MERCHANTS BANCORP, 10-K filed on 2/27/2026
Annual Report
v3.25.4
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Feb. 18, 2026
Jun. 30, 2025
Document Information      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 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 Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 990.6
Entity Common Stock, Shares Outstanding   45,962,065  
Documents Incorporated by Reference [Text Block]

Portions of the Registrant’s proxy statement, for its 2026 annual meeting of shareholders to be held May 21, 2026, to be filed within 120 days after December 31, 2025, are incorporated by reference into Part III of this Form 10-K.

   
Auditor Name Forvis Mazars, LLP    
Auditor Firm ID 686    
Auditor Location Indianapolis, Indiana    
Entity Central Index Key 0001629019    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
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    
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Assets    
Cash and due from banks $ 15,844 $ 10,989
Interest-earning demand accounts 196,358 465,621
Cash and cash equivalents 212,202 476,610
Securities purchased under agreements to resell 1,520 1,559
Mortgage loans in process of securitization 620,094 428,206
Securities available for sale (includes $571,314 and $635,946 at fair value) 865,058 980,050
Securities held to maturity (fair value of $1,543,554 and $1,664,674) 1,543,659 1,664,686
Federal Home Loan Bank (FHLB) stock and other equity securities 227,589 217,804
Loans held for sale (includes $76,980 and $78,170 at fair value) 3,873,012 3,771,510
Loans receivable (includes $47,318 and $0 at fair value), net of allowance for credit losses on loans of $83,301 and $84,386 10,951,381 10,354,002
Premises and equipment, net 73,929 58,617
Servicing rights 217,296 189,935
Interest receivable 81,807 83,409
Goodwill 8,014 8,014
Other real estate owned 60,145 8,209
Other assets and receivables 713,237 563,121
Total assets 19,448,943 18,805,732
Deposits    
Noninterest-bearing 604,081 239,005
Interest-bearing 12,437,111 11,680,971
Total deposits 13,041,192 11,919,976
Borrowings 3,842,592 4,386,122
Deferred and current tax liabilities, net 33,900 25,289
Other liabilities 250,500 231,035
Total liabilities 17,168,184 16,562,422
Commitments and Contingencies
Shareholders' Equity    
Common stock, without par value Authorized - 75,000,000 shares Issued and outstanding - 45,893,172 and 45,767,166 shares 243,310 240,313
Retained earnings 1,486,191 1,330,995
Accumulated other comprehensive loss (33) (133)
Total shareholders' equity 2,280,759 2,243,310
Total liabilities and shareholders' equity 19,448,943 18,805,732
6% Series B Preferred Stock    
Shareholders' Equity    
Preferred stock   120,844
6% Series C Preferred Stock    
Shareholders' Equity    
Preferred stock 191,084 191,084
8.25% Series D Preferred Stock    
Shareholders' Equity    
Preferred stock 137,459 137,459
7.625% Series E Preferred Stock    
Shareholders' Equity    
Preferred stock $ 222,748 $ 222,748
v3.25.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Securities available for sale $ 571,314 $ 635,946
Securities held to maturity, fair value 1,543,554 1,664,674
Loans held for sale at fair value 76,980 78,170
Loan receivable includes at fair value 47,318 0
Net of allowance for credit losses on loans $ 83,301 $ 84,386
Stockholders' Equity    
Common stock, shares authorized 75,000,000 75,000,000
Common stock, shares issued 45,893,172 45,767,166
Common stock, shares outstanding 45,893,172 45,767,166
Preferred stock, dividend rate (as a percent) 7.00% 7.00%
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 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
v3.25.4
Consolidated Statements of Income - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Interest Income      
Loans $ 1,007,112,000 $ 1,113,397,000 $ 959,714,000
Mortgage loans in process of securitization 21,074,000 14,488,000 12,652,000
Investment securities:      
Available for sale 47,511,000 57,480,000 21,621,000
Held to maturity 93,133,000 90,075,000 69,983,000
FHLB stock and other equity securities (dividends) 18,001,000 9,372,000 2,205,000
Other 14,020,000 17,908,000 11,623,000
Total interest income 1,200,851,000 1,302,720,000 1,077,798,000
Interest Expense      
Deposits 521,348,000 660,357,000 577,210,000
Short-term borrowings 130,554,000 84,698,000 23,726,000
Long-term borrowings 31,890,000 35,045,000 28,791,000
Total interest expense 683,792,000 780,100,000 629,727,000
Net Interest Income 517,059,000 522,620,000 448,071,000
Provision for credit losses 117,754,000 24,278,000 40,231,000
Net Interest Income After Provision for Credit Losses 399,305,000 498,342,000 407,840,000
Noninterest Income      
Gain on sale of loans 85,362,000 62,275,000 48,183,000
Loan servicing fees, net 22,369,000 43,673,000 26,198,000
Mortgage warehouse fees 7,089,000 5,539,000 7,701,000
Losses on sale of investments available for sale (includes $0, $(108) and $0 related to accumulated other comprehensive loss reclassifications)   (108,000)  
Syndication and asset management fees 23,640,000 19,693,000 12,355,000
Other income 25,928,000 17,040,000 20,231,000
Total noninterest income 164,388,000 148,112,000 114,668,000
Noninterest Expense      
Salaries and employee benefits 166,512,000 130,723,000 108,181,000
Loan expense 4,207,000 3,767,000 3,409,000
Occupancy and equipment 10,680,000 8,991,000 9,220,000
Professional fees 12,860,000 16,229,000 12,704,000
Deposit insurance expense 31,796,000 26,158,000 13,582,000
Technology expense 10,039,000 7,819,000 6,515,000
Credit risk transfer premium expense 21,021,000 6,320,000  
Other expense 42,778,000 23,805,000 20,990,000
Total noninterest expense 299,893,000 223,812,000 174,601,000
Income Before Income Taxes 263,800,000 422,642,000 347,907,000
Provision for income taxes (includes $0, $26 and $0 of income tax benefit related to accumulated other comprehensive loss reclassifications) 45,030,000 102,256,000 68,673,000
Net Income 218,770,000 320,386,000 279,234,000
Dividends on preferred stock (41,062,000) (34,909,000) (34,670,000)
Preferred stock redemption (4,156,000) (1,823,000)  
Net Income Allocated to Common Shareholders $ 173,552,000 $ 283,654,000 $ 244,564,000
Basic Earnings Per Share (in dollars per share) $ 3.78 $ 6.32 $ 5.66
Diluted Earnings Per Share (in dollars per share) $ 3.78 $ 6.3 $ 5.64
Weighted-Average Shares Outstanding      
Basic (in shares) 45,871,698 44,855,100 43,224,042
Diluted (in shares) 45,942,730 45,004,786 43,345,799
v3.25.4
Consolidated Statements of Income (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Consolidated Statements of Income      
Reclassifications included in gain (loss) on sale of investment available for sale $ 0 $ (108) $ 0
Provision for income taxes related to income tax expense for reclassification items $ 0 $ 26 $ 0
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Consolidated Statements of Comprehensive Income      
Net Income $ 218,770 $ 320,386 $ 279,234
Other Comprehensive Income:      
Net unrealized gains on investment securities available for sale, net of tax expense of $30, $712 and $2,750 100 2,273 8,033
Add: Reclassification adjustment for losses included in net income, net of tax benefit of $0, $26 and $0   82  
Other comprehensive income for the period 100 2,355 8,033
Comprehensive Income $ 218,870 $ 322,741 $ 287,267
v3.25.4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Consolidated Statements of Comprehensive Income      
Net of tax expense/(benefit) on net change in unrealized gains/(losses) on investment securities available for sale $ 30 $ 712 $ 2,750
Net of tax expense/(benefit) on reclassification adjustment for gains include in net income $ 0 $ 26 $ 0
v3.25.4
Consolidated Statements of Shareholders' Equity - 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, 2022 $ 137,781 $ 50,221 $ 120,844           $ 832,871 $ (10,521)  
Balance beginning of period (in shares) at Dec. 31, 2022 43,113,127 2,081,800 125,000                
Consolidated Statements of Shareholders' Equity                      
Distribution to employee stock ownership plan $ 810                    
Distribution to employee stock ownership plan (in shares) 33,293                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ 1,774                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 96,508                    
Net Income (Loss)                 279,234   $ 279,234
Dividends on 7% Series A preferred stock, $1.75 per share, annually                 (3,643)    
Dividends on 6% Series B preferred stock, $60.00 per share, annually                 (7,500)    
Dividends on 6% Series C preferred stock, $60.00 per share, annually                 (11,771)    
Dividends on 8.25% Series D preferred stock, $82.50 per share, annually                 (11,756)    
Dividends on common stock,$0.40 per share, annually in 2025, $0.36 per share, annually in 2024 and $0.32 per share, annually in 2023                 (13,836)    
Other comprehensive income                   8,033 8,033
Balance end of period at Dec. 31, 2023 $ 140,365 $ 50,221 $ 120,844 $ 191,084 $ 137,459       1,063,599 (2,488) 1,701,084
Balance end 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         $ 222,748          
Issuance of common stock, net of $5.5 million in offering expenses (in shares) 2,400,000         230,000          
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations $ 1,296                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 100,824                    
Net Income (Loss)                 320,386   320,386
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                 (8,669)    
Dividends on 6% Series C preferred stock, $60.00 per share, annually                 (11,772)    
Dividends on 8.25% Series D preferred stock, $82.50 per share, annually                 (11,756)    
Dividends on 7.625% Series E preferred stock, $76.25 per share, annually                 (1,802)    
Dividends on common stock,$0.40 per share, annually in 2025, $0.36 per share, annually in 2024 and $0.32 per share, annually in 2023                 (16,258)    
Redemption of preferred stock   $ (50,221)         $ (1,823)        
Redemption of preferred stock (in shares)   (2,081,800)                  
Other comprehensive income                   2,355 2,355
Balance end of period at Dec. 31, 2024 $ 240,313   $ 120,844 $ 191,084 $ 137,459 $ 222,748     1,330,995 (133) 2,243,310
Balance end 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 $ 1,873                    
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares) 95,204                    
Net Income (Loss)                 218,770   218,770
Dividends on 6% Series C preferred stock, $60.00 per share, annually                 (11,771)    
Dividends on 8.25% Series D preferred stock, $82.50 per share, annually                 (11,756)    
Dividends on 7.625% Series E preferred stock, $76.25 per share, annually                 (17,535)    
Dividends on common stock,$0.40 per share, annually in 2025, $0.36 per share, annually in 2024 and $0.32 per share, annually in 2023                 (18,356)    
Redemption of preferred stock     $ (120,844)         $ (4,156)      
Redemption of preferred stock (in shares)     (125,000)                
Other comprehensive income                   100 100
Balance end of period at Dec. 31, 2025 $ 243,310     $ 191,084 $ 137,459 $ 222,748     $ 1,486,191 $ (33) $ 2,280,759
Balance end of period (in shares) at Dec. 31, 2025 45,893,172     196,181 142,500 230,000          
v3.25.4
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Preferred stock, dividend rate (as a percent) 7.00% 7.00% 7.00%
Dividends on common stock per share $ 0.4 $ 0.36 $ 0.32
Offering expenses $ 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
7% Series A Preferred Stock | Preferred stock      
Preferred stock, dividend rate (as a percent) 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
6% Series B Preferred Stock | Preferred stock      
Preferred stock, dividend rate (as a percent) 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
6% Series C Preferred Stock | Preferred stock      
Preferred stock, dividend rate (as a percent) 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
8.25% Series D Preferred Stock | Preferred stock      
Preferred stock, dividend rate (as a percent) 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
7.625% Series E Preferred Stock | Preferred stock      
Preferred stock, dividend rate (as a percent) 7.625% 7.625% 7.625%
Offering costs $ 7,300,000 $ 7,300,000 $ 7,300,000
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating activities:      
Net Income (Loss) $ 218,770 $ 320,386 $ 279,234
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation 3,465 3,014 2,852
Provision for credit losses 117,754 24,278 40,231
Deferred income tax, net 7,778 4,630 (2,442)
Loss on sale of securities   108  
Gain on sale of loans (85,362) (62,275) (48,183)
Proceeds from sales of loans held for sale 45,074,426 29,369,459 22,136,235
Loans and participations originated and purchased for sale (45,314,197) (30,067,696) (22,713,037)
Proceeds from sale of low-income housing tax credits 17,880 25,767 9,334
Purchases of low-income housing tax credits for sale (59,761) (96,017) (67,683)
Purchases of other tax credits (142,754)    
Change in servicing rights for paydowns and fair value adjustments 10,775 (12,808) 3,059
Net change in:      
Mortgage loans in process of securitization (191,888) (317,607) 43,595
Other assets and receivables (31,667) (20,781) (85,181)
Other liabilities 3,007 (12,981) 41,516
Other 30,526 7,245 4,068
Net cash used in operating activities (341,248) (835,278) (356,402)
Investing activities:      
Net change in securities purchased under agreements to resell 39 1,790 115
Purchases of securities available for sale (743,739) (784,238) (1,291,874)
Purchases of securities held to maturity (259,580) (155,268) (293,268)
Purchases of servicing rights (14,482)    
Purchases of other equity securities (1,198) (30,000)  
Proceeds from the sale of securities available for sale 0 9,983 1,516
Proceeds from calls, maturities and paydowns of securities available for sale 870,940 897,336 489,602
Proceeds from calls, maturities and paydowns of securities held to maturity 380,785 229,451 208,129
Purchases of loans (67,455) (108,620) (358,462)
Net change in loans receivable (742,487) (671,367) (2,047,806)
Proceeds from loans held for sale previously classified as loans receivable 431,520 77,931 65,768
Purchase of FHLB stock (8,587) (139,620) (9,448)
Proceeds from sale of FHLB stock   394  
Purchases of premises and equipment (20,941) (18,391) (7,528)
Purchase of limited partnership interests (28,389) (23,301) (18,762)
Net cash paid on sale of branches   (170,594)  
Other investing activities 7,903 10,239 1,937
Net cash used in investing activities (195,671) (874,275) (3,260,081)
Financing activities:      
Net change in deposits 878,651 (1,911,648) 3,990,115
Proceeds from borrowings 323,574,587 166,316,878 95,570,319
Repayment of borrowings (324,033,758) (162,866,240) (95,700,385)
Proceeds from notes payable   6,878 64,922
Repayments on notes payable     (21,000)
Proceeds from credit-linked notes     153,546
Repayment of credit-linked notes (87,551) (36,319) (34,270)
Proceeds from issuance of common stock   97,655  
Proceeds from issuance of preferred stock   222,748  
Repurchase of preferred stock   (52,044)  
Funds disbursed for future repurchase of Series B preferred stock   (125,000)  
Dividends (59,418) (51,167) (48,506)
Net cash provided by financing activities 272,511 1,601,741 3,974,741
Net Change in Cash and Cash Equivalents (264,408) (107,812) 358,258
Cash and Cash Equivalents, Beginning of Period 476,610 584,422 226,164
Cash and Cash Equivalents, End of Period 212,202 476,610 584,422
Supplemental Cash Flows Information:      
Interest paid 692,922 789,047 609,689
Income taxes paid, net of refunds 47,636 79,578 $ 67,388
Reduction in commitment payable for limited partnership interest of LLCs 3,154    
Liabilities accrued for additions in premises and equipment 185 $ 2,421  
Change in prepaid assets for preferred stock repurchase $ 125,000    
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Nature of Operations and Summary of Significant Accounting Policies  
Nature of Operations and Summary of Significant Accounting Policies

