loan origination 189,206  
Transfer of loans from loans held for sale to loans receivable 18,429 47,850
Transfer of loans from loans receivable to loans held for sale $ 386,604 $ 1,600
[1] Derived from audited consolidated financial statements
v3.25.2
Basis of Presentation
6 Months Ended
Jun. 30, 2025
Basis of Presentation  
Basis of Presentation

Note 1:   Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Merchants Bancorp, a registered bank holding company (the “Company”) and its wholly owned subsidiaries, Merchants Bank, FMBI (whose branches were sold to unaffiliated third parties and its remaining charter collapsed into Merchants Bank on January 26, 2024), and MAM. Merchants Bank’s primary operating subsidiaries include MCC, MCS, and MCI. All directly and indirectly owned subsidiaries of Merchants Bancorp are collectively referred to as the “Company”.

The accompanying unaudited condensed consolidated balance sheets of the Company as of December 31, 2024, which has been derived from audited consolidated financial statements, and unaudited condensed consolidated financial statements of the Company as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024, were prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with GAAP. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of the Company as of and for the year ended December 31, 2024 in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Financial Statements contained in the Annual Report on Form 10-K.

All adjustments, which are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported, have been included in the accompanying unaudited condensed consolidated financial statements. All interim amounts have not been audited and the results of operations for the three and six months ended June 30, 2025, herein are not necessarily indicative of the results of operations to be expected for the entire year.

Principles of Consolidation

The unaudited condensed consolidated financial statements as of and for the period ended June 30, 2025 and 2024 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, FMBI (until its branches were sold and its bank charter merged into Merchants Bank on January 26, 2024), and MAM. Also included are Merchants Bank’s primary operating subsidiaries, MCC, MCS, and MCI, as well as all direct and indirectly owned subsidiaries owned by Merchants Bancorp.

The results of Merchants Foundation, Inc., a nonprofit corporation, are consolidated with the Company’s unaudited condensed consolidated financial statements in all periods presented.

In addition, when the Company makes an equity investment in or has a relationship with an entity for which it holds a variable interest, it is evaluated for consolidation requirements under ASC Topic 810. Accordingly, the Company assesses the entities for potential consolidation as a VIE and would only consolidate those entities for which it is a primary beneficiary. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the entity, and an interest that could be significant to the entity. To determine if an interest could be significant to the entity, both qualitative and quantitative factors regarding the nature, size and form of the Company’s involvement with the entity are evaluated. Alternatively, under the voting interest model, it would only consolidate those entities for which it has a controlling interest.

The Company holds a variable interest in an investment for which it is the primary beneficiary, and its results have been consolidated in all periods presented. Additionally, the Company has certain variable interest investments that it was deemed not to be a primary beneficiary of as of June 30, 2025 and December 31, 2024. These VIEs are not consolidated and the equity method or proportional amortization method of accounting has been applied. The Company will analyze whether the primary beneficiary designation has changed through triggering events on a prospective basis. Changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment. See Note 8: Variable Interest Entities (VIEs) for additional information about VIEs.

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

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with GAAP 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 unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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

Significant Accounting Policies

The significant accounting policies followed by the Company for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. For additional information regarding significant accounting policies, see the Company’s 2024 Annual Report on Form 10–K.

Restricted Cash

Included in cash equivalents is an account restricted as collateral for the potential risk of loss on senior credit linked notes issued by the Company in March 2023. The balance of the notes as of June 30, 2025 and December 31, 2024 was $76.9 million and $87.6 million, respectively. As of June 30, 2025 and December 31, 2024, there was $43.8 million and $33.5 million, respectively, in restricted cash held in a separate account included in the total of interest-earning demand accounts on the unaudited condensed consolidated balance sheets. Also see Note 10: Borrowings.

Reclassifications

Certain reclassifications have been made to the 2024 financial statements to conform to the financial statement presentation as of and for the three and six months ended June 30, 2025. These reclassifications had no effect on net income.

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 contingent liabilities, if any, arising from such proceedings and claims will not be material to the Company’s consolidated financial position or results of operations.

Recent Accounting Pronouncements

The Company continually monitors for potential accounting standards updates and SEC releases. The following updates and releases have been deemed to have the most applicability to the Company’s financial statements:

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

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

The updates in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. An entity shall apply the ASU on a prospective basis to financial statements for annual periods beginning after the effective date. The Company does not expect it to have a material impact on the Company’s financial position or results of operations.

FASB ASU 2024-03 - Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

In November 2024, the FASB issued an ASU which is intended to provide more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation and amortization) included in certain expense captions presented on the face of our consolidated statements of income.

The updates in ASU 2024-03 are effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. An entity may apply the ASU on a prospective basis to financial statements for annual periods beginning after the effective date. The Company is continuing to evaluate the impact of adopting this new guidance.

v3.25.2
Investment Securities
6 Months Ended
Jun. 30, 2025
Investment Securities  
Investment Securities

Note 2:   Investment Securities

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

June 30, 2025

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

    

Cost

    

Gains

    

Losses

    

Value

(In thousands)

Securities available for sale:

 

  

 

  

 

  

 

  

Treasury notes

$

70,125

$

4

$

27

$

70,102

Federal Agencies

 

260,000

 

9

 

310

 

259,699

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

3,580

3,580

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

407,539

407,539

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

195,423

195,423

Total securities available for sale

$

936,667

$

13

$

337

$

936,343

Securities held to maturity:

Mortgage-backed - Non-Agency - multi-family

$

550,912

$

$

1,479

$

549,433

Mortgage-backed - Non-Agency - residential

491,090

1,692

133

492,649

Mortgage-backed - Non-Agency - healthcare

494,439

3

494,442

Mortgage-backed - Agency - multi-family

11,770

769

11,001

Total securities held to maturity

$

1,548,211

$

1,695

$

2,381

$

1,547,525

FHLB and other equity securities (3)

$

217,850

(1)Fair value option securities represent securities which the Company has elected to carry at fair value with changes in the fair value recognized in earnings as they occur.
(2)Agency includes government sponsored entities, such as Fannie Mae, Freddie Mac, Ginnie Mae, FHLB and FCB.
(3)The Company reports the carrying value utilizing the measurement alternative election, reflecting any impairments or other adjustments if observable price changes occur for identical or similar investments of the same issuer.

December 31, 2024

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

    

Cost

    

Gains

    

Losses

    

Value

(In thousands)

Securities available for sale:

 

  

 

  

 

  

 

  

Treasury notes

$

89,898

$

108

$

$

90,006

Federal Agencies

 

253,218

 

 

282

 

252,936

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

1,162

1,162

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

430,779

430,779

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

205,167

205,167

Total securities available for sale

$

980,224

$

108

$

282

$

980,050

Securities held to maturity:

Mortgage-backed - Non-Agency - multi-family

$

592,053

$

$

1,162

$

590,891

Mortgage-backed - Non-Agency - residential

526,242

1,871

75

528,038

Mortgage-backed - Non-Agency - healthcare

534,538

374

534,912

Mortgage-backed - Agency - multi-family

11,853

1,020

10,833

Total securities held to maturity

$

1,664,686

$

2,245

$

2,257

$

1,664,674

FHLB and other equity securities (3)

$

217,804

(1)Fair value option securities represent securities which the Company has elected to carry at fair value with changes in the fair value recognized in earnings as they occur.
(2)Agency includes government sponsored entities, such as Fannie Mae, Freddie Mac, Ginnie Mae, FHLB, and FCB.

(3)

The Company reports the carrying value utilizing the measurement alternative election, reflecting any impairments or other adjustments if observable price changes occur for identical or similar investments of the same issuer.

Accrued interest on securities available for sale totaled $5.3 million at June 30, 2025 and $4.9 million at December 31, 2024, and is excluded from the estimate of credit losses.

Accrued interest on securities held to maturity totaled $4.7 million at June 30, 2025 and $5.8 million at December 31, 2024, and is excluded from the estimate of credit losses.

The amortized cost and fair value of securities available for sale at June 30, 2025 and December 31, 2024, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may

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

June 30, 2025

December 31, 2024

Amortized

Fair

Amortized

Fair

    

Cost

    

Value

    

Cost

    

Value

(In thousands)

Securities available for sale:

Within one year

$

70,125

$

70,102

$

89,898

$

90,006

After one through five years

 

260,000

 

259,699

 

253,218

 

252,936

 

330,125

 

329,801

 

343,116

 

342,942

Mortgage-backed - Agency - multi-family

3,580

3,580

1,162

1,162

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

407,539

407,539

430,779

430,779

Mortgage-backed - Agency - residential - fair value option

195,423

195,423

205,167

205,167

$

936,667

$

936,343

$

980,224

$

980,050

Securities held to maturity:

Mortgage-backed - Non-Agency - multi-family

$

550,912

$

549,433

$

592,053

$

590,891

Mortgage-backed - Non-Agency - residential

491,090

492,649

526,242

528,038

Mortgage-backed - Non-Agency - healthcare

494,439

494,442

534,538

534,912

Mortgage-backed - Agency - multi-family

11,770

11,001

 

11,853

 

10,833

$

1,548,211

$

1,547,525

$

1,664,686

$

1,664,674

During the three and six months ended June 30, 2025, no securities available for sale were sold. During the three months ended June 30, 2024, no securities available for sale were sold. During the six months ended June 30, 2024, the Company received proceeds of $10.0 million and recognized a net loss of $108,000 from sales of securities available for sale, which consisted of $10,000 in gains and $118,000 of losses.

The following tables show the Company’s gross unrealized losses and fair value of the Company’s investment securities with unrealized losses for which an ACL has not been recorded, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2025 and December 31, 2024:

June 30, 2025

12 Months or

Less than 12 Months

 Longer

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

    

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

(In thousands)

Securities available for sale:

 

  

 

  

 

  

 

  

 

  

 

  

Treasury notes

$

26,900

$

27

$

$

$

26,900

$

27

Federal Agencies

234,690

310

234,690

310

$

261,590

$

337

$

$

$

261,590

$

337

December 31, 2024

12 Months or

Less than 12 Months

Longer

Total

    

    

Gross

    

    

Gross

    

    

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

(In thousands)

Securities available for sale:

 

  

 

  

 

  

 

  

 

  

 

  

Federal Agencies

$

252,936

$

282

$

$

$

252,936

$

282

Allowance for Credit Losses

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

In evaluating securities available for sale in unrealized loss positions for credit losses and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors. Unrealized losses on the Company’s investment securities portfolio have not been recognized as an expense because the securities are of high credit quality, and the decline in fair values is attributable to changes in the prevailing interest rate environment since the purchase date. Fair value is expected to recover as securities reach maturity and/or the interest rate environment returns to conditions similar to when these securities were purchased. There were no credit-related factors underlying unrealized losses on available for sale debt securities at June 30, 2025 and December 31, 2024.

Securities held to maturity are primarily comprised of non-Agency mortgage-backed senior securities secured by multi-family, single-family or healthcare properties, and agency mortgage-backed securities secured by multi-family properties. The agency securities held to maturity are Ginnie Mae mortgage-backed securities and backed by the full faith and credit of the U.S. government and have an implicit or explicit government guarantee. Accordingly, no allowance for credit losses has been recorded for these securities.

For non-Agency mortgage-backed senior securities, qualitative factors are evaluated, including the timeliness of principal and interest payments under the contractual terms of the securities, as well as the investment ratings assigned to the securities by third parties and their qualification to be pledged to FHLB as collateral. In the event credit stress in the underlying loans is identified in any single security, risk grades and collateral values are evaluated to determine whether the bank has exposure to credit losses.

The Company has a held to maturity mortgage-backed security with an amortized cost value of $550.9 million and fair value of $549.4 million at June 30, 2025, acquired via a mortgage securitization transaction facilitated by the Company, which has experienced delinquencies in some of the underlying loans. The underlying loans in the securitization have an average loan-to-value ratio of 61%. Additionally, the security is a senior tranche that has credit protection from the first 14.4% of losses. The company continues to receive timely interest payments on this security, which is current as of June 30, 2025. The asset is not expected to have credit losses based on the loan-to-value of the underlying loans, its credit protection and expected cash flows. However, given the delinquencies on some of the underlying loans, the Company has classified the security as Special Mention as of June 30, 2025. All other securities held to maturity were classified as Pass as of June 30, 2025. All securities held to maturity were classified as Pass as of December 31, 2024. No allowance for credit losses were recorded for this, or any other non-agency security, as of June 30, 2025 and December 31, 2024.

v3.25.2
Mortgage Loans in Process of Securitization
6 Months Ended
Jun. 30, 2025
Mortgage Loans in Process of Securitization  
Mortgage Loans in Process of Securitization

Note 3:   Mortgage Loans in Process of Securitization

Mortgage loans in process of securitization are recorded at fair value with changes in fair value recorded in earnings. These include multi-family rental real estate loan originations to be sold as Ginnie Mae mortgage-backed

securities and Fannie Mae and Freddie Mac participation certificates, all of which are pending settlement under firm investor commitments to purchase the securities, typically occurring within 30 days. The aggregate positive fair value adjustment recorded in mortgage loans in process of securitization was $3.0 million and $4.1 million as of June 30, 2025 and December 31, 2024, respectively.

v3.25.2
Loans and Allowance for Credit Losses on Loans
6 Months Ended
Jun. 30, 2025
Loans and Allowance for Credit Losses on Loans  
Loans and Allowance for Credit Losses on Loans

Note 4:   Loans and Allowance for Credit Losses on Loans

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

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

The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and reports accrued interest separately from the related loan balance on the unaudited condensed consolidated balance sheets. Accrued interest on loans totaled $47.5 million and $51.9 million at June 30, 2025 and December 31, 2024, respectively.

The Company also elected not to measure an allowance for credit losses for accrued interest receivables. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. Loans may be 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 subsequently collected on these loans is applied to the principal balance until the loan can be returned to an accrual status, which is no less than six months. 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 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 loan modifications, interest income is recognized on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms.

The Company offers mortgage warehouse repurchase agreements to third parties 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, and may be cross-collateralized with other loans. The Company typically holds the collateral until it is sent under a bailee arrangement instructing the investor to send proceeds to the Company. Typical investors are large financial institutions or government agencies. Interest earned from the time of funding to the time of sale is recognized as interest income as accrued. Warehouse fees are accrued as noninterest income.

Loan Portfolio Summary

Loans receivable at June 30, 2025 and December 31, 2024 include:

June 30, 

December 31, 

    

2025

    

2024

(In thousands)

Mortgage warehouse repurchase agreements

$

1,843,742

$

1,446,068

Residential real estate(1)

 

988,783

 

1,322,853

Multi-family financing

 

4,833,548

 

4,624,299

Healthcare financing

1,442,095

1,484,483

Commercial and commercial real estate(2)(3)

 

1,328,765

 

1,476,211

Agricultural production and real estate

 

82,425

 

77,631

Consumer and margin loans

 

4,570

 

6,843

Loans Receivable

 

10,523,928

 

10,438,388

Less:

 

  

 

  

ACL-Loans

 

91,811

 

84,386

Loans Receivable, net

$

10,432,117

$

10,354,002

(1)Includes $0.8 billion and $1.2 billion of All-in-One© first-lien home equity lines of credit at June 30, 2025 and December 31, 2024, respectively.

(2)Includes $0.8 billion and $0.9 billion revolving lines of credit collateralized primarily by single-family mortgage servicing rights as of June 30, 2025 and December 31, 2024, respectively.

(3)Includes only $19.8 million and $18.7 million of non-owner occupied commercial real estate as of June 30, 2025 and December 31, 2024, respectively.

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

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

As a secured repurchase agreement, collateral pledged to the Company secures each individual mortgage until the mortgage company sells the loan in the secondary market. A traditional secured warehouse facility typically carries a base interest rate of the SOFR, or mortgage note rate, and a margin.

Risk is evident if there is a change in the fair value of mortgage loans originated by mortgage companies in warehouse, the sale of which is the expected source of repayment under a warehouse facility. However, the warehouse customers are required to hedge the change in value of these loans to mitigate the risk, typically through forward sales contracts.

Residential Real Estate Loans (RES RE): Real estate loans are secured primarily by owner-occupied one-to-four family residences. Repayment of residential real estate loans is primarily dependent on the personal income and assets of the borrowers. Credit risk for these loans is driven by those factors, as well as the credit rating of the borrowers and property values. In addition to loans originated for sale, and some loans held for investment, included in this segment are All-in-One© first-lien HELOC products that integrate a borrower’s mortgage and deposit account into a single facility and have typically carried a base interest rate of One-Year CMT, plus a margin. New originations are tied to 30-day SOFR, plus a margin.

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

Healthcare Financing (HC FIN): The healthcare financing portfolio includes customized loan products for independent living, assisted living, memory care and skilled nursing projects. A variety of loan products are available to accommodate rehabilitation, acquisition, and refinancing of healthcare properties. Credit risk in these loans is primarily driven by local demographics and the expertise of the operators of the facilities. Repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent agency-eligible financing is obtained, as well as successful operation of a business or property and the borrower’s cash flows. These loans are well-collateralized and underwritten to agency guidelines. Loans included in this segment typically carry a base rate of 30-day SOFR that adjusts on a monthly basis, and a margin. The Company focuses on loan classes that are government backed or can be sold in the secondary market.

Commercial Lending and Commercial Real Estate Loans (CML & CRE): The commercial lending and commercial real estate portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions, as well as loans to commercial customers to finance land and improvements. It also includes lines of credit collateralized by mortgage servicing rights that are assessed for fair value quarterly at the Company’s request. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations. SBA loans are included in this category. An immaterial portion of commercial and commercial real estate loans are typically made up of non-owner occupied commercial real estate loans.

Agricultural Production and Real Estate Loans (AG & AGRE): Agricultural production loans are generally comprised of seasonal operating lines of credit to grain farmers to plant and harvest corn and soybeans and term loans to fund the purchase of equipment. The Company also offers long-term financing to purchase agricultural real estate. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating-year based on industry-developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop and other farm assets as considered necessary. The Company is approved to sell agricultural loans in the secondary market through Farmer Mac and uses this relationship to manage interest rate risk within the portfolio. Agricultural real estate loans included in this segment are typically structured with a one-year ARM, three-year ARM or five-year ARM indexed to CMT and a margin. Agriculture production, livestock, and equipment loans are structured with variable rates that are indexed to prime or fixed for terms not exceeding five years.  

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

ACL-Loans

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

The ACL-Loans is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans considering relevant available information from internal and external sources, including historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. The allowance also incorporates reasonable and supportable forecasts. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The level of the ACL-Loans is believed to be adequate to absorb expected future losses in the loan portfolio as of the measurement date.

The ACL-Loans consists of individually evaluated loans and pooled loan components. The Company’s primary portfolio segmentation is by loans with similar risk characteristics. Loans risk graded substandard and worse are individually evaluated for expected credit losses. For individually evaluated loans that are collateral dependent, the Company may use the fair value of the collateral, less estimated costs to sell, as a practical expedient as of the reporting date to determine the carrying amount of an asset and the allowance for credit losses, as applicable. A loan is considered to be collateral dependent when repayment is expected to be provided substantially through the operation or the sale of the collateral when the borrower is experiencing financial difficulty as of the reporting date.

To calculate the ACL-Loans, the portfolio is segmented by loans with similar risk characteristics.

Loan Portfolio Segment

    

ACL-Loans Methodology

Mortgage warehouse repurchase agreements

Remaining Life Method

Residential real estate loans

Discounted Cash Flow

Multi-family financing

Discounted Cash Flow

Healthcare financing

Discounted Cash Flow

Commercial and commercial real estate

Discounted Cash Flow

Agricultural production and real estate

Remaining Life Method

Consumer and margin loans

Remaining Life Method

Loan characteristics used in determining the segmentation include the underlying collateral, type or purpose of the loan, and expected credit loss patterns. The initial estimation of expected credit losses for each segment is based on historical credit loss experience and management’s judgement. Given the Company’s modest historical credit loss experience, peer and industry data was incorporated into the measurement. Expected life of loan credit losses are quantified using discounted cash flows and remaining life methodologies.

Model results are supplemented by qualitative adjustments for risk factors relevant in assessing the expected credit losses within the portfolio segments. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor.

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

The following tables present, by loan portfolio segment, the activity in the ACL-Loans for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, 2025

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

(In thousands)

ACL-Loans

Balance, beginning of period

$

3,747

$

6,145

 

$

53,416

$

9,127

$

10,295

$

608

$

75

$

83,413

Provision for credit losses

 

1,167

 

(1,634)

 

48,364

4,714

 

1,822

 

29

 

(1)

 

54,461

Loans charged to the allowance

 

 

 

(38,309)

(7,497)

 

(257)

 

 

 

(46,063)

Recoveries of loans previously charged-off

 

 

 

 

 

 

 

Balance, end of period

$

4,914

$

4,511

$

63,471

$

6,344

$

11,860

$

637

$

74

$

91,811

Three Months Ended June 30, 2024

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

(In thousands)

ACL-Loans

Balance, beginning of period

$

3,022

$

6,905

 

$

28,664

$

24,587

$

11,990

$

450

$

94

$

75,712

Provision for credit losses

 

594

 

(595)

 

9,097

(1,065)

 

702

 

39

 

(19)

 

8,753

Loans charged to the allowance

 

 

 

(3,349)

 

(103)

 

 

 

(3,452)

Recoveries of loans previously charged-off

 

 

13

 

 

2

 

 

 

15

Balance, end of period

$

3,616

$

6,323

$

34,412

$

23,522

$

12,591

$

489

$

75

$

81,028

The Company recorded a total provision for credit losses of $53.0 million for the three months ended June 30, 2025. The $53.0 million total provision for credit losses consisted of $54.5 million for the ACL-Loans as shown above, net of $1.1 million for the ACL-OBCE’s and $0.4 million for the release of reserves on the ACL-Guarantees, related to a loan securitization.

The Company recorded a total provision for credit losses of $10.0 million for the three months ended June 30, 2024. The $10.0 million total provision for credit losses consisted of $8.8 million for the ACL-Loans as shown above and $1.2 million for the ACL-OBCE’s.

Six Months Ended June 30, 2025

  

MTG WHRA

  

RES RE

  

MF FIN

  

HC FIN

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

(In thousands)

ACL-Loans

Balance, beginning of period

$

3,816

$

5,942

$

55,126

$

8,562

$

10,293

$

539

$

108

$

84,386

Provision for credit losses

 

1,098

(1,431)

57,048

5,279

1,909

98

(34)

63,967

Loans charged to the allowance

 

(48,703)

(7,497)

(370)

(56,570)

Recoveries of loans previously charged-off

 

28

 

28

Balance, end of period

$

4,914

$

4,511

$

63,471

$

6,344

$

11,860

$

637

$

74

$

91,811

Six Months Ended June 30, 2024

  

MTG WHRA

  

RES RE

  

MF FIN

  

HC FIN

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

(In thousands)

ACL-Loans

Balance, beginning of period

$

2,070

$

7,323

$

26,874

$

22,454

$

12,243

$

619

$

169

$

71,752

FMBI's ACL for loans sold

(55)

(186)

(2)

(92)

(246)

(12)

(593)

Provision for credit losses

 

1,546

(958)

11,073

1,070

1,465

116

(82)

 

14,230

Loans charged to the allowance

 

(3,349)

(1,028)

 

(4,377)

Recoveries of loans previously charged-off

 

13

3

 

16

Balance, end of period

$

3,616

$

6,323

$

34,412

$

23,522

$

12,591

$

489

$

75

$

81,028

The Company recorded a total provision for credit losses of $60.8 million for the six months ended June 30, 2025. The $60.8 million total provision for credit losses consisted of $64.0 million for the ACL-Loans as shown above,

net of $2.8 million for the ACL-OBCE’s and $0.4 million for the release of reserves on the ACL-Guarantees, related to a loan securitization.

The Company recorded a total provision for credit losses of $14.7 million for the six months ended June 30, 2024. The $14.7 million total provision for credit losses consisted of $14.2 million for the ACL-Loans as shown above, $1.1 million for the ACL-OBCE’s, net of $0.6 million for the release of FMBI’s ACL-Loans for loans sold.

The following table presents, by loan portfolio segment, the activity in the ACL-Loans, for the year-ended December 31, 2024:

Year Ended December 31, 2024

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

(In thousands)

ACL-Loans

Balance, beginning of period

$

2,070

$

7,323

 

$

26,874

$

22,454

$

12,243

$

619

$

169

$

71,752

FMBI's ACL for loans sold

(55)

(186)

(2)

(92)

(246)

(12)

(593)

Provision for credit losses

 

1,746

 

(1,340)

 

33,674

(10,795)

 

276

 

166

 

(49)

 

23,678

Loans charged to the allowance

 

 

 

(5,282)

(3,095)

 

(2,210)

 

 

 

(10,587)

Recoveries of loans previously charged-off

 

 

14

 

46

 

76

 

 

 

136

Balance, end of period

$

3,816

$

5,942

$

55,126

$

8,562

$

10,293

$

539

$

108

$

84,386

The Company recorded a total provision for credit losses of $24.3 million for the year ended December 31, 2024. The $24.3 million provision for credit losses consisted of $23.7 million for the ACL-Loans as shown above, $2.2 million for the ACL-OBCEs, net of $1.0 million for the release of reserves on ACL-Guarantees, related to a loan securitization and $0.6 million for the release of FMBI’s ACL-Loans for loans sold.

The table below presents the amortized cost basis and ACL-Loans allocated for collateral dependent loans, which are individually evaluated to determine expected credit losses as of June 30, 2025 and December 31, 2024:

June 30, 2025

    

Real Estate

    

Accounts Receivable / Equipment

    

Other

    

Total

    

ACL-Loans Allocation

(In thousands)

RES RE

$

7,964

$

$

$

7,964

$

39

MF FIN

294,206

693

294,899

30,324

HC FIN

 

103,288

 

 

 

103,288

 

454

CML & CRE

 

8,813

 

1,447

 

1,060

 

11,320

 

2,226

AG & AGRE

 

181

 

5

 

 

186

 

2

Total collateral dependent loans

$

414,452

$

1,452

$

1,753

$

417,657

$

33,045

There were no significant changes to the types of collateral securing the Company’s collateral dependent loans compared to December 31, 2024.

December 31, 2024

    

Real Estate

    

Accounts Receivable / Equipment

    

Other

    

Total

    

ACL-Loans Allocation

(In thousands)

RES RE

$

6,153

$

$

$

6,153

$

31

MF FIN

227,054

693

227,747

22,265

HC FIN

73,225

73,225

2,569

CML & CRE

 

8,125

 

1,447

 

629

 

10,201

 

358

AG & AGRE

 

 

6

 

 

6

 

1

Total collateral dependent loans

$

314,557

$

1,453

$

1,322

$

317,332

$

25,224

Internal Risk Categories

The Company evaluates the loan risk grading system definitions and ACL-Loans methodology on an ongoing basis. In adherence with policy, the Company uses the following internal risk grading categories and definitions for loans:

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

Special Mention – Loans classified as Special Mention have potential weaknesses that deserve management’s attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention loans are not adversely classified and do not warrant adverse classification. Loans with questions or concerns regarding collateral, adverse market conditions impacting future performance, and declining financial trends would be considered for Special Mention.

Substandard - Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. When a loan in the form of a line of credit is downgraded to Substandard, it is evaluated for credit losses and future draws under the line of credit require the approval of an officer of Senior Credit Officer or above.

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

The following tables present the credit risk profile of the Company’s loan portfolio based on internal risk rating category and origination year as of June 30, 2025 and December 31, 2024:

June 30, 2025

    

2025

    

2024

    

2023

2022

    

2021

    

Prior

    

Revolving Loans

    

TOTAL

(In thousands)

MTG WHRA

Pass

$

$

$

$

$

$

$

1,843,742

$

1,843,742

Total

$

$

$

$

$

$

$

1,843,742

$

1,843,742

RES RE

Pass

$

24,996

$

39,767

$

28,692

$

7,458

$

5,152

$

23,199

$

851,555

$

980,819

Substandard

22

129

7,813

7,964

Total

$

24,996

$

39,767

$

28,692

$

7,480

$

5,152

$

23,328

$

859,368

$

988,783

MF FIN

Pass

$

726,822

$

774,109

$

320,907

$

222,274

$

41,803

$

11,004

$

2,336,075

$

4,432,994

Special Mention

59,903

17,000

23,934

235

4,583

105,655

Substandard

13,545

14,601

160,419

78,486

27,848

294,899

Total

$

800,270

$

805,710

$

481,326

$

324,694

$

41,803

$

11,239

$

2,368,506

$

4,833,548

Charge-offs

$

$

$

10,135

$

34,917

$

$

3,651

$

$

48,703

HC FIN

Pass

$

540,046

$

78,920

$

112,643

$

241,655

$

$

$

306,548

$

1,279,812

Special Mention

17,368

30,237

5,450

5,940

58,995

Substandard

42,521

25,600

9,000

20,317

5,850

103,288

Total

$

557,414

$

151,678

$

138,243

$

256,105

$

20,317

$

$

318,338

$

1,442,095

Charge-offs

$

$

$

$

$

5,296

$

2,201

$

$

7,497

CML & CRE

Pass

$

38,225

$

52,569

$

46,200

$

103,145

$

36,693

$

29,685

$

1,004,155

$

1,310,672

Special Mention

3,310

442

1,616

1,283

47

75

6,773

Substandard

447

148

637

8,988

26

1,074

11,320

Total

$

41,535

$

53,016

$

46,790

$

105,398

$

46,964

$

29,758

$

1,005,304

$

1,328,765

Charge-offs

$

$

$

147

$

110

$

113

$

$

$

370

AG & AGRE

Pass

$

8,813

$

16,263

$

7,264

$

4,688

$

2,858

$

20,482

$

21,782

$

82,150

Special Mention

89

89

Substandard

5

181

186

Total

$

8,902

$

16,263

$

7,269

$

4,869

$

2,858

$

20,482

$

21,782

$

82,425

CON & MAR

Pass

$

80

$

250

$

33

$

11

$

3

$

$

4,193

$

4,570

Total

$

80

$

250

$

33

$

11

$

3

$

$

4,193

$

4,570

Total Pass

$

1,338,982

$

961,878

$

515,739

$

579,231

$

86,509

$

84,370

$

6,368,050

$

9,934,759

Total Special Mention

$

80,670

$

47,237

$

442

$

31,000

$

1,283

$

282

$

10,598

$

171,512

Total Substandard

$

13,545

$

57,569

$

186,172

$

88,326

$

29,305

$

155

$

42,585

$

417,657

Total Loans

$

1,433,197

$

1,066,684

$

702,353

$

698,557

$

117,097

$

84,807

$

6,421,233

$

10,523,928

Total Charge-offs

$

$

$

10,282

$

35,027

$

5,409

$

5,852

$

$

56,570

The table above excludes two multi-family loans, rated as Special Mention, totaling $41.6 million and classified as held for sale at June 30, 2025. The Company did not have any material revolving loans converted to term loans that were not re-underwritten at June 30, 2025.

December 31, 2024

    

2024

    

2023

    

2022

    

2021

    

2020

    

Prior

    

Revolving Loans

    

TOTAL

(In thousands)

MTG WHRA

Pass

$

$

$

$

$

$

$

1,446,068

$

1,446,068

Total

$

$

$

$

$

$

$

1,446,068

$

1,446,068

RES RE

Pass

$

40,363

$

30,750

$

8,212

$

6,181

$

18,712

$

6,210

$

1,206,272

$

1,316,700

Substandard

22

203

5,928

6,153

Total

$

40,363

$

30,750

$

8,234

$

6,181

$

18,712

$

6,413

$

1,212,200

$

1,322,853

MF FIN

Pass

$

1,028,288

$

518,320

$

419,723

$

66,787

$

5,460

$

10,456

$

2,109,707

$

4,158,741

Special Mention

88,337

77,700

57,679

238

13,857

237,811

Substandard

18,884

105,553

76,093

2,550

24,667

227,747

Total

$

1,135,509

$

701,573

$

553,495

$

69,337

$

5,460

$

10,694

$

2,148,231

$

4,624,299

Charge-offs

$

$

870

$

4,412

$

$

$

$

$

5,282

HC FIN

Pass

$

460,259

$

112,223

$

466,393

$

$

$

$

234,316

$

1,273,191

Special Mention

32,547

8,900

96,620

138,067

Substandard

13,961

25,600

25,363

8,301

73,225

Total

$

506,767

$

137,823

$

475,293

$

25,363

$

$

$

339,237

$

1,484,483

Charge-offs

$

$

$

$

3,095

$

$

$

$

3,095

CML & CRE

Pass

$

52,323

$

45,999

$

107,451

$

48,903

$

16,264

$

18,216

$

1,172,763

$

1,461,919

Special Mention

2,331

1,633

52

75

4,091

Substandard

40

150

110

8,835

41

1,025

10,201

Total

$

52,363

$

46,149

$

109,892

$

59,371

$

16,264

$

18,309

$

1,173,863

$

1,476,211

Charge-offs

$

$

$

253

$

982

$

$

975

$

$

2,210

AG & AGRE

Pass

$

17,328

$

7,373

$

4,676

$

3,170

$

8,790

$

13,705

$

22,583

$

77,625

Substandard

6

6

Total

$

17,328

$

7,379

$

4,676

$

3,170

$

8,790

$

13,705

$

22,583

$

77,631

CON & MAR

Pass

$

326

$

75

$

18

$

9

$

$

4,151

$

2,264

$

6,843

Total

$

326

$

75

$

18

$

9

$

$

4,151

$

2,264

$

6,843

Total Pass

$

1,598,887

$

714,740

$

1,006,473

$

125,050

$

49,226

$

52,738

$

6,193,973

$

9,741,087

Total Special Mention

$

120,884

$

77,700

$

68,910

$

1,633

$

$

290

$

110,552

$

379,969

Total Substandard

$

32,885

$

131,309

$

76,225

$

36,748

$

$

244

$

39,921

$

317,332

Total Loans

$

1,752,656

$

923,749

$

1,151,608

$

163,431

$

49,226

$

53,272

$

6,344,446

$

10,438,388

Total Charge-offs

$

$

870

$

4,665

$

4,077

$

$

975

$

$

10,587

The table above excludes one multi-family loan, rated as Special Mention, totaling $17.4 million and classified as held for sale at December 31, 2024. The Company did not have any material revolving loans converted to term loans that were not re-underwritten at December 31, 2024.

Delinquent Loans

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of June 30, 2025 and December 31, 2024.

June 30, 2025

    

30-59 Days

    

60-89 Days

    

90+ Days

    

Total

    

    

Total

Past Due

Past Due

Past Due

Past Due

Current

Loans

(Dollars in thousands)

MTG WHRA

$

$

$

$

$

1,843,742

$

1,843,742

RES RE

4,720

90

 

6,279

 

11,089

 

977,694

 

988,783

MF FIN

11,370

 

174,926

 

186,296

 

4,647,252

 

4,833,548

HC FIN

16,101

61,416

77,517

1,364,578

1,442,095

CML & CRE

70

 

4,032

 

4,102

 

1,324,663

 

1,328,765

AG & AGRE

 

5

 

5

 

82,420

 

82,425

CON & MAR

 

 

 

4,570

 

4,570

$

32,191

$

160

$

246,658

$

279,009

$

10,244,919

$

10,523,928

%

%

3

%

3

%

97

%

100

%

The Company did not have any loans classified as held for sale that were past due as of June 30, 2025.

December 31, 2024

    

30-59 Days

    

60-89 Days

    

90+ Days

    

Total

    

    

Total

Past Due

Past Due

Past Due

Past Due

Current

Loans

(Dollars in thousands)

MTG WHRA

$

 

$

$

$

$

1,446,068

$

1,446,068

RES RE

1,294

 

3,797

 

2,339

 

7,430

 

1,315,423

 

1,322,853

MF FIN

8,497

 

11,148

 

201,508

 

221,153

 

4,403,146

 

4,624,299

HC FIN

59,264

59,264

1,425,219

1,484,483

CML & CRE

596

 

688

 

3,047

 

4,331

 

1,471,880

 

1,476,211

AG & AGRE

73

 

 

12

 

85

 

77,546

 

77,631

CON & MAR

 

 

 

 

6,843

 

6,843

$

10,460

$

15,633

$

266,170

$

292,263

$

10,146,125

$

10,438,388

%

%

3

%

3

%

97

%

100

%

The table above excludes one multi-family loan of $30.1 million and two residential real estate loans totaling $2.1 million, 30-59 days past due, and one residential real estate loan of $0.1 million, 90+ days past due, classified as held for sale at December 31, 2024.

Nonperforming Loans and Assets

Nonaccrual loans, including modified loans to borrowers experiencing financial difficulty that have not met the six-month minimum performance criterion, are reported as nonperforming loans. For all loan classes, it is the Company’s policy to have any modified loans which are on nonaccrual status prior to being modified, remain on nonaccrual status until six months of satisfactory borrower performance, at which time management would consider its return to accrual status. A loan is generally classified as nonaccrual when the Company believes that receipt of principal and interest is doubtful under the terms of the loan agreement. Generally, this is at 90 days or more past due. Interest income of $0 and $0.1 million for the three and six months ended June 30, 2025, respectively, and $0.9 million for both the three and six months ended June 30, 2024, was recognized on nonaccrual financial assets at the time of payoff.

The following table presents the Company’s nonperforming loans and nonperforming assets at June 30, 2025 and December 31, 2024.

June 30, 2025

December 31, 2024

Total Loans >

Total Loans >

90 Days &

90 Days &

Nonaccrual

Accruing

Nonaccrual

Accruing

(In thousands)

RES RE

$

7,835

$

129

$

6,154

$

MF FIN

 

177,530

585

 

201,508

 

HC FIN

61,416

69,001

CML & CRE

4,032

3,047

AG & AGRE

5

6

6

CON & MAR

$

250,818

$

714

$

279,716

$

6

The Company did not have any loans classified as held for sale on nonaccrual or past due as of June 30, 2025. The table above excludes one residential real estate loan, classified as held for sale, on nonaccrual at December 31, 2024, totaling $0.1 million.

The Company did not have any nonaccrual loans without an estimated ACL at June 30, 2025 or December 31, 2024.

Modifications to Borrowers Experiencing Financial Difficulty

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

The following tables present the amortized cost basis of loans at June 30, 2025 and June 30, 2024 that were both experiencing financial difficulty and modified during the three and six months ended June 30, 2025 and June 30, 2024, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.

Three Months Ended June 30, 2025

Six Months Ended June 30, 2025

  

Payment Delay

Term Extension

Combination - Term Extension and Payment Delay

Total Class of Financing Receivable

% of Total Class of Financing Receivable

  

Payment Delay

Term Extension

Combination - Term Extension and Payment Delay

Total Class of Financing Receivable

% of Total Class of Financing Receivable

  

(In thousands)

(In thousands)

MF FIN

$

$

25,425

$

$

25,425

1

%

$

$

25,425

$

40,361

$

65,786

1

%

CML & CRE

177

177

Total

$

$

25,425

$

$

25,425

1

%

$

$

25,425

$

40,538

$

65,963

1

%

Three Months Ended June 30, 2024

Six Months Ended June 30, 2024

Payment Delay

Term Extension

Combination - Term Extension and Payment Delay

Total Class of Financing Receivable

% of Total Class of Financing Receivable

  

Payment Delay

Term Extension

Combination - Term Extension and Payment Delay

Total Class of Financing Receivable

% of Total Class of Financing Receivable

  

(In thousands)

(In thousands)

MF FIN

$

35,137

$

42,452

$

$

77,589

2

%

$

35,137

$

42,452

$

$

77,589

2

%

HC FIN

 

4,240

4,240

%

 

 

4,240

4,240

%

Total

$

35,137

$

46,692

$

$

81,829

1

%

$

35,137

$

46,692

$

$

81,829

1

%

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty. Loans with risk classifications of Pass and Special Mention were part of the pooled loan ACL analysis. Loans classified as Substandard or worse were individually evaluated for credit losses and specific reserves were established, if applicable. During the three and six months ended June 30, 2025, there were no specific reserves recorded on troubled loan modifications disclosed herein. The Company has committed to lend no additional amounts to the borrowers included in the table below.

Three Months Ended June 30, 2025

Term Extension

Combination - Term Extension and Forbearance

Loan Type

Financial Effect

Financial Effect

MF FIN

Added a weighted average 7 months.

Six Months Ended June 30, 2025

Term Extension

Combination - Term Extension and Forbearance

Loan Type

Financial Effect

Financial Effect

MF FIN

Added a weighted average 7 months.

Term extension and forbearance added a weighted average of 6 months.

CML & CRE

Term extension added a weighted average of 61 months and forbearance added a weighted average of 12 months.

Three Months Ended June 30, 2024

Term Extension

Payment Delay

Loan Type

Financial Effect

Financial Effect

MF FIN

Added a weighted average 28 months.

Forbearance average of 7 months.

HC FIN

Added a weighted average 12 months.

Six Months Ended June 30, 2024

Term Extension

Payment Delay

Loan Type

Financial Effect

Financial Effect

MF FIN

Added a weighted average 28 months.

Forbearance average of 7 months.

HC FIN

Added a weighted average 12 months.

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last twelve months as of June 30, 2025:

    

30 - 89 Days

    

90+ Days

    

Total

Current

Past Due

Past Due

Loans

(In thousands)

MF FIN

$

58,088

$

$

7,698

$

65,786

HC FIN

9,649

9,649

CML & CRE

177

177

Total

$

58,265

$

$

17,347

$

75,612

Multi-family loans totaling $9.6 million that had prior forbearance modifications defaulted during the three and six months ended June 30, 2025.

Immaterial Revision of Prior Period Footnote Disclosures Regarding Troubled Loan Modifications

The Company revised amounts reported in the previously issued Form 10-Q for the period end June 30, 2024 related to TLMs in the above notes to the unaudited condensed consolidated financial statements due to incorrectly classifying eight loans totaling $104.6 million as TLMs that did not meet the Company’s definition of a TLM. For comparative purposes, the Company has made a revision to the applicable prior period notes in this section to reflect this correction. The impacts of the misclassification and subsequent revisions are contained entirely within these disclosures and had no impact to the unaudited condensed consolidated financial statements for the period ended June 30, 2024. The effect of this error was evaluated by the Company in accordance with SEC Staff Accounting Bulletins No. 99 and 108 and, based upon quantitative and qualitative factors, determined that the errors were not material to the previously issued financial statements and disclosures.

Foreclosures

There were $2.6 million in residential loans in the process of foreclosure as of June 30, 2025 and there were $1.9 million in process of foreclosure as of December 31, 2024.

Significant Loan Sales

On June 5, 2025, the Company completed a $373.3 million securitization of 18 multi-family mortgage loans through a Freddie Mac-sponsored Q-Series transaction. The transfer of these loans was accounted for as a sale for financial reporting purposes, in accordance with ASC 860, and a $5.9 million gain on sale was recognized. The Company was retained as the mortgage sub-servicer for Freddie Mac on the entire $373.3 million pool of loans. Beyond sub-servicing the loans, the Company’s ongoing involvement in this transaction is limited to customary obligations of loan sales, including any material breach in representation. In connection with this transaction, a mortgage servicing right of $1.6 million was established.

On June 27, 2025, the Company completed a $312.1 million sale of All-in-One©, first-lien home equity lines of credit through a sale to a related third party. The transfer of these loans was accounted for as a sale for financial reporting purposes, in accordance with ASC 860, and a $2.2 million gain on sale was recognized. The Company was retained as the mortgage sub-servicer on the entire $312.1 million pool of loans. Beyond sub-servicing the loans, the Company’s ongoing involvement in this transaction is limited to customary obligations of loan sales, including any material breach in representation. No mortgage servicing right was established in connection with this transaction.

Loans Purchased

The Company purchased $30.4 million and $68.5 million of loans during the six months ended June 30, 2025 and 2024, respectively.

Loan Guarantees

The Company issues instruments, in the normal course of business with customers, that are considered financial guarantees. Standby letters of credit guarantees are issued in connection with agreements made by customers to counterparties. Standby letters of credit are contingent upon failure of the customer to perform the terms of the underlying contract. Credit risk associated with the standby letters of credit is essentially the same as that associated with extending loans to customers and is subject to normal credit policies. The terms of these standby letters of credit range from less than one to eight years. These commitments are not recorded in the unaudited condensed consolidated financial statements. The total for these guarantees at June 30, 2025 and December 31, 2024 was $178.1 million and $204.7 million, respectively.

v3.25.2
Qualified Affordable Housing and Other Tax Credits
6 Months Ended
Jun. 30, 2025
Qualified Affordable Housing and Other Tax Credits  
Qualified Affordable Housing and Other Tax Credits

Note 5:   Qualified Affordable Housing and Other Tax Credits

The Company invests in LIHTC limited liability partnerships and LLCs. The primary purpose of these investments is to earn an adequate return of capital through the receipt of low-income housing tax credits. Those investments are recorded at cost and then amortized using the proportional amortization method. The investments are included in other assets on the unaudited condensed consolidated balance sheets, with any unfunded commitments included in other liabilities. The investments are amortized as a component of income tax expense.

The Company also has a pool of investments that are held for sale and are accounted for at the lower of cost or market. These investments include projects that are awaiting syndication in LIHTC funds through our MCI subsidiary. The investments are included in other assets on the unaudited condensed consolidated balance sheets.

The Company is the primary beneficiary in one of its joint venture investments, therefore the results of this entity are consolidated and the benefits of the new market fund are recognized through tax credits as a component of income tax expense.

June 30, 2025

December 31, 2024

(In thousands)

Investment

Accounting Method

Investment

Unfunded Commitments

Investment

Unfunded Commitments

LIHTC

Proportional amortization

$

153,596

$

91,904

$

123,574

$

93,929

LIHTC (1)

Lower of cost or market

45,580

56,533

LIHTC subtotal

$

199,176

$

91,904

$

180,107

$

93,929

Joint Venture

Consolidated

10,937

10,937

Total

$

210,113

$

91,904

$

191,044

$

93,929

(1)LIHTC projects held for future syndication.

The following table summarizes the amortization expense and tax credits recognized for the Company’s low-income housing investments for the three and six months ended June 30, 2025 and 2024.

Three Months Ended

Six Months Ended

June 30,

June 30,

2025

2024

2025

2024

(In thousands)

(In thousands)

Amortization expense

$

3,784

$

2,305

$

7,559

$

5,145

Expected tax credits

$

4,095

$

2,391

$

8,369

$

5,418

The Company serves as a general partner for several syndicated low-income housing tax credit funds that are owned by one investor, holding 99.99% of the funds, as a limited partner. The Company, as general partner, provided services during 2024 and prior years, such as formation of the funds and identifying or acquiring tax credit investments, for which it expects to receive fees in the future, up to approximately $19.3 million. The amount of payments to be received as the general partner is contingent upon achieving certain performance obligations, including the stabilization of the properties and delivery of tax credits to the limited partner in the future, which could extend out until 2042. Due to the long-term nature of the agreement, amounts to be received, and the uncertainty of achieving the performance obligation, variable consideration and revenue recognition has been 100% constrained as of June 30, 2025. Revenue recognition will be continuously evaluated as facts and circumstances evolve. The Company has also advanced these LIHTC funds $81.4 million as of June 30, 2025 and $98.8 million as of December 31, 2024 to acquire its LIHTC investment projects, for which it expects repayment over a similar period. These advances have been recorded in other assets on the unaudited condensed consolidated balance sheets.

v3.25.2
Leases
6 Months Ended
Jun. 30, 2025
Leases.  
Leases

Note 6: Leases

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

Supplemental balance sheet information related to leases is presented in the table below as of June 30, 2025 and December 31, 2024:

June 30, 2025

December 31, 2024

(In thousands)

Balance Sheet

Operating lease ROU asset (in other assets)

$

7,429

$

8,332

Operating lease liability (in other liabilities)

8,325

9,303

Weighted average remaining lease term (years)

4.1

4.6

Weighted average discount rate

3.44%

3.43%

The table below presents the components of lease expenses for the three and six months ended June 30, 2025 and 2024. Operating lease expenses are included in occupancy and equipment expense on the unaudited condensed consolidated income statement.

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2025

2024

2025

2024

(In thousands)

(In thousands)

Statement of Income

Components of lease expense:

Operating lease cost

$

738

$

765

1,432

$

1,369

Supplemental cash flow information related to leases is presented in the tables below.

Maturities of lease liabilities:

June 30, 2025

(In thousands)

One year or less

$

2,354

Year two

2,273

Year three

1,989

Year four

1,312

Year five

707

Thereafter

299

Total future minimum lease payments

8,934

Less: imputed interest

609

Total

$

8,325

Six Months Ended

June 30, 

2025

2024

(In thousands)

Cash Flow Statement

Supplemental cash flow information:

Operating cash flows for operating leases

$

1,133

$

1,220

v3.25.2
Other Assets and Receivables
6 Months Ended
Jun. 30, 2025
Other Assets and Receivables.  
Other Assets and Receivables

Note 7: Other Assets and Receivables

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

Joint Ventures

The Company has investments in various joint ventures totaling $50.9 million and $42.2 million at June 30, 2025 and December 31, 2024, respectively. These investments are primarily made up of investments in debt funds totaling $30.5 million and $31.8 million at June 30, 2025 and December 31, 2024, respectively. The Company was not a primary beneficiary in any of these joint venture investments. Results from the entities are not required to be consolidated and are accounted for under the equity method of accounting. The Company is obligated to make additional investments over the next several years. There was an obligation of $10.0 million and $3.8 million reflected in the investment balance and liabilities at June 30, 2025 and December 31, 2024, respectively. See Note 8: Variable Interest Entities (VIEs) for additional information about VIE’s.

Qualified Affordable Housing

Information regarding qualified affordable housing investments is disclosed elsewhere in Note 5: Qualified Affordable Housing and Other Tax Credits.

Freestanding Credit Enhancements

In December 2024, the Company executed a CDS on a reference pool of warehouse loans with an initial principal balance of $1.2 billion. The initial pool consisted of warehouse participation certificates, classified as loans held for sale, but could include warehouse repurchase agreements, classified as loans receivable. The protected tranche will cover the first 12.5% of losses on the notional amount. Annual CDS premium payments equal 0.8% of the portfolio notional amount and is recorded as noninterest expense. Merchants will continually replenish maturing or non-renewing loans with substantially similar loans subject to mutual agreement of buyer and seller during a replenishment period, subject to a minimum balance of $1.2 billion and a maximum balance of $2.0 billion. The risk transfer agreement has a replenishment period of 36 months but can be extended to a maximum of 48 months.

The CDS is not accounted for as a derivative. A scope exception within ASC 815 – Derivatives and Hedging for certain financial guarantees is utilized, as recovery payments are contingent on the failure of the debtor to pay their past due obligations, which are preconditions to the guarantee. Accordingly, the CDS has been accounted for as a freestanding credit enhancement and does not offset the Company’s estimate of expected credit losses. Therefore, the ACL-loans will continue to be recorded without considering potential recoveries from freestanding credit enhancement contracts. Upon initial execution, there was no CDS recovery asset established because the loans in the pool were participation certificates that were classified as loans held for sale and carry no ACL-loans. When repurchase agreements are in the pool, they are classified as loans receivable, and a CDS recovery asset would be established in other assets, with an equal benefit to CDS recovery income in other noninterest income for the protected portion of the amounts included in the ACL-loans. The recovery asset and recovery income accounts are adjusted as the ACL-loans is adjusted for changes in loss expectations.

As of June 30, 2025 and December 31, 2024, a CDS recovery asset of $445,000 and $0, respectively, was established based on the repurchase agreements included in loans receivable. The total loan pool balances were $2.0 billion and $1.2 billion as of June 30, 2025 and December 31, 2024, respectively.

v3.25.2
Variable Interest Entities
6 Months Ended
Jun. 30, 2025
Variable Interest Entities  
Variable Interest Entities

Note 8:   Variable Interest Entities

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

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

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

The Company has invested in single-family, multi-family, and healthcare debt financing entities, as well as low-income housing syndicated funds that are deemed to be VIEs. The Company also has deemed REMIC trusts as VIEs that were established in conjunction with multi-family and healthcare loan sales and securitization transactions. Accordingly, the entities were assessed for potential consolidation under the VIE model that requires primary beneficiaries to consolidate the entity’s results. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the entity, and an interest that could be significant to the entity. To determine if an interest could be significant to the entity, both qualitative and quantitative factors regarding the nature, size and form of involvement with the entity are evaluated.

At June 30, 2025 the Company determined it was not the primary beneficiary for most of its VIEs, primarily because the Company did not have control or the obligation to absorb losses or the rights to receive benefits from the VIE that could potentially be significant to the VIE. Evaluation and reassessment of VIEs for consolidation is performed on an ongoing basis by management. Any changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing reassessment.

The table below reflects the assets of the VIEs, as well as the maximum exposure to loss in connection with unconsolidated VIEs and liabilities for binding, unfunded commitments at June 30, 2025 and December 31, 2024. The Company’s maximum exposure to loss associated with its unconsolidated VIEs consists of the capital invested plus any unfunded equity commitments. These investments are recorded in other assets and other liabilities on the unaudited condensed consolidated balance sheets. Also included in the maximum loss exposure are loans to VIEs that are included in loans receivable. Although the REMIC trusts are not recognized on the balance sheet, the maximum exposure to loss is the carrying value of the securities acquired as part of the securitization transactions.

Investments

Loans

Securities

Maximum

Liabilities

Assets

    

in VIEs

    

to VIEs

for VIEs

Exposure to Loss

for VIEs

(In thousands)

June 30, 2025

 

  

 

 

  

Low-income housing tax credit investments

$

236,005

$

343,398

$

$

579,403

$

81,606

Debt funds

30,536

241,367

271,903

Mortgage-backed securitizations (1)

21,924

1,536,441

1,558,365

Total Unconsolidated VIEs

$

266,541

$

606,689

$

1,536,441

$

2,409,671

$

81,606

December 31, 2024

 

  

 

 

 

  

 

  

Low-income housing tax credit investments

$

225,727

$

282,584

$

$

508,311

$

89,956

Debt funds

31,772

109,480

141,252

2,752

Mortgage-backed securitizations (1)

23,564

1,652,833

1,676,397

Total Unconsolidated VIEs

$

257,499

$

415,628

$

1,652,833

$

2,325,960

$

92,708

(1)Amounts include involvement with securitization SPEs where the Company transferred to and/or service loans for an SPE and hold securities issued by that SPE. Values disclosed in the table above represent the Company’s maximum exposure to loss for those securities’ holdings.
v3.25.2
Deposits
6 Months Ended
Jun. 30, 2025
Deposits.  
Deposits

Note 9: Deposits

Deposits were comprised of the following at June 30, 2025 and December 31, 2024:

    

June 30, 2025

    

December 31, 2024

(In thousands)

Noninterest-bearing deposits

Core demand deposits

$

315,523

$

239,005

Interest-bearing deposits

Demand deposits:

Core demand deposits

$

6,066,933

$

4,319,512

Brokered demand deposits

250,000

Total interest-earning demand deposits

6,316,933

4,319,512

Savings deposits:

 

 

Core savings deposits

3,703,270

3,442,111

Brokered savings deposits

358

859

Total savings deposits

3,703,628

3,442,970

Certificates of deposit:

 

 

Core certificates of deposits

1,346,630

1,385,270

Brokered certificates of deposits

1,004,121

2,533,219

Total certificates of deposits

2,350,751

3,918,489

Total interest-bearing deposits

12,371,312

11,680,971

Total deposits

$

12,686,835

$

11,919,976

Total core deposits

$

11,432,356

$

9,385,898

Total brokered deposits

$

1,254,479

$

2,534,078

Total deposits

$

12,686,835

$

11,919,976

Maturities for certificates of deposit are as follows:

    

June 30, 2025

(In thousands)

Due within one year

$

2,294,984

Due in one year to two years

 

45,459

Due in two years to three years

 

10,308

Due in three years to four years

 

Due in four years to five years

Due in five years to six years

 

$

2,350,751

Certificates of deposit of $250,000 or more totaled $671.6 million and $694.8 million at June 30, 2025 and December 31, 2024, respectively.

v3.25.2
Borrowings
6 Months Ended
Jun. 30, 2025
Borrowings  
Borrowings

Note 10: Borrowings

Borrowings comprised the following at June 30, 2025 and December 31, 2024:

    

June 30, 2025

    

December 31, 2024

(In thousands)

Federal Reserve discount window borrowings

$

175,000

$

50,000

Subordinated debt

 

71,800

 

71,800

FHLB advances

3,680,588

4,172,030

Credit linked notes, net of debt discount

74,152

84,358

Other borrowings

 

7,934

 

7,934

Total borrowings

$

4,009,474

$

4,386,122

On May 27, 2025, the Company entered into an interest free, fixed-rate community development advance debt agreement with the FHLB. The balance of the advance was $2.5 million as of June 30, 2025, and the full principal balance matures on May 24, 2030.