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

Nature of Operations

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

Merchants Bank operates under an Indiana state bank charter and provides full banking services. As a state bank and non-Federal Reserve member, it is subject to the regulation of the IDFI and the FDIC. The Company is further subject to regulations of the Federal Reserve governing bank holding companies. Merchants Bank operates nationally through online banking and from seven depository branches in Indiana, including Lynn, Spartanburg, Richmond, Carmel, and Indianapolis. Merchants Bank generates multi-family, commercial, mortgage and consumer loans and also receives deposits from warehouse custodial customers nationally and from retail customers located primarily in Hamilton, Marion, Wayne, Randolph and surrounding counties in Indiana. Merchants Bank’s loans are generally secured by specific items of collateral, including real property, consumer assets, and business assets. Merchants Bank’s Mortgage Warehousing segment funds and participates in single-family and multi-family, agency eligible loans across the nation.

Prior to the sale of its branches, and merger of its remaining charter into Merchants Bank, on January 26, 2024, FMBI operated under an Illinois state bank charter and provided full banking services. As a state bank and non-Federal Reserve member, it was subject to the regulation of the IDFPR and the FDIC. FMBI operated from four offices located in Joy, Paxton, Melvin, and Piper City, Illinois.

MCC is primarily engaged in mortgage banking, specializing in lending for multi-family rental properties and healthcare facilities. It is an FHA approved mortgagee and a Ginnie Mae, Fannie Mae Affordable, and Freddie Mac issuer. It is also a fully integrated syndicator of low-income housing tax credit and debt funds.

Sale of Farmers-Merchants Bank of Illinois branches

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

​

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

​

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

​

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

​

Total assets and liabilities of approximately $60.8 million and $230.6 million, respectively, were sold. A net gain of $715,000 was recognized from the transaction, which included a $10.1 million deposit premium and the extinguishment of $7.8 million in goodwill and $0.5 million in intangibles in 2024.

​

Principles of Consolidation

The consolidated financial statements as of and for the years ended December 31, 2025, 2024, and 2023 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, FMBI (until its branches were sold and its bank charter merged into Merchants Bank on January 26, 2024), and MIP. Also included are Merchants Bank’s

primary operating subsidiaries, MCC, MCS and MCI, as well as all directly and indirectly owned subsidiaries owned by Merchants Bancorp.

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

In addition, when the Company makes an equity investment in or has a relationship with an entity for which it holds a variable interest, it is evaluated for consolidation requirements under 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 the 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 with significant exposure to the entity’s economics. 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. The investment is recorded on the consolidated balance sheets in other assets and its significant liabilities in borrowings. Additionally, the Company has certain variable interest investments that it was deemed not to be a primary beneficiary as of December 31, 2025 and 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 12: Variable Interest Entities (VIEs) for additional information about VIEs.

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

Use of Estimates

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The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and judgement that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates are based upon historical experience and on various other assumptions that management believes are reasonable under the current circumstances. These estimates form the basis for making judgements about the carrying value of certain assets and liabilities that are not readily available from other sources. Actual results could differ from those estimates under different assumptions or conditions.

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.

Reclassifications

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Certain reclassifications have been made to the 2024 consolidated financial statements to conform to the audited consolidated financial statement presentation as of and for the year ended December 31, 2025. These reclassifications had no effect on net income.

Significant Accounting Policies

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Cash and Cash Equivalents

The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of cash amounts due from depository institutions, interest-bearing deposits in other banks, money market accounts, and federal funds sold. For information on restricted cash see Note 2: Restriction on Cash and Due from Banks.

At December 31, 2025, the Company’s cash accounts exceeded federally insured limits by approximately $197.1 million. Included in this amount is approximately $176.0 million with the Federal Reserve and $5.7 million with the FHLB (Indianapolis), and $2.4 million with the FHLB (Chicago).

At December 31, 2024, the Company’s cash accounts exceeded federally insured limits by approximately $461.7 million. Included in this amount is approximately $324.6 million with the Federal Reserve and $93.4 million with the FHLB (Indianapolis), and $1.8 million with the FHLB (Chicago).

Securities Purchased Under Agreements to Resell

Securities purchased pursuant to a simultaneous Reverse Repurchase Agreement to resell the same securities at a specified price and date generally have maturity dates of 90 days or less and are carried at cost. Every 90 days the Reverse Repurchase Agreements rollover.

Mortgage Loans in Process of Securitization

Mortgage loans in process of securitization are recorded at fair value with changes in fair value recorded in earnings. These include multi-family rental real estate loan originations to be sold as Ginnie Mae mortgage-backed securities and Fannie Mae and Freddie Mac participation certificates, all of which are pending settlement with firm investor commitments to purchase the securities, typically occurring within 30 days.

Investment Securities

Securities classified as “held to maturity” are carried at amortized cost when the Company has the positive intent and ability to hold to maturity. Securities not classified as held to maturity or trading are classified as “available for sale” and recorded at fair value. If fair value option is not elected, unrealized gains and losses are excluded from earnings and reported in other comprehensive income. For securities available for sale utilizing the fair value option, the Company measures the securities at fair value and changes are recognized in current period income. The securities are held with the intent that the gains or losses will offset changes in the fair value of other financial instruments. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Regular assessments are performed on securities available for sale to confirm there are no expected credit losses that would require an allowance for credit losses to be established. Securities held to maturity generally require an allowance for lifetime expected credit losses when the security is purchased. Management considers several factors when making such estimates, including issuer bond ratings, historical loss rates for given bond ratings, the financial condition of the issuer, and whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, among others.

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 non-credit related factors. Any expected loss that is not credit-related is recognized in AOCL, net of tax. Credit-related expected losses are recognized as an ACL for securities available for sale on the consolidated balance sheets, 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.

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

Loans Held for Sale and Loans at Fair Value

The Company uses participation agreements to fund certain mortgage loans held for sale from closing or purchase until sold to an investor. Under a participation agreement the Company elects to purchase a participation interest of up to 100% in individual loans. The Company shares proportionately in the interest income and the credit risk until the loan is sold to an investor. The Company holds the participating interest as the collateral until it is sent under a bailee arrangement to the investor. Typical investors are large financial institutions or government agencies.

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Loans held for sale are typically carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance and included in noninterest income.

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For all loans held for sale, interest earned from the time of funding to the time of sale is accrued on the unpaid principal balance and recognized as interest income.

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Gain on loan sales are recorded in noninterest income. The gain on sale of loans in the statements of income may include origination fees, capitalized servicing rights, trading gains and losses, derivative gains and losses, and other related income or expense.

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As a result of changes in events and circumstances or developments regarding management’s view of the foreseeable future, loans not originated or purchased with the intent to sell may subsequently be transferred to held for sale. At the date of transfer to held for sale, any ACL-Loans is reversed into earnings and the loans to be sold are transferred to the held for sale portfolio at the new amortized cost basis and accounted for at the lower of amortized cost or fair value. Any subsequent lower of cost or fair value adjustments are recognized in non-interest income as a valuation allowance adjustment. Similarly, if it is determined that a loan should be transferred from held for sale to loans receivable, the valuation allowance (net of any write downs), is reversed into earnings and the loan is transferred at the amortized cost basis on the transfer date, which coincides with the date of change in management’s intent. An ACL-Loans, excluding the amounts already charged off, is also established for the loan at the date of transfer to loans receivable, if it is held at amortized cost.