On June 24, 2025, the Company entered into a new variable-rate debt agreement with the FHLB for an advance that has put and call options attached to it. The balance of the advance was $2.0 billion as of June 30, 2025, and matures on September 22, 2025. The variable interest rate is based on the Federal Funds effective rate, plus 15 basis points, which was 4.48% on June 30, 2025. The FHLB has a put option to cancel the agreement 60 days after the initial execution date and the Company has a call option to cancel the agreement at any time, with one day’s notice.

On June 30, 2025, the Company entered into a new variable-rate debt agreement with the FHLB for an advance that has put and call options attached to it. The balance of the advance was $1.7 billion as of June 30, 2025, and matures on September 29, 2025. The variable interest rate is based on the Federal Funds effective rate, plus 15 basis points, which was 4.48% on June 30, 2025. The FHLB has a put option to cancel the agreement 60 days after the initial execution date and the Company has a call option to cancel the agreement at any time, with one day’s notice.

v3.25.2
Derivative Financial Instruments
6 Months Ended
Jun. 30, 2025
Derivative Financial Instruments  
Derivative Financial Instruments

Note 11: Derivative Financial Instruments

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

Internal Interest Rate Risk Management

The Company enters into interest rate lock commitments with potential borrowers to fund specific mortgage loans that will be sold into the secondary market and enters into forward contracts for the future delivery of mortgage loans to third party investors. 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. Forward contracts and interest rate lock agreements are accounted for as derivatives at fair value with changes in fair value reflected in other income on the unaudited condensed consolidated statements of income.

Interest rate swaps are also used by the Company to reduce the risk that significant increases in interest rates may have on the value of certain fixed-rate loans held for sale and the respective loan payments received from borrowers. All changes in the fair market value of these interest rate swaps and associated loans held for sale have been

included in gain on sale of loans. Any difference between the fixed and floating interest rate components of these transactions have also been included in gain on sale.

The Company entered into a contract containing put options and interest rate floors on securities it acquired from a warehouse customer. These provide protection and offset losses in value of certain securities accounted for under the fair value option. The gain (loss) on the put options is substantially equal and offsetting to the fair market value adjustment of securities available for sale, resulting in an inconsequential net gain or loss in other noninterest income. This helps mitigate interest rate risk and minimizes impacts of market fluctuations on the securities available for sale that the Company elected to account for under the fair value option with changes in fair value reflected in earnings. The Company also entered into interest rate floor contracts with two warehouse loan customers to minimize interest rate risk. All changes in the fair market value of these options and floors have been included in other noninterest income.

Credit Risk Management

In March 2024, the Company entered into a contract as the buyer of credit protection through the credit derivative market. A CDS was purchased to manage credit risk associated with specific multi-family mortgage loans. Under the terms of the contract, the Company will be compensated for certain credit-related losses on a pool of multi-family mortgage loans. The protection seller has posted aggregate collateral of $64.8 million related to their obligations under the contract. The collateral is not included on the Company’s unaudited condensed consolidated balance sheets. There was no gain or loss associated with the credit default swap valuation as of June 30, 2025 and June 30, 2024. Any future changes in the fair market value of this instrument will be included in other noninterest expense.

The CDS is considered a derivative, but is not designated as an accounting hedge, and is recorded at fair value, with changes in fair value reflected in noninterest expense on the unaudited condensed consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in other assets on the unaudited condensed consolidated balance sheets while derivative instruments with a negative fair value are reported in other liabilities on the unaudited condensed consolidated balance sheets.

The following table presents the notional amount and fair value of interest rate locks, forward contracts, interest rate swaps, put options, interest rate floors, and credit derivatives utilized by the Company at June 30, 2025 and December 31, 2024. These tables exclude the fair market value adjustment on loans commonly hedged with these derivatives.

Notional

Fair Value

Amount

 

Balance Sheet Location

 

Asset

 

Liability

(In thousands)

June 30, 2025

Interest rate lock commitments

$

48,949

Other assets/liabilities

$

270

$

8

Forward contracts

51,847

Other assets/liabilities

427

Interest rate swaps

49,734

Other assets/liabilities

2,484

Put options

648,016

Other assets

45,055

Interest rate floors

1,144,335

Other assets

 

6,118

Credit derivatives

64,184

Other assets/liabilities

$

53,927

$

435

Notional

Fair Value

Amount

 

Balance Sheet Location

 

Asset

 

Liability

(In thousands)

December 31, 2024

Interest rate lock commitments

$

24,609

Other assets/liabilities

$

30

$

176

Forward contracts

33,000

Other assets/liabilities

229

1

Interest rate swaps

49,891

Other assets/liabilities

4,199

Put options

680,354

Other assets

43,777

Interest rate floors

1,228,274

Other assets

4,043

Credit derivatives

58,526

Other assets/liabilities

$

52,278

$

177

The following table summarizes the periodic changes in the fair value of the above derivative financial instruments on the unaudited condensed consolidated statements of income for the three and six months ended June 30, 2025 and 2024.

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2025

    

2024

    

2025

    

2024

(In thousands)

(In thousands)

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

Interest rate lock commitments

$

224

$

(109)

$

408

$

(93)

Forward contracts (includes pair-off settlements)

(168)

285

(518)

379

Interest rate swaps

(438)

247

(1,280)

1,622

Net (loss) gain

$

(382)

$

423

$

(1,390)

$

1,908

Derivative gain included in other income:

Put options (1)

7,522

3,467

1,277

11,080

Interest rate floors

4,333

214

 

2,075

2,548

Net gain

$

11,855

$

3,681

$

3,352

$

13,628

___________________________

(1)

The put option gain (loss) reflects an adjustment to the fair value of the derivative that is substantially equal and offset by an adjustment to the fair value of its related securities available for sale for which the Company elected to account for under the fair value option with changes in fair value reflected in earnings. The combination of these adjustments is designed to result in an inconsequential net gain or loss in other noninterest income.

Derivatives on Behalf of Customers

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

The fair values of derivative assets and liabilities related to back-to-back derivatives on behalf of customers with back-to-back interest rate swap, cap or floor arrangements were recorded on the unaudited condensed consolidated balance sheets as follows:

Notional

Fair Value

Amount

 

Balance Sheet Location

 

Asset

 

Liability

(In thousands)

June 30, 2025

$

983,600

Other assets/liabilities

$

10,015

$

10,015

December 31, 2024

$

724,224

Other assets/liabilities

$

309

$

309

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

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2025

    

2024

    

2025

    

2024

(In thousands)

(In thousands)

Gross swap gains

$

5,162

$

5,371

$

9,706

$

2,538

Gross swap losses

5,162

5,371

 

9,706

2,538

Net swap gains (losses)

$

$

$

$

The Company pledged $7.5 million and $263,000 in collateral to secure its obligations under swap contracts at June 30, 2025 and December 31, 2024, respectively.

v3.25.2
Disclosures about Fair Value of Assets and Liabilities
6 Months Ended
Jun. 30, 2025
Disclosures about Fair Value of Assets and Liabilities  
Disclosures about Fair Value of Assets and Liabilities

Note 12:   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 on the accompanying unaudited condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2025 and December 31, 2024:

Fair Value Measurements Using

Quoted Prices in

Significant

 

Active Markets 

Other

Significant

for Identical

Observable

Unobservable 

Fair

Assets

Inputs

Inputs

Assets

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

(In thousands)

June 30, 2025

Mortgage loans in process of securitization

$

402,427

$

$

402,427

$

Securities available for sale:

 

  

 

  

 

  

 

  

Treasury notes

 

70,102

 

70,102

 

 

Federal Agencies

 

259,699

 

 

259,699

 

Mortgage-backed - Agency

3,580

 

3,580

 

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

407,539

 

407,539

 

Mortgage-backed - Agency - fair value option

 

195,423

 

 

195,423

 

Loans held for sale

 

91,930

 

 

91,930

 

Servicing rights

 

193,037

 

 

 

193,037

Derivative assets:

 

Interest rate lock commitments

 

270

 

 

 

270

Interest rate swaps

2,484

2,484

Interest rate swaps, caps and floors (back-to-back)

10,015

10,015

Put options

45,055

8,845

36,210

Interest rate floors

6,118

6,118

Derivative liabilities:

 

Interest rate lock commitments

 

8

8

Forward contracts

 

427

427

Interest rate swaps, caps and floors (back-to-back)

 

10,015

10,015

December 31, 2024

 

  

Mortgage loans in process of securitization

$

428,206

$

$

428,206

$

Securities available for sale:

 

  

 

  

 

  

 

  

Treasury notes

 

90,006

 

90,006

 

 

Federal Agencies

 

252,936

 

 

252,936

 

Mortgage-backed - Agency

1,162

 

1,162

 

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

430,779

 

430,779

 

Mortgage-backed - Agency - fair value option

 

205,167

 

 

205,167

 

Loans held for sale

 

78,170

 

 

78,170

 

Servicing rights

 

189,935

 

 

 

189,935

Derivative assets:

 

Interest rate lock commitments

 

30

 

 

 

30

Forward contracts

229

 

 

229

 

Interest rate swaps

4,199

4,199

Interest rate swaps, caps and floors (back-to-back)

309

309

Put options

43,777

12,481

31,296

Interest rate floors

4,043

4,043

Derivative liabilities:

Interest rate lock commitments

176

176

Forward contracts

1

1

Interest rate swaps, caps and floors (back-to-back)

309

309

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized on the accompanying unaudited condensed consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the six months ended June 30, 2025 and the year ended December 31, 2024. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

The Company values its assets and liabilities in the principal market where it sells the particular asset or transfers the liability with the greatest volume and level of activity. In the absence of an active market, the value is based on the most advantageous market for the asset or liability.

Mortgage Loans in Process of Securitization, Securities Available for Sale, and Securities with a Fair Value Option Election

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

Loans Held for Sale

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

Servicing Rights

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

The Chief Financial Officer’s (CFO) office contracts with an independent pricing specialist to generate fair value estimates on a quarterly basis. The CFO’s office challenges the reasonableness of the assumptions used and reviews the methodology to ensure the estimated fair value complies with GAAP.

Derivative Financial Instruments

Interest rate lock commitments - The Company estimates the fair value of interest rate lock commitments based on the value of the underlying mortgage loan, quoted mortgage-backed security prices, estimates of the fair value of the servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the interest rate lock commitment, net of expenses. With respect to its interest rate lock commitments, management determined that a Level 3 classification was most appropriate based on the various significant unobservable inputs utilized in estimating the fair value of its interest rate lock commitments.

Forward sales commitments - The Company estimates the fair value of forward sales commitments based on market quotes of mortgage-backed security prices for securities similar to the ones used, which are considered Level 2.

Interest rate swaps, caps, and floors (back-to-back) – The Company estimates the fair value of these derivatives made in relation to specific contracts with customers based on prices that are obtained from a third party that uses observable market inputs, thereby supporting a Level 2 classification.

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

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

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

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

Level 3 Reconciliation

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

Three Months Ended June 30, 

Six Months Ended June 30, 

    

2025

    

2024

    

2025

    

2024

(In thousands)

(In thousands)

Servicing rights

Balance, beginning of period

$

189,711

$

172,200

$

189,935

$

158,457

Purchased servicing

70

70

Originated servicing

 

5,244

 

3,761

 

8,582

 

5,927

Paydowns

 

(2,246)

 

(2,252)

 

(5,054)

 

(4,639)

Changes in fair value

 

258

 

5,067

 

(496)

 

19,031

Balance, end of period

$

193,037

$

178,776

$

193,037

$

178,776

Securities available for sale - Mortgage-backed - Non-Agency residential - fair value option

Balance, beginning of period

$

$

472,192

$

$

485,500

Paydowns

(7,884)

(16,870)

Changes in fair value

 

 

(1,681)

 

 

(6,003)

Balance, end of period

$

$

462,627

$

$

462,627

Derivative assets - put options

Balance, beginning of period

$

28,295

$

22,976

$

31,296

$

18,654

Changes in fair value

 

7,915

 

1,681

 

4,914

 

6,003

Balance, end of period

$

36,210

$

24,657

$

36,210

$

24,657

Derivative assets - interest rate floors

Balance, beginning of period

$

1,785

$

8,910

$

4,043

$

6,576

Changes in fair value

 

4,333

 

214

 

2,075

 

2,548

Balance, end of period

$

6,118

$

9,124

$

6,118

$

9,124

Derivative assets - interest rate lock commitments

Balance, beginning of period

$

126

$

174

$

30

$

140

Gain (loss) recognized

 

144

 

(4)

 

240

 

30

Balance, end of period

$

270

$

170

$

270

$

170

Derivative liabilities - interest rate lock commitments

Balance, beginning of period

$

88

$

22

$

176

$

4

Gain (loss) recognized

 

(80)

 

105

 

(168)

 

123

Balance, end of period

$

8

$

127

$

8

$

127

Nonrecurring Measurements

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2025 and December 31, 2024.

Fair Value Measurements Using

Quoted Prices in

Significant

Significant

Active Markets for

Other Observable

Unobservable 

Fair

Identical Assets

Inputs

Inputs

Assets

Value

(Level 1)

(Level 2)

(Level 3)

(In thousands)

June 30, 2025

 

  

 

  

 

  

 

  

Collateral dependent loans

$

194,337

$

$

$

194,337

December 31, 2024

 

  

 

  

 

  

 

  

Collateral dependent loans

$

59,915

$

$

$

59,915

Other real estate owned

$

7,313

$

$

$

7,313

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

Collateral Dependent Loans, Net of ACL-Loans

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

The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be classified as substandard, collateral-dependent and subsequently as deemed necessary by the CCO’s 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.

Other Real Estate Owned

The estimated fair value of other real estate owned is usually based on the appraised fair value of the collateral or in certain circumstances on sales agreements, and in all cases net of estimated cost to sell. Other real estate owned is 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 other real estate owned are obtained when the loan is in the process of foreclosure and subsequently as deemed necessary by the CCO’s 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 costs to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the CCO’s office by comparison to historical results.

Unobservable (Level 3) Inputs:

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

Valuation

Weighted

    

Fair Value

    

Technique

    

Unobservable Inputs

Range

    

Average

(In thousands)

At June 30, 2025:

 

  

 

  

 

Collateral dependent loans

$

194,337

 

Market comparable properties

 

Marketability discount and costs to sell

0% - 100%

 

14%

Servicing rights - Multi-family

$

152,100

 

Discounted cash flow

 

Discount rate

8% - 15%

 

9%

Constant prepayment rate

0% - 100%

 

9%

Earnings rate on escrows

3%

3%

Servicing rights - Single-family

$

33,595

 

Discounted cash flow

 

Discount rate

10% - 11%

10%

Constant prepayment rate

6% - 15%

7%

Servicing rights - Healthcare

$

3,214

 

Discounted cash flow

 

Discount rate

13%

 

13%

Constant prepayment rate

2% - 7%

 

4%

Earnings rate on escrows

3%

3%

Servicing rights - SBA

$

4,128

 

Discounted cash flow

 

Discount rate

16%

 

16%

Constant prepayment rate

5% - 21%

14%

Derivative assets:

Interest rate lock commitments

$

270

 

Discounted cash flow

 

Loan closing rates

59% - 100%

 

82%

Put options

$

36,210

Intrinsic value

Market credit spread

4%

4%

Interest rate floors

$

6,118

Discounted cash flow

Discount rate

6% - 7%

7%

Derivative liabilities - interest rate lock commitments

$

8

 

Discounted cash flow

 

Loan closing rates

59% - 100%

 

82%

At December 31, 2024:

 

  

 

  

 

Collateral dependent loans

$

59,915

 

Market comparable properties

 

Marketability discount and costs to sell

0% - 90%

 

29%

Other real estate owned

$

7,313

Market comparable properties

Marketability discount and costs to sell

2% - 8%

5%

Servicing rights - Multi-family

$

146,483

 

Discounted cash flow

 

Discount rate

8% - 15%

 

9%

Constant prepayment rate

0% - 100%

 

7%

Earnings rate on escrows

3%

3%

Servicing rights - Single-family

$

34,986

 

Discounted cash flow

 

Discount rate

10% - 11%

10%

Constant prepayment rate

6% - 14%

7%

Servicing rights - Healthcare

$

4,207

 

Discounted cash flow

 

Discount rate

13%

 

13%

Constant prepayment rate

1% - 2%

 

1%

Earnings rate on escrows

3%

3%

Servicing rights - SBA

$

4,259

 

Discounted cash flow

 

Discount rate

16%

16%

Constant prepayment rate

4% - 24%

14%

Derivative assets:

Interest rate lock commitments

$

30

 

Discounted cash flow

 

Loan closing rates

71% - 99%

 

87%

Put options

$

31,296

Intrinsic value

Market credit spread

4%

4%

Interest rate floors

$

4,043

Discounted cash flow

Discount rate

6% - 8%

7%

Derivative liabilities - interest rate lock commitments

$

176

 

Discounted cash flow

 

Loan closing rates

71% - 99%

 

87%

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.

Collateral Dependent Loans and Other Real Estate Owned

The significant unobservable inputs used in the fair value measurement of the Company’s collateral dependent loans and other real estate owned is based on liquidation amounts of the underlying collateral using the most recently available appraisals with adjustments made for a marketability discount and costs to sell.

Servicing Rights

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

Derivative Financial Instruments

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

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

Fair Value of Financial Instruments

The following table presents the carrying amount and estimated fair values of the Company’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2025 and December 31, 2024.

Fair Value Measurements Using

Quoted Prices in

Significant

 

Active Markets 

Other

Significant

for Identical

Observable

Unobservable 

Carrying

Fair

Assets

Inputs

Inputs

    

Value

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

(In thousands)

June 30, 2025

Financial assets:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

647,165

$

647,165

$

647,165

$

$

Securities purchased under agreements to resell

 

1,539

 

1,539

 

 

1,539

 

Securities held to maturity

 

1,548,211

 

1,547,525

 

 

503,650

 

1,043,875

FHLB stock and other equity securities

 

217,850

 

217,850

 

 

187,850

 

30,000

Loans held for sale

 

4,013,835

 

4,013,835

 

 

4,013,835

 

Loans receivable, net

 

10,432,117

 

10,361,673

 

 

 

10,361,673

Interest receivable

 

82,391

 

82,391

 

 

82,391

 

Financial liabilities:

 

  

 

 

  

 

  

 

  

Deposits

 

12,686,835

 

12,689,577

 

10,336,084

 

2,353,493

 

Subordinated debt

 

71,800

 

71,800

 

 

71,800

 

FHLB advances

 

3,680,588

 

3,680,257

 

 

3,680,257

 

Other borrowing

182,934

182,934

182,934

Credit linked notes

74,152

74,151

74,151

Interest payable

 

30,225

 

30,225

 

 

30,225

 

December 31, 2024

 

  

 

  

 

  

 

  

 

  

Financial assets:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

476,610

$

476,610

$

476,610

$

$

Securities purchased under agreements to resell

 

1,559

 

1,559

 

 

1,559

 

Securities held to maturity

1,664,686

1,664,674

 

 

538,871

 

1,125,803

FHLB stock and other equity securities

 

217,804

 

217,804

 

 

187,804

 

30,000

Loans held for sale

 

3,693,340

 

3,693,340

 

 

3,693,340

 

Loans receivable, net

 

10,354,002

 

10,297,439

 

 

 

10,297,439

Interest receivable

 

83,409

 

83,409

 

 

83,409

 

Financial liabilities:

 

  

 

 

  

 

  

 

  

Deposits

 

11,919,976

 

11,923,961

 

8,001,487

 

3,922,474

 

Subordinated debt

 

71,800

 

71,800

 

 

71,800

 

FHLB advances

 

4,172,030

 

4,171,843

 

 

4,171,843

 

Other borrowing

57,934

57,934

57,934

Credit linked notes

84,358

84,357

84,357

Interest payable

 

34,475

 

34,475

 

 

34,475

 

v3.25.2
Common Stock
6 Months Ended
Jun. 30, 2025
Common Stock  
Common Stock

Note 13:   Common Stock

Public Offerings of Common Stock:

On May 13, 2024, the Company issued 2,400,000 shares of the Company’s common stock, without par value, at a public offering price of $43.00 per share in an underwritten public offering. The aggregate gross offering proceeds for the shares issued by the Company was $103.2 million, and after deducting underwriting discounts, commissions, and offering expenses of $5.5 million paid to third parties, the Company received total net proceeds of $97.7 million.

v3.25.2
Preferred Stock
6 Months Ended
Jun. 30, 2025
Preferred Stock  
Preferred Stock

Note 14:   Preferred Stock

Public Offerings of Preferred Stock:

Series A 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 per share. The aggregate gross offering proceeds for the shares issued by the Company was $50.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $1.7 million paid to third parties, the Company received total net proceeds of $48.3 million. On April 12, 2019, the Company issued an additional 81,800 shares of Series A Preferred Stock to the underwriters related to their exercise of an option to purchase additional shares under the associated underwriting agreement, resulting in an additional $2.0 million in net proceeds, after deducting $41,000 in underwriting discounts.

The Company redeemed all outstanding shares of the Series A Preferred Stock on April 1, 2024 at a price equal to the liquidation preference of $25 per share, or $52.0 million, using cash on hand.

The $1.8 million expenses associated with the original issuance, which were capitalized in 2019, were recognized through retained earnings upon redemption, thus reducing net income available to common shareholders.

Series B Preferred Stock – 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, and with a liquidation preference of $1,000 per share (equivalent to $25 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 Company redeemed all outstanding shares of the Series B Preferred Stock on January 2, 2025, at a price equal to the liquidation preference of $1,000 per share (equivalent to $25 per depositary share), or $125.0 million. The cash to redeem the shares was delivered to the Company’s transfer agent on December 31, 2024, resulting in a prepaid asset reported in other assets that was reversed upon redemption. As of the redemption date, the Series B Preferred Stock did not have any accrued, but unpaid dividends.

The $4.2 million expenses associated with the original issuance, which were capitalized in 2019, were recognized through retained earnings upon redemption, thus reducing net income available to common shareholders. Similarly, the redemption resulted in an excise tax of $1.2 million that will not be payable until 2025 taxes are due in 2026, and any future issuance of shares until one year after the redemption can offset the amount of excise tax that will be paid.

Series C Preferred Stock – On March 23, 2021, the Company issued 6,000,000 depositary shares, each representing a 1/40th interest in a share of its 6.00% Fixed-to-Floating Rate Series C Non-Cumulative Perpetual Preferred Stock, without par value, and with a liquidation preference of $1,000 per share (equivalent to $25 per

depositary share). The aggregate gross offering proceeds for the shares issued by the Company was $150.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $5.1 million paid to third parties, the Company received total net proceeds of $144.9 million.

On May 6, 2021 the Company completed a private offering of 46,181 shares (1,847,233 depositary shares), which were also issued at a price of $25 per depositary share. The total capital raised from the private offering was $46.2 million, net of $23,000 in expenses.

The Series C Preferred Stock has no voting rights with respect to matters that generally require the approval of common shareholders. Dividends on the Series C Preferred Stock, to the extent declared by the Company’s board, are payable quarterly. The Company may redeem the Series C Preferred Stock, in whole or in part, at its option, on any dividend payment date on or after April 1, 2026, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption.

Series D Preferred Stock – On September 27, 2022, the Company issued 5,200,000 depositary shares, each representing a 1/40th interest in a share of its 8.25% Fixed Rate Reset Series D Non-Cumulative Perpetual Preferred Stock, without par value, and with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share). The aggregate gross offering proceeds for the shares issued by the Company was $130.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $4.6 million paid to third parties, the Company received total net proceeds of $125.4 million. On September 30, 2022, the Company issued an additional 500,000 depositary shares of Series D Preferred Stock to the underwriters related to their exercise of an option to purchase additional shares under the associated underwriting agreement, resulting in an additional $12.1 million in net proceeds, after deducting $0.4 million in underwriting discounts.

The Series D Preferred Stock has no voting rights with respect to matters that generally require the approval of common shareholders. Dividends on the Series D Preferred Stock, to the extent declared by the Company’s board, are payable quarterly. The Company may redeem the Series D Preferred Stock, in whole or in part, at its option, on any dividend payment date on or after October 1, 2027, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption.

Series E Preferred Stock – On November 25, 2024, the Company issued 9,200,000 depositary shares, each representing a 1/40th interest in a share of its 7.625% Fixed Rate Reset Series E Non-Cumulative Perpetual Preferred Stock, without par value, and with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share). The aggregate gross offering proceeds for the shares issued by the Company was $230.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $7.3 million paid to third parties, the Company received total net proceeds of $222.7 million.

The Series E Preferred Stock has no voting rights with respect to matters that generally require the approval of common shareholders. Dividends on the Series E Preferred Stock, to the extent declared by the Company’s board, are payable quarterly. The Company may redeem the Series E Preferred Stock, in whole or in part, at its option, on any dividend payment date on or after January 1, 2030, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption.

v3.25.2
Share-Based Payment Plans
6 Months Ended
Jun. 30, 2025
Share-Based Payment Plans  
Share-Based Payment Plans

Note 15:   Share-Based Payment Plans

Equity-based incentive awards for Company officers are currently issued pursuant to the 2017 Equity Incentive Plan. The Company did not issue any shares during the three months ended June 30, 2025 and 2024. The Company issued 80,875 and 85,212 shares during the six months ended June 30, 2025 and 2024, respectively.

The Compensation Committee of the Board of Directors also approved a plan for non-executive directors to receive a portion of their annual retainer fees in the form of shares of common stock. As of January 1, 2024, they are to receive a portion of their annual fees, issued quarterly, in the form of restricted common stock equal to $70,000 per member, rounded up to the nearest whole share. Accordingly, there were 3,752 and 2,849 shares, issued to non-executive directors during the three months ended June 30, 2025 and 2024, respectively and there were 6,615 and 6,013 shares, issued to non-executive directors during the six months ended June 30, 2025 and 2024, respectively.

The Company also established an ESOP to provide shares of stock for all employees who meet certain requirements. There was no contribution to the ESOP during the three months ended June 30, 2025 and 2024. Expenses recognized for the contribution to the ESOP totaled $389,000 and $286,000 for the three months ended June 30, 2025 and 2024, respectively and totaled $726,000 and $573,000 for the six months ended June 30, 2025 and 2024, respectively. The Company contributed 30,802 shares and 23,414 shares to the ESOP for the six months ended June 30, 2025 and 2024, respectively.

v3.25.2
Earnings Per Share
6 Months Ended
Jun. 30, 2025
Earnings Per Share  
Earnings Per Share

Note 16:   Earnings Per Share

Earnings per share were computed as follows for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, 

2025

2024

Weighted-

Per 

Weighted-

Per 

Net

Average

Share

Net

Average

Share

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

(In thousands, except share data)

Net income

$

37,981

 

  

 

  

$

76,393

 

  

 

  

Dividends on preferred stock

(10,266)

(7,757)

Impact of preferred stock redemption

 

 

  

 

  

 

(1,823)

 

  

 

  

Net income allocated to common shareholders

$

27,715

 

  

 

  

$

66,813

 

  

 

  

Basic earnings per share

 

  

 

45,883,644

$

0.60

 

  

 

44,569,345

$

1.50

Effect of dilutive securities-restricted stock awards

 

  

 

45,919

 

  

 

  

 

128,979

 

  

Diluted earnings per share

 

  

 

45,929,563

$

0.60

 

  

 

44,698,324

$

1.49

Six Months Ended June 30, 

2025

2024

 

Weighted-

Per 

Weighted-

Per 

Net

Average

Share

Net

Average

Share

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

(In thousands, except share data)

Net income

$

96,220

 

  

 

  

$

163,447

 

  

 

  

Dividends on preferred stock

 

(20,531)

 

  

 

  

 

(16,424)

 

  

 

  

Impact of preferred stock redemption

(5,371)

(1,823)

Net income allocated to common shareholders

$

70,318

 

  

 

  

$

145,200

 

  

 

  

Basic earnings per share

 

  

 

45,853,998

$

1.53

 

  

 

43,937,665

$

3.30

Effect of dilutive securities-restricted stock awards

 

  

 

67,990

 

  

 

  

 

144,820

 

  

Diluted earnings per share

 

  

 

45,921,988

$

1.53

 

  

 

44,082,485

$

3.29

v3.25.2
Segment Information
6 Months Ended
Jun. 30, 2025
Segment Information  
Segment Information

Note 17:   Segment Information

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

The Company’s segments diversify the net income of Merchants Bank and provide synergies across the segments. Strategic opportunities come from MCC and MCS, where loans are funded by the Banking segment and the Banking segment provides Ginnie Mae custodial services to MCC and MCS. Low-income tax credit syndication and debt fund offerings complement the lending activities of new and existing multi-family mortgage customers. The securities available for sale and held to maturity funded by MCC custodial deposits or purchases of securitized loans originated by MCC are pledged to the FHLB to provide advance capacity during periods of high residential loan volume for Mortgage Warehousing. Mortgage Warehousing provides leads to Correspondent Lending in the Banking segment. Retail and commercial customers provide cross selling opportunities within the Banking segment. Merchants Mortgage is a risk mitigant to Mortgage Warehousing because it provides us with a ready platform to sell or refinance the underlying collateral to secure repayment. These and other synergies form a part of our strategic plan.