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An ACL-Loans is not maintained on any loans held for sale or reported at fair value.

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Loans Receivable

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 charge-offs, the ACL-Loans, and deferred fees or costs, including premiums or discounts on purchased loans.

For loans receivable held at amortized cost or fair value, interest income is accrued based on the unpaid principal balance.

The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and reports accrued interest separately from the related loan balance in the consolidated balance sheets. Accrued interest on loans totaled $51.4 million and $51.9 million at December 31, 2025 and 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.

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 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.

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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.

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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.

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Loan Portfolio Segment

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ACL-Loans Methodology

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Mortgage warehouse repurchase agreements

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Remaining Life Method

Residential real estate loans

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Discounted Cash Flow

Multi-family financing

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Discounted Cash Flow

Healthcare financing

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Discounted Cash Flow

Commercial and commercial real estate

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Discounted Cash Flow

Agricultural production and real estate

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Remaining Life Method

Consumer and margin loans

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Remaining Life Method

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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 is 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.

ACL-OBCEs

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

Premises and Equipment

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

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

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Buildings

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5 to 40

years

Leasehold improvements

 

2 to 10

years

Software and intangible assets

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4 to 10

years

Furniture, fixtures, and equipment

 

3 to 15

years

Vehicles

 

5

years

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

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Leases

The Company has operating leases for various locations with terms ranging from one to six years. Operating leases are included in other assets and other liabilities on the consolidated balance sheets and lease expense for lease payments is recognized on a straight-line basis over the lease term. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term. An ROU asset represents the right to use the underlying asset for the lease term and also includes any direct costs and payments made prior to lease commencement and excludes lease incentives. When an implicit rate is not available, an incremental borrowing rate based on the information available at commencement date is used in determining the present value of the lease payments. The Company elected not to separate non-lease components from lease components for its operating leases. A lease term may include an option to extend or terminate the lease when it is reasonably certain the option will be exercised. Renewal and termination options are considered when determining short-term leases. Leases are accounted for at the individual level.

FHLB Stock and Other Equity Securities

FHLB stock is a required investment for institutions that are members of a FHLB. Merchants Bank is a member of the FHLB of Indianapolis. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for expected losses. Both cash and stock dividends are reported as interest income.

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

Other Real Estate Owned

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

Servicing Rights

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

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

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

Goodwill

Goodwill is tested annually, on December 31, for impairment or more frequently if impairment indicators are present. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements.

Other Assets

Investment in Low-Income Housing Tax Credit Limited Partnerships or LLC

The Company accounts for its investment in affordable housing tax credit limited partnerships or LLCs using the proportional amortization method. Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statements of income as a component of income tax expense. The investment in the limited partnerships or LLCs are included in other assets and unfunded commitments are grossed up in other liabilities in the consolidated balance sheets. During the years ended December 31, 2025, 2024, and 2023, the Company sold some of these assets to funds in which it is a general partner and, in some cases, holds a minority interest in the limited partnership or LLC.

Joint Ventures and Equity Method Accounting

The Company accounts for its investments in joint ventures using the equity method or proportional amortization method as appropriate. The investments in the limited partnerships or LLCs are included in other assets on the consolidated balance sheets.

Intangible Assets

Until the sale of its FMBI branches in January 2024, intangible assets, which included licenses and trade names, were amortized over a period ranging from 84 to 120 months using a straight-line method of amortization. Customer list intangible assets were amortized over 21 months using a straight-line method of amortization. Also included were core deposit intangibles that were amortized over a 10-year period using the accelerated sum of the years digits method of amortization. The only intangible asset remaining as of December 31, 2025 is a trade name that is being amortized over 120 months using a straight-line method of amortization. The balance of intangible assets are no longer material and therefore included in other assets. On a periodic basis, the Company evaluates events and circumstances that may indicate a change in the recoverability of the carrying value.

Freestanding Credit Enhancements

Freestanding credit enhancements, such as credit default swaps that qualify for a derivative scope exception, are used to mitigate credit risk on certain loans included in identified reference pools. These instruments are accounted for separately from the loans they protect. The Company does not offset its estimate of expected credit losses with potential recoveries from these enhancements. This ensures that the ACL-Loans reflects the Company's own credit risk exposure. Instead, any expected recoveries are recognized as separate assets and measured using assumptions consistent with the loss estimate for the protected loans. These enhancements are recognized in other assets and other noninterest income when the criteria for recognition are met. The nature, terms, and additional details on these enhancements are described in Note 11: Other Assets and Receivables.

Income Taxes

The Company accounts for income taxes in accordance with income tax accounting guidance. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and changes in tax rates and laws are recognized

in the period in which they are enacted. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2022.

The Company recognizes interest and penalties, if any, as other noninterest expense.

The Company files consolidated income tax returns, including its subsidiaries.

Earnings Per Share

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

Share-based Compensation Plans

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

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

In 2020, the Company established an ESOP to provide certain benefits for all employees who meet certain requirements.

Revenue Recognition

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The Company’s principal source of revenue is interest income from loans, investment securities and other financial instruments that are not within the scope of the revenue accounting guidance. For other revenue sources, the Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying the revenue guidance that significantly affects the determination of the amount and timing of revenue from contracts with customers.

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

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

The Company also earns other noninterest income through a variety of financial and transaction services provided to corporate and consumer clients such as deposit service charges, debit card network fees, safe deposit box rental fees, LIHTC syndication fees, asset management fees, and derivatives. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed.

Comprehensive Income (Loss)

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

Derivative Financial Instruments

The Company enters into non-hedging designated derivative financial instruments as part of its interest rate and credit risk management strategies. These derivative financial instruments consist primarily of interest rate locks, forward sale commitments, interest rate swaps, caps, put options, interest rate floor contracts, and credit default swaps not receiving a scope exception. These derivative instruments are recorded on the consolidated balance sheets, as either an asset or liability, at their fair value. Typically, changes in fair value of derivatives are recognized in noninterest income on the consolidated statements of income. The Company also offers interest rate swaps to some customers and enters an offsetting contract with a third-party dealer. These derivatives generally work together as an economically neutral interest rate position to assist the customer, but the Company does not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability are recorded as either a charge or credit to current earnings during the period in which the changes occurred, typically resulting in no net earnings impact.

New Accounting Pronouncements Not Yet Adopted

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

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

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In November 2024, the FASB issued an ASU update 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.

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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 shall apply the ASU on a prospective basis to financial statements for annual periods beginning after the effective date. The Company is continuing to evaluate the impact of adopting this new guidance.

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FASB ASU 2025-08 – Financial Instruments – Credit Losses – Purchased Loans

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In November 2025, the FASB issued an ASU update to simplify and enhance comparability in the accounting for purchased loans under CECL. The update will require updates to CECL models and accounting processes for the new category of certain acquired loans.

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The updates in ASU 2025-08 are effective for fiscal periods beginning after December 15, 2026, including interim periods. An entity shall apply the ASU on a prospective basis to financial statements for annual periods beginning after the effective date. Early adoption is permitted. The Company is continuing to evaluate the impact of adopting this new guidance.
v3.25.4
Restriction on Cash and Due From Banks
 12 Months Ended
Dec. 31, 2025
Restriction on Cash and Due From Banks  
Restriction on Cash and Due From Banks

Note 2: Restriction on Cash and Due From Banks

The Federal Reserve’s bank reserve requirements were 0%. The effective reserve requirement has remained at 0% as of December 31, 2025 and 2024.

Included in cash equivalents at December 31, 2024 was 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 December 31, 2024 was $87.6 million. As of December 31, 2024, there was $33.5 million in restricted cash held in a separate account included in the total of interest-earning demand accounts on the consolidated balance sheets. In December 2025, the note was paid in full and the cash restrictions lifted. Also see Note 14: Borrowings.

v3.25.4
Investment Securities
 12 Months Ended
Dec. 31, 2025
Investment Securities  
Investment Securities

Note 3: 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:

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December 31, 2025

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Gross

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Gross

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Amortized

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Unrealized

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Unrealized

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Fair

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Cost

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Gains

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Losses

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Value

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​

(In thousands)

Securities available for sale:

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

Treasury notes

​

$

30,635

​

$

45

​

$

—

​

$

30,680

Federal agencies

​

 

259,591

​

 

21

​

 

104

​

 

259,508

Mortgage-backed - Government Agency (1) - multi-family

​

 

3,562

​

 

—

​

 

6

​

 

3,556

Mortgage-backed - Non-Agency - residential - fair value option (2)

​

​

385,460

​

​

—

​

​

—

​

​

385,460

Mortgage-backed - Agency - residential - fair value option (2)

​

​

185,854

​

​

—

​

​

—

​

​

185,854

Total securities available for sale

​

$

865,102

​

$

66

​

$

110

​

$

865,058

Securities held to maturity:

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed - Non-Agency - multi-family

​

$

438,430

​

$

—

​

$

950

​

$

437,480

Mortgage-backed - Non-Agency - residential

​

​

699,957

​

​

1,655

​

​

127

​

​

701,485

Mortgage-backed - Non-Agency - healthcare

​

​

393,588

​

​

—

​

​

4

​

​

393,584

Mortgage-backed - Agency - multi-family

​

​

11,684

​

​

—

​

​

679

​

​

11,005

Total securities held to maturity

​

$

1,543,659

​

$

1,655

​

$

1,760

​

$

1,543,554

​

​

​

​

​

​

​

​

​

​

​

​

​

FHLB and other equity securities (3)

​

$

227,589

​

​

​

​

​

​

​

​

​

​

(1)Agency includes government sponsored entities, such as Fannie Mae, Freddie Mac, Ginnie Mae, FHLB, and FCB.
(2)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.
(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 (1) - multi-family

​

 

1,162

​

 

—

​

 

—

​

 

1,162

Mortgage-backed - Non-Agency - residential - fair value option (2)

​

​

430,779

​

​

—

​

​

—

​

​

430,779

Mortgage-backed - Agency - residential - fair value option (2)

​

​

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)Agency includes government sponsored entities, such as Fannie Mae, Freddie Mac, Ginnie Mae, FHLB, and FCB.
(2)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.
(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 $3.8 million at December 31, 2025 and $4.9 million at December 31, 2024, respectively, and is excluded from the estimate of credit losses.

Accrued interest on securities held to maturity totaled $5.0 million at December 31, 2025 and $5.8 million at December 31, 2024, respectively, and is excluded from the estimate of credit losses.

The amortized cost and fair value of securities available for sale at December 31, 2025 and 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.

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

​

​

Amortized

​

Fair

​

​

  ​ ​ ​

Cost

  ​ ​ ​

Value

  ​ ​ ​

​

​

(In thousands)

Securities available for sale:

​

​

Within one year

​

$

85,226

​

$

85,292

​

After one through five years

​

 

205,000

​

 

204,896

​

​

​

 

290,226

​

 

290,188

​

Mortgage-backed - Agency - multi-family

​

​

3,562

​

​

3,556

​

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

​

​

385,460

​

​

385,460

​

Mortgage-backed - Agency - residential - fair value option

​

 

185,854

​

 

185,854

​

​

​

$

865,102

​

$

865,058

​

Securities held to maturity:

​

​

​

​

​

​

​

Mortgage-backed - Non-Agency - multi-family

​

$

438,430

​

$

437,480

​

Mortgage-backed - Non-Agency - residential

​

​

699,957

​

​

701,485

​

Mortgage-backed - Non-Agency - healthcare

​

​

393,588

​

​

393,584

​

Mortgage-backed - Agency - multi-family

​

​

11,684

​

 

11,005

​

​

​

$

1,543,659

​

$

1,543,554

​

​

During the year ended December 31, 2025, no securities available for sale were sold. During the year ended December 31, 2024, the Company received proceeds of $10.0 million and recognized a net loss of $108,000 from sales of securities available for sale. The $108,000 net loss consisted of $10,000 in gains and $118,000 of losses.