The reportable business segments are strategic business units that offer distinct, but complimentary, products and services. Due to the specialized nature of each segment and different resource requirements, they are managed separately.

The Company’s CODM is the president and chief operating officer. The CODM evaluates performance for all reportable segments based on net interest income, noninterest income, noninterest expense, and net income (loss). The CODM uses the above-mentioned metrics along with total assets in deciding how to allocate capital as well as human and financial resources among the segments. Major decisions are also made with input from segment leadership, the Board of Directors, and various management committees, as appropriate.

The tables below present selected business segment financial information for the three and six months ended June 30, 2025 and 2024.

Multi-family

    

 

Mortgage 

Mortgage

 

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

(In thousands)

Three Months Ended June 30, 2025

Interest income

$

1,138

$

100,770

$

198,542

$

3,949

 

$

304,399

Interest expense

 

20

 

67,819

 

108,647

 

(806)

 

 

175,680

Net interest income

 

1,118

 

32,951

 

89,895

 

4,755

 

 

128,719

Provision for credit losses

 

(345)

 

1,785

 

51,587

 

 

 

53,027

Net interest income after provision for credit losses

 

1,463

 

31,166

 

38,308

 

4,755

 

 

75,692

Noninterest income

 

44,752

 

6,820

 

3,283

 

(4,375)

 

 

50,480

Noninterest expense

 

33,569

 

8,395

 

23,363

 

12,010

 

 

77,337

Income (loss) before income taxes

 

12,646

 

29,591

 

18,228

 

(11,630)

 

 

48,835

Income taxes

 

3,377

 

6,605

 

3,654

 

(2,782)

 

 

10,854

Net income (loss)

$

9,269

$

22,986

$

14,574

$

(8,848)

 

$

37,981

Total assets

$

487,853

$

6,999,701

$

11,404,488

$

249,162

 

$

19,141,204

Significant non-cash items:

Included in other noninterest income:

Servicing rights fair value adjustments

$

745

$

$

(487)

$

 

$

258

Derivative fair value adjustments

4,333

4,333

Multi-family

 

Mortgage 

Mortgage

 

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

(In thousands)

Three Months Ended June 30, 2024

Interest income

$

1,135

$

101,164

$

222,785

$

3,189

 

$

328,273

Interest expense

 

20

 

68,184

 

132,742

 

(792)

 

 

200,154

Net interest income

 

1,115

 

32,980

 

90,043

 

3,981

 

 

128,119

Provision for credit losses

 

 

995

 

8,970

 

 

 

9,965

Net interest income after provision for credit losses

 

1,115

 

31,985

 

81,073

 

3,981

 

 

118,154

Noninterest income

 

31,983

 

1,746

 

1,194

 

(3,572)

 

 

31,351

Noninterest expense

 

20,651

 

4,674

 

14,985

 

10,070

 

 

50,380

Income (loss) before income taxes

 

12,447

 

29,057

 

67,282

 

(9,661)

 

 

99,125

Income taxes

 

3,410

 

6,787

 

14,904

 

(2,369)

 

 

22,732

Net income (loss)

$

9,037

$

22,270

$

52,378

$

(7,292)

 

$

76,393

Total assets

$

428,299

$

5,626,055

$

11,885,484

$

272,584

 

$

18,212,422

Significant non-cash items:

Included in other noninterest income:

Servicing rights fair value adjustments

$

4,516

$

$

551

$

 

$

5,067

Derivative fair value adjustments

215

215

Multi-family

    

 

Mortgage 

Mortgage

 

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

(In thousands)

Six Months Ended June 30, 2025

Interest income

$

2,318

$

186,887

$

394,586

$

7,812

 

$

591,603

Interest expense

 

40

 

125,488

 

216,754

 

(1,594)

 

 

340,688

Net interest income

 

2,278

 

61,399

 

177,832

 

9,406

 

 

250,915

Provision for credit losses

 

(393)

 

1,359

 

59,788

 

 

 

60,754

Net interest income after provision for credit losses

 

2,671

 

60,040

 

118,044

 

9,406

 

 

190,161

Noninterest income

 

73,648

 

6,080

 

2,216

 

(7,771)

 

 

74,173

Noninterest expense

 

58,129

 

16,416

 

40,673

 

23,783

 

 

139,001

Income (loss) before income taxes

 

18,190

 

49,704

 

79,587

 

(22,148)

 

 

125,333

Income taxes

 

5,508

 

11,320

 

17,906

 

(5,621)

 

 

29,113

Net income (loss)

$

12,682

$

38,384

$

61,681

$

(16,527)

 

$

96,220

Total assets

$

487,853

$

6,999,701

$

11,404,488

$

249,162

 

$

19,141,204

Significant non-cash items:

Included in other noninterest income:

Servicing rights fair value adjustments

$

1,194

$

$

(1,690)

$

 

$

(496)

Derivative fair value adjustments

2,075

2,075

Multi-family

 

Mortgage 

Mortgage

 

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

(In thousands)

Six Months Ended June 30, 2024

Interest income

$

2,881

$

186,065

$

447,073

$

6,427

 

$

642,446

Interest expense

 

40

 

124,324

 

264,465

 

(1,558)

 

 

387,271

Net interest income

 

2,841

 

61,741

 

182,608

 

7,985

 

 

255,175

Provision for credit losses

 

 

1,935

 

12,756

 

 

 

14,691

Net interest income after provision for credit losses

 

2,841

 

59,806

 

169,852

 

7,985

 

 

240,484

Noninterest income

 

72,450

 

5,063

 

1,623

 

(6,911)

 

 

72,225

Noninterest expense

 

40,222

 

9,472

 

30,563

 

19,035

 

 

99,292

Income (loss) before income taxes

 

35,069

 

55,397

 

140,912

 

(17,961)

 

 

213,417

Income taxes

 

9,423

 

12,937

 

32,109

 

(4,499)

 

 

49,970

Net income (loss)

$

25,646

$

42,460

$

108,803

$

(13,462)

 

$

163,447

Total assets

$

428,299

$

5,626,055

$

11,885,484

$

272,584

 

$

18,212,422

Significant non-cash items:

Included in other noninterest income:

Servicing rights fair value adjustments

$

17,697

$

$

1,334

$

 

$

19,031

Derivative fair value adjustments

2,549

2,549

v3.25.2
Regulatory Matters
6 Months Ended
Jun. 30, 2025
Regulatory Matters  
Regulatory Matters

Note 18:   Regulatory Matters

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

Quantitative measures established by regulation to ensure capital adequacy require the Company and Merchants Bank to maintain minimum amounts and ratios (set forth in the table below). Management believes, as of June 30, 2025 and December 31, 2024, that the Company and Merchants Bank met all capital adequacy requirements. For additional information regarding dividend restrictions, see the Company’s 2024 Annual Report on Form 10–K.

As of June 30, 2025 and December 31, 2024, the most recent notifications from the Federal Reserve categorized the Company as well capitalized and most recent notifications from the FDIC categorized Merchants Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Company’s or Merchants Bank’s category.

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

Minimum

Amount to be Well

Minimum Amount

Capitalized with

To Be Well

Actual

Basel III Buffer(1)

Capitalized(1)

    

Amount

    

Ratio

    

Amount

    

Ratio

Amount

    

Ratio

    

(Dollars in thousands)

June 30, 2025

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

 

  

 

  

 

  

 

  

 

Company

$

2,280,183

 

13.4

%  

$

1,788,568

 

10.5

%  

$

 

N/A

%  

Merchants Bank

2,233,591

 

13.1

%  

 

1,787,326

 

10.5

%  

 

1,702,216

 

10.0

%  

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

 

  

 

  

 

  

 

  

 

  

 

  

Company

 

2,176,150

 

12.8

%  

 

1,447,889

 

8.5

%  

 

 

N/A

%  

Merchants Bank

2,129,558

 

12.5

%  

 

1,446,883

 

8.5

%  

 

1,361,772

 

8.0

%  

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

Company

 

1,624,860

 

9.5

%  

 

1,192,379

 

7.0

%  

 

 

N/A

%  

Merchants Bank

2,129,558

 

12.5

%  

 

1,191,551

 

7.0

%  

 

1,106,440

 

6.5

%  

Tier I capital(1) (to average assets)

 

 

  

 

  

 

 

  

 

  

Company

 

2,176,150

 

11.5

%  

 

948,810

 

5.0

%  

 

 

N/A

%  

Merchants Bank

2,129,558

 

11.3

%  

 

945,850

 

5.0

%  

 

945,850

 

5.0

%  

(1)As defined by regulatory agencies.

Minimum

Amount to be Well

Minimum Amount

Capitalized with

To Be Well

Actual

Basel III Buffer(1)

Capitalized(1)

    

Amount

    

Ratio

    

Amount

    

Ratio

Amount

Ratio

(Dollars in thousands)

December 31, 2024

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

 

  

 

  

 

  

 

  

 

Company

$

2,334,479

 

13.9

%  

$

1,767,835

 

10.5

%  

$

 

N/A

%  

Merchants Bank

2,165,193

 

12.9

%  

 

1,763,982

 

10.5

%  

 

1,679,983

 

10.0

%  

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

 

  

 

  

 

  

 

  

 

  

 

  

Company

 

2,234,658

 

13.3

%  

 

1,431,105

 

8.5

%  

 

 

N/A

%  

Merchants Bank

2,065,372

 

12.3

%  

 

1,427,985

 

8.5

%  

 

1,343,986

 

8.0

%  

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

Company

 

1,562,524

 

9.3

%  

 

1,178,557

 

7.0

%  

 

 

N/A

%  

Merchants Bank

2,065,372

 

12.3

%  

 

1,175,988

 

7.0

%  

 

1,091,989

 

6.5

%  

Tier I capital(1) (to average assets)

 

 

  

 

  

 

 

  

 

  

Company

 

2,234,658

 

12.1

%  

 

925,180

 

5.0

%  

 

 

N/A

%  

Merchants Bank

2,065,372

 

11.2

%  

 

922,006

 

5.0

%  

 

922,006

 

5.0

%  

(1)As defined by regulatory agencies.

Memorandum of Understanding

On June 30, 2025, the Bank entered into a confidential MOU with the FDIC and DFI. While the contents of the MOU are confidential under DFI and FDIC regulations, certain provisions, with the authorization of the DFI and FDIC, are summarized below. The MOU is an informal administrative agreement among the Bank, FDIC, and DFI pursuant to which the Bank has agreed to take various actions and enhance specific areas of the Bank’s operations. In particular, the Bank has agreed to maintain certain capital thresholds, manage asset concentrations, and implement certain plans regarding the Bank’s operations and strategy to mitigate risk of certain assets, which it has already implemented. As of the date of this report, and as of each of the periods ending March 31, 2025 and December 31, 2024, the Bank’s capital exceeded the levels agreed to in the MOU and the Bank was within the asset concentration limits agreed to in the MOU. The MOU will remain in effect until modified or terminated by the FDIC and DFI.

The Company’s principal source of funds for dividend payments to shareholders is dividends received from the Bank. 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, the 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. Additionally, under the MOU, if the Bank’s capital ratios fall below the minimums agreed to, the Bank may not pay dividends without the FDIC and DFI’s prior consent.

Management does not expect the actions called for by these regulatory actions to have a material adverse impact on the Company’s financial performance or the Bank’s ongoing day-to-day operations, although they may have the effect of limiting or delaying the Company’s or the Bank’s ability or plans to expand. 

v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure        
Net Income (Loss) $ 37,981 $ 76,393 $ 96,220 $ 163,447
v3.25.2
Insider Trading Arrangements
3 Months Ended
Jun. 30, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.2
Basis of Presentation (Policies)
6 Months Ended
Jun. 30, 2025
Basis of Presentation  
Principles of Consolidation

Principles of Consolidation

The unaudited condensed consolidated financial statements as of and for the period ended June 30, 2025 and 2024 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, FMBI (until its branches were sold and its bank charter merged into Merchants Bank on January 26, 2024), and MAM. Also included are Merchants Bank’s primary operating subsidiaries, MCC, MCS, and MCI, as well as all direct and indirectly owned subsidiaries owned by Merchants Bancorp.

The results of Merchants Foundation, Inc., a nonprofit corporation, are consolidated with the Company’s unaudited condensed consolidated financial statements in all periods presented.

In addition, when the Company makes an equity investment in or has a relationship with an entity for which it holds a variable interest, it is evaluated for consolidation requirements under ASC Topic 810. Accordingly, the Company assesses the entities for potential consolidation as a VIE and would only consolidate those entities for which it is a primary beneficiary. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the entity, and an interest that could be significant to the entity. To determine if an interest could be significant to the entity, both qualitative and quantitative factors regarding the nature, size and form of the Company’s involvement with the entity are evaluated. Alternatively, under the voting interest model, it would only consolidate those entities for which it has a controlling interest.

The Company holds a variable interest in an investment for which it is the primary beneficiary, and its results have been consolidated in all periods presented. Additionally, the Company has certain variable interest investments that it was deemed not to be a primary beneficiary of as of June 30, 2025 and December 31, 2024. These VIEs are not consolidated and the equity method or proportional amortization method of accounting has been applied. The Company will analyze whether the primary beneficiary designation has changed through triggering events on a prospective basis. Changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment. See Note 8: Variable Interest Entities (VIEs) for additional information about VIEs.

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

Use of Estimates

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with GAAP 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 unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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

Restricted Cash

Restricted Cash

Included in cash equivalents is an account restricted as collateral for the potential risk of loss on senior credit linked notes issued by the Company in March 2023. The balance of the notes as of June 30, 2025 and December 31, 2024 was $76.9 million and $87.6 million, respectively. As of June 30, 2025 and December 31, 2024, there was $43.8 million and $33.5 million, respectively, in restricted cash held in a separate account included in the total of interest-earning demand accounts on the unaudited condensed consolidated balance sheets. Also see Note 10: Borrowings.

Reclassifications

Reclassifications

Certain reclassifications have been made to the 2024 financial statements to conform to the financial statement presentation as of and for the three and six months ended June 30, 2025. These reclassifications had no effect on net income.

Other

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 contingent liabilities, if any, arising from such proceedings and claims will not be material to the Company’s consolidated financial position or results of operations.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company continually monitors for potential accounting standards updates and SEC releases. The following updates and releases have been deemed to have the most applicability to the Company’s financial statements:

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

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

The updates in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. An entity shall apply the ASU on a prospective basis to financial statements for annual periods beginning after the effective date. The Company does not expect it to have a material impact on the Company’s financial position or results of operations.

FASB ASU 2024-03 - Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

In November 2024, the FASB issued an ASU which is intended to provide more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation and amortization) included in certain expense captions presented on the face of our consolidated statements of income.

The updates in ASU 2024-03 are effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. An entity may apply the ASU on a prospective basis to financial statements for annual periods beginning after the effective date. The Company is continuing to evaluate the impact of adopting this new guidance.

v3.25.2
Investment Securities (Tables)
6 Months Ended
Jun. 30, 2025
Investment Securities  
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses

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

June 30, 2025

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

    

Cost

    

Gains

    

Losses

    

Value

(In thousands)

Securities available for sale:

 

  

 

  

 

  

 

  

Treasury notes

$

70,125

$

4

$

27

$

70,102

Federal Agencies

 

260,000

 

9

 

310

 

259,699

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

3,580

3,580

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

407,539

407,539

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

195,423

195,423

Total securities available for sale

$

936,667

$

13

$

337

$

936,343

Securities held to maturity:

Mortgage-backed - Non-Agency - multi-family

$

550,912

$

$

1,479

$

549,433

Mortgage-backed - Non-Agency - residential

491,090

1,692

133

492,649

Mortgage-backed - Non-Agency - healthcare

494,439

3

494,442

Mortgage-backed - Agency - multi-family

11,770

769

11,001

Total securities held to maturity

$

1,548,211

$

1,695

$

2,381

$

1,547,525

FHLB and other equity securities (3)

$

217,850

(1)Fair value option securities represent securities which the Company has elected to carry at fair value with changes in the fair value recognized in earnings as they occur.
(2)Agency includes government sponsored entities, such as Fannie Mae, Freddie Mac, Ginnie Mae, FHLB and FCB.
(3)The Company reports the carrying value utilizing the measurement alternative election, reflecting any impairments or other adjustments if observable price changes occur for identical or similar investments of the same issuer.

December 31, 2024

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

    

Cost

    

Gains

    

Losses

    

Value

(In thousands)

Securities available for sale:

 

  

 

  

 

  

 

  

Treasury notes

$

89,898

$

108

$

$

90,006

Federal Agencies

 

253,218

 

 

282

 

252,936

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

1,162

1,162

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

430,779

430,779

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

205,167

205,167

Total securities available for sale

$

980,224

$

108

$

282

$

980,050

Securities held to maturity:

Mortgage-backed - Non-Agency - multi-family

$

592,053

$

$

1,162

$

590,891

Mortgage-backed - Non-Agency - residential

526,242

1,871

75

528,038

Mortgage-backed - Non-Agency - healthcare

534,538

374

534,912

Mortgage-backed - Agency - multi-family

11,853

1,020

10,833

Total securities held to maturity

$

1,664,686

$

2,245

$

2,257

$

1,664,674

FHLB and other equity securities (3)

$

217,804

(1)Fair value option securities represent securities which the Company has elected to carry at fair value with changes in the fair value recognized in earnings as they occur.
(2)Agency includes government sponsored entities, such as Fannie Mae, Freddie Mac, Ginnie Mae, FHLB, and FCB.

(3)

The Company reports the carrying value utilizing the measurement alternative election, reflecting any impairments or other adjustments if observable price changes occur for identical or similar investments of the same issuer.

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

June 30, 2025

December 31, 2024

Amortized

Fair

Amortized

Fair

    

Cost

    

Value

    

Cost

    

Value

(In thousands)

Securities available for sale:

Within one year

$

70,125

$

70,102

$

89,898

$

90,006

After one through five years

 

260,000

 

259,699

 

253,218

 

252,936

 

330,125

 

329,801

 

343,116

 

342,942

Mortgage-backed - Agency - multi-family

3,580

3,580

1,162

1,162

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

407,539

407,539

430,779

430,779

Mortgage-backed - Agency - residential - fair value option

195,423

195,423

205,167

205,167

$

936,667

$

936,343

$

980,224

$

980,050

Securities held to maturity:

Mortgage-backed - Non-Agency - multi-family

$

550,912

$

549,433

$

592,053

$

590,891

Mortgage-backed - Non-Agency - residential

491,090

492,649

526,242

528,038

Mortgage-backed - Non-Agency - healthcare

494,439

494,442

534,538

534,912

Mortgage-backed - Agency - multi-family

11,770

11,001

 

11,853

 

10,833

$

1,548,211

$

1,547,525

$

1,664,686

$

1,664,674

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

June 30, 2025

12 Months or

Less than 12 Months

 Longer

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

    

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

(In thousands)

Securities available for sale:

 

  

 

  

 

  

 

  

 

  

 

  

Treasury notes

$

26,900

$

27

$

$

$

26,900

$

27

Federal Agencies

234,690

310

234,690

310

$

261,590

$

337

$

$

$

261,590

$

337

December 31, 2024

12 Months or

Less than 12 Months

Longer

Total

    

    

Gross

    

    

Gross

    

    

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

(In thousands)

Securities available for sale:

 

  

 

  

 

  

 

  

 

  

 

  

Federal Agencies

$

252,936

$

282

$

$

$

252,936

$

282

v3.25.2
Loans and Allowance for Credit Losses on Loans (Tables)
6 Months Ended
Jun. 30, 2025
Loans and Allowance for Credit Losses on Loans  
Schedule of loans

June 30, 

December 31, 

    

2025

    

2024

(In thousands)

Mortgage warehouse repurchase agreements

$

1,843,742

$

1,446,068

Residential real estate(1)

 

988,783

 

1,322,853

Multi-family financing

 

4,833,548

 

4,624,299

Healthcare financing

1,442,095

1,484,483

Commercial and commercial real estate(2)(3)

 

1,328,765

 

1,476,211

Agricultural production and real estate

 

82,425

 

77,631

Consumer and margin loans

 

4,570

 

6,843

Loans Receivable

 

10,523,928

 

10,438,388

Less:

 

  

 

  

ACL-Loans

 

91,811

 

84,386

Loans Receivable, net

$

10,432,117

$

10,354,002

(1)Includes $0.8 billion and $1.2 billion of All-in-One© first-lien home equity lines of credit at June 30, 2025 and December 31, 2024, respectively.

(2)Includes $0.8 billion and $0.9 billion revolving lines of credit collateralized primarily by single-family mortgage servicing rights as of June 30, 2025 and December 31, 2024, respectively.

(3)Includes only $19.8 million and $18.7 million of non-owner occupied commercial real estate as of June 30, 2025 and December 31, 2024, respectively.
Schedule of allowance for credit loss on loan methodology by loan portfolio segment

Loan Portfolio Segment

    

ACL-Loans Methodology

Mortgage warehouse repurchase agreements

Remaining Life Method

Residential real estate loans

Discounted Cash Flow

Multi-family financing

Discounted Cash Flow

Healthcare financing

Discounted Cash Flow

Commercial and commercial real estate

Discounted Cash Flow

Agricultural production and real estate

Remaining Life Method

Consumer and margin loans

Remaining Life Method

Schedule of the activity in the ACL-Loans by portfolio segment

Three Months Ended June 30, 2025

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

(In thousands)

ACL-Loans

Balance, beginning of period

$

3,747

$

6,145

 

$

53,416

$

9,127

$

10,295

$

608

$

75

$

83,413

Provision for credit losses

 

1,167

 

(1,634)

 

48,364

4,714

 

1,822

 

29

 

(1)

 

54,461

Loans charged to the allowance

 

 

 

(38,309)

(7,497)

 

(257)

 

 

 

(46,063)

Recoveries of loans previously charged-off

 

 

 

 

 

 

 

Balance, end of period

$

4,914

$

4,511

$

63,471

$

6,344

$

11,860

$

637

$

74

$

91,811

Three Months Ended June 30, 2024

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

(In thousands)

ACL-Loans

Balance, beginning of period

$

3,022

$

6,905

 

$

28,664

$

24,587

$

11,990

$

450

$

94

$

75,712

Provision for credit losses

 

594

 

(595)

 

9,097

(1,065)

 

702

 

39

 

(19)

 

8,753

Loans charged to the allowance

 

 

 

(3,349)

 

(103)

 

 

 

(3,452)

Recoveries of loans previously charged-off

 

 

13

 

 

2

 

 

 

15

Balance, end of period

$

3,616

$

6,323

$

34,412

$

23,522

$

12,591

$

489

$

75

$

81,028

Six Months Ended June 30, 2025

  

MTG WHRA

  

RES RE

  

MF FIN

  

HC FIN

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

(In thousands)

ACL-Loans

Balance, beginning of period

$

3,816

$

5,942

$

55,126

$

8,562

$

10,293

$

539

$

108

$

84,386

Provision for credit losses

 

1,098

(1,431)

57,048

5,279

1,909

98

(34)

63,967

Loans charged to the allowance

 

(48,703)

(7,497)

(370)

(56,570)

Recoveries of loans previously charged-off

 

28

 

28

Balance, end of period

$

4,914

$

4,511

$

63,471

$

6,344

$

11,860

$

637

$

74

$

91,811

Six Months Ended June 30, 2024

  

MTG WHRA

  

RES RE

  

MF FIN

  

HC FIN

CML & CRE

  

AG & AGRE

  

CON & MAR

  

TOTAL

(In thousands)

ACL-Loans

Balance, beginning of period

$

2,070

$

7,323

$

26,874

$

22,454

$

12,243

$

619

$

169

$

71,752

FMBI's ACL for loans sold

(55)

(186)

(2)

(92)

(246)

(12)

(593)

Provision for credit losses

 

1,546

(958)

11,073

1,070

1,465

116

(82)

 

14,230

Loans charged to the allowance

 

(3,349)

(1,028)

 

(4,377)

Recoveries of loans previously charged-off

 

13

3

 

16

Balance, end of period

$

3,616

$

6,323

$

34,412

$

23,522

$

12,591

$

489

$

75

$

81,028

Year Ended December 31, 2024

 

MTG WHRA

 

RES RE

 

MF FIN

 

HC FIN

CML & CRE

 

AG & AGRE

 

CON & MAR

 

TOTAL

(In thousands)

ACL-Loans

Balance, beginning of period

$

2,070

$

7,323

 

$

26,874

$

22,454

$

12,243

$

619

$

169

$

71,752

FMBI's ACL for loans sold

(55)

(186)

(2)

(92)

(246)

(12)

(593)

Provision for credit losses

 

1,746

 

(1,340)

 

33,674

(10,795)

 

276

 

166

 

(49)

 

23,678

Loans charged to the allowance

 

 

 

(5,282)

(3,095)

 

(2,210)

 

 

 

(10,587)

Recoveries of loans previously charged-off

 

 

14

 

46

 

76

 

 

 

136

Balance, end of period

$

3,816

$

5,942

$

55,126

$

8,562

$

10,293

$

539

$

108

$

84,386

Schedule of allowance for credit loss allocated to collateral dependent loans

June 30, 2025

    

Real Estate

    

Accounts Receivable / Equipment

    

Other

    

Total

    

ACL-Loans Allocation

(In thousands)

RES RE

$

7,964

$

$

$

7,964

$

39

MF FIN

294,206

693

294,899

30,324

HC FIN

 

103,288

 

 

 

103,288

 

454

CML & CRE

 

8,813

 

1,447

 

1,060

 

11,320

 

2,226

AG & AGRE

 

181

 

5

 

 

186

 

2

Total collateral dependent loans

$

414,452

$

1,452

$

1,753

$

417,657

$

33,045

December 31, 2024

    

Real Estate

    

Accounts Receivable / Equipment

    

Other

    

Total

    

ACL-Loans Allocation

(In thousands)

RES RE

$

6,153

$

$

$

6,153

$

31

MF FIN

227,054

693

227,747

22,265

HC FIN

73,225

73,225

2,569

CML & CRE

 

8,125

 

1,447

 

629

 

10,201

 

358

AG & AGRE

 

 

6

 

 

6

 

1

Total collateral dependent loans

$

314,557

$

1,453

$

1,322

$

317,332

$

25,224

Schedule of credit risk profile of loan portfolio

June 30, 2025

    

2025

    

2024

    

2023

2022

    

2021

    

Prior

    

Revolving Loans

    

TOTAL

(In thousands)