The carrying value of securities pledged as collateral, to secure borrowings, public deposits and for other purposes, was $1.6 billion and $1.5 billion at December 31, 2025 and 2024, respectively.

Investments in securities available for sale are reported in the consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at December 31, 2025 and 2024 was $208.5 million (eight positions) and $252.9 million (nine positions) respectively, which is approximately 24%, and 26%, respectively, of the Company’s available for sale investment portfolio.

Certain investments in securities held to maturity are reported in the consolidated financial statements at amortized cost. The amortized cost of these investments that were reported at more than their fair value at December 31, 2025 and 2024 totaled $966.9 million (eight positions) and $642.6 million (eight positions), respectively, which is approximately 63% and 39%, respectively, of the Company’s held to maturity investment portfolio.

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 December 31, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 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:

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

Federal agencies

​

$

204,896

​

$

104

​

$

—

​

$

—

​

$

204,896

​

$

104

Mortgage-backed - Government Agency - multi-family

​

​

3,556

​

​

6

​

​

—

​

​

—

​

​

3,556

​

​

6

​

​

$

208,452

​

$

110

​

$

—

​

$

—

​

$

208,452

​

$

110

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

There were no credit-related factors underlying unrealized losses on available for sale securities at December 31, 2025 and 2024, accordingly no allowance for credit losses has been recorded. Furthermore, 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.

​

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 Merchants Bank has exposure to credit losses.

The Company has a held to maturity, non-Agency, mortgage-backed security with an amortized cost value of $438.4 million and fair value of $437.5 million at December 31, 2025, acquired via a mortgage securitization transaction facilitated by the Company, which has experienced delinquencies in some of the underlying loans. As of December 31, 2025, 35% of the portfolio was delinquent. The underlying loans in the securitization have an average loan-to-value ratio of 67%. Additionally, the security is a senior tranche that has credit protection from the first 17.1% of losses. The Company continues to receive timely interest payments on this security, which was current as of December 31, 2025. The Company 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 December 31, 2025. All other securities held to maturity were classified as Pass as of December 31, 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 December 31, 2025 and 2024. See Note 5: Loans and Allowance for Credit Losses on Loans for more information on the definitions of risk classifications for both loans and securities.
v3.25.4
Mortgage Loans in Process of Securitization
 12 Months Ended
Dec. 31, 2025
Mortgage Loans in Process of Securitization  
Mortgage Loans in Process of Securitization

Note 4: Mortgage Loans in Process of Securitization

Mortgage loans in process of securitization are recorded at fair value with changes in fair value recorded in earnings. These include multi-family rental real estate loan originations to be sold as Ginnie Mae mortgage-backed securities and Fannie Mae and Freddie Mac participation certificates, all of which are pending settlement with firm investor commitments to purchase the securities, typically occurring within 30 days. The aggregate positive fair value adjustment recorded in mortgage loans in process of securitization was $5.2 million and $4.1 million as of December 31, 2025 and 2024, respectively.
v3.25.4
Loans and Allowance for Credit Losses on Loans
 12 Months Ended
Dec. 31, 2025
Loans and Allowance for Credit Losses on Loans  
Loans and Allowance for Credit Losses on Loans

​

​

Note 5: Loans and Allowance for Credit Losses on Loans

Loan Portfolio Summary

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

​

​

​

​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Mortgage warehouse repurchase agreements(1)

​

$

1,600,285

​

$

1,446,068

Residential real estate(2)

​

 

1,018,780

​

 

1,322,853

Multi-family financing

​

 

5,332,680

​

 

4,624,299

Healthcare financing

​

​

1,385,359

​

​

1,484,483

Commercial and commercial real estate(1)(3)(4)

​

 

1,603,551

​

 

1,476,211

Agricultural production and real estate

​

 

92,077

​

 

77,631

Consumer and margin loans

​

 

1,950

​

 

6,843

Loans Receivable

​

 

11,034,682

​

 

10,438,388

Less:

​

 

  ​

​

 

  ​

ACL - Loans

​

 

83,301

​

 

84,386

Loans Receivable, net

​

$

10,951,381

​

$

10,354,002

(1)The warehouse portfolio is exclusively made up of loans to residential and multi-family mortgage bankers that are funding agency-eligible mortgages and commercial loans, which represent all of the Company’s loans to non-depository institutions.
(2)Includes $832.2 million and $1.2 billion of All-in-One© first-lien home equity lines of credit at December 31, 2025 and 2024, respectively.
(3)Includes $944.3 million and $908.9 million of revolving lines of credit collateralized primarily by servicing rights as of December 31, 2025 and 2024, respectively.
(4)Includes only $19.5 million and $18.7 million of non-owner occupied commercial real estate as of December 31, 2025 and 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. Traditional secured warehouse repurchase agreements and participation agreements typically carry a base interest rate of SOFR plus a margin, or the mortgage note rate.

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

Residential Real Estate Loans (RES RE): Real estate loans are secured by owner-occupied one-to-four family residences. Repayment of residential real estate loans is primarily dependent on the personal income and 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 receivable, 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 may include refinancing to a permanent loan or sale of the property, as well as 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. Interest rate risk is mitigated by borrower purchased rate caps, interest reserves, liquidity covenants, and forward commitments from GSEs. 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 need-based, 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 refinancing to a permanent loan or sale of the property, 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, plus 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 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, plus 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.

​

​

​

​

The following tables present, by loan portfolio segment, the activity in the ACL-Loans during the years ended December 31, 2025, 2024, and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 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

​

 

453

​

 

(1,270)

 

​

102,147

​

​

17,530

​

 

3,965

​

 

158

​

 

(79)

​

 

122,904

Loans charged to the allowance

​

 

—

​

 

—

 

​

(114,281)

​

​

(7,497)

​

 

(2,338)

​

 

—

​

 

—

​

 

(124,116)

Recoveries of loans previously charged-off

​

 

—

​

 

—

 

​

49

​

​

—

​

 

78

​

 

—

​

 

—

​

​

127

Balance, end of period

​

$

4,269

​

$

4,672

​

$

43,041

​

$

18,595

​

$

11,998

​

$

697

​

$

29

​

$

83,301

​

The Company recorded a total provision for credit losses of $117.8 million for the year ended December 31, 2025. The $117.8 million provision for credit losses consisted of $122.9 million for the ACL-Loans as shown above, net of a $4.7 million release for the ACL-OBCEs, and net of a $0.4 million release for the ACL-Guarantees, related to a loan securitization.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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 the ACL-Guarantees, related to a loan securitization, and $0.6 million for the release of FMBI’s ACL-Loans for loans sold.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2023

​

  ​

MTG WHRA

  ​

RES RE

  ​

MF FIN

  ​

HC FIN

​

CML & CRE

  ​

AG & AGRE

  ​

CON & MAR

  ​

TOTAL

​

​

(In thousands)

ACL - Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of year

​

$

1,249

​

$

7,029

 

$

16,781

​

$

9,882

​

$

8,326

​

$

565

​

$

182

​

$

44,014

Provision for credit losses

​

 

821

​

 

328

 

​

18,493

​

​

12,572

​

 

5,232

​

 

54

​

 

(12)

​

 

37,488

Loans charged to the allowance

​

 

—

​

 

(34)

 

​

(8,400)

​

​

—

​

 

(1,356)

​

 

—

​

 

(1)

​

 

(9,791)

Recoveries of loans previously charged off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

41

​

 

—

​

 

—

​

 

41

Balance, end of year

​

$

2,070

​

$

7,323

​

$

26,874

​

$

22,454

​

$

12,243

​

$

619

​

$

169

​

$

71,752

​

The Company recorded a total provision for credit losses of $40.2 million for the year ended December 31, 2023. The $40.2 million provision for credit losses consisted of $37.5 million for the ACL-Loans as shown above and $2.7 million for the ACL-OBCEs.

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

 

Real Estate

 

Accounts Receivable / Equipment

 

Other

 

Total

 

ACL-Loans Allocation

​

​

(In thousands)

RES RE

​

$

7,681

​

$

—

 

$

—

​

$

7,681

​

$

39

MF FIN

​

 

213,289

​

 

—

 

​

—

​

 

213,289

​

 

5,618

HC FIN

​

​

72,825

​

​

—

​

​

—

​

​

72,825

​

​

12,515

CML & CRE

​

 

8,725

​

 

—

 

​

566

​

 

9,291

​

 

270

AG & AGRE

​

 

181

​

 

4

 

​

—

​

 

185

​

 

2

Total collateral dependent loans

​

$

302,701

​

$

4

​

$

566

​

$

303,271

​

$

18,444

​

There were no significant changes in 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 exhibit characteristics that warrant closer ongoing monitoring by management.

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 Company’s credit position at some future date. Special Mention loans are not adversely classified and do not warrant adverse classification. Loans with questions or concerns regarding collateral, adverse market conditions impacting future performance, and declining financial trends would be considered for Special Mention.

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

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

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

  ​ ​ ​

2022

  ​ ​ ​

2021

  ​ ​ ​

Prior

  ​ ​ ​

Revolving Loans

​

Total

​

​

(In thousands)

MTG WHRA

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1,600,285

​

$

1,600,285

Total

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1,600,285

​

$

1,600,285

RES RE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

66,511

​

$

33,386

​

$

21,645

​

$

6,378

​

$

4,608

​

$

21,283

​

$

857,288

​

$

1,011,099

Substandard

​

​

—

​

​

—

​

​

431

​

​

22

​

​

—

​

​

129

​

​

7,099

​

​

7,681

Total

​

$

66,511

​

$

33,386

​

$

22,076

​

$

6,400

​

$

4,608

​

$

21,412

​

$

864,387

​

$

1,018,780

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

1,193,011

​

$

650,672

​

$

348,888

​

$

189,881

​

$

22,868

​

$

9,291

​

$

2,539,144

​

$

4,953,755

Special Mention

​

​

70,127

​

​

71,723

​

​

—

​

​

21,924

​

​

—

​

​

232

​

​

1,630

​

​

165,636

Substandard

​

​

39,936

​

​

8,302

​

​

79,463

​

​

74,992

​

​

—

​

​

—

​

​

10,596

​

​

213,289

Total

​

$

1,303,074

​

$

730,697

​

$

428,351

​

$

286,797

​

$

22,868

​

$

9,523

​

$

2,551,370

​

$

5,332,680

Charge-offs

​

$

—

​

$

—

​

$

42,884

​

$

65,405

​

$

—

​

$

5,992

​

$

—

​

$

114,281

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

693,986

​

$

6,922

​

$

32,305

​

$

—

​

$

—

​

$

—

​

$

548,130

​

$

1,281,343

Special Mention

​

​

13,503

​

​

17,688

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

31,191

Substandard

​

​

21,967

​

​

—

​

​

24,691

​

​

—

​

​

20,317

​

​

—

​

​

5,850

​

​

72,825

Total

​

$

729,456

​

$

24,610

​

$

56,996

​

$

—

​

$

20,317

​

$

—

​

$

553,980

​

$

1,385,359

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

5,296

​

$

2,201

​

$

—

​

$

7,497

CML & CRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

65,578

​

$

48,115

​

$

43,092

​

$

59,178

​

$

35,950

​

$

30,767

​

$

1,303,578

​

$

1,586,258

Special Mention

​

​

5,123

​

​

116

​

​

561

​

​

502

​

​

883

​

​

142

​

​

675

​

​

8,002

Substandard

​

​

—

​

​

213

​

​

128

​

​

600

​

​

8,330

​

​

20

​

​

—

​

​

9,291

Total

​

$

70,701

​

$

48,444

​

$

43,781

​

$

60,280

​

$

45,163

​

$

30,929

​

$

1,304,253

​

$

1,603,551

Charge-offs

​

$

—

​

$

302

​

$

316

​

$

160

​

$

1,560

​

$

—

​

$

—

​

$

2,338

AG & AGRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

14,702

​

$

15,457

​

$

7,007

​

$

4,386

​

$

2,807

​

$

19,840

​

$

27,604

​

$

91,803

Special Mention

​

​

89

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

89

Substandard

​

​

—

​

​

—

​

​

4

​

​

181

​

​

—

​

​

—

​

​

—

​

​

185

Total

​

$

14,791

​

$

15,457

​

$

7,011

​

$

4,567

​

$

2,807

​

$

19,840

​

$

27,604

​

$

92,077

CON & MAR

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

133

​

$

108

​

$

15

​

$

2

​

$

—

​

$

—

​

$

1,692

​

$

1,950

Special Mention

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Total

​

$

133

​

$

108

​

$

15

​

$

2

​

$

—

​

$

—

​

$

1,692

​

$

1,950

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Pass

​

$

2,033,921

​

$

754,660

​

$

452,952

​

$

259,825

​

$

66,233

​

$

81,181

​

$

6,877,721

​

$

10,526,493

Total Special Mention

​

$

88,842

​

$

89,527

​

$

561

​

$

22,426

​

$

883

​

$

374

​

$

2,305

​

$

204,918

Total Substandard

​

$

61,903

​

$

8,515

​

$

104,717

​

$

75,795

​

$

28,647

​

$

149

​

$

23,545

​

$

303,271

Total Loans

​

$

2,184,666

​

$

852,702

​

$

558,230

​

$

358,046

​

$

95,763

​

$

81,704

​

$

6,903,571

​

$

11,034,682

Total Charge-offs

​

$

—

​

$

302

​

$

43,200

​

$

65,565

​

$

6,856

​

$

8,193

​

$

—

​

$

124,116

​

All loans held for sale were pass grade as of December 31, 2025 and are not included in the table above. The Company did not have any material revolving loans convert to term loans that were not re-underwritten at December 31, 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 does not include 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 convert 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 receivable as of December 31, 2025 and 2024.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

  ​ ​ ​

30-59 Days

  ​ ​ ​

​

60-89 Days

  ​ ​ ​

​

90+ Days

  ​ ​ ​

​

Total

  ​ ​ ​

​

​

​

  ​ ​ ​

​

Total

​

​

​

Past Due

​

​

Past Due

​

​

Past Due

​

​

Past Due

​

​

Current

​

​

Loans

​

​

​

(In thousands)

MTG WHRA

​

$

—

 

​

$

—

​

​

$

—

​

​

$

—

​

​

$

1,600,285

​

​

$

1,600,285

​

RES RE

​

 

5,077

 

​

​

2,430

​

​

 

3,479

​

​

 

10,986

​

​

 

1,007,794

​

​

 

1,018,780

​

MF FIN

​

 

—

 

​

​

47,475

​

​

 

111,348

​

​

 

158,823

​

​

 

5,173,857

​

​

 

5,332,680

​

HC FIN

​

​

—

 

​

​

—

​

​

 

26,167

​

​

 

26,167

​

​

 

1,359,192

​

​

 

1,385,359

​

CML & CRE

​

 

7,517

 

​

​

659

​

​

 

2,280

​

​

 

10,456

​

​

 

1,593,095

​

​

 

1,603,551

​

AG & AGRE

​

 

—

 

​

​

125

​

​

 

4

​

​

 

129

​

​

 

91,948

​

​

 

92,077

​

CON & MAR

​

 

—

 

​

​

—

​

​

 

—

​

​

 

—

​

​

 

1,950

​

​

 

1,950

​

​

​

$

12,594

​

​

$

50,689

​

​

$

143,278

​

​

$

206,561

​

​

$

10,828,121

​

​

$

11,034,682

​

​

​

​

—

%

​

​

—

%

​

​

1

%

​

​

2

%

​

​

98

%

​

​

100

%

​

The table above excludes one multi-family loan of $0.3 million, 30-59 days past due, classified as held for sale that was past due as of December 31, 2025.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

  ​ ​ ​

30-59 Days

  ​

​

60-89 Days

  ​

​

90+ Days

  ​

​

Total

  ​

​

​

​

  ​

​

Total

​

​

​

Past Due

​

​

Past Due

​

​

Past Due

​

​

Past Due

​

​

Current

​

​

Loans

​

​

​

(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

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. The amount of interest income recognized on nonaccrual financial assets was inconsequential during the years ended December 31, 2025 and 2024.

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

​

2025

​

2024

​

​

​

​

​

Total Loans >

​

​

​

​

Total Loans >

​

​

​

​

​

90 Days &

​

​

​

​

90 Days &

​

  ​ ​ ​

Nonaccrual

  ​ ​ ​

Accruing

  ​ ​ ​

Nonaccrual

  ​ ​ ​

Accruing

​

​

(In thousands)

RES RE

​

$

7,680

​

$

—

​

$

6,154

​

$

—

MF FIN

​

 

128,241

​

 

—

​

 

201,508

​

 

—

HC FIN

​

​

59,574

​

 

—

​

 

69,001

​

 

—

CML & CRE

​

 

2,313

​

​

—

​

 

3,047

​

​

—

AG & AGRE

​

 

4

​

 

—

​

 

6

​

 

6

​

​

$

197,812

​

$

—

​

$

279,716

​

$

6

​

The Company did not have any loans classified as held for sale on nonaccrual or 90 days past due and accruing as of December 31, 2025. Similar amounts at December 31, 2024 were inconsequential.

​

The Company did not have any nonperforming loans without an estimated ACL at December 31, 2025 and 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 table presents the amortized cost basis of loans at December 31, 2025 and 2024 that were both experiencing financial difficulty and modified during the years ended December 31, 2025 and 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 total amortized cost basis of each class of financing receivable is also presented below.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

December 31, 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

  ​ ​ ​

Total
Class of
Financing
Receivable

  ​ ​ ​

% of Total
Class of
Financing
Receivable

​

​

​

(In thousands)

​

(In thousands)

​

MF FIN

 

$

—

 

$

80,932

​

$

32,537

 

$

113,469

 

​

2

%

$

40,398

 

$

51,786

​

$

92,184

 

​

2

%

HC FIN

​

​

24,691

​

​

40,892

​

​

8,716

​

​

74,299

​

​

5

%

​

9,737

​

​

4,224

​

​

13,961

​

​

1

%

CML & CRE

​

​

—

​

​

768

​

​

177

​

​

945

​

​

—

%

​

—

​

​

—

​

​

—

​

​

—

%

Total

​

$

24,691

​

$

122,592

​

$

41,430

​

$

188,713

​

​

2

%

$

50,135

​

$

56,010

​

$

106,145

​

​

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 impairment and specific reserves were established, if applicable. As of December 31, 2025, there were no specific reserves recorded on troubled loan modifications disclosed herein. The Company had a commitment to lend $3.0 million and $0 as of December 31, 2025 and 2024, respectively, to the borrowers included in the tables above.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

​

Payment Delay

​

Term Extension

​

Combination - Term Extension and Payment Delay

Loan Type

​

Financial Effect

​

Financial Effect

​

Financial Effect

MF FIN

​

—

​

Added a weighted average 7 months.

​

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

HC FIN

​

Forbearance average of 9 months.

​

Added a weighted average 8 months.

​

Term extension added a weighted average of 14 months and forbearance average of 6 months.

CML & CRE

​

—

​

Added a weighted average 74 months.

​

Term extension added a weighted average of 60 months and forbearance average of 12 months.

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

​

Payment Delay

​

Term Extension

​

Combination - Term Extension and Payment Delay

Loan Type

​

Financial Effect

​

Financial Effect

​

Financial Effect

MF FIN

​

Forbearance average of 7 months.

​

Added a weighted average 23 months.

​

—

HC FIN

​

Forbearance average of 6 months.

​

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 were modified in the twelve months following modification:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

  ​ ​ ​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

30 - 89 Days

​

  ​ ​ ​

90+ Days

  ​ ​ ​

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

Past Due

​

​

Past Due

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(In thousands)

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

101,929

​

$

11,540

​

​

$

—

​

$

113,469

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

65,584

​

​

8,715

​

​

​

—

​

​

74,299

CML & CRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

945

​

​

—

​

​

​

—

​

​

945

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

168,458

​

$

20,255

​

​

$

—

​

$

188,713

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

  ​ ​ ​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

30 - 89 Days

​

  ​ ​ ​

90+ Days

  ​ ​ ​

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

Past Due

​

​

Past Due

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(In thousands)

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

78,519

​

$

13,665

​

​

$

—

​

$

92,184

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

—

​

​

13,961

​

​

​

—

​

​

13,961

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

78,519

​

$

27,626

​

​

$

—

​

$

106,145

​

​

During the year ended December 31, 2025, there was a default on an $11.5 million loan to a borrower whose loan was modified due to financial difficulties within the previous twelve months. During the year ended December 31, 2024, there were defaults on loans totaling $23.4 million for borrowers whose loans were modified due to financial difficulties within the previous twelve months.

​

Foreclosures

​

There were $3.5 million and $1.9 million in residential loans in process of foreclosure as of December 31, 2025 and 2024, respectively.

Significant Loan Sales

​

Loan Sale and Securitization - 2025 Activity

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, 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.

Freddie Mac Q Series Securitizations –2025 Activity

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, 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 July 31, 2025, the Company completed a $237.0 million securitization of one multi-family mortgage loan through a Freddie Mac-sponsored Q-Series transaction. The transfer of this loan was accounted for as a sale for financial reporting purposes, and a $300,000 gain on sale was recognized. The Company was retained as the mortgage sub-servicer for Freddie Mac for the single loan. Beyond sub-servicing the loan, 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 $497,000 was established.

On December 11, 2025, the Company completed a $172.8 million securitization of five multi-family mortgage loans through a Freddie Mac-sponsored Q-Series transaction. The transfer of this loan was accounted for as a sale for financial reporting purposes, and a $597,000 gain on sale was recognized. The Company was retained as the mortgage sub-servicer for Freddie Mac for the single loan. Beyond sub-servicing the loan, 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 $636,000 was established.

Loan Sale and Securitization - 2024 Activity

On September 26, 2024, the Company completed a private securitization by which a $628.9 million portfolio of healthcare bridge loans were sold into a real estate mortgage investment conduit (“REMIC”) and ultimately sold to investors as securities. The Company retained a senior security for a total of $534.5 million and classified it as a security held to maturity. An unaffiliated, third-party institutional investor purchased the remaining subordinate interests and maintains the first-loss position on 15.0% of the losses in the loan portfolio. This transaction provided the Company an avenue to enhance capital efficiency and minimize credit risk on the balance sheet.