MTG WHRA

Pass

$

$

$

$

$

$

$

1,843,742

$

1,843,742

Total

$

$

$

$

$

$

$

1,843,742

$

1,843,742

RES RE

Pass

$

24,996

$

39,767

$

28,692

$

7,458

$

5,152

$

23,199

$

851,555

$

980,819

Substandard

22

129

7,813

7,964

Total

$

24,996

$

39,767

$

28,692

$

7,480

$

5,152

$

23,328

$

859,368

$

988,783

MF FIN

Pass

$

726,822

$

774,109

$

320,907

$

222,274

$

41,803

$

11,004

$

2,336,075

$

4,432,994

Special Mention

59,903

17,000

23,934

235

4,583

105,655

Substandard

13,545

14,601

160,419

78,486

27,848

294,899

Total

$

800,270

$

805,710

$

481,326

$

324,694

$

41,803

$

11,239

$

2,368,506

$

4,833,548

Charge-offs

$

$

$

10,135

$

34,917

$

$

3,651

$

$

48,703

HC FIN

Pass

$

540,046

$

78,920

$

112,643

$

241,655

$

$

$

306,548

$

1,279,812

Special Mention

17,368

30,237

5,450

5,940

58,995

Substandard

42,521

25,600

9,000

20,317

5,850

103,288

Total

$

557,414

$

151,678

$

138,243

$

256,105

$

20,317

$

$

318,338

$

1,442,095

Charge-offs

$

$

$

$

$

5,296

$

2,201

$

$

7,497

CML & CRE

Pass

$

38,225

$

52,569

$

46,200

$

103,145

$

36,693

$

29,685

$

1,004,155

$

1,310,672

Special Mention

3,310

442

1,616

1,283

47

75

6,773

Substandard

447

148

637

8,988

26

1,074

11,320

Total

$

41,535

$

53,016

$

46,790

$

105,398

$

46,964

$

29,758

$

1,005,304

$

1,328,765

Charge-offs

$

$

$

147

$

110

$

113

$

$

$

370

AG & AGRE

Pass

$

8,813

$

16,263

$

7,264

$

4,688

$

2,858

$

20,482

$

21,782

$

82,150

Special Mention

89

89

Substandard

5

181

186

Total

$

8,902

$

16,263

$

7,269

$

4,869

$

2,858

$

20,482

$

21,782

$

82,425

CON & MAR

Pass

$

80

$

250

$

33

$

11

$

3

$

$

4,193

$

4,570

Total

$

80

$

250

$

33

$

11

$

3

$

$

4,193

$

4,570

Total Pass

$

1,338,982

$

961,878

$

515,739

$

579,231

$

86,509

$

84,370

$

6,368,050

$

9,934,759

Total Special Mention

$

80,670

$

47,237

$

442

$

31,000

$

1,283

$

282

$

10,598

$

171,512

Total Substandard

$

13,545

$

57,569

$

186,172

$

88,326

$

29,305

$

155

$

42,585

$

417,657

Total Loans

$

1,433,197

$

1,066,684

$

702,353

$

698,557

$

117,097

$

84,807

$

6,421,233

$

10,523,928

Total Charge-offs

$

$

$

10,282

$

35,027

$

5,409

$

5,852

$

$

56,570

December 31, 2024

    

2024

    

2023

    

2022

    

2021

    

2020

    

Prior

    

Revolving Loans

    

TOTAL

(In thousands)

MTG WHRA

Pass

$

$

$

$

$

$

$

1,446,068

$

1,446,068

Total

$

$

$

$

$

$

$

1,446,068

$

1,446,068

RES RE

Pass

$

40,363

$

30,750

$

8,212

$

6,181

$

18,712

$

6,210

$

1,206,272

$

1,316,700

Substandard

22

203

5,928

6,153

Total

$

40,363

$

30,750

$

8,234

$

6,181

$

18,712

$

6,413

$

1,212,200

$

1,322,853

MF FIN

Pass

$

1,028,288

$

518,320

$

419,723

$

66,787

$

5,460

$

10,456

$

2,109,707

$

4,158,741

Special Mention

88,337

77,700

57,679

238

13,857

237,811

Substandard

18,884

105,553

76,093

2,550

24,667

227,747

Total

$

1,135,509

$

701,573

$

553,495

$

69,337

$

5,460

$

10,694

$

2,148,231

$

4,624,299

Charge-offs

$

$

870

$

4,412

$

$

$

$

$

5,282

HC FIN

Pass

$

460,259

$

112,223

$

466,393

$

$

$

$

234,316

$

1,273,191

Special Mention

32,547

8,900

96,620

138,067

Substandard

13,961

25,600

25,363

8,301

73,225

Total

$

506,767

$

137,823

$

475,293

$

25,363

$

$

$

339,237

$

1,484,483

Charge-offs

$

$

$

$

3,095

$

$

$

$

3,095

CML & CRE

Pass

$

52,323

$

45,999

$

107,451

$

48,903

$

16,264

$

18,216

$

1,172,763

$

1,461,919

Special Mention

2,331

1,633

52

75

4,091

Substandard

40

150

110

8,835

41

1,025

10,201

Total

$

52,363

$

46,149

$

109,892

$

59,371

$

16,264

$

18,309

$

1,173,863

$

1,476,211

Charge-offs

$

$

$

253

$

982

$

$

975

$

$

2,210

AG & AGRE

Pass

$

17,328

$

7,373

$

4,676

$

3,170

$

8,790

$

13,705

$

22,583

$

77,625

Substandard

6

6

Total

$

17,328

$

7,379

$

4,676

$

3,170

$

8,790

$

13,705

$

22,583

$

77,631

CON & MAR

Pass

$

326

$

75

$

18

$

9

$

$

4,151

$

2,264

$

6,843

Total

$

326

$

75

$

18

$

9

$

$

4,151

$

2,264

$

6,843

Total Pass

$

1,598,887

$

714,740

$

1,006,473

$

125,050

$

49,226

$

52,738

$

6,193,973

$

9,741,087

Total Special Mention

$

120,884

$

77,700

$

68,910

$

1,633

$

$

290

$

110,552

$

379,969

Total Substandard

$

32,885

$

131,309

$

76,225

$

36,748

$

$

244

$

39,921

$

317,332

Total Loans

$

1,752,656

$

923,749

$

1,151,608

$

163,431

$

49,226

$

53,272

$

6,344,446

$

10,438,388

Total Charge-offs

$

$

870

$

4,665

$

4,077

$

$

975

$

$

10,587

Schedule of aging analysis of the recorded investment in loans

June 30, 2025

    

30-59 Days

    

60-89 Days

    

90+ Days

    

Total

    

    

Total

Past Due

Past Due

Past Due

Past Due

Current

Loans

(Dollars in thousands)

MTG WHRA

$

$

$

$

$

1,843,742

$

1,843,742

RES RE

4,720

90

 

6,279

 

11,089

 

977,694

 

988,783

MF FIN

11,370

 

174,926

 

186,296

 

4,647,252

 

4,833,548

HC FIN

16,101

61,416

77,517

1,364,578

1,442,095

CML & CRE

70

 

4,032

 

4,102

 

1,324,663

 

1,328,765

AG & AGRE

 

5

 

5

 

82,420

 

82,425

CON & MAR

 

 

 

4,570

 

4,570

$

32,191

$

160

$

246,658

$

279,009

$

10,244,919

$

10,523,928

%

%

3

%

3

%

97

%

100

%

December 31, 2024

    

30-59 Days

    

60-89 Days

    

90+ Days

    

Total

    

    

Total

Past Due

Past Due

Past Due

Past Due

Current

Loans

(Dollars in thousands)

MTG WHRA

$

 

$

$

$

$

1,446,068

$

1,446,068

RES RE

1,294

 

3,797

 

2,339

 

7,430

 

1,315,423

 

1,322,853

MF FIN

8,497

 

11,148

 

201,508

 

221,153

 

4,403,146

 

4,624,299

HC FIN

59,264

59,264

1,425,219

1,484,483

CML & CRE

596

 

688

 

3,047

 

4,331

 

1,471,880

 

1,476,211

AG & AGRE

73

 

 

12

 

85

 

77,546

 

77,631

CON & MAR

 

 

 

 

6,843

 

6,843

$

10,460

$

15,633

$

266,170

$

292,263

$

10,146,125

$

10,438,388

%

%

3

%

3

%

97

%

100

%

Schedule of nonperforming loans and nonperforming assets

June 30, 2025

December 31, 2024

Total Loans >

Total Loans >

90 Days &

90 Days &

Nonaccrual

Accruing

Nonaccrual

Accruing

(In thousands)

RES RE

$

7,835

$

129

$

6,154

$

MF FIN

 

177,530

585

 

201,508

 

HC FIN

61,416

69,001

CML & CRE

4,032

3,047

AG & AGRE

5

6

6

CON & MAR

$

250,818

$

714

$

279,716

$

6

Schedule of company's modified loans

Three Months Ended June 30, 2025

Six Months Ended June 30, 2025

  

Payment Delay

Term Extension

Combination - Term Extension and Payment Delay

Total Class of Financing Receivable

% of Total Class of Financing Receivable

  

Payment Delay

Term Extension

Combination - Term Extension and Payment Delay

Total Class of Financing Receivable

% of Total Class of Financing Receivable

  

(In thousands)

(In thousands)

MF FIN

$

$

25,425

$

$

25,425

1

%

$

$

25,425

$

40,361

$

65,786

1

%

CML & CRE

177

177

Total

$

$

25,425

$

$

25,425

1

%

$

$

25,425

$

40,538

$

65,963

1

%

Three Months Ended June 30, 2024

Six Months Ended June 30, 2024

Payment Delay

Term Extension

Combination - Term Extension and Payment Delay

Total Class of Financing Receivable

% of Total Class of Financing Receivable

  

Payment Delay

Term Extension

Combination - Term Extension and Payment Delay

Total Class of Financing Receivable

% of Total Class of Financing Receivable

  

(In thousands)

(In thousands)

MF FIN

$

35,137

$

42,452

$

$

77,589

2

%

$

35,137

$

42,452

$

$

77,589

2

%

HC FIN

 

4,240

4,240

%

 

 

4,240

4,240

%

Total

$

35,137

$

46,692

$

$

81,829

1

%

$

35,137

$

46,692

$

$

81,829

1

%

Three Months Ended June 30, 2025

Term Extension

Combination - Term Extension and Forbearance

Loan Type

Financial Effect

Financial Effect

MF FIN

Added a weighted average 7 months.

Six Months Ended June 30, 2025

Term Extension

Combination - Term Extension and Forbearance

Loan Type

Financial Effect

Financial Effect

MF FIN

Added a weighted average 7 months.

Term extension and forbearance added a weighted average of 6 months.

CML & CRE

Term extension added a weighted average of 61 months and forbearance added a weighted average of 12 months.

Three Months Ended June 30, 2024

Term Extension

Payment Delay

Loan Type

Financial Effect

Financial Effect

MF FIN

Added a weighted average 28 months.

Forbearance average of 7 months.

HC FIN

Added a weighted average 12 months.

Six Months Ended June 30, 2024

Term Extension

Payment Delay

Loan Type

Financial Effect

Financial Effect

MF FIN

Added a weighted average 28 months.

Forbearance average of 7 months.

HC FIN

Added a weighted average 12 months.

    

30 - 89 Days

    

90+ Days

    

Total

Current

Past Due

Past Due

Loans

(In thousands)

MF FIN

$

58,088

$

$

7,698

$

65,786

HC FIN

9,649

9,649

CML & CRE

177

177

Total

$

58,265

$

$

17,347

$

75,612

v3.25.2
Qualified Affordable Housing and Other Tax Credits (Tables)
6 Months Ended
Jun. 30, 2025
Qualified Affordable Housing and Other Tax Credits  
Schedule of investments and unfunded commitments of qualified affordable housing

June 30, 2025

December 31, 2024

(In thousands)

Investment

Accounting Method

Investment

Unfunded Commitments

Investment

Unfunded Commitments

LIHTC

Proportional amortization

$

153,596

$

91,904

$

123,574

$

93,929

LIHTC (1)

Lower of cost or market

45,580

56,533

LIHTC subtotal

$

199,176

$

91,904

$

180,107

$

93,929

Joint Venture

Consolidated

10,937

10,937

Total

$

210,113

$

91,904

$

191,044

$

93,929

(1)LIHTC projects held for future syndication.
Schedule of amortization and tax credits of qualified affordable housing

Three Months Ended

Six Months Ended

June 30,

June 30,

2025

2024

2025

2024

(In thousands)

(In thousands)

Amortization expense

$

3,784

$

2,305

$

7,559

$

5,145

Expected tax credits

$

4,095

$

2,391

$

8,369

$

5,418

v3.25.2
Leases (Tables)
6 Months Ended
Jun. 30, 2025
Leases.  
Schedule of balance sheet, income statement and cash flow detail regarding operating leases

June 30, 2025

December 31, 2024

(In thousands)

Balance Sheet

Operating lease ROU asset (in other assets)

$

7,429

$

8,332

Operating lease liability (in other liabilities)

8,325

9,303

Weighted average remaining lease term (years)

4.1

4.6

Weighted average discount rate

3.44%

3.43%

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2025

2024

2025

2024

(In thousands)

(In thousands)

Statement of Income

Components of lease expense:

Operating lease cost

$

738

$

765

1,432

$

1,369

Six Months Ended

June 30, 

2025

2024

(In thousands)

Cash Flow Statement

Supplemental cash flow information:

Operating cash flows for operating leases

$

1,133

$

1,220

Schedule of future minimum lease payments

Maturities of lease liabilities:

June 30, 2025

(In thousands)

One year or less

$

2,354

Year two

2,273

Year three

1,989

Year four

1,312

Year five

707

Thereafter

299

Total future minimum lease payments

8,934

Less: imputed interest

609

Total

$

8,325

v3.25.2
Variable Interest Entities (VIEs) (Tables)
6 Months Ended
Jun. 30, 2025
Variable Interest Entities  
Schedule of assets and liabilities of the VIEs as well as maximum exposure to loss in connection with VIEs

Investments

Loans

Securities

Maximum

Liabilities

Assets

    

in VIEs

    

to VIEs

for VIEs

Exposure to Loss

for VIEs

(In thousands)

June 30, 2025

 

  

 

 

  

Low-income housing tax credit investments

$

236,005

$

343,398

$

$

579,403

$

81,606

Debt funds

30,536

241,367

271,903

Mortgage-backed securitizations (1)

21,924

1,536,441

1,558,365

Total Unconsolidated VIEs

$

266,541

$

606,689

$

1,536,441

$

2,409,671

$

81,606

December 31, 2024

 

  

 

 

 

  

 

  

Low-income housing tax credit investments

$

225,727

$

282,584

$

$

508,311

$

89,956

Debt funds

31,772

109,480

141,252

2,752

Mortgage-backed securitizations (1)

23,564

1,652,833

1,676,397

Total Unconsolidated VIEs

$

257,499

$

415,628

$

1,652,833

$

2,325,960

$

92,708

(1)Amounts include involvement with securitization SPEs where the Company transferred to and/or service loans for an SPE and hold securities issued by that SPE. Values disclosed in the table above represent the Company’s maximum exposure to loss for those securities’ holdings.
v3.25.2
Deposits (Tables)
6 Months Ended
Jun. 30, 2025
Deposits.  
Schedule of deposits

    

June 30, 2025

    

December 31, 2024

(In thousands)

Noninterest-bearing deposits

Core demand deposits

$

315,523

$

239,005

Interest-bearing deposits

Demand deposits:

Core demand deposits

$

6,066,933

$

4,319,512

Brokered demand deposits

250,000

Total interest-earning demand deposits

6,316,933

4,319,512

Savings deposits:

 

 

Core savings deposits

3,703,270

3,442,111

Brokered savings deposits

358

859

Total savings deposits

3,703,628

3,442,970

Certificates of deposit:

 

 

Core certificates of deposits

1,346,630

1,385,270

Brokered certificates of deposits

1,004,121

2,533,219

Total certificates of deposits

2,350,751

3,918,489

Total interest-bearing deposits

12,371,312

11,680,971

Total deposits

$

12,686,835

$

11,919,976

Total core deposits

$

11,432,356

$

9,385,898

Total brokered deposits

$

1,254,479

$

2,534,078

Total deposits

$

12,686,835

$

11,919,976

Schedule of maturities for certificates of deposit

    

June 30, 2025

(In thousands)

Due within one year

$

2,294,984

Due in one year to two years

 

45,459

Due in two years to three years

 

10,308

Due in three years to four years

 

Due in four years to five years

Due in five years to six years

 

$

2,350,751

v3.25.2
Borrowings (Tables)
6 Months Ended
Jun. 30, 2025
Borrowings  
Schedule of borrowings

    

June 30, 2025

    

December 31, 2024

(In thousands)

Federal Reserve discount window borrowings

$

175,000

$

50,000

Subordinated debt

 

71,800

 

71,800

FHLB advances

3,680,588

4,172,030

Credit linked notes, net of debt discount

74,152

84,358

Other borrowings

 

7,934

 

7,934

Total borrowings

$

4,009,474

$

4,386,122

v3.25.2
Derivative Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2025
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)

June 30, 2025

Interest rate lock commitments

$

48,949

Other assets/liabilities

$

270

$

8

Forward contracts

51,847

Other assets/liabilities

427

Interest rate swaps

49,734

Other assets/liabilities

2,484

Put options

648,016

Other assets

45,055

Interest rate floors

1,144,335

Other assets

 

6,118

Credit derivatives

64,184

Other assets/liabilities

$

53,927

$

435

Notional

Fair Value

Amount

 

Balance Sheet Location

 

Asset

 

Liability

(In thousands)

December 31, 2024

Interest rate lock commitments

$

24,609

Other assets/liabilities

$

30

$

176

Forward contracts

33,000

Other assets/liabilities

229

1

Interest rate swaps

49,891

Other assets/liabilities

4,199

Put options

680,354

Other assets

43,777

Interest rate floors

1,228,274

Other assets

4,043

Credit derivatives

58,526

Other assets/liabilities

$

52,278

$

177

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

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2025

    

2024

    

2025

    

2024

(In thousands)

(In thousands)

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

Interest rate lock commitments

$

224

$

(109)

$

408

$

(93)

Forward contracts (includes pair-off settlements)

(168)

285

(518)

379

Interest rate swaps

(438)

247

(1,280)

1,622

Net (loss) gain

$

(382)

$

423

$

(1,390)

$

1,908

Derivative gain included in other income:

Put options (1)

7,522

3,467

1,277

11,080

Interest rate floors

4,333

214

 

2,075

2,548

Net gain

$

11,855

$

3,681

$

3,352

$

13,628

___________________________

(1)

The put option gain (loss) reflects an adjustment to the fair value of the derivative that is substantially equal and offset by an adjustment to the fair value of its related securities available for sale for which the Company elected to account for under the fair value option with changes in fair value reflected in earnings. The combination of these adjustments is designed to result in an inconsequential net gain or loss in other noninterest income.

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)

June 30, 2025

$

983,600

Other assets/liabilities

$

10,015

$

10,015

December 31, 2024

$

724,224

Other assets/liabilities

$

309

$

309

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

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2025

    

2024

    

2025

    

2024

(In thousands)

(In thousands)

Gross swap gains

$

5,162

$

5,371

$

9,706

$

2,538

Gross swap losses

5,162

5,371

 

9,706

2,538

Net swap gains (losses)

$

$

$

$

v3.25.2
Disclosures about Fair Value of Assets and Liabilities (Tables)
6 Months Ended
Jun. 30, 2025
Disclosures about Fair Value of Assets and Liabilities  
Schedule of fair value measurement of assets measured at fair value on recurring basis

Fair Value Measurements Using

Quoted Prices in

Significant

 

Active Markets 

Other

Significant

for Identical

Observable

Unobservable 

Fair

Assets

Inputs

Inputs

Assets

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

(In thousands)

June 30, 2025

Mortgage loans in process of securitization

$

402,427

$

$

402,427

$

Securities available for sale:

 

  

 

  

 

  

 

  

Treasury notes

 

70,102

 

70,102

 

 

Federal Agencies

 

259,699

 

 

259,699

 

Mortgage-backed - Agency

3,580

 

3,580

 

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

407,539

 

407,539

 

Mortgage-backed - Agency - fair value option

 

195,423

 

 

195,423

 

Loans held for sale

 

91,930

 

 

91,930

 

Servicing rights

 

193,037

 

 

 

193,037

Derivative assets:

 

Interest rate lock commitments

 

270

 

 

 

270

Interest rate swaps

2,484

2,484

Interest rate swaps, caps and floors (back-to-back)

10,015

10,015

Put options

45,055

8,845

36,210

Interest rate floors

6,118

6,118

Derivative liabilities:

 

Interest rate lock commitments

 

8

8

Forward contracts

 

427

427

Interest rate swaps, caps and floors (back-to-back)

 

10,015

10,015

December 31, 2024

 

  

Mortgage loans in process of securitization

$

428,206

$

$

428,206

$

Securities available for sale:

 

  

 

  

 

  

 

  

Treasury notes

 

90,006

 

90,006

 

 

Federal Agencies

 

252,936

 

 

252,936

 

Mortgage-backed - Agency

1,162

 

1,162

 

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

430,779

 

430,779

 

Mortgage-backed - Agency - fair value option

 

205,167

 

 

205,167

 

Loans held for sale

 

78,170

 

 

78,170

 

Servicing rights

 

189,935

 

 

 

189,935

Derivative assets:

 

Interest rate lock commitments

 

30

 

 

 

30

Forward contracts

229

 

 

229

 

Interest rate swaps

4,199

4,199

Interest rate swaps, caps and floors (back-to-back)

309

309

Put options

43,777

12,481

31,296

Interest rate floors

4,043

4,043

Derivative liabilities:

Interest rate lock commitments

176

176

Forward contracts

1

1

Interest rate swaps, caps and floors (back-to-back)

309

309

Schedule of Level 3 reconciliation of recurring fair value measurements

Three Months Ended June 30, 

Six Months Ended June 30, 

    

2025

    

2024

    

2025

    

2024

(In thousands)

(In thousands)

Servicing rights

Balance, beginning of period

$

189,711

$

172,200

$

189,935

$

158,457

Purchased servicing

70

70

Originated servicing

 

5,244

 

3,761

 

8,582

 

5,927

Paydowns

 

(2,246)

 

(2,252)

 

(5,054)

 

(4,639)

Changes in fair value

 

258

 

5,067

 

(496)

 

19,031

Balance, end of period

$

193,037

$

178,776

$

193,037

$

178,776

Securities available for sale - Mortgage-backed - Non-Agency residential - fair value option

Balance, beginning of period

$

$

472,192

$

$

485,500

Paydowns

(7,884)

(16,870)

Changes in fair value

 

 

(1,681)

 

 

(6,003)

Balance, end of period

$

$

462,627

$

$

462,627

Derivative assets - put options

Balance, beginning of period

$

28,295

$

22,976

$

31,296

$

18,654

Changes in fair value

 

7,915

 

1,681

 

4,914

 

6,003

Balance, end of period

$

36,210

$

24,657

$

36,210

$

24,657

Derivative assets - interest rate floors

Balance, beginning of period

$

1,785

$

8,910

$

4,043

$

6,576

Changes in fair value

 

4,333

 

214

 

2,075

 

2,548

Balance, end of period

$

6,118

$

9,124

$

6,118

$

9,124

Derivative assets - interest rate lock commitments

Balance, beginning of period

$

126

$

174

$

30

$

140

Gain (loss) recognized

 

144

 

(4)

 

240

 

30

Balance, end of period

$

270

$

170

$

270

$

170

Derivative liabilities - interest rate lock commitments

Balance, beginning of period

$

88

$

22

$

176

$

4

Gain (loss) recognized

 

(80)

 

105

 

(168)

 

123

Balance, end of period

$

8

$

127

$

8

$

127

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

Fair Value Measurements Using

Quoted Prices in

Significant

Significant

Active Markets for

Other Observable

Unobservable 

Fair

Identical Assets

Inputs

Inputs

Assets

Value

(Level 1)

(Level 2)

(Level 3)

(In thousands)

June 30, 2025

 

  

 

  

 

  

 

  

Collateral dependent loans

$

194,337

$

$

$

194,337

December 31, 2024

 

  

 

  

 

  

 

  

Collateral dependent loans

$

59,915

$

$

$

59,915

Other real estate owned

$

7,313

$

$

$

7,313

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

Valuation

Weighted

    

Fair Value

    

Technique

    

Unobservable Inputs

Range

    

Average

(In thousands)

At June 30, 2025:

 

  

 

  

 

Collateral dependent loans

$

194,337

 

Market comparable properties

 

Marketability discount and costs to sell

0% - 100%

 

14%

Servicing rights - Multi-family

$

152,100

 

Discounted cash flow

 

Discount rate

8% - 15%

 

9%

Constant prepayment rate

0% - 100%

 

9%

Earnings rate on escrows

3%

3%

Servicing rights - Single-family

$

33,595

 

Discounted cash flow

 

Discount rate

10% - 11%

10%

Constant prepayment rate

6% - 15%

7%

Servicing rights - Healthcare

$

3,214

 

Discounted cash flow

 

Discount rate

13%

 

13%

Constant prepayment rate

2% - 7%

 

4%

Earnings rate on escrows

3%

3%

Servicing rights - SBA

$

4,128

 

Discounted cash flow

 

Discount rate

16%

 

16%

Constant prepayment rate

5% - 21%

14%

Derivative assets:

Interest rate lock commitments

$

270

 

Discounted cash flow

 

Loan closing rates

59% - 100%

 

82%

Put options

$

36,210

Intrinsic value

Market credit spread

4%

4%

Interest rate floors

$

6,118

Discounted cash flow

Discount rate

6% - 7%

7%

Derivative liabilities - interest rate lock commitments

$

8

 

Discounted cash flow

 

Loan closing rates

59% - 100%

 

82%

At December 31, 2024:

 

  

 

  

 

Collateral dependent loans

$

59,915

 

Market comparable properties

 

Marketability discount and costs to sell

0% - 90%

 

29%

Other real estate owned

$

7,313

Market comparable properties

Marketability discount and costs to sell

2% - 8%

5%

Servicing rights - Multi-family

$

146,483

 

Discounted cash flow

 

Discount rate

8% - 15%

 

9%

Constant prepayment rate

0% - 100%

 

7%

Earnings rate on escrows

3%

3%

Servicing rights - Single-family

$

34,986

 

Discounted cash flow

 

Discount rate

10% - 11%

10%

Constant prepayment rate

6% - 14%

7%

Servicing rights - Healthcare

$

4,207

 

Discounted cash flow

 

Discount rate

13%

 

13%

Constant prepayment rate

1% - 2%

 

1%

Earnings rate on escrows

3%

3%

Servicing rights - SBA

$

4,259

 

Discounted cash flow

 

Discount rate

16%

16%

Constant prepayment rate

4% - 24%

14%

Derivative assets:

Interest rate lock commitments

$

30

 

Discounted cash flow

 

Loan closing rates

71% - 99%

 

87%

Put options

$

31,296

Intrinsic value

Market credit spread

4%

4%

Interest rate floors

$

4,043

Discounted cash flow

Discount rate

6% - 8%

7%

Derivative liabilities - interest rate lock commitments

$

176

 

Discounted cash flow

 

Loan closing rates

71% - 99%

 

87%

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

    

Value

    

Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

(In thousands)

June 30, 2025

Financial assets:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

647,165

$

647,165

$

647,165

$

$

Securities purchased under agreements to resell

 

1,539

 

1,539

 

 

1,539

 

Securities held to maturity

 

1,548,211

 

1,547,525

 

 

503,650

 

1,043,875

FHLB stock and other equity securities

 

217,850

 

217,850

 

 

187,850

 

30,000

Loans held for sale

 

4,013,835

 

4,013,835

 

 

4,013,835

 

Loans receivable, net

 

10,432,117

 

10,361,673

 

 

 

10,361,673

Interest receivable

 

82,391

 

82,391

 

 

82,391

 

Financial liabilities:

 

  

 

 

  

 

  

 

  

Deposits

 

12,686,835

 

12,689,577

 

10,336,084

 

2,353,493

 

Subordinated debt

 

71,800

 

71,800

 

 

71,800

 

FHLB advances

 

3,680,588

 

3,680,257

 

 

3,680,257

 

Other borrowing

182,934

182,934

182,934

Credit linked notes

74,152

74,151

74,151

Interest payable

 

30,225

 

30,225

 

 

30,225

 

December 31, 2024

 

  

 

  

 

  

 

  

 

  

Financial assets:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

476,610

$

476,610

$

476,610

$

$

Securities purchased under agreements to resell

 

1,559

 

1,559

 

 

1,559

 

Securities held to maturity

1,664,686

1,664,674

 

 

538,871

 

1,125,803

FHLB stock and other equity securities

 

217,804

 

217,804

 

 

187,804

 

30,000

Loans held for sale

 

3,693,340

 

3,693,340

 

 

3,693,340

 

Loans receivable, net

 

10,354,002

 

10,297,439

 

 

 

10,297,439

Interest receivable

 

83,409

 

83,409

 

 

83,409

 

Financial liabilities:

 

  

 

 

  

 

  

 

  

Deposits

 

11,919,976

 

11,923,961

 

8,001,487

 

3,922,474

 

Subordinated debt

 

71,800

 

71,800

 

 

71,800

 

FHLB advances

 

4,172,030

 

4,171,843

 

 

4,171,843

 

Other borrowing

57,934

57,934

57,934

Credit linked notes

84,358

84,357

84,357

Interest payable

 

34,475

 

34,475

 

 

34,475

 

v3.25.2
Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2025
Earnings Per Share  
Schedule of computation of earnings per share

Three Months Ended June 30, 

2025

2024

Weighted-

Per 

Weighted-

Per 

Net

Average

Share

Net

Average

Share

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

(In thousands, except share data)

Net income

$

37,981

 

  

 

  

$

76,393

 

  

 

  

Dividends on preferred stock

(10,266)

(7,757)

Impact of preferred stock redemption

 

 

  

 

  

 

(1,823)

 

  

 

  

Net income allocated to common shareholders

$

27,715

 