​

As part of the securitization transaction, the Company will be both Master Servicer and Special Servicer of the loans. As Master Servicer and Special Servicer, the Company will have obligations to collect and remit payments of principal and interest, manage payments of taxes and insurance, and otherwise administer the underlying loans.

​

Beyond 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 the securitization, the Company received proceeds on loans, net of the acquired securities, of $94.0 million. No allowance for credit losses was recognized in connection with purchase of the security, in accordance with ASC 326. However, the $4.4 million allowance for credit losses associated with the loans sold was released through the provision for credit losses.

​

The transfer of these loans was accounted for as a sale for financial reporting purposes, in accordance with ASC 860, and a $0.6 million net loss on sale was recognized.

​

Freddie Mac Q Series Securitization - 2024 Activity

On April 30, 2024, the Company completed a $324.6 million securitization of 13 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 $1.4 million gain on sale was recognized. The Company was retained as the mortgage sub-servicer for Freddie Mac on the entire $324.6 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 $1.3 million was established.

Loans Purchased

The Company purchased $67.5 million and $108.6 million of loans during the years ended December 31, 2025 and 2024, respectively.

​

Standby Letters of Credit

​

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. Although, 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 Company has never had to fund a standby letter of credit. The terms of these standby letters of credit range from less than one to eight years. These commitments are not recorded in the consolidated financial statements. The total for these guarantees at December 31, 2025 and 2024 was $186.5 million and $204.7 million, respectively.

​

Supplemental Cash Flow Information

​

Supplemental cash flow information related to loans is presented in the table below.

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

2024

​

2023

​

​

(In thousands)

​

​

​

​

​

​

​

​

​

​

Cash Flow Statement

​

​

​

​

​

​

​

​

​

Supplemental cash flow information:

​

​

​

​

​

​

​

​

​

Transfer of loans to other real estate owned

​

$

55,798

​

$

6,285

​

$

—

Investments received in securitization of loans sold

​

 

3,583

​

 

534,538

​

 

—

Deposits received upon loan origination

​

 

189,206

​

 

—

​

 

—

Transfer of loans from loans held for sale to loans receivable

​

​

390,728

​

​

118,000

​

​

377,460

Transfer of loans from loans receivable to loans held for sale

​

 

431,520

​

 

612,469

​

 

65,768

​
v3.25.4
Premises and Equipment
 12 Months Ended
Dec. 31, 2025
Premises and Equipment  
Premises and Equipment

​

​

Note 6: Premises and Equipment

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

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Land

​

$

8,016

​

$

8,016

Buildings

​

 

58,295

​

 

28,200

Building and remodeling in progress

​

 

3,731

​

 

20,453

Leasehold improvements

​

 

1,084

​

 

1,017

Furniture, fixtures, equipment and software

​

 

19,152

​

 

14,335

Total cost

​

 

90,278

​

 

72,021

Accumulated depreciation

​

 

(16,349)

​

 

(13,404)

Net premises and equipment

​

$

73,929

​

$

58,617

​

Depreciation expense of $3.5 million, $3.0 million and $2.9 million was recorded for the years ended December 31, 2025, 2024, and 2023, respectively.

v3.25.4
Loan Servicing
 12 Months Ended
Dec. 31, 2025
Loan Servicing  
Loan Servicing

Note 7: Loan Servicing

Mortgage and SBA loans serviced for others are not included on the accompanying consolidated balance sheets and include multi-family, single-family, and SBA loans sold in the secondary market. The risks inherent in servicing assets relate primarily to changes in prepayments that result from shifts in interest rates. Call protection is in place on certain multi-family loans to deter from prepayments on a 10-year sliding scale. As of December 31, 2025 and 2024, the Company’s servicing portfolio included unpaid principal balances of loans serviced for others of $21.3 billion and $17.6 billion, loans sub-serviced for others of $3.7 billion and $3.0 billion, and other servicing balances of $680.6 million and $784.8 million, respectively. The servicing portfolio is primarily Ginnie Mae, Fannie Mae, and Freddie Mac loans and is a significant source of our noninterest income and deposits.

The following summarizes the activity in servicing rights measured using the fair value method for the years ended December 31, 2025, 2024, and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

2024

  ​ ​ ​

2023

​

 

​

(In thousands)

Balance, beginning of period

​

$

189,935

​

$

158,457

​

$

146,248

Purchased servicing

​

 

14,482

​

 

—

​

 

513

Originated servicing

​

 

23,654

​

 

18,670

​

 

14,755

Paydowns

​

 

(12,223)

​

 

(9,901)

​

 

(7,621)

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

​

 

1,448

​

 

22,709

​

 

4,562

Balance, end of period

​

$

217,296

​

$

189,935

​

$

158,457

​

Contractually specified servicing fees for retained, purchased and sub-serviced loans were $33.1 million, $30.9 million, and $29.3 million for years ended December 31, 2025, 2024, and 2023, respectively.

In connection with certain loan servicing and sub-servicing agreements, the Company is to reconcile the payments received monthly on these loans, for principal and interest, taxes, insurance, and replacement reserves. The funds are required to be maintained in separate trust accounts and not commingled with the Company’s general operating funds. At December 31, 2025 and 2024, the Company held restricted escrow funds for these loans at Merchants Bank or other financial institution, amounting to $2.1 billion and $1.5 billion, respectively.
v3.25.4
Goodwill
 12 Months Ended
Dec. 31, 2025
Goodwill.  
Goodwill

Note 8: Goodwill

Goodwill was $8.0 million as of December 31, 2025 and 2024. The Company sold its FMBI branches in January 2024, resulting in the extinguishment of associated goodwill. Goodwill represents the amount by which the cost of an acquisition exceeded the fair value of net assets acquired. Goodwill is tested for impairment annually, as of December 31, or more frequently if events and circumstances exist that indicate a goodwill impairment test should be performed.

​

In performing the impairment assessment, the Company evaluated the favorable business and political environment, high demand for affordable housing, improvement in quarterly operating results, macroeconomic factors, its forecasted expectations for long-term growth, and the results of prior quantitative impairment tests that indicated substantial excess fair value. Based upon management’s assessment and evaluation of goodwill at year-end, the likelihood that an impairment of the current carrying amount of goodwill has occurred is considered remote.

.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2025

​

​

2024

​

​

2023

​

Multi-family

  ​ ​ ​

Banking

  ​ ​ ​

Warehouse

  ​ ​ ​

Total

  ​ ​ ​

Multi-family

  ​ ​ ​

Banking

  ​ ​ ​

Warehouse

  ​ ​ ​

Total

  ​ ​ ​

Multi-family

  ​ ​ ​

Banking

  ​ ​ ​

Warehouse

  ​ ​ ​

Total

​

(In thousands)

​

(In thousands)

​

(In thousands)

Balance, beginning of period

$

3,791

​

$

522

​

$

3,701

​

$

8,014

​

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

​

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

Sale of FMBI branches

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

(7,831)

​

​

—

​

​

(7,831)

​

​

—

​

​

—

​

​

—

​

​

—

Balance, end of period

$

3,791

​

$

522

​

$

3,701

​

$

8,014

​

$

3,791

​

$

522

​

$

3,701

​

$

8,014

​

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

​
v3.25.4
Qualified Affordable Housing and Other Tax Credits
 12 Months Ended
Dec. 31, 2025
Qualified Affordable Housing and Other Tax Credits  
Qualified Affordable Housing and Other Tax Credits

Note 9: 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 on 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 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 the MCI subsidiary. The investments are included in other assets on the 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.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

December 31, 2024

​

​

​

(In thousands)

Investment

Accounting Method

​

Investment

​

Unfunded Commitments

​

Investment

​

Unfunded Commitments

LIHTC

Proportional amortization

​

$

218,110

​

$

118,043

​

$

123,574

​

$

93,929

LIHTC (1)

Lower of cost or market

​

​

49,725

​

​

—

​

​

56,533

​

​

—

LIHTC subtotal

​

​

$

267,835

​

$

118,043

​

$

180,107

​

$

93,929

Joint Venture

Consolidated

​

​

10,903

​

​

—

​

​

10,937

​

​

—

Total

​

​

$

278,738

​

$

118,043

​

$

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 years ended December 31, 2025, 2024, and 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31,

​

​

​

​

​

​

2025

​

2024

​

2023

​

​

​

​

​

​

(In thousands)

Amortization expense

​

​

​

​

​

$

24,892

​

$

10,430

​

$

7,949

Expected tax credits

​

​

​

​

​

​

27,532

​

​

12,114

​

​

8,416

​

​

The Company serves as a general partner for several syndicated low-income housing tax credit funds that are owned by one investor, holding 85.00-99.99% of the funds, as a limited partner. The Company, as general partner, provided services during 2025 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 $32.9 million. The amount of payments to be received by 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 2043. 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 December 31, 2025 and 2024. Revenue recognition is continuously evaluated as facts and circumstances evolve. The Company has also advanced these LIHTC funds $102.7 million and $98.8 million as of December 31, 2025 and 2024, respectively, 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 consolidated balance sheets.

​

Supplemental Cash Flow Information

​

Supplemental cash flow information related to loans is presented in the table below.

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

2024

​

2023

​

​

(In thousands)

​

​

​

​

​

​

​

​

​

​

Cash Flow Statement

​

​

​

​

​

​

​

​

​

Supplemental cash flow information:

​

​

​

​

​

​

​

​

​

Qualified affordable housing investments obtained in exchange for funding commitments

​

$

66,307

​

$

—

​

$

—

Deposits received upon reduction of funding commitments

​

 

42,193

​

 

—

​

 

—

Deposits received upon purchase of LIHTCs

​

​

11,166

​

​

—

​

​

—

Beneficial interests received in exchange for LIHTC's sold

​

 

14,637

​

 

38,793

​

 

—

​

Transferable Energy Production Tax Credits

In 2025, the Company acquired $151.3 million in transferable tax credits for $142.8 million. The benefits of the tax credits were recognized immediately as a reduction to current income tax expense in the amount of $8.5 million.

​
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases  
Leases

Note 10: Leases

The Company has operating leases for various locations with terms ranging from one to six years. Some operating leases include options to extend. The extensions were included in the ROU 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 December 31, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

December 31, 2024

​

​

​

​

(In thousands)

​

Balance Sheet

​

​

​

​

​

​

  ​ ​ ​

Operating lease ROU asset (in other assets)

​

$

6,006

​

$

8,332

​

Operating lease liability (in other liabilities)

​

​

7,264

​

​

9,303

​

​

​

​

​

​

​

​

​

Weighted average remaining lease term (years)

​

​

3.7

​

​

4.6

​

Weighted average discount rate

​

​

3.44%

​

​

3.43%

​

​

The table below presents the components of lease expenses for the years ended December 31, 2025, 2024, and 2023. Operating lease expenses are included in occupancy and equipment expense on the consolidated income statements.

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31,

​

​

2025

​

2024

​

2023

​

​

(In thousands)

Statement of Income

​

​

​

​

​

​

​

​

​

Components of lease expense:

​

​

​

​

​

​

​

​

​

Operating lease cost

​

$

3,402

​

$

2,692

​

$

2,438

​

As of December 31, 2025, the Company has forward-starting leases with total net future minimum lease payments of $10.7 million. These leases commence on dates ranging between March 1, and April 1, 2026, and obligate the Company to use and pay for space over seven to ten years upon commencement. No ROU asset or lease liability has been recorded at year-end because the leases have not commenced.