  

 

  

$

66,813

 

  

 

  

Basic earnings per share

 

  

 

45,883,644

$

0.60

 

  

 

44,569,345

$

1.50

Effect of dilutive securities-restricted stock awards

 

  

 

45,919

 

  

 

  

 

128,979

 

  

Diluted earnings per share

 

  

 

45,929,563

$

0.60

 

  

 

44,698,324

$

1.49

Six Months Ended June 30, 

2025

2024

 

Weighted-

Per 

Weighted-

Per 

Net

Average

Share

Net

Average

Share

    

Income

    

Shares

    

Amount

    

Income

    

Shares

    

Amount

(In thousands, except share data)

Net income

$

96,220

 

  

 

  

$

163,447

 

  

 

  

Dividends on preferred stock

 

(20,531)

 

  

 

  

 

(16,424)

 

  

 

  

Impact of preferred stock redemption

(5,371)

(1,823)

Net income allocated to common shareholders

$

70,318

 

  

 

  

$

145,200

 

  

 

  

Basic earnings per share

 

  

 

45,853,998

$

1.53

 

  

 

43,937,665

$

3.30

Effect of dilutive securities-restricted stock awards

 

  

 

67,990

 

  

 

  

 

144,820

 

  

Diluted earnings per share

 

  

 

45,921,988

$

1.53

 

  

 

44,082,485

$

3.29

v3.25.2
Segment Information (Tables)
6 Months Ended
Jun. 30, 2025
Segment Information  
Schedule of business segment financial information

Multi-family

    

 

Mortgage 

Mortgage

 

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

(In thousands)

Three Months Ended June 30, 2025

Interest income

$

1,138

$

100,770

$

198,542

$

3,949

 

$

304,399

Interest expense

 

20

 

67,819

 

108,647

 

(806)

 

 

175,680

Net interest income

 

1,118

 

32,951

 

89,895

 

4,755

 

 

128,719

Provision for credit losses

 

(345)

 

1,785

 

51,587

 

 

 

53,027

Net interest income after provision for credit losses

 

1,463

 

31,166

 

38,308

 

4,755

 

 

75,692

Noninterest income

 

44,752

 

6,820

 

3,283

 

(4,375)

 

 

50,480

Noninterest expense

 

33,569

 

8,395

 

23,363

 

12,010

 

 

77,337

Income (loss) before income taxes

 

12,646

 

29,591

 

18,228

 

(11,630)

 

 

48,835

Income taxes

 

3,377

 

6,605

 

3,654

 

(2,782)

 

 

10,854

Net income (loss)

$

9,269

$

22,986

$

14,574

$

(8,848)

 

$

37,981

Total assets

$

487,853

$

6,999,701

$

11,404,488

$

249,162

 

$

19,141,204

Significant non-cash items:

Included in other noninterest income:

Servicing rights fair value adjustments

$

745

$

$

(487)

$

 

$

258

Derivative fair value adjustments

4,333

4,333

Multi-family

 

Mortgage 

Mortgage

 

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

(In thousands)

Three Months Ended June 30, 2024

Interest income

$

1,135

$

101,164

$

222,785

$

3,189

 

$

328,273

Interest expense

 

20

 

68,184

 

132,742

 

(792)

 

 

200,154

Net interest income

 

1,115

 

32,980

 

90,043

 

3,981

 

 

128,119

Provision for credit losses

 

 

995

 

8,970

 

 

 

9,965

Net interest income after provision for credit losses

 

1,115

 

31,985

 

81,073

 

3,981

 

 

118,154

Noninterest income

 

31,983

 

1,746

 

1,194

 

(3,572)

 

 

31,351

Noninterest expense

 

20,651

 

4,674

 

14,985

 

10,070

 

 

50,380

Income (loss) before income taxes

 

12,447

 

29,057

 

67,282

 

(9,661)

 

 

99,125

Income taxes

 

3,410

 

6,787

 

14,904

 

(2,369)

 

 

22,732

Net income (loss)

$

9,037

$

22,270

$

52,378

$

(7,292)

 

$

76,393

Total assets

$

428,299

$

5,626,055

$

11,885,484

$

272,584

 

$

18,212,422

Significant non-cash items:

Included in other noninterest income:

Servicing rights fair value adjustments

$

4,516

$

$

551

$

 

$

5,067

Derivative fair value adjustments

215

215

Multi-family

    

 

Mortgage 

Mortgage

 

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

(In thousands)

Six Months Ended June 30, 2025

Interest income

$

2,318

$

186,887

$

394,586

$

7,812

 

$

591,603

Interest expense

 

40

 

125,488

 

216,754

 

(1,594)

 

 

340,688

Net interest income

 

2,278

 

61,399

 

177,832

 

9,406

 

 

250,915

Provision for credit losses

 

(393)

 

1,359

 

59,788

 

 

 

60,754

Net interest income after provision for credit losses

 

2,671

 

60,040

 

118,044

 

9,406

 

 

190,161

Noninterest income

 

73,648

 

6,080

 

2,216

 

(7,771)

 

 

74,173

Noninterest expense

 

58,129

 

16,416

 

40,673

 

23,783

 

 

139,001

Income (loss) before income taxes

 

18,190

 

49,704

 

79,587

 

(22,148)

 

 

125,333

Income taxes

 

5,508

 

11,320

 

17,906

 

(5,621)

 

 

29,113

Net income (loss)

$

12,682

$

38,384

$

61,681

$

(16,527)

 

$

96,220

Total assets

$

487,853

$

6,999,701

$

11,404,488

$

249,162

 

$

19,141,204

Significant non-cash items:

Included in other noninterest income:

Servicing rights fair value adjustments

$

1,194

$

$

(1,690)

$

 

$

(496)

Derivative fair value adjustments

2,075

2,075

Multi-family

 

Mortgage 

Mortgage

 

    

Banking

    

Warehousing

    

Banking

    

Other

    

Total

(In thousands)

Six Months Ended June 30, 2024

Interest income

$

2,881

$

186,065

$

447,073

$

6,427

 

$

642,446

Interest expense

 

40

 

124,324

 

264,465

 

(1,558)

 

 

387,271

Net interest income

 

2,841

 

61,741

 

182,608

 

7,985

 

 

255,175

Provision for credit losses

 

 

1,935

 

12,756

 

 

 

14,691

Net interest income after provision for credit losses

 

2,841

 

59,806

 

169,852

 

7,985

 

 

240,484

Noninterest income

 

72,450

 

5,063

 

1,623

 

(6,911)

 

 

72,225

Noninterest expense

 

40,222

 

9,472

 

30,563

 

19,035

 

 

99,292

Income (loss) before income taxes

 

35,069

 

55,397

 

140,912

 

(17,961)

 

 

213,417

Income taxes

 

9,423

 

12,937

 

32,109

 

(4,499)

 

 

49,970

Net income (loss)

$

25,646

$

42,460

$

108,803

$

(13,462)

 

$

163,447

Total assets

$

428,299

$

5,626,055

$

11,885,484

$

272,584

 

$

18,212,422

Significant non-cash items:

Included in other noninterest income:

Servicing rights fair value adjustments

$

17,697

$

$

1,334

$

 

$

19,031

Derivative fair value adjustments

2,549

2,549

v3.25.2
Regulatory Matters (Tables)
6 Months Ended
Jun. 30, 2025
Regulatory Matters  
Summary of bank's actual capital amounts and ratios

Minimum

Amount to be Well

Minimum Amount

Capitalized with

To Be Well

Actual

Basel III Buffer(1)

Capitalized(1)

    

Amount

    

Ratio

    

Amount

    

Ratio

Amount

    

Ratio

    

(Dollars in thousands)

June 30, 2025

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

 

  

 

  

 

  

 

  

 

Company

$

2,280,183

 

13.4

%  

$

1,788,568

 

10.5

%  

$

 

N/A

%  

Merchants Bank

2,233,591

 

13.1

%  

 

1,787,326

 

10.5

%  

 

1,702,216

 

10.0

%  

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

 

  

 

  

 

  

 

  

 

  

 

  

Company

 

2,176,150

 

12.8

%  

 

1,447,889

 

8.5

%  

 

 

N/A

%  

Merchants Bank

2,129,558

 

12.5

%  

 

1,446,883

 

8.5

%  

 

1,361,772

 

8.0

%  

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

Company

 

1,624,860

 

9.5

%  

 

1,192,379

 

7.0

%  

 

 

N/A

%  

Merchants Bank

2,129,558

 

12.5

%  

 

1,191,551

 

7.0

%  

 

1,106,440

 

6.5

%  

Tier I capital(1) (to average assets)

 

 

  

 

  

 

 

  

 

  

Company

 

2,176,150

 

11.5

%  

 

948,810

 

5.0

%  

 

 

N/A

%  

Merchants Bank

2,129,558

 

11.3

%  

 

945,850

 

5.0

%  

 

945,850

 

5.0

%  

(1)As defined by regulatory agencies.

Minimum

Amount to be Well

Minimum Amount

Capitalized with

To Be Well

Actual

Basel III Buffer(1)

Capitalized(1)

    

Amount

    

Ratio

    

Amount

    

Ratio

Amount

Ratio

(Dollars in thousands)

December 31, 2024

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

 

  

 

  

 

  

 

  

 

Company

$

2,334,479

 

13.9

%  

$

1,767,835

 

10.5

%  

$

 

N/A

%  

Merchants Bank

2,165,193

 

12.9

%  

 

1,763,982

 

10.5

%  

 

1,679,983

 

10.0

%  

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

 

  

 

  

 

  

 

  

 

  

 

  

Company

 

2,234,658

 

13.3

%  

 

1,431,105

 

8.5

%  

 

 

N/A

%  

Merchants Bank

2,065,372

 

12.3

%  

 

1,427,985

 

8.5

%  

 

1,343,986

 

8.0

%  

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

Company

 

1,562,524

 

9.3

%  

 

1,178,557

 

7.0

%  

 

 

N/A

%  

Merchants Bank

2,065,372

 

12.3

%  

 

1,175,988

 

7.0

%  

 

1,091,989

 

6.5

%  

Tier I capital(1) (to average assets)

 

 

  

 

  

 

 

  

 

  

Company

 

2,234,658

 

12.1

%  

 

925,180

 

5.0

%  

 

 

N/A

%  

Merchants Bank

2,065,372

 

11.2

%  

 

922,006

 

5.0

%  

 

922,006

 

5.0

%  

(1)As defined by regulatory agencies.