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

​

​

​

​

​

​

​

December 31, 2025

​

​

(In thousands)

Maturities of operating lease liabilities:

​

​

​

One year or less

​

$

2,293

Year two

​

​

2,203

Year three

​

​

1,597

Year four

​

​

1,101

Year five

​

​

419

Thereafter

​

​

128

Total future minimum lease payments

​

$

7,741

Less: imputed interest

​

​

477

Total

​

$

7,264

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31,

​

​

2025

​

2024

​

2023

​

​

(In thousands)

Statement of Cash Flow

​

​

Supplemental cash flow information:

​

​

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

2,325

​

$

2,505

​

$

2,129

Change in ROU assets due to lease renegotiation

​

​

—

​

​

(1,063)

​

​

—

ROU assets obtained in exchange for new operating lease liabilities

​

​

—

​

​

1,337

​

​

1,113

​
v3.25.4
Other Assets and Receivables
 12 Months Ended
Dec. 31, 2025
Other Assets and Receivables  
Other Assets and Receivables

Note 11: Other Assets and Receivables

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

Qualified Affordable Housing

See Note 9: Qualified Affordable Housing and Other Tax Credits for further information.

Federal Income Tax Receivable

The Company had a federal income tax receivable of $181.5 million and $2.6 million as of December 31, 2025 and 2024, respectively. This receivable was related to the acquisition of $151.3 million of transferable tax credits by the Company this year and the amounts due from the Internal Revenue Service claimed on federal income tax returns for which refunds had not been received as of the respective balance sheet dates. The Company evaluates the collectability of the federal income tax receivable at each reporting date. Based on management’s assessment, including consideration of amounts, and applicable statutory refund provisions, the Company believes the receivable is collectible. The balance will be reduced upon receipt of the related cash refunds.

Joint Ventures

The Company has investments in various joint ventures totaling $47.0 million and $42.2 million at December 31, 2025 and 2024, respectively. These investments are primarily made of up of investments in debt funds totaling $32.0 million and $31.8 million at December 31, 2025 and 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 $8.4 million and $3.8 million as of December 31, 2025 and 2024, respectively. See Note 12: Variable Interest Entities (VIEs) for additional information about VIE’s.

Other Prepaid Expense

The Company had $5.6 million at December 31, 2025, a decrease of $125.2 million, compared to December 31, 2024. The Company had to pay $125.0 million to its transfer agent in December 2024 as part of the Series B preferred stock redemption transaction. This resulted in a prepaid asset that was reduced when the preferred shares were redeemed on January 2, 2025.

Intangibles

Core deposit and other intangibles are recorded on the acquisition date of an entity. The Company has one year after the acquisition date to record subsequent adjustments for provisional amounts recorded at the acquisition date. The carrying basis and accumulated amortization of recognized trade names and other intangibles are noted below.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

2025

  ​ ​ ​ ​

2024

  ​ ​ ​ ​

2023

​

​

Gross

  ​ ​ ​

​

​

  ​ ​

​

​

​

Gross

  ​ ​ ​

​

​

​

Sale of

  ​ ​ ​

​

​

  ​ ​ ​

Gross

  ​ ​ ​

​

​

  ​ ​ ​

​

​

​

​

Carrying

​

Accumulated

​

​

​

​

Carrying

​

Accumulated

​

FMBI

​

​

​

​

Carrying

​

Accumulated

​

​

​

​

​

Amount

​

Amortization

​

Total

  ​ ​ ​

Amount

​

Amortization

​

branches

​

Total

  ​ ​ ​

Amount

​

Amortization

​

Total

​

​

(In thousands)

​

(In thousands)

​

(In thousands)

Licenses

​

$

—

​

$

—

​

$

—

​

$

1,370

​

$

(1,370)

​

$

—

​

$

—

​

$

1,370

​

$

(1,247)

​

$

123

Trade names

​

​

224

​

​

(188)

​

​

36

​

​

224

​

​

(165)

​

​

—

​

​

59

​

​

224

​

​

(143)

​

​

81

Core deposit intangible

​

​

—

​

​

—

​

​

—

​

​

2,417

​

​

(1,879)

​

​

(538)

​

​

—

​

​

2,417

​

​

(1,879)

​

​

538

Total intangible assets

​

$

224

​

$

(188)

​

$

36

​

$

4,011

​

$

(3,414)

​

$

(538)

​

$

59

​

$

4,011

​

$

(3,269)

​

$

742

​

​

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

​

​

​

​

​

Year ending December 31,

  ​ ​ ​

​

​

2026

​

$

22

2027

​

​

14

Total

​

$

36

​

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 in the future also include warehouse repurchase agreements classified as loans receivable. The CDS covers a protected tranche of 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 with the CDS 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. The derivative scope exception 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.

​

As of December 31, 2025 and 2024, there were no CDS recovery assets established. The total loan pool balance was $2.0 billion and $1.2 billion as of December 31, 2025 and 2024, respectively.

​

Leases and Other Items

​

Other items included in other assets and receivables on the consolidated balance sheets are disclosed elsewhere or are not individually significant. See Note 15: Derivative Financial Instruments and Note 10: Leases for further information.
v3.25.4
Variable Interest Entities
 12 Months Ended
Dec. 31, 2025
Variable Interest Entities  
Variable Interest Entities

Note 12: Variable Interest Entities (VIEs)

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

​

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

​

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

​

The Company has invested in single-family, multi-family, and healthcare debt financing entities, as well as low-income housing syndicated funds that are deemed to be VIEs. The Company also has deemed certain mortgage backed securitizations (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 has significant exposure to the entity’s economics, both qualitative and quantitative factors regarding the nature, size and form of involvement with the entity are evaluated.

​

At December 31, 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 assessment of VIEs for consolidation is performed on an ongoing basis by management. Any changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment.

​

The table below reflects the investments in the VIEs, as well as the maximum exposure to loss in connection with unconsolidated VIEs, and liabilities for binding, unfunded commitments at December 31, 2025 and 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 and unfunded liabilities for VIEs are recorded in other assets and other liabilities, respectively, on the 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

​

of VIEs

​

Exposure to Loss

​

for VIEs

​

​

​

(In thousands)

​

December 31, 2025

​

 

  ​

​

 

  ​

​

​

​

​

​

​

​

  ​

​

​

Low-income housing tax credit investments

​

$

239,698

​

$

284,391

​

$

—

​

$

524,089

​

$

88,708

​

Debt funds

​

​

32,038

​

​

82,955

​

​

—

​

​

114,993

​

​

—

​

Mortgage-backed securitizations (1)

​

​

—

​

​

24,750

​

​

1,531,975

​

​

1,556,725

​

​

—

​

Total Unconsolidated VIEs

​

$

271,736

​

$

392,096

​

$

1,531,975

​

$

2,195,807

​

$

88,708

​

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.
v3.25.4
Deposits
 12 Months Ended
Dec. 31, 2025
Deposits  
Deposits

​

​

Note 13: Deposits

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

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Noninterest-bearing deposits

​

​

​

​

​

​

Core demand deposits

​

$

604,081

​

$

239,005

​

​

​

​

​

​

​

Interest-bearing deposits

​

​

​

​

​

​

Demand deposits:

​

​

​

​

​

​

Core demand deposits

​

$

6,207,814

​

$

4,319,512

Brokered demand deposits

​

​

600,000

​

​

—

Total interest-earning demand deposits

​

​

6,807,814

​

​

4,319,512

Money market/savings deposits:

​

 

​

​

 

​

Core money market/savings deposits

​

​

3,566,523

​

​

3,442,111

Brokered money market/savings deposits

​

​

201,010

​

​

859

Total money market/savings deposits

​

​

3,767,533

​

​

3,442,970

Certificates of deposit:

​

 

​

​

 

​

Core certificates of deposits

​

​

905,448

​

​

1,385,270

Brokered certificates of deposits

​

​

956,316

​

​

2,533,219

Total certificates of deposits

​

​

1,861,764

​

​

3,918,489

Total interest-bearing deposits

​

​

12,437,111

​

​

11,680,971

Total deposits

​

$

13,041,192

​

$

11,919,976

​

​

​

​

​

​

​

Total core deposits

​

$

11,283,866

​

$

9,385,898

Total brokered deposits

​

​

1,757,326

​

​

2,534,078

Total deposits

​

$

13,041,192

​

$

11,919,976

​

Maturities for certificates of deposit are as follows:

​

​

​

​

​

​

  ​ ​ ​

December 31, 2025

​

​

(In thousands)

Due within one year

​

$

1,800,531

Due in one year to two years

​

 

49,338

Due in two years to three years

​

 

11,895

Due in three years to four years

​

 

—

Due in four years to five years

​

​

—

Due in five years to six years

​

 

—

​

​

$

1,861,764

​

Certificates of deposit of $250,000 or more totaled $497.5 million and $694.8 million at December 31, 2025 and 2024, respectively.
v3.25.4
Borrowings
 12 Months Ended
Dec. 31, 2025
Borrowings  
Borrowings

Note 14: Borrowings

Borrowings were comprised of the following at December 31, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Federal Reserve discount window borrowings

​

$

—

​

$

50,000

Subordinated debt

​

​

71,800

​

​

71,800

FHLB advances

​

​

3,762,858

​

​

4,172,030

Credit-linked notes, net of debt discount

​

​

—

​

​

84,358

Other borrowings

​

 

7,934

​

 

7,934

Total borrowings

​

$

3,842,592

​

$

4,386,122

​

Federal Reserve Discount Window Borrowings

Federal Reserve discount window borrowings are secured by the collateral value of commercial, agricultural, construction and one-to-four family residential real estate loans totaling $3.4 billion and $3.1 billion as of December 31, 2025 and 2024, respectively. This arrangement has a maximum borrowing limit of collateral pledged multiplied by an advance rate. Borrowing maturities can range from 24 hours to up to a term of 90 days. Life to date, all Company borrowings were for a 24-hour period. As of December 31, 2025 and 2024, the outstanding balance was $0 and $50.0 million, respectively.

Subordinated Debt

The Company entered into a warehouse financing arrangement in April 24, 2018, which was revised in December 2023, whereby a customer agreed to invest up to $60.0 million in the Company’s subordinated debt. The subordinated debt balance as of both December 31, 2025 and 2024 was $41.8 million. As of December 31, 2025, interest on the debt is paid monthly by the Company at a rate equal to SOFR, plus 300 basis points, plus additional interest equal to 50% of the earnings generated. There is also a guaranteed interest rate floor associated with these earnings. The agreement is automatically renewed annually on June 30th for one or more terms of two years each unless either party notifies the other party at least 180 days prior to its renewable date, of its desire not to continue the relationship. As of December 31, 2025, neither party had made a notification of its intent to cancel this arrangement.

Additionally, the Company entered into another warehouse financing agreement on April 14, 2023, which was revised on July 20, 2023, whereby a customer agreed to invest up to $30.0 million in the Company’s subordinated debt. The subordinated debt balance as of both December 31, 2025 and 2024 was $30.0 million. As of December 31, 2025, interest on the debt is paid monthly by the Company at a rate equal to SOFR, plus 300 basis points, plus additional interest equal to 50% of the earnings generated. The agreement is automatically renewed annually on June 30th for one or more terms of two years each unless either party notifies the other party at least 180 days prior to its renewable date, of its desire not to continue the relationship. As of December 31, 2025, neither party had made a notification of its intent to cancel this arrangement.