v3.25.2
Basis of Presentation (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Restricted cash $ 43.8 $ 33.5
Credit linked notes, net of debt discount    
Notes issued $ 76.9 $ 87.6
v3.25.2
Investment Securities - Amortized Cost to Approximate Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Available for sale securities:    
Amortized Cost $ 936,667 $ 980,224
Gross Unrealized Gains 13 108
Gross Unrealized Losses 337 282
Securities available for sale 936,343 980,050 [1]
Accrued interest on securities available for sale 5,300 4,900
Held to maturity securities:    
Amortized Cost 1,548,211 1,664,686 [1]
Gross Unrealized Gains 1,695 2,245
Gross Unrealized Losses 2,381 2,257
Fair Value 1,547,525 1,664,674
Accrued interest on securities held to maturity 4,700 5,800
Equity securities:    
FHLB and other equity securities 217,850 217,804
Treasury notes    
Available for sale securities:    
Amortized Cost 70,125 89,898
Gross Unrealized Gains 4 108
Gross Unrealized Losses 27  
Securities available for sale 70,102 90,006
Federal Agencies    
Available for sale securities:    
Amortized Cost 260,000 253,218
Gross Unrealized Gains 9  
Gross Unrealized Losses 310 282
Securities available for sale 259,699 252,936
Mortgage-backed - Government Agency - multi-family    
Available for sale securities:    
Amortized Cost 3,580 1,162
Securities available for sale 3,580 1,162
Mortgage-backed - Non-Agency residential - fair value option    
Available for sale securities:    
Amortized Cost 407,539 430,779
Securities available for sale 407,539 430,779
Held to maturity securities:    
Amortized Cost 491,090 526,242
Gross Unrealized Gains 1,692 1,871
Gross Unrealized Losses 133 75
Fair Value 492,649 528,038
Mortgage-backed - Agency - residential - fair value option    
Available for sale securities:    
Amortized Cost 195,423 205,167
Securities available for sale 195,423 205,167
Mortgage-backed - Non-Agency - healthcare    
Held to maturity securities:    
Amortized Cost 494,439 534,538
Gross Unrealized Gains 3 374
Fair Value 494,442 534,912
Mortgage-backed - Non-Agency multi-family    
Held to maturity securities:    
Amortized Cost 550,912 592,053
Gross Unrealized Losses 1,479 1,162
Fair Value 549,433 590,891
Mortgage-backed - Agency - multi-family    
Held to maturity securities:    
Amortized Cost 11,770 11,853
Gross Unrealized Losses 769 1,020
Fair Value $ 11,001 $ 10,833
[1] Derived from audited consolidated financial statements
v3.25.2
Investment Securities - Contractual Maturities (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Available for Sale Securities, Amortized Cost    
Within one year $ 70,125 $ 89,898
After one through five years 260,000 253,218
Total, single maturity date 330,125 343,116
Total 936,667 980,224
Available for Sale Securities, Fair Value    
Within one year 70,102 90,006
After one through five years 259,699 252,936
Total, single maturity date 329,801 342,942
Total 936,343 980,050 [1]
Held to Maturity Securities, Amortized Cost    
Amortized Cost 1,548,211 1,664,686 [1]
Held to Maturity Securities, Fair Value    
Fair Value 1,547,525 1,664,674
Mortgage-backed - Agency - multi-family    
Available for Sale Securities, Amortized Cost    
Without single maturity date 3,580 1,162
Available for Sale Securities, Fair Value    
Without single maturity date 3,580 1,162
Held to Maturity Securities, Amortized Cost    
Amortized Cost 11,770 11,853
Held to Maturity Securities, Fair Value    
Fair Value 11,001 10,833
Mortgage-backed - Agency - residential - fair value option    
Available for Sale Securities, Amortized Cost    
Without single maturity date 195,423 205,167
Total 195,423 205,167
Available for Sale Securities, Fair Value    
Without single maturity date 195,423 205,167
Total 195,423 205,167
Mortgage-backed - Non-Agency multi-family    
Held to Maturity Securities, Amortized Cost    
Amortized Cost 550,912 592,053
Held to Maturity Securities, Fair Value    
Fair Value 549,433 590,891
Mortgage-backed - Non-Agency residential    
Available for Sale Securities, Amortized Cost    
Without single maturity date 407,539 430,779
Total 407,539 430,779
Available for Sale Securities, Fair Value    
Without single maturity date 407,539 430,779
Total 407,539 430,779
Held to Maturity Securities, Amortized Cost    
Amortized Cost 491,090 526,242
Held to Maturity Securities, Fair Value    
Fair Value 492,649 528,038
Mortgage-backed - Non-Agency - healthcare    
Held to Maturity Securities, Amortized Cost    
Amortized Cost 494,439 534,538
Held to Maturity Securities, Fair Value    
Fair Value $ 494,442 $ 534,912
[1] Derived from audited consolidated financial statements
v3.25.2
Investment Securities - Sale of securities (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Investment Securities        
Proceeds from the sale of securities available for sale $ 0 $ 0 $ 0 $ 9,983,000
Net loss on sale of securities available for sale       108,000
Gain on sale of securities available for sale       10,000
Losses on sale of securities available for sale       $ 118,000
v3.25.2
Investment Securities - Continuous Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months $ 261,590  
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 261,590  
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 337  
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total 337  
Treasury notes    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months 26,900  
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 26,900  
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 27  
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total 27  
Federal Agencies    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months 234,690 $ 252,936
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 234,690 252,936
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 310 282
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total $ 310 $ 282
v3.25.2
Investment Securities - Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Securities available for sale, allowance for credit losses $ 0 $ 0
Securities held to maturity, allowance for credit losses 0  
Amortized Cost 1,548,211 1,664,686 [1]
Fair Value 1,547,525 1,664,674
Collateralized Mortgage Obligations    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Securities held to maturity, allowance for credit losses 0 $ 0
Amortized Cost 550,900  
Fair Value $ 549,400  
Credit Protection, Percentage on Losses 14.40%  
Value ratio 61.00%  
[1] Derived from audited consolidated financial statements
v3.25.2
Mortgage Loans in Process of Securitization (Details) - USD ($)
$ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Mortgage Loans in Process of Securitization    
Unrealized gains included in mortgage loans $ 3.0 $ 4.1
v3.25.2
Loans and Allowance for Credit Losses on Loans - Summary of Loans By Classification (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Loans and Allowance for Credit Losses on Loans            
Accrued interest on loans, excluded from amortized cost of loans $ 47,500   $ 51,900      
Loans Receivable 10,523,928   10,438,388      
ACL-Loans 91,811 $ 83,413 84,386 $ 81,028 $ 75,712 $ 71,752
Loans Receivable, net 10,432,117   10,354,002 [1]      
Mortgage warehouse repurchase agreements            
Loans and Allowance for Credit Losses on Loans            
Loans Receivable 1,843,742   1,446,068      
ACL-Loans 4,914 3,747 3,816 3,616 3,022 2,070
Residential real estate            
Loans and Allowance for Credit Losses on Loans            
Loans Receivable 988,783   1,322,853      
ACL-Loans 4,511 6,145 5,942 6,323 6,905 7,323
Residential real estate | Home equity line of credit            
Loans and Allowance for Credit Losses on Loans            
Loans Receivable 800,000   1,200,000      
Multi-family financing            
Loans and Allowance for Credit Losses on Loans            
Loans Receivable 4,833,548   4,624,299      
ACL-Loans 63,471 53,416 55,126 34,412 28,664 26,874
Healthcare financing            
Loans and Allowance for Credit Losses on Loans            
Loans Receivable 1,442,095   1,484,483      
ACL-Loans 6,344 9,127 8,562 23,522 24,587 22,454
Commercial and commercial real estate            
Loans and Allowance for Credit Losses on Loans            
Loans Receivable 1,328,765   1,476,211      
ACL-Loans 11,860 10,295 10,293 12,591 11,990 12,243
Revolving lines of credit collateralized primarily by mortgage servicing rights 800,000   900,000      
Commercial and commercial real estate | Non - Owner occupied commercial real estate            
Loans and Allowance for Credit Losses on Loans            
Loans Receivable 19,800   18,700      
Agricultural production and real estate            
Loans and Allowance for Credit Losses on Loans            
Loans Receivable 82,425   77,631      
ACL-Loans 637 608 539 489 450 619
Consumer and margin loans            
Loans and Allowance for Credit Losses on Loans            
Loans Receivable 4,570   6,843      
ACL-Loans $ 74 $ 75 $ 108 $ 75 $ 94 $ 169
[1] Derived from audited consolidated financial statements
v3.25.2
Loans and Allowance for Credit Losses on Loans - Allowance For Credit-Loan Losses (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Allowance for credit losses          
Balance, beginning of period $ 83,413 $ 75,712 $ 84,386 $ 71,752 $ 71,752
FMBI's ACL for loans sold       (593) (593)
Provision for credit losses 54,461 8,753 63,967 14,230 23,678
Loans charged to the allowance (46,063) (3,452) (56,570) (4,377) (10,587)
Recoveries of loans previously charged-off   15 28 16 136
Balance, end of period 91,811 81,028 91,811 81,028 84,386
ACL Loans          
Provision for credit losses 53,027 9,965 60,754 14,691 24,300
Provision for credit losses, ACL Loans 54,500 8,800 64,000 14,200 23,700
Provision for credit losses, ACL-OBCE's 1,100 1,200 2,800 1,100 2,200
Provision for credit losses, ACL-Guarantees 400   400   1,000
Release of FMBI's ACL-Loans for loans sold       600 600
Mortgage warehouse repurchase agreements          
Allowance for credit losses          
Balance, beginning of period 3,747 3,022 3,816 2,070 2,070
Provision for credit losses 1,167 594 1,098 1,546 1,746
Balance, end of period 4,914 3,616 4,914 3,616 3,816
Residential real estate          
Allowance for credit losses          
Balance, beginning of period 6,145 6,905 5,942 7,323 7,323
FMBI's ACL for loans sold       (55) (55)
Provision for credit losses (1,634) (595) (1,431) (958) (1,340)
Recoveries of loans previously charged-off   13   13 14
Balance, end of period 4,511 6,323 4,511 6,323 5,942
Multi-family financing          
Allowance for credit losses          
Balance, beginning of period 53,416 28,664 55,126 26,874 26,874
FMBI's ACL for loans sold       (186) (186)
Provision for credit losses 48,364 9,097 57,048 11,073 33,674
Loans charged to the allowance (38,309) (3,349) (48,703) (3,349) (5,282)
Recoveries of loans previously charged-off         46
Balance, end of period 63,471 34,412 63,471 34,412 55,126
Healthcare financing          
Allowance for credit losses          
Balance, beginning of period 9,127 24,587 8,562 22,454 22,454
FMBI's ACL for loans sold       (2) (2)
Provision for credit losses 4,714 (1,065) 5,279 1,070 (10,795)
Loans charged to the allowance (7,497)   (7,497)   (3,095)
Balance, end of period 6,344 23,522 6,344 23,522 8,562
Commercial and commercial real estate          
Allowance for credit losses          
Balance, beginning of period 10,295 11,990 10,293 12,243 12,243
FMBI's ACL for loans sold       (92) (92)
Provision for credit losses 1,822 702 1,909 1,465 276
Loans charged to the allowance (257) (103) (370) (1,028) (2,210)
Recoveries of loans previously charged-off   2 28 3 76
Balance, end of period 11,860 12,591 11,860 12,591 10,293
Agricultural production and real estate          
Allowance for credit losses          
Balance, beginning of period 608 450 539 619 619
FMBI's ACL for loans sold       (246) (246)
Provision for credit losses 29 39 98 116 166
Balance, end of period 637 489 637 489 539
Consumer and margin loans          
Allowance for credit losses          
Balance, beginning of period 75 94 108 169 169
FMBI's ACL for loans sold       (12) (12)
Provision for credit losses (1) (19) (34) (82) (49)
Balance, end of period $ 74 $ 75 $ 74 $ 75 $ 108
v3.25.2
Loans and Allowance for Credit Losses on Loans - Amortized cost basis and ACL (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis $ 10,523,928   $ 10,438,388      
ACL-Loans 91,811 $ 83,413 84,386 $ 81,028 $ 75,712 $ 71,752
Real Estate            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 414,452   314,557      
Accounts Receivable or Equipment            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 1,452   1,453      
Other            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 1,753   1,322      
Collateral pledged            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 417,657   317,332      
ACL-Loans 33,045   25,224      
Residential real estate            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 988,783   1,322,853      
ACL-Loans 4,511 6,145 5,942 6,323 6,905 7,323
Residential real estate | Real Estate            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 7,964   6,153      
Residential real estate | Collateral pledged            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 7,964   6,153      
ACL-Loans 39   31      
Multi-family financing            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 4,833,548   4,624,299      
ACL-Loans 63,471 53,416 55,126 34,412 28,664 26,874
Multi-family financing | Real Estate            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 294,206   227,054      
Multi-family financing | Other            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 693   693      
Multi-family financing | Collateral pledged            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 294,899   227,747      
ACL-Loans 30,324   22,265      
Healthcare financing            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 1,442,095   1,484,483      
ACL-Loans 6,344 9,127 8,562 23,522 24,587 22,454
Healthcare financing | Real Estate            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 103,288   73,225      
Healthcare financing | Collateral pledged            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 103,288   73,225      
ACL-Loans 454   2,569      
Commercial and commercial real estate            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 1,328,765   1,476,211      
ACL-Loans 11,860 10,295 10,293 12,591 11,990 12,243
Commercial and commercial real estate | Real Estate            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 8,813   8,125      
Commercial and commercial real estate | Accounts Receivable or Equipment            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 1,447   1,447      
Commercial and commercial real estate | Other            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 1,060   629      
Commercial and commercial real estate | Collateral pledged            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 11,320   10,201      
ACL-Loans 2,226   358      
Agricultural production and real estate            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 82,425   77,631      
ACL-Loans 637 608 539 489 450 619
Agricultural production and real estate | Real Estate            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 181          
Agricultural production and real estate | Accounts Receivable or Equipment            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 5   6      
Agricultural production and real estate | Collateral pledged            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 186   6      
ACL-Loans 2   1      
Consumer and margin loans            
Loans and Allowance for Credit Losses on Loans            
Amortized Cost Basis 4,570   6,843      
ACL-Loans $ 74 $ 75 $ 108 $ 75 $ 94 $ 169
v3.25.2
Loans and Allowance for Credit Losses on Loans - Credit Risk Profile of Loan Portfolio (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Credit risk profile of portfolio          
2025/2024 $ 1,433,197   $ 1,433,197   $ 1,752,656
2024/2023 1,066,684   1,066,684   923,749
2023/2022 702,353   702,353   1,151,608
2022/2021 698,557   698,557   163,431
2021/2020 117,097   117,097   49,226
Prior 84,807   84,807   53,272
Revolving Loans 6,421,233   6,421,233   6,344,446
Loans 10,523,928   10,523,928   10,438,388
Net Charge-Offs          
Charge-offs 2024/2023         870
Charge-offs 2023/2022     10,282   4,665
Charge-offs 2022/2021     35,027   4,077
Charge-offs 2021/2020     5,409    
Charge-offs Prior     5,852   975
Net Charge-Offs 46,063 $ 3,452 56,570 $ 4,377 10,587
Pass          
Credit risk profile of portfolio          
2025/2024 1,338,982   1,338,982   1,598,887
2024/2023 961,878   961,878   714,740
2023/2022 515,739   515,739   1,006,473
2022/2021 579,231   579,231   125,050
2021/2020 86,509   86,509   49,226
Prior 84,370   84,370   52,738
Revolving Loans 6,368,050   6,368,050   6,193,973
Loans 9,934,759   9,934,759   9,741,087
Special Mention          
Credit risk profile of portfolio          
2025/2024 80,670   80,670   120,884
2024/2023 47,237   47,237   77,700
2023/2022 442   442   68,910
2022/2021 31,000   31,000   1,633
2021/2020 1,283   1,283    
Prior 282   282   290
Revolving Loans 10,598   10,598   110,552
Loans 171,512   171,512   379,969
Substandard          
Credit risk profile of portfolio          
2025/2024 13,545   13,545   32,885
2024/2023 57,569   57,569   131,309
2023/2022 186,172   186,172   76,225
2022/2021 88,326   88,326   36,748
2021/2020 29,305   29,305    
Prior 155   155   244
Revolving Loans 42,585   42,585   39,921
Loans 417,657   417,657   317,332
Mortgage warehouse repurchase agreements          
Credit risk profile of portfolio          
Revolving Loans 1,843,742   1,843,742   1,446,068
Loans 1,843,742   1,843,742   1,446,068
Mortgage warehouse repurchase agreements | Pass          
Credit risk profile of portfolio          
Revolving Loans 1,843,742   1,843,742   1,446,068
Loans 1,843,742   1,843,742   1,446,068
Residential real estate          
Credit risk profile of portfolio          
2025/2024 24,996   24,996   40,363
2024/2023 39,767   39,767   30,750
2023/2022 28,692   28,692   8,234
2022/2021 7,480   7,480   6,181
2021/2020 5,152   5,152   18,712
Prior 23,328   23,328   6,413
Revolving Loans 859,368   859,368   1,212,200
Loans 988,783   988,783   1,322,853
Residential real estate | Pass          
Credit risk profile of portfolio          
2025/2024 24,996   24,996   40,363
2024/2023 39,767   39,767   30,750
2023/2022 28,692   28,692   8,212
2022/2021 7,458   7,458   6,181
2021/2020 5,152   5,152   18,712
Prior 23,199   23,199   6,210
Revolving Loans 851,555   851,555   1,206,272
Loans 980,819   980,819   1,316,700
Residential real estate | Substandard          
Credit risk profile of portfolio          
2023/2022         22
2022/2021 22   22    
Prior 129   129   203
Revolving Loans 7,813   7,813   5,928
Loans 7,964   7,964   6,153
Multi-family financing          
Credit risk profile of portfolio          
2025/2024 800,270   800,270   1,135,509
2024/2023 805,710   805,710   701,573
2023/2022 481,326   481,326   553,495
2022/2021 324,694   324,694   69,337
2021/2020 41,803   41,803   5,460
Prior 11,239   11,239   10,694
Revolving Loans 2,368,506   2,368,506   2,148,231
Loans 4,833,548   4,833,548   4,624,299
Net Charge-Offs          
Charge-offs 2024/2023         870
Charge-offs 2023/2022     10,135   4,412
Charge-offs 2022/2021     34,917    
Charge-offs Prior     3,651    
Net Charge-Offs 38,309 3,349 48,703 3,349 5,282
Multi-family financing | Pass          
Credit risk profile of portfolio          
2025/2024 726,822   726,822   1,028,288
2024/2023 774,109   774,109   518,320
2023/2022 320,907   320,907   419,723
2022/2021 222,274   222,274   66,787
2021/2020 41,803   41,803   5,460
Prior 11,004   11,004   10,456
Revolving Loans 2,336,075   2,336,075   2,109,707
Loans 4,432,994   4,432,994   4,158,741
Multi-family financing | Special Mention          
Credit risk profile of portfolio          
2025/2024 59,903   59,903   88,337
2024/2023 17,000   17,000   77,700
2023/2022         57,679
2022/2021 23,934   23,934    
Prior 235   235   238
Revolving Loans 4,583   4,583   13,857
Loans 105,655   105,655   237,811
Multi-family financing | Substandard          
Credit risk profile of portfolio          
2025/2024 13,545   13,545   18,884
2024/2023 14,601   14,601   105,553
2023/2022 160,419   160,419   76,093
2022/2021 78,486   78,486   2,550
Revolving Loans 27,848   27,848   24,667
Loans 294,899   294,899   227,747
Healthcare financing          
Credit risk profile of portfolio          
2025/2024 557,414   557,414   506,767
2024/2023 151,678   151,678   137,823
2023/2022 138,243   138,243   475,293
2022/2021 256,105   256,105   25,363
2021/2020 20,317   20,317    
Revolving Loans 318,338   318,338   339,237
Loans 1,442,095   1,442,095   1,484,483
Net Charge-Offs          
Charge-offs 2022/2021         3,095
Charge-offs 2021/2020     5,296    
Charge-offs Prior     2,201    
Net Charge-Offs 7,497   7,497   3,095
Healthcare financing | Pass          
Credit risk profile of portfolio          
2025/2024 540,046   540,046   460,259
2024/2023 78,920   78,920   112,223
2023/2022 112,643   112,643   466,393
2022/2021 241,655   241,655    
Revolving Loans 306,548   306,548   234,316
Loans 1,279,812   1,279,812   1,273,191
Healthcare financing | Special Mention          
Credit risk profile of portfolio          
2025/2024 17,368   17,368   32,547
2024/2023 30,237   30,237    
2023/2022         8,900
2022/2021 5,450   5,450    
Revolving Loans 5,940   5,940   96,620
Loans 58,995   58,995   138,067
Healthcare financing | Substandard          
Credit risk profile of portfolio          
2025/2024         13,961
2024/2023 42,521   42,521   25,600
2023/2022 25,600   25,600    
2022/2021 9,000   9,000   25,363
2021/2020 20,317   20,317    
Revolving Loans 5,850   5,850   8,301
Loans 103,288   103,288   73,225
Commercial and commercial real estate          
Credit risk profile of portfolio          
2025/2024 41,535   41,535   52,363
2024/2023 53,016   53,016   46,149
2023/2022 46,790   46,790   109,892
2022/2021 105,398   105,398   59,371
2021/2020 46,964   46,964   16,264
Prior 29,758   29,758   18,309
Revolving Loans 1,005,304   1,005,304   1,173,863
Loans 1,328,765   1,328,765   1,476,211
Net Charge-Offs          
Charge-offs 2023/2022     147   253
Charge-offs 2022/2021     110   982
Charge-offs 2021/2020     113    
Charge-offs Prior         975
Net Charge-Offs 257 $ 103 370 $ 1,028 2,210
Commercial and commercial real estate | Pass          
Credit risk profile of portfolio          
2025/2024 38,225   38,225   52,323
2024/2023 52,569   52,569   45,999
2023/2022 46,200   46,200   107,451
2022/2021 103,145   103,145   48,903
2021/2020 36,693   36,693   16,264
Prior 29,685   29,685   18,216
Revolving Loans 1,004,155   1,004,155   1,172,763
Loans 1,310,672   1,310,672   1,461,919
Commercial and commercial real estate | Special Mention          
Credit risk profile of portfolio          
2025/2024 3,310   3,310    
2023/2022 442   442   2,331
2022/2021 1,616   1,616   1,633
2021/2020 1,283   1,283    
Prior 47   47   52
Revolving Loans 75   75   75
Loans 6,773   6,773   4,091
Commercial and commercial real estate | Substandard          
Credit risk profile of portfolio          
2025/2024         40
2024/2023 447   447   150
2023/2022 148   148   110
2022/2021 637   637   8,835
2021/2020 8,988   8,988    
Prior 26   26   41
Revolving Loans 1,074   1,074   1,025
Loans 11,320   11,320   10,201
Agricultural production and real estate          
Credit risk profile of portfolio          
2025/2024 8,902   8,902   17,328
2024/2023 16,263   16,263   7,379
2023/2022 7,269   7,269   4,676
2022/2021 4,869   4,869   3,170
2021/2020 2,858   2,858   8,790
Prior 20,482   20,482   13,705
Revolving Loans 21,782   21,782   22,583
Loans 82,425   82,425   77,631
Agricultural production and real estate | Pass          
Credit risk profile of portfolio          
2025/2024 8,813   8,813   17,328
2024/2023 16,263   16,263   7,373
2023/2022 7,264   7,264   4,676
2022/2021 4,688   4,688   3,170
2021/2020 2,858   2,858   8,790
Prior 20,482   20,482   13,705
Revolving Loans 21,782   21,782   22,583
Loans 82,150   82,150   77,625
Agricultural production and real estate | Special Mention          
Credit risk profile of portfolio          
2025/2024 89   89    
Loans 89   89    
Agricultural production and real estate | Substandard          
Credit risk profile of portfolio          
2024/2023         6
2023/2022 5   5    
2022/2021 181   181    
Loans 186   186   6
Consumer and margin loans          
Credit risk profile of portfolio          
2025/2024 80   80   326
2024/2023 250   250   75
2023/2022 33   33   18
2022/2021 11   11   9
2021/2020 3   3    
Prior         4,151
Revolving Loans 4,193   4,193   2,264
Loans 4,570   4,570   6,843
Consumer and margin loans | Pass          
Credit risk profile of portfolio          
2025/2024 80   80   326
2024/2023 250   250   75
2023/2022 33   33   18
2022/2021 11   11   9
2021/2020 3   3    
Prior         4,151
Revolving Loans 4,193   4,193   2,264
Loans $ 4,570   $ 4,570   $ 6,843
v3.25.2
Loans and Allowance for Credit Losses on Loans - Aging Analysis Of The Recorded Investment In Loans (Details)
$ in Thousands
Jun. 30, 2025
USD ($)
Dec. 31, 2024
USD ($)
loan
Aging analysis of loan portfolio    
Loans Receivable $ 10,523,928 $ 10,438,388
Loans percentage 100.00% 100.00%
30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable $ 32,191 $ 10,460
60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 160 15,633
90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable $ 246,658 $ 266,170
Loans percentage 3.00% 3.00%
Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable $ 279,009 $ 292,263
Loans percentage 3.00% 3.00%
Current    
Aging analysis of loan portfolio    
Loans Receivable $ 10,244,919 $ 10,146,125
Loans percentage 97.00% 97.00%
Mortgage warehouse repurchase agreements    
Aging analysis of loan portfolio    
Loans Receivable $ 1,843,742 $ 1,446,068
Mortgage warehouse repurchase agreements | Current    
Aging analysis of loan portfolio    
Loans Receivable 1,843,742 1,446,068
Residential real estate    
Aging analysis of loan portfolio    
Loans Receivable 988,783 1,322,853
Residential real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 4,720 $ 1,294
Number of delinquent loans classified as held for sale | loan   2
Loan as held for sale   $ 2,100
Residential real estate | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 90 3,797
Residential real estate | 90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 6,279 $ 2,339
Number of delinquent loans classified as held for sale | loan   1
Loan as held for sale   $ 100
Residential real estate | Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable 11,089 7,430
Residential real estate | Current    
Aging analysis of loan portfolio    
Loans Receivable 977,694 1,315,423
Healthcare financing    
Aging analysis of loan portfolio    
Loans Receivable 1,442,095 1,484,483
Healthcare financing | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 16,101  
Healthcare financing | 90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 61,416 59,264
Healthcare financing | Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable 77,517 59,264
Healthcare financing | Current    
Aging analysis of loan portfolio    
Loans Receivable 1,364,578 1,425,219
Multi-family financing    
Aging analysis of loan portfolio    
Loans Receivable 4,833,548 4,624,299
Multi-family financing | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 11,370 $ 8,497
Number of delinquent loans classified as held for sale | loan   1
Loan as held for sale   $ 30,100
Multi-family financing | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable   11,148
Multi-family financing | 90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 174,926 201,508
Multi-family financing | Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable 186,296 221,153
Multi-family financing | Current    
Aging analysis of loan portfolio    
Loans Receivable 4,647,252 4,403,146
Commercial and commercial real estate    
Aging analysis of loan portfolio    
Loans Receivable 1,328,765 1,476,211
Commercial and commercial real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable   596
Commercial and commercial real estate | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 70 688
Commercial and commercial real estate | 90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 4,032 3,047
Commercial and commercial real estate | Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable 4,102 4,331
Commercial and commercial real estate | Current    
Aging analysis of loan portfolio    
Loans Receivable 1,324,663 1,471,880
Agricultural production and real estate    
Aging analysis of loan portfolio    
Loans Receivable 82,425 77,631
Agricultural production and real estate | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable   73
Agricultural production and real estate | 90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 5 12
Agricultural production and real estate | Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable 5 85
Agricultural production and real estate | Current    
Aging analysis of loan portfolio    
Loans Receivable 82,420 77,546
Consumer and margin loans    
Aging analysis of loan portfolio    
Loans Receivable 4,570 6,843
Consumer and margin loans | Current    
Aging analysis of loan portfolio    
Loans Receivable $ 4,570 $ 6,843
v3.25.2
Loans and Allowance for Credit Losses on Loans - Non Accrual Loans and Loans Past Due 90 Days Or More and Still Accruing (Details)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
loan
Loan portfolio past due loans          
Nonaccrual $ 250,818   $ 250,818   $ 279,716
Total Loans Greater than 90 Days & Accruing 714   714   6
Interest income recognized on nonaccrual financial assets 100 $ 900 100 $ 900  
Residential real estate          
Loan portfolio past due loans          
Nonaccrual 7,835   7,835   $ 6,154
Total Loans Greater than 90 Days & Accruing 129   129    
Residential real estate | Greater Than 90 Days          
Loan portfolio past due loans          
Number of nonaccrual loans held for sale | loan         1
Nonaccrual loans held for sale         $ 100
Multi-family financing          
Loan portfolio past due loans          
Nonaccrual 177,530   177,530   201,508
Total Loans Greater than 90 Days & Accruing 585   585    
Healthcare financing          
Loan portfolio past due loans          
Nonaccrual 61,416   61,416   69,001
Commercial and commercial real estate          
Loan portfolio past due loans          
Nonaccrual 4,032   4,032   3,047
Agricultural production and real estate          
Loan portfolio past due loans          
Nonaccrual $ 5   $ 5   6
Total Loans Greater than 90 Days & Accruing         $ 6
v3.25.2
Loans and Allowance for Credit Losses on Loans - Modified loans (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Loan portfolio past due loans        
Amortized cost of loan modified $ 25,425 $ 81,829 $ 65,963 $ 81,829
Modified loans $ 75,612   $ 75,612  
% of Total Class of Financing Receivable 1.00% 1.00% 1.00% 1.00%
Specific reserves recorded on troubled loan modifications $ 0   $ 0  
Current        
Loan portfolio past due loans        
Modified loans 58,265   58,265  
90+ Days Past Due        
Loan portfolio past due loans        
Modified loans 17,347   17,347  
Payment Deferral        
Loan portfolio past due loans        
Amortized cost of loan modified   $ 35,137   $ 35,137
Term Extension        
Loan portfolio past due loans        
Amortized cost of loan modified 25,425 46,692 25,425 46,692
Combination - Term Extension and Payment Delay        
Loan portfolio past due loans        
Amortized cost of loan modified     40,538  
Multi-family financing        
Loan portfolio past due loans        
Amortized cost of loan modified 25,425 $ 77,589 65,786 $ 77,589
Modified loans $ 65,786   $ 65,786  
% of Total Class of Financing Receivable 1.00% 2.00% 1.00% 2.00%
Value of loans defaulted $ 9,600   $ 9,600  
Multi-family financing | Current        
Loan portfolio past due loans        
Modified loans 58,088   58,088  
Multi-family financing | 90+ Days Past Due        
Loan portfolio past due loans        
Modified loans 7,698   $ 7,698  
Multi-family financing | Payment Deferral        
Loan portfolio past due loans        
Amortized cost of loan modified   $ 35,137   $ 35,137
Weighted average term modification   7 months 6 months 7 months
Multi-family financing | Term Extension        
Loan portfolio past due loans        
Amortized cost of loan modified $ 25,425 $ 42,452 $ 25,425 $ 42,452
Weighted average term modification 7 months 28 months 7 months 28 months
Multi-family financing | Combination - Term Extension and Payment Delay        
Loan portfolio past due loans        
Amortized cost of loan modified     $ 40,361  
Commercial and commercial real estate        
Loan portfolio past due loans        
Amortized cost of loan modified     177  
Modified loans $ 177   177  
Commercial and commercial real estate | Current        
Loan portfolio past due loans        
Modified loans 177   177  
Commercial and commercial real estate | Combination - Term Extension and Payment Delay        
Loan portfolio past due loans        
Amortized cost of loan modified     $ 177  
Commercial and commercial real estate | Forbearance        
Loan portfolio past due loans        
Weighted average term modification     12 months  
Healthcare financing        
Loan portfolio past due loans        
Amortized cost of loan modified   $ 4,240   $ 4,240
Modified loans 9,649   $ 9,649  
Healthcare financing | 90+ Days Past Due        
Loan portfolio past due loans        
Modified loans $ 9,649   $ 9,649  
Healthcare financing | Term Extension        
Loan portfolio past due loans        
Amortized cost of loan modified   $ 4,240   $ 4,240
Weighted average term modification   12 months 61 months 12 months
v3.25.2
Loans and Allowance for Credit Losses on Loans - Narrative (Details)
$ in Thousands
6 Months Ended
Jun. 27, 2025
USD ($)
Jun. 05, 2025
USD ($)
loan
Jun. 30, 2025
USD ($)
loan
Jun. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
loan
Loans and Allowance for Credit Losses on Loans          
Carrying value, at year-end, of securities held-to-maturity purchased from debt funds       $ 155,268  
Purchase of loans     $ 30,408 $ 68,468  
Revision of Prior Period, Error Correction, Adjustment          
Loans and Allowance for Credit Losses on Loans          
Number of loans modified for borrowers | loan     8    
Total modified loan amount     $ 104,600    
Standby letters of credit          
Loans and Allowance for Credit Losses on Loans          
Loan guarantee     $ 178,100   $ 204,700
Standby letters of credit | Minimum          
Loans and Allowance for Credit Losses on Loans          
Term of loan guarantees     1 year    
Standby letters of credit | Maximum          
Loans and Allowance for Credit Losses on Loans          
Term of loan guarantees     8 years    
Home equity line of credit          
Loans and Allowance for Credit Losses on Loans          
Amount of portfolio of loans sold in a securitization transaction $ 312,100        
Gain on sale of loans $ 2,200        
Multi-family financing | Special Mention          
Loans and Allowance for Credit Losses on Loans          
Number of loans classified as held for sale | loan     2   1
Loan as held for sale     $ 41,600   $ 17,400
Multi-family financing | Loan Sale and Freddie Mac Q Series Securitization          
Loans and Allowance for Credit Losses on Loans          
Amount of portfolio of loans sold in a securitization transaction   $ 373,300      
Number of loans securitized | loan   18      
Gain on sale of loans   $ 5,900      
Mortgage servicing right established   $ 1,600      
Residential real estate          
Loans and Allowance for Credit Losses on Loans          
Value of residential loans in process of foreclosure     $ 2,600   $ 1,900
v3.25.2
Qualified Affordable Housing and Other Tax Credits - Investments And Commitments (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Qualified Affordable Housing and Other Tax Credits    
Investment $ 199,176 $ 180,107
Total 210,113 191,044
Unfunded Commitments 91,904 93,929
Total 91,904 93,929
LIHTC    
Qualified Affordable Housing and Other Tax Credits    
Investment $ 153,596 $ 123,574
Investment, Proportional Amortization Method, Elected, Statement of Financial Position [Extensible Enumeration] Other Assets and Receivables Other Assets and Receivables
Unfunded Commitments $ 91,904 $ 93,929
LIHTC projects held for future syndication    
Qualified Affordable Housing and Other Tax Credits    
Investment $ 45,580 $ 56,533
Investment, Proportional Amortization Method, Elected, Statement of Financial Position [Extensible Enumeration] Other Assets and Receivables Other Assets and Receivables
Joint Venture    
Qualified Affordable Housing and Other Tax Credits    
Investment $ 10,937 $ 10,937
v3.25.2
Qualified Affordable Housing and Other Tax Credits - Amortization and Tax Credits (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Qualified Affordable Housing and Other Tax Credits        
Amortization expense $ 3,784 $ 2,305 $ 7,559 $ 5,145
Investment Program, Proportional Amortization Method, Applied, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] Income Tax Expense (Benefit) Income Tax Expense (Benefit) Income Tax Expense (Benefit) Income Tax Expense (Benefit)
Expected tax credits $ 4,095 $ 2,391 $ 8,369 $ 5,418
Investment Program, Proportional Amortization Method, Elected, Income Tax Credit and Other Income Tax Benefit, before Amortization, Statement of Income or Comprehensive Income [Extensible Enumeration] Income Tax Expense (Benefit) Income Tax Expense (Benefit) Income Tax Expense (Benefit) Income Tax Expense (Benefit)
v3.25.2
Qualified Affordable Housing and Other Tax Credits (Details) - LIHTC - USD ($)
$ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Qualified Affordable Housing and Other Tax Credits    
General partner services fee $ 19.3  
Revenue recognition constrained on fees (percent) 100.00%  
Payment to acquire projects $ 81.4 $ 98.8
Investor    
Qualified Affordable Housing and Other Tax Credits    
Investment owned in percent 99.99%  
v3.25.2
Leases - Other (Details)
Jun. 30, 2025
Maximum  
Leases  
Lease period 7 years
Minimum  
Leases  
Lease period 1 year
v3.25.2
Leases - Balance sheet, Statement of Income and Cash Flow Detail Regarding Operating Leases (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Leases.          
Operating lease ROU asset (in other assets) $ 7,429   $ 7,429   $ 8,332
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets and Receivables   Other Assets and Receivables   Other Assets and Receivables
Operating lease liability (in other liabilities) $ 8,325   $ 8,325   $ 9,303
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities   Other Liabilities   Other Liabilities
Weighted average remaining lease term (years) 4 years 1 month 6 days   4 years 1 month 6 days   4 years 7 months 6 days
Weighted average discount rate 3.44%   3.44%   3.43%
Maturities of operating lease liabilities:          
One year or less $ 2,354   $ 2,354    
Year two 2,273   2,273    
Year three 1,989   1,989    
Year four 1,312   1,312    
Year five 707   707    
Thereafter 299   299    
Total future minimum lease payments 8,934   8,934    
Less: imputed interest 609   609    
Total $ 8,325   $ 8,325   $ 9,303
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities   Other Liabilities   Other Liabilities
Leases, additional information          
Operating lease cost $ 738 $ 765 $ 1,432 $ 1,369  
Operating cash flows for operating leases     $ 1,133 $ 1,220  
v3.25.2
Other Assets and Receivables - Joint Ventures (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Joint Ventures    
Investments in debt funds $ 30.5 $ 31.8
Additional investment in joint ventures 10.0 3.8
Corporate Joint Venture    
Joint Ventures    
Investment in joint ventures $ 50.9 $ 42.2
v3.25.2
Other Assets and Receivables - Freestanding Credit Enhancements (Details) - USD ($)
1 Months Ended
Dec. 31, 2024
Jun. 30, 2025
Accounts, Notes, Loans and Financing Receivable    
Principal balance of warehouse loans $ 1,200,000,000 $ 2,000,000,000
Percentage of notional amount of warehouse repurchase 12.50%  
Percentage of portfolio notional amount 0.80%  
CDS recovery asset $ 0 $ 445,000
Minimum    
Accounts, Notes, Loans and Financing Receivable    
Replenishment amount of mutual agreement $ 1,200,000,000  
Replenishment period of mutual agreement 36 months  
Maximum    
Accounts, Notes, Loans and Financing Receivable    
Replenishment amount of mutual agreement $ 2,000,000,000  
Replenishment period of mutual agreement 48 months  
v3.25.2
Variable Interest Entities (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Variable Interest Entities    
Liabilities for VIEs $ 16,956,572 $ 16,562,422 [1]
Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Investments in VIEs 266,541 257,499
Loans to VIEs 606,689 415,628
Securities of VIEs 1,536,441 1,652,833
Maximum Exposure to Loss 2,409,671 2,325,960
Liabilities for VIEs 81,606 92,708
Low-income housing tax credit investments | Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Investments in VIEs 236,005 225,727
Loans to VIEs 343,398 282,584
Maximum Exposure to Loss 579,403 508,311
Liabilities for VIEs 81,606 89,956
Debt funds | Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Investments in VIEs 30,536 31,772
Loans to VIEs 241,367 109,480
Maximum Exposure to Loss 271,903 141,252
Liabilities for VIEs   2,752
Mortgage-backed securitizations | Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Loans to VIEs 21,924 23,564
Securities of VIEs 1,536,441 1,652,833
Maximum Exposure to Loss $ 1,558,365 $ 1,676,397
[1] Derived from audited consolidated financial statements
v3.25.2
Deposits - Components (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Noninterest-bearing deposits    
Core demand deposits $ 315,523 $ 239,005 [1]
Interest-bearing deposits    
Core demand deposits 6,066,933 4,319,512
Brokered demand deposits 250,000  
Total interest-earning demand deposits 6,316,933 4,319,512
Core savings deposits 3,703,270 3,442,111
Brokered savings deposits 358 859
Total savings deposits 3,703,628 3,442,970
Core certificates of deposits 1,346,630 1,385,270
Brokered certificates of deposits 1,004,121 2,533,219
Total certificates of deposits 2,350,751 3,918,489
Total interest-bearing deposits 12,371,312 11,680,971 [1]
Total core deposits 11,432,356 9,385,898
Total brokered deposits 1,254,479 2,534,078
Total deposits $ 12,686,835 $ 11,919,976 [1]
[1] Derived from audited consolidated financial statements
v3.25.2
Deposits - Maturities of deposits (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Deposits.    
Due within one year $ 2,294,984  
Due in one year to two years 45,459  
Due in two years to three years 10,308  
Total certificates of deposits 2,350,751 $ 3,918,489
Certificates of deposit of 250,000 or more $ 671,600 $ 694,800
v3.25.2
Borrowings - Components (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Borrowings    
Other borrowings $ 7,934 $ 7,934
Total borrowings 4,009,474 4,386,122 [1]
Federal Reserve discount window borrowings    
Borrowings    
Total borrowings 175,000 50,000
Subordinated Debt    
Borrowings    
Total borrowings 71,800 71,800
FHLB advances    
Borrowings    
Total borrowings 3,680,588 4,172,030
Credit linked notes, net of debt discount    
Borrowings    
Total borrowings $ 74,152 $ 84,358
[1] Derived from audited consolidated financial statements
v3.25.2
Borrowings - Narrative (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2025
Jun. 24, 2025
May 27, 2025
Borrowings      
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] FHLB advances    
Option to cancel agreement (in days) 60 days    
Notice period (in days) 1 day    
FHLB advances      
Borrowings      
Outstanding balance $ 1,700.0 $ 2,000.0 $ 2.5
Variable interest rate, basis points spread over variable reference rate (as a percent) 0.15%    
FHLB advances interest rate 4.48%    
v3.25.2
Derivative Financial Instruments (Details)
1 Months Ended 3 Months Ended 6 Months Ended
Mar. 31, 2024
USD ($)
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
Derivative Financial Instruments            
Number of warehouse loan customers   2   2    
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income            
Net (loss) gain   $ 11,855,000 $ 3,681,000 $ 3,352,000 $ 13,628,000  
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]   Noninterest Income, Other Noninterest Income, Other Noninterest Income, Other Noninterest Income, Other  
Pledged in collateral   $ 7,500,000   $ 7,500,000   $ 263,000,000
Derivative assets            
Derivative Financial Instruments            
Derivative assets, fair value   53,927,000   53,927,000   52,278,000
Derivative liabilities            
Derivative Financial Instruments            
Derivative liabilities, fair value   435,000   435,000   177,000
Derivative            
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income            
Net (loss) gain   $ (382,000) $ 423,000 $ (1,390,000) $ 1,908,000  
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]   Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net  
Interest rate lock commitments            
Derivative Financial Instruments            
Notional amount   $ 48,949,000   $ 48,949,000   24,609,000
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income            
Net (loss) gain   $ 224,000 $ (109,000) $ 408,000 $ (93,000)  
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]   Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net  
Interest rate lock commitments | Derivative assets            
Derivative Financial Instruments            
Derivative assets, fair value   $ 270,000   $ 270,000   30,000
Interest rate lock commitments | Derivative liabilities            
Derivative Financial Instruments            
Derivative liabilities, fair value   8,000   8,000   176,000
Forward contracts            
Derivative Financial Instruments            
Notional amount   51,847,000   51,847,000   33,000,000
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income            
Net (loss) gain   (168,000) $ 285,000 (518,000) $ 379,000  
Forward contracts | Derivative assets            
Derivative Financial Instruments            
Derivative assets, fair value           229,000
Forward contracts | Derivative liabilities            
Derivative Financial Instruments            
Derivative liabilities, fair value   427,000   427,000   1,000
Interest rate swaps            
Derivative Financial Instruments            
Notional amount   49,734,000   49,734,000   49,891,000
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income            
Net (loss) gain   $ (438,000) $ 247,000 $ (1,280,000) $ 1,622,000  
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]   Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net  
Interest rate swaps | Derivative assets            
Derivative Financial Instruments            
Derivative assets, fair value   $ 2,484,000   $ 2,484,000   4,199,000
Interest rate swaps, caps and floors (back-to-back)            
Derivative Financial Instruments            
Notional amount   983,600,000   983,600,000   724,224,000
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income            
Gross swap gains   5,162,000 $ 5,371,000 9,706,000 $ 2,538,000  
Gross swap losses   5,162,000 5,371,000 9,706,000 2,538,000  
Interest rate swaps, caps and floors (back-to-back) | Derivative assets            
Derivative Financial Instruments            
Derivative assets, fair value   10,015,000   10,015,000   309,000
Interest rate swaps, caps and floors (back-to-back) | Derivative liabilities            
Derivative Financial Instruments            
Derivative liabilities, fair value   10,015,000   10,015,000   309,000
Put options            
Derivative Financial Instruments            
Notional amount   648,016,000   648,016,000   680,354,000
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income            
Net (loss) gain   $ 7,522,000 $ 3,467,000 $ 1,277,000 $ 11,080,000  
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]   Noninterest Income, Other Noninterest Income, Other Noninterest Income, Other Noninterest Income, Other  
Put options | Derivative assets            
Derivative Financial Instruments            
Derivative assets, fair value   $ 45,055,000   $ 45,055,000   43,777,000
Interest rate floors            
Derivative Financial Instruments            
Notional amount   1,144,335,000   1,144,335,000   1,228,274,000
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income            
Net (loss) gain   $ 4,333,000 $ 214,000 $ 2,075,000 $ 2,548,000  
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]   Noninterest Income, Other Noninterest Income, Other Noninterest Income, Other Noninterest Income, Other  
Interest rate floors | Derivative assets            
Derivative Financial Instruments            
Derivative assets, fair value   $ 6,118,000   $ 6,118,000   4,043,000
Credit derivatives            
Derivative Financial Instruments            
Notional amount   $ 64,184,000   64,184,000   $ 58,526,000
Credit Default Swap            
Derivative Financial Instruments            
Aggregate collateral obligation $ 64,800,000          
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income            
Net (loss) gain       $ 0 $ 0  
v3.25.2
Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Disclosures about Fair Value of Assets and Liabilities    
Mortgage loans in process of securitization $ 402,427 $ 428,206 [1]
Securities available for sale 936,343 980,050 [1]
Loans held for sale 91,930 78,170
Servicing rights 193,037 189,935 [1]
Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Mortgage loans in process of securitization 402,427 428,206
Loans held for sale 91,930 78,170
Servicing rights 193,037 189,935
Recurring | Interest rate lock commitments    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 270 30
Derivative liabilities 8 176
Recurring | Forward contracts    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets   229
Derivative liabilities 427 1
Recurring | Interest rate swaps    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 2,484 4,199
Recurring | Interest rate swaps, caps and floors (back-to-back)    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 10,015 309
Derivative liabilities 10,015 309
Recurring | Put options    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 45,055 43,777
Recurring | Interest rate floors    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 6,118 4,043
Level 2 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Mortgage loans in process of securitization 402,427 428,206
Loans held for sale 91,930 78,170
Level 2 | Recurring | Forward contracts    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets   229
Derivative liabilities 427 1
Level 2 | Recurring | Interest rate swaps    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 2,484 4,199
Level 2 | Recurring | Interest rate swaps, caps and floors (back-to-back)    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 10,015 309
Derivative liabilities 10,015 309
Level 2 | Recurring | Put options    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 8,845 12,481
Level 3 | Interest rate lock commitments    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 270 30
Derivative liabilities 8 176
Level 3 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Servicing rights 193,037 189,935
Level 3 | Recurring | Interest rate lock commitments    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 270 30
Derivative liabilities 8 176
Level 3 | Recurring | Put options    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 36,210 31,296
Level 3 | Recurring | Interest rate floors    
Disclosures about Fair Value of Assets and Liabilities    
Derivative assets 6,118 4,043
Treasury notes    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 70,102 90,006
Treasury notes | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 70,102 90,006
Treasury notes | Level 1 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 70,102 90,006
Federal Agencies    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 259,699 252,936
Federal Agencies | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 259,699 252,936
Federal Agencies | Level 2 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 259,699 252,936
Mortgage-backed - Agency | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 3,580 1,162
Mortgage-backed - Agency | Level 2 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 3,580 1,162
Mortgage-backed - Government Agency ("Agency")    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 3,580 1,162
Mortgage-backed - Non-Agency residential    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 407,539 430,779
Mortgage-backed - Non-Agency residential | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 407,539 430,779
Mortgage-backed - Non-Agency residential | Level 2 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 407,539 430,779
Mortgage-backed - Agency - fair value option    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 195,423 205,167
Mortgage-backed - Agency - fair value option | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale 195,423 205,167
Mortgage-backed - Agency - fair value option | Level 2 | Recurring    
Disclosures about Fair Value of Assets and Liabilities    
Securities available for sale $ 195,423 $ 205,167
[1] Derived from audited consolidated financial statements
v3.25.2
Disclosures about Fair Value of Assets and Liabilities - Reconciliation of Unobservable Inputs (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Derivative liabilities | Interest rate lock commitments        
Reconciliation of significant unobservable inputs, liabilities:        
Balance, beginning of period $ 88 $ 22 $ 176 $ 4
Gain (loss) recognized (80) 105 (168) 123
Balance, end of period 8 127 8 127
Servicing rights        
Reconciliation of significant unobservable inputs, assets:        
Balance, beginning of period 189,711 172,200 189,935 158,457
Additions        
Purchased servicing 70   70  
Originated servicing 5,244 3,761 8,582 5,927
Subtractions        
Paydowns (2,246) (2,252) (5,054) (4,639)
Changes in fair value - assets 258 5,067 (496) 19,031
Balance, end of period 193,037 178,776 193,037 178,776
Available for sale securities        
Reconciliation of significant unobservable inputs, assets:        
Balance, beginning of period   472,192   485,500
Subtractions        
Paydowns   (7,884)   (16,870)
Changes in fair value   (1,681)   (6,003)
Balance, end of period   462,627   462,627
Derivative assets | Put options        
Reconciliation of significant unobservable inputs, assets:        
Balance, beginning of period 28,295 22,976 31,296 18,654
Subtractions        
Changes in fair value - assets 7,915 1,681 4,914 6,003
Balance, end of period 36,210 24,657 36,210 24,657
Derivative assets | Interest rate floors        
Reconciliation of significant unobservable inputs, assets:        
Balance, beginning of period 1,785 8,910 4,043 6,576
Subtractions        
Changes in fair value - assets 4,333 214 2,075 2,548
Balance, end of period 6,118 9,124 6,118 9,124
Derivative assets | Interest rate lock commitments        
Reconciliation of significant unobservable inputs, assets:        
Balance, beginning of period 126 174 30 140
Subtractions        
Gain recognized 144 (4) 240 30
Balance, end of period $ 270 $ 170 $ 270 $ 170
v3.25.2
Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Disclosures about Fair Value of Assets and Liabilities    
Collateral-dependent loans $ 194,337 $ 59,915
Other real estate owned   7,313
Level 3    
Disclosures about Fair Value of Assets and Liabilities    
Collateral-dependent loans $ 194,337 59,915
Other real estate owned   $ 7,313
v3.25.2
Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs (Details)
Jun. 30, 2025
USD ($)
Dec. 31, 2024
USD ($)
Quantitative information about unobservable inputs    
Servicing rights $ 193,037,000 $ 189,935,000 [1]
Level 3    
Quantitative information about unobservable inputs    
Other real estate owned   7,313,000
Level 3 | Measurement Input, Discount Rate | Weighted Average    
Quantitative information about unobservable inputs    
Other real estate owned   0.05
Level 3 | Servicing rights | SBA    
Quantitative information about unobservable inputs    
Servicing rights $ 4,128,000 $ 4,259,000
Level 3 | Servicing rights | SBA | Measurement Input, Discount Rate    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.16 0.16
Level 3 | Servicing rights | SBA | Measurement Input, Discount Rate | Weighted Average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.16 0.16
Level 3 | Servicing rights | SBA | Measurement Input, Constant Prepayment Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.05 0.04
Level 3 | Servicing rights | SBA | Measurement Input, Constant Prepayment Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.21 0.24
Level 3 | Servicing rights | SBA | Measurement Input, Constant Prepayment Rate | Weighted Average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.14 0.14
Level 3 | Servicing rights | Single family    
Quantitative information about unobservable inputs    
Servicing rights $ 33,595,000 $ 34,986,000
Level 3 | Servicing rights | Single family | Measurement Input, Discount Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.10 0.10
Level 3 | Servicing rights | Single family | Measurement Input, Discount Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.11 0.11
Level 3 | Servicing rights | Single family | Measurement Input, Discount Rate | Weighted Average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.10 0.10
Level 3 | Servicing rights | Single family | Measurement Input, Constant Prepayment Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.06 0.06
Level 3 | Servicing rights | Single family | Measurement Input, Constant Prepayment Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.15 0.14
Level 3 | Servicing rights | Single family | Measurement Input, Constant Prepayment Rate | Weighted Average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.07 0.07
Level 3 | Servicing rights | Multi-family    
Quantitative information about unobservable inputs    
Servicing rights $ 152,100,000 $ 146,483,000
Level 3 | Servicing rights | Multi-family | Measurement Input, Discount Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.08 0.08
Level 3 | Servicing rights | Multi-family | Measurement Input, Discount Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.15 0.15
Level 3 | Servicing rights | Multi-family | Measurement Input, Discount Rate | Weighted Average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.09 0.09
Level 3 | Servicing rights | Multi-family | Measurement Input, Constant Prepayment Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0 0
Level 3 | Servicing rights | Multi-family | Measurement Input, Constant Prepayment Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 1 1
Level 3 | Servicing rights | Multi-family | Measurement Input, Constant Prepayment Rate | Weighted Average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.09 0.07
Level 3 | Servicing rights | Multi-family | Earnings rate on escrows    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.03 0.03
Level 3 | Servicing rights | Multi-family | Earnings rate on escrows | Weighted Average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.03 0.03
Level 3 | Servicing rights | Healthcare financing    
Quantitative information about unobservable inputs    
Servicing rights $ 3,214,000 $ 4,207,000
Level 3 | Servicing rights | Healthcare financing | Measurement Input, Discount Rate    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.13 0.13
Level 3 | Servicing rights | Healthcare financing | Measurement Input, Discount Rate | Weighted Average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.13 0.13
Level 3 | Servicing rights | Healthcare financing | Measurement Input, Constant Prepayment Rate | Minimum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.02 0.01
Level 3 | Servicing rights | Healthcare financing | Measurement Input, Constant Prepayment Rate | Maximum    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.07 0.02
Level 3 | Servicing rights | Healthcare financing | Measurement Input, Constant Prepayment Rate | Weighted Average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.04 0.01
Level 3 | Servicing rights | Healthcare financing | Earnings rate on escrows    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.03 0.03
Level 3 | Servicing rights | Healthcare financing | Earnings rate on escrows | Weighted Average    
Quantitative information about unobservable inputs    
Servicing asset, measurement input 0.03 0.03
Level 3 | Collateral-dependent impaired loans    
Quantitative information about unobservable inputs    
Collateral-dependent loans $ 194,337,000 $ 59,915,000
Level 3 | Collateral-dependent impaired loans | Minimum    
Quantitative information about unobservable inputs    
Marketability discount (as a percent) 0 0
Level 3 | Collateral-dependent impaired loans | Maximum    
Quantitative information about unobservable inputs    
Marketability discount (as a percent) 1 0.90
Level 3 | Collateral-dependent impaired loans | Weighted Average    
Quantitative information about unobservable inputs    
Marketability discount (as a percent) 0.14 0.29
Level 3 | Interest rate lock commitments    
Quantitative information about unobservable inputs    
Derivative assets $ 270,000 $ 30,000
Derivative liabilities $ 8,000 $ 176,000
Level 3 | Interest rate lock commitments | Measurement Input, Maturity | Minimum    
Quantitative information about unobservable inputs    
Derivative assets, (as a percent) 0.59 0.71
Derivative liabilities (as a percent) 0.59 0.71
Level 3 | Interest rate lock commitments | Measurement Input, Maturity | Maximum    
Quantitative information about unobservable inputs    
Derivative assets, (as a percent) 1 0.99
Derivative liabilities (as a percent) 1 0.99
Level 3 | Interest rate lock commitments | Measurement Input, Maturity | Weighted Average    
Quantitative information about unobservable inputs    
Derivative assets, (as a percent) 0.82 0.87
Derivative liabilities (as a percent) 0.82 0.87
Level 3 | Put options | Measurement Input, Credit Spread    
Quantitative information about unobservable inputs    
Derivative assets $ 36,210,000 $ 31,296,000
Derivative assets, (as a percent) 0.04 0.04
Level 3 | Put options | Measurement Input, Credit Spread | Weighted Average    
Quantitative information about unobservable inputs    
Derivative assets, (as a percent) 0.04 0.04
Level 3 | Interest rate floors | Measurement Input, Discount Rate    
Quantitative information about unobservable inputs    
Derivative assets $ 6,118,000 $ 4,043,000
Level 3 | Interest rate floors | Measurement Input, Discount Rate | Minimum    
Quantitative information about unobservable inputs    
Derivative assets, (as a percent) 0.06 0.06
Level 3 | Interest rate floors | Measurement Input, Discount Rate | Maximum    
Quantitative information about unobservable inputs    
Derivative assets, (as a percent) 0.07 0.08
Level 3 | Interest rate floors | Measurement Input, Discount Rate | Weighted Average    
Quantitative information about unobservable inputs    
Derivative assets, (as a percent) 0.07 0.07
[1] Derived from audited consolidated financial statements
v3.25.2
Disclosures about Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Financial assets:    
Securities held to maturity $ 1,547,525 $ 1,664,674
Loans held for sale 91,930 78,170
Carrying value per balance sheet    
Financial assets:    
Cash and cash equivalents 647,165 476,610
Securities purchased under agreements to resell 1,539 1,559
Securities held to maturity 1,548,211 1,664,686
FHLB stock and other equity securities 217,850 217,804
Loans held for sale 4,013,835 3,693,340
Loans receivable, net 10,432,117 10,354,002
Interest receivable 82,391 83,409
Financial liabilities:    
Deposits 12,686,835 11,919,976
Subordinated debt 71,800 71,800
FHLB advances 3,680,588 4,172,030
Other borrowing 182,934 57,934
Credit linked notes 74,152 84,358
Interest payable 30,225 34,475
Estimated fair value    
Financial assets:    
Cash and cash equivalents 647,165 476,610
Securities purchased under agreements to resell 1,539 1,559
Securities held to maturity 1,547,525 1,664,674
FHLB stock and other equity securities 217,850 217,804
Loans held for sale 4,013,835 3,693,340
Loans receivable, net 10,361,673 10,297,439
Interest receivable 82,391 83,409
Financial liabilities:    
Deposits 12,689,577 11,923,961
Subordinated debt 71,800 71,800
FHLB advances 3,680,257 4,171,843
Other borrowing 182,934 57,934
Credit linked notes 74,151 84,357
Interest payable 30,225 34,475
Level 1 | Estimated fair value    
Financial assets:    
Cash and cash equivalents 647,165 476,610
Financial liabilities:    
Deposits 10,336,084 8,001,487
Level 2 | Estimated fair value    
Financial assets:    
Securities purchased under agreements to resell 1,539 1,559
Securities held to maturity 503,650 538,871
FHLB stock and other equity securities 187,850 187,804
Loans held for sale 4,013,835 3,693,340
Interest receivable 82,391 83,409
Financial liabilities:    
Deposits 2,353,493 3,922,474
Subordinated debt 71,800 71,800
FHLB advances 3,680,257 4,171,843
Other borrowing 182,934 57,934
Credit linked notes 74,151 84,357
Interest payable 30,225 34,475
Level 3 | Estimated fair value    
Financial assets:    
Securities held to maturity 1,043,875 1,125,803
FHLB stock and other equity securities 30,000 30,000
Loans receivable, net $ 10,361,673 $ 10,297,439
v3.25.2
Common Stock (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
May 13, 2024
Jun. 30, 2024
Jun. 30, 2024
Public Offerings of Common Stock      
Proceeds from issuance of common stock, net     $ 97,655
Common stock      
Public Offerings of Common Stock      
Issuance of common stock, net of $5.5 million in offering expenses (in shares)   2,400,000 2,400,000
Public offering | Common stock      
Public Offerings of Common Stock      
Issuance of common stock, net of $5.5 million in offering expenses (in shares) 2,400,000    
Public offering price (in dollars per share) $ 43    
Gross proceeds from issuance of common stock $ 103,200    
Offering expenses on issuance of stock 5,500    
Proceeds from issuance of common stock, net $ 97,700    
v3.25.2
Preferred Stock (Details)
6 Months Ended 12 Months Ended
Jan. 02, 2025
USD ($)
$ / shares
Nov. 25, 2024
USD ($)
$ / shares
shares
Apr. 01, 2024
USD ($)
$ / shares
Sep. 30, 2022
USD ($)
shares
Sep. 27, 2022
USD ($)
$ / shares
shares
May 06, 2021
USD ($)
$ / shares
shares
Mar. 23, 2021
USD ($)
$ / shares
shares
Aug. 19, 2019
USD ($)
$ / shares
shares
Apr. 12, 2019
USD ($)
shares
Mar. 28, 2019
USD ($)
$ / shares
shares
Jun. 30, 2025
USD ($)
$ / shares
Jun. 30, 2024
USD ($)
Dec. 31, 2024
$ / shares
Public Offering of Preferred Stock                          
Redemption of preferred stock                       $ 52,045,000  
Excise tax on preferred stock redemption                     $ 1,200,000    
7% Series A Preferred Stock                          
Public Offering of Preferred Stock                          
Preferred stock, redemption price (in dollars per share) | $ / shares     $ 25                    
Redemption of preferred stock     $ 52,000,000                    
Amount of stock issuance costs                     $ 1,800,000    
7% Series A Preferred Stock | Public offering                          
Public Offering of Preferred Stock                          
Issuance of stock (in shares) | shares                 81,800 2,000,000      
Preferred stock, dividend rate (as a percent)                   7.00%      
Preferred stock liquidation preference (in dollars per share) | $ / shares                   $ 25      
Aggregate gross offering proceeds for the shares issued                   $ 50,000,000      
Offering costs                   1,700,000      
Net proceeds                 $ 2,000,000 $ 48,300,000      
Underwriting discounts                 $ 41,000        
6% Series B Preferred Stock                          
Public Offering of Preferred Stock                          
Preferred stock, dividend rate (as a percent)                     6.00%   6.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares                     $ 1,000   $ 1,000
Amount of stock issuance costs                     $ 4,200,000    
6% Series B Preferred Stock | Public offering                          
Public Offering of Preferred Stock                          
Issuance of stock (in shares) | shares               5,000,000          
Preferred stock, dividend rate (as a percent)               6.00%          
Preferred stock liquidation preference (in dollars per share) | $ / shares               $ 1,000          
Aggregate gross offering proceeds for the shares issued               $ 125,000,000          
Net proceeds               120,800,000          
Underwriting discounts               $ 4,200,000          
Depositary shares equivalent preferred stock interest per share               0.025          
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares $ 25             $ 25          
Preferred stock, redemption price (in dollars per share) | $ / shares $ 1,000                        
Redemption of preferred stock $ 125,000,000                        
6% Series C Preferred Stock                          
Public Offering of Preferred Stock                          
Issuance of stock (in shares) | shares           46,181              
Preferred stock, dividend rate (as a percent)                     6.00%   6.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares                     $ 1,000   $ 1,000
Offering costs           $ 23,000              
Net proceeds           $ 46,200,000              
Depositary shares issued (in shares) | shares           1,847,233              
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares           $ 25              
6% Series C Preferred Stock | Public offering                          
Public Offering of Preferred Stock                          
Issuance of stock (in shares) | shares             6,000,000            
Preferred stock, dividend rate (as a percent)             6.00%            
Preferred stock liquidation preference (in dollars per share) | $ / shares             $ 1,000            
Aggregate gross offering proceeds for the shares issued             $ 150,000,000            
Net proceeds             144,900,000            
Underwriting discounts             $ 5,100,000            
Depositary shares equivalent preferred stock interest per share             0.025            
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares             $ 25            
8.25% Series D Preferred Stock                          
Public Offering of Preferred Stock                          
Preferred stock, dividend rate (as a percent)                     8.25%   8.25%
Preferred stock liquidation preference (in dollars per share) | $ / shares                     $ 1,000   $ 1,000
8.25% Series D Preferred Stock | Public offering                          
Public Offering of Preferred Stock                          
Issuance of stock (in shares) | shares         5,200,000                
Preferred stock, dividend rate (as a percent)         8.25%                
Preferred stock liquidation preference (in dollars per share) | $ / shares         $ 1,000                
Aggregate gross offering proceeds for the shares issued         $ 130,000,000                
Net proceeds         125,400,000                
Underwriting discounts         $ 4,600,000                
Depositary shares equivalent preferred stock interest per share         0.025                
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares         $ 25                
Series E Preferred Stock | Public offering                          
Public Offering of Preferred Stock                          
Issuance of stock (in shares) | shares   9,200,000                      
Preferred stock, dividend rate (as a percent)   7.625%                      
Preferred stock liquidation preference (in dollars per share) | $ / shares   $ 1,000                      
Aggregate gross offering proceeds for the shares issued   $ 230,000,000                      
Net proceeds   222,700,000                      
Underwriting discounts   $ 7,300,000                      
Depositary shares equivalent preferred stock interest per share   0.025                      
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares   $ 25                      
Series D Preferred Stock | Public offering                          
Public Offering of Preferred Stock                          
Issuance of stock (in shares) | shares       500,000                  
Net proceeds       $ 12,100,000                  
Underwriting discounts       $ 400,000                  
v3.25.2
Share-Based Payment Plans - Incentive Plan (Details) - USD ($)
3 Months Ended 6 Months Ended
Jan. 01, 2024
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Equity Incentive Plan 2017          
Plan disclosures          
Shares issued   0 0 80,875 85,212
Non executive directors          
Plan disclosures          
Value of shares available for issuance for compensation related to annual fees $ 70,000        
Shares issued   3,752 2,849 6,615 6,013
v3.25.2
Share-Based Payment Plans - ESOP (Details) - ESOP - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Employee Stock Ownership Plan        
Contribution to ESOP $ 0 $ 0    
Expense recognized for the contribution to the plan $ 389,000 $ 286,000 $ 726,000 $ 573,000
Shares contributed to the plan     30,802 23,414
v3.25.2
Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Net Income        
Net Income $ 37,981 $ 76,393 $ 96,220 $ 163,447
Dividends on preferred stock (10,266) (7,757) (20,531) (16,424)
Impact of preferred stock redemption   (1,823) (5,371) (1,823)
Net Income Allocated to Common Shareholders $ 27,715 $ 66,813 $ 70,318 $ 145,200
Weighted-Average Shares        
Weighted average shares - Basic 45,883,644 44,569,345 45,853,998 43,937,665
Effect of dilutive securities-restricted stock awards 45,919 128,979 67,990 144,820
Weighted average shares - diluted 45,929,563 44,698,324 45,921,988 44,082,485
Per Share Amount        
Basic earnings per share $ 0.6 $ 1.5 $ 1.53 $ 3.3
Diluted earnings per share $ 0.6 $ 1.49 $ 1.53 $ 3.29
v3.25.2
Segment Information (Details)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2025
USD ($)
segment
Jun. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
Segment Information          
Number of reportable segments | segment     3    
Interest income $ 304,399 $ 328,273 $ 591,603 $ 642,446  
Interest expense 175,680 200,154 340,688 387,271  
Net Interest Income 128,719 128,119 250,915 255,175  
Provision for credit losses 53,027 9,965 60,754 14,691 $ 24,300
Net Interest Income After Provision for Credit Losses 75,692 118,154 190,161 240,484  
Noninterest income 50,480 31,351 74,173 72,225  
Noninterest expense 77,337 50,380 139,001 99,292  
Income Before Income Taxes 48,835 99,125 125,333 213,417  
Income taxes 10,854 22,732 29,113 49,970  
Net Income 37,981 76,393 96,220 163,447  
Total assets 19,141,204 18,212,422 19,141,204 18,212,422 $ 18,805,732 [1]
Included in other noninterest income:          
Servicing rights fair value adjustments 258 5,067 (496) 19,031  
Derivative fair value adjustments 4,333 215 2,075 2,549  
Other          
Segment Information          
Interest income 3,949 3,189 7,812 6,427  
Interest expense (806) (792) (1,594) (1,558)  
Net Interest Income 4,755 3,981 9,406 7,985  
Net Interest Income After Provision for Credit Losses 4,755 3,981 9,406 7,985  
Noninterest income (4,375) (3,572) (7,771) (6,911)  
Noninterest expense 12,010 10,070 23,783 19,035  
Income Before Income Taxes (11,630) (9,661) (22,148) (17,961)  
Income taxes (2,782) (2,369) (5,621) (4,499)  
Net Income (8,848) (7,292) (16,527) (13,462)  
Total assets 249,162 272,584 249,162 272,584  
Multi-family Mortgage Banking | Operating Segments          
Segment Information          
Interest income 1,138 1,135 2,318 2,881  
Interest expense 20 20 40 40  
Net Interest Income 1,118 1,115 2,278 2,841  
Provision for credit losses (345)   (393)    
Net Interest Income After Provision for Credit Losses 1,463 1,115 2,671 2,841  
Noninterest income 44,752 31,983 73,648 72,450  
Noninterest expense 33,569 20,651 58,129 40,222  
Income Before Income Taxes 12,646 12,447 18,190 35,069  
Income taxes 3,377 3,410 5,508 9,423  
Net Income 9,269 9,037 12,682 25,646  
Total assets 487,853 428,299 487,853 428,299  
Included in other noninterest income:          
Servicing rights fair value adjustments 745 4,516 1,194 17,697  
Mortgage Warehousing | Operating Segments          
Segment Information          
Interest income 100,770 101,164 186,887 186,065  
Interest expense 67,819 68,184 125,488 124,324  
Net Interest Income 32,951 32,980 61,399 61,741  
Provision for credit losses 1,785 995 1,359 1,935  
Net Interest Income After Provision for Credit Losses 31,166 31,985 60,040 59,806  
Noninterest income 6,820 1,746 6,080 5,063  
Noninterest expense 8,395 4,674 16,416 9,472  
Income Before Income Taxes 29,591 29,057 49,704 55,397  
Income taxes 6,605 6,787 11,320 12,937  
Net Income 22,986 22,270 38,384 42,460  
Total assets 6,999,701 5,626,055 6,999,701 5,626,055  
Included in other noninterest income:          
Derivative fair value adjustments 4,333 215 2,075 2,549  
Banking | Operating Segments          
Segment Information          
Interest income 198,542 222,785 394,586 447,073  
Interest expense 108,647 132,742 216,754 264,465  
Net Interest Income 89,895 90,043 177,832 182,608  
Provision for credit losses 51,587 8,970 59,788 12,756  
Net Interest Income After Provision for Credit Losses 38,308 81,073 118,044 169,852  
Noninterest income 3,283 1,194 2,216 1,623  
Noninterest expense 23,363 14,985 40,673 30,563  
Income Before Income Taxes 18,228 67,282 79,587 140,912  
Income taxes 3,654 14,904 17,906 32,109  
Net Income 14,574 52,378 61,681 108,803  
Total assets 11,404,488 11,885,484 11,404,488 11,885,484  
Included in other noninterest income:          
Servicing rights fair value adjustments $ (487) $ 551 $ (1,690) $ 1,334  
[1] Derived from audited consolidated financial statements
v3.25.2
Regulatory Matters (Details)
$ in Thousands
Jun. 30, 2025
USD ($)
Dec. 31, 2024
USD ($)
Parent Company    
Total Capital (to risk-weighted assets)    
Total Capital (to risk-weighted assets), Actual, Amount $ 2,280,183 $ 2,334,479
Total Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.134 0.139
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,788,568 $ 1,767,835
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.105 0.105
Tier I Capital (to risk-weighted assets)    
Tier I Capital, (to risk-weighted assets), Actual, Amount $ 2,176,150 $ 2,234,658
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.128 0.133
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,447,889 $ 1,431,105
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.085 0.085
Common Equity Tier I Capital (to risk-weighted assets)    
Common Equity Tier I Capital (to risk weighted assets), Actual, Amount $ 1,624,860 $ 1,562,524
Common Equity Tier I Capital (to risk weighted assets), Ratio (as a percent) 0.095 0.093
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,192,379 $ 1,178,557
Common Equity Tier I Capital (to risk weighted assets, Minimum Amount Required to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.07 0.07
Tier 1 Capital (to average assets)    
Tier 1 Capital (to average assets), Actual, Amount $ 2,176,150 $ 2,234,658
Tier 1 Capital (to average assets), Actual, Ratio (as a percent) 0.115 0.121
Tier 1 Capital (to average assets), Minimum Amount Required to be Well Capitalized with Basel III Buffer, Amount $ 948,810 $ 925,180
Tier 1 Capital (to average assets), Minimum Amount Required to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.05 0.05
Merchants Bank    
Total Capital (to risk-weighted assets)    
Total Capital (to risk-weighted assets), Actual, Amount $ 2,233,591 $ 2,165,193
Total Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.131 0.129
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,787,326 $ 1,763,982
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.105 0.105
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Amount $ 1,702,216 $ 1,679,983
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.10 0.10
Tier I Capital (to risk-weighted assets)    
Tier I Capital, (to risk-weighted assets), Actual, Amount $ 2,129,558 $ 2,065,372
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.125 0.123
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,446,883 $ 1,427,985
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.085 0.085
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Amount $ 1,361,772 $ 1,343,986
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.08 0.08
Common Equity Tier I Capital (to risk-weighted assets)    
Common Equity Tier I Capital (to risk weighted assets), Actual, Amount $ 2,129,558 $ 2,065,372
Common Equity Tier I Capital (to risk weighted assets), Ratio (as a percent) 0.125 0.123
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,191,551 $ 1,175,988
Common Equity Tier I Capital (to risk weighted assets, Minimum Amount Required to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.07 0.07
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Amount $ 1,106,440 $ 1,091,989
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.065 0.065
Tier 1 Capital (to average assets)    
Tier 1 Capital (to average assets), Actual, Amount $ 2,129,558 $ 2,065,372
Tier 1 Capital (to average assets), Actual, Ratio (as a percent) 0.113 0.112
Tier 1 Capital (to average assets), Minimum Amount Required to be Well Capitalized with Basel III Buffer, Amount $ 945,850 $ 922,006
Tier 1 Capital (to average assets), Minimum Amount Required to be Well Capitalized with Basel III Buffer, Ratio (as a percent) 0.05 0.05
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Amount $ 945,850 $ 922,006
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.05 0.05