FHLB Advances

FHLB advances are secured by the collateral value of mortgage loans totaling $4.4 billion and $4.2 billion at December 31, 2025 and 2024, respectively. In addition, securities available for sale, securities held to maturity, and securities purchased under agreements to resell with a carrying value of $1.5 billion and $1.4 billion were pledged as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, the outstanding balances were $3.8 billion and $4.2 billion, respectively. At December 31, 2025 the FHLB advances had interest rates ranging from 0.00% to 3.97% and ranged from 2.78% to 4.48% at December 31, 2024. These rates were subject to restrictions or penalties in the event of prepayment.

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 December 31, 2025, and the full principal balance matures on May 24, 2030.

On December 16, 2025, the Company entered into a new variable-rate debt agreement with the FHLB for an advance that has put and call options. The balance of the advance was $2.0 billion as of December 31, 2025, and matures on March 16, 2026. The variable interest rate is based on the Federal Funds effective rate, plus 15 basis points, which was 3.79% on December 31, 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 December 31, 2025, the Company entered into a new variable-rate debt agreement with the FHLB for an advance that has put and call options. The balance of the advance was $1.8 billion as of December 31, 2025, and matures on March 31, 2026. The variable interest rate is based on the Federal Funds effective rate, plus 15 basis points, which was 3.79% on December 31, 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.

Credit-Linked Notes

On March 30, 2023, the Company issued and sold $158.1 million senior credit-linked notes, due May 26, 2028. The net proceeds of the offering were approximately $153.5 million. The repayment of principal on the notes was initially linked to an approximately $1.1 billion reference pool of loans originated under Merchants Bank’s healthcare commercial real estate lending program, but the notes were not secured by the loans. The notes provided periodic payments of interest in addition to payment of principal over the life of the note and these values were tied to the performance of the loans. Therefore, the notes effectively transferred credit risk in excess of the first 1% of losses on the reference pool of loans. The reduction in risk weighted assets provided additional balance sheet capacity and benefited capital ratios for additional growth in the existing loan pipeline.

The notes accrued interest at a rate equal to SOFR plus 15.50% and interest was paid monthly.

The notes were secured by a restricted collateral account which the Company was required to maintain with a third-party financial institution. The collateral account maintained an amount equal to at least the aggregate unpaid principal of the notes.

In December 2025, the Company fully repaid the credit-linked notes issued, also releasing all restricted cash collateral.

Other Borrowings

On May 4, 2023, the Company entered into a debt agreement that was ultimately funded from a Sponsor Improvement Contribution as part of a low-income tax credit syndication transaction. The debt balance as of December 31, 2025 and 2024 was $7.9 million and $7.9 million, respectively. As of December 31, 2025, interest on the debt is paid by the Company at a rate equal to 1%. The agreement has a maturity date of December 31, 2047.

Maturities

Maturities of borrowings were as follows at December 31, 2025:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

​

​

​

​

​

​

​

​

​

​

​

​

​

Subordinated

​

FHLB

​

Other

​

Borrowings

​

​

Debt

​

Advances

​

Borrowings

​

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

Due within one year

​

$

—

​

$

3,760,026

​

$

—

​

$

3,760,026

Due in one year to two years

​

 

71,800

​

 

62

​

 

—

​

 

71,862

Due in two years to three years

​

 

—

​

 

59

​

 

—

​

 

59

Due in three years to four years

​

 

—

​

 

211

​

 

—

​

 

211

Due in four years to five years

​

 

—

​

 

2,500

​

 

—

​

 

2,500

Thereafter

​

 

—

​

 

—

​

 

7,934

​

 

7,934

​

​

$

71,800

​

$

3,762,858

​

$

7,934

​

$

3,842,592

​

​

At December 31, 2025, the Company had excess borrowing capacity of approximately $5.3 billion with the FHLB and the Federal Reserve discount window, based on available collateral.
v3.25.4
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Financial Instruments  
Derivative Financial Instruments

Note 15: 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 noninterest income on the 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 2025 and 2024, the Company entered into contracts as the buyer of credit protection through the credit derivative markets. These contracts were purchased to manage credit risk associated with specific multi-family and healthcare mortgage loans. Under the terms of the contract, the Company will be compensated for certain credit-related losses on pools of covered loans. As of December 31, 2025, the protection sellers have posted aggregate collateral of $134.2 million related to their obligations under the contracts. The collateral is not included on the Company’s consolidated balance sheets. There were no gains or losses associated with the credit default swap valuation as of December 31, 2025 and 2024. Any future changes in the fair market value of these instruments will be included in other noninterest expense.

​

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

​

​

The following tables present 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 December 31, 2025 and 2024. These tables exclude the fair market value adjustment on loans economically hedged with these derivatives.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

December 31, 2025

​

(In thousands)

Interest rate lock commitments

$

142,540

​

​

Other assets/liabilities

​

$

227

​

$

107

Forward contracts

 

146,452

​

​

Other assets/liabilities

​

​

2

​

​

467

Interest rate swaps

 

49,480

​

​

Other assets

​

 

2,354

​

​

—

Put options

​

608,885

​

​

Other assets

​

​

37,570

​

​

—

Interest rate floors

​

1,089,679

​

​

Other assets

​

​

9,540

​

​

—

Credit derivatives

​

123,222

​

​

​

​

​

—

​

​

—

​

​

​

​

​

​

​

$

49,693

​

$

574

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

December 31, 2024

​

(In thousands)

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

​

 

4,199

​

​

—

Put options

​

680,354

​

​

Other assets

​

​

43,777

​

​

—

Interest rate floors

​

1,228,274

​

​

Other assets

​

​

4,043

​

​

—

Credit derivatives

​

58,526

​

​

​

​

​

—

​

​

—

​

​

​

​

​

​

​

$

52,278

​

$

177

​

The following table summarizes the periodic changes in the fair value of the above derivative financial instruments on the consolidated statements of income for the years ended December 31, 2025, 2024, and 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

  ​ ​ ​

2025

​

2024

  ​ ​ ​

2023

​

​

​

(In thousands)

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

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

​

$

266

​

$

(282)

​

$

130

Forward contracts (includes pair-off settlements)

​

​

​

(1,621)

​

​

338

​

​

201

Interest rate swaps

​

​

​

(1,166)

​

​

2,282

​

​

(420)

Net (loss) gain

​

​

$

(2,521)

​

$

2,338

​

$

(89)

​

​

​

​

​

​

​

​

​

​

​

Derivative (loss) gain included in other income:

​

​

​

​

​

​

​

​

​

​

Put options (1)

​

​

$

(6,207)

​

$

17,901

​

$

5,629

Interest rate floors

​

​

​

5,496

​

​

(2,533)

​

​

6,575

Net (loss) gain

​

​

$

(711)

​

$

15,368

​

$

12,204

(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 Interest Rate Risk Management (“IRRM”) 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 economically neutral interest rate position to assist the customer, 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 IRRM 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 consolidated balance sheets as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

​

(In thousands)

December 31, 2025

$

1,178,034

​

​

Other assets/liabilities

​

$

7,289

​

$

7,289

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 consolidated statements of income as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

2023

​

​

(In thousands)

Gross IRRM derivative gains

​

$

6,980

​

$

12,117

​

$

9,385

Gross IRRM derivative losses

​

 

6,980

​

​

12,117

​

​

9,385

Net IRRM derivative gains

​

$

—

​

$

—

​

$

—

​

The Company pledged $10.0 million and $263,000 in collateral to secure its obligations under IRRM contracts at December 31, 2025 and 2024, respectively.

v3.25.4
Disclosures About Fair Value of Assets and Liabilities
 12 Months Ended
Dec. 31, 2025
Disclosures About Fair Value of Assets and Liabilities  
Disclosures About Fair Value of Assets and Liabilities

Note 16: 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 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 December 31, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

Quoted Prices in

​

Significant

​

 

​

​

​

​

​

​

Active Markets 

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable 

​

​

Fair

​

Assets

​

Inputs

​

Inputs

​

  ​ ​ ​

Value

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

​

​

(In thousands)

December 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

620,094

​

$

—

​

$

620,094

​

$

—

Securities available for sale:

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

Treasury notes

​

 

30,680

​

 

30,680

​

 

—

​

 

—

Federal agencies

​

 

259,508

​

 

—

​

 

259,508

​

 

—

Mortgage-backed - Agency

​

 

3,556

​

 

—

​

 

3,556

​

 

—

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

​

​

385,460

​

​

—

​

​

385,460

​

​

—

Mortgage-backed - Agency - fair value option

​

​

185,854

​

​

—

​

​

185,854

​

​

—

Loans held for sale

​

 

76,980

​

 

—

​

 

76,980

​

 

—

Loans receivable

​

​

47,318

​

​

—

​

​

47,318

​

​

—

Servicing rights

​

 

217,296

​

 

—

​

 

—

​

 

217,296

Derivative assets:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

 

227

​

 

—

​

 

—

​

 

227

Forward contracts

​

 

2

​

 

—

​

 

2

​

 

—

Interest rate swaps

​

​

2,354

​

​

—

​

​

2,354

​

​

—

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

​

​

7,289

​

​

—

​

​

7,289

​

​

—

Put options

​

​

37,570

​

​

—

​

​

5,640

​

​

31,930

Interest rate floors

​

​

9,540

​

​

—

​

​

—

​

​

9,540

Derivative liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

 

107

​

​

—

​

​

—

​

​

107

Forward contracts

​

​

467

​

​

—

​

​

467

​

​

—

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

​

 

7,289

​

​

—

​

​

7,289

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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 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 years ended December 31, 2025 and 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 contracts - The Company estimates the fair value of forward sales commitments based on market quotes of mortgage-backed security prices for securities similar to the ones used, which are considered Level 2.

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

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.

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 CDSs 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 consolidated balance sheets using significant unobservable (Level 3) inputs:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

​

​

(In thousands)

Servicing rights

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

189,935

​

$

158,457

​

$

146,248

Purchased servicing

​

 

14,482

​

 

—

​

 

513

Originated servicing

​

 

23,654

​

 

18,670

​

 

14,755

Paydowns

​

 

(12,223)

​

 

(9,901)

​

 

(7,621)

Changes in fair value

​

 

1,448

​

 

22,709

​

 

4,562

Balance, end of period

​

$

217,296

​

$

189,935

​

$

158,457

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

—

​

$

485,500

​

$

—

Purchases

​

​

—

​

​

—

​

​

483,906

Paydowns

​

 

—

​

 

(42,079)

​

 

—

Changes in fair value

​

 

—

​

 

(12,642)

​

 

1,594

Transfers out of Level 3

​

​

—

​

​

(430,779)

​

​

—

Balance, end of period

​

$

—

​

$

—

​

$

485,500

​

​

​

​

​

​

​

​

​

​

Derivative assets - put options

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

31,296

​

$

18,654

​

$

—

Purchases

​

 

—

​

 

—

​

 

20,248

Changes in fair value

​

 

634

​

 

12,642

​

 

(1,594)

Balance, end of period

​

$

31,930

​

$

31,296

​

$

18,654

​

​

​

​

​

​

​

​

​

​

Derivative assets - interest rate floors

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

4,043

​

$

6,576

​

$

—

Purchases

​

 

—

​

 

—

​

 

6,576

Changes in fair value

​

 

5,497

​

 

(2,533)

​

 

—

Balance, end of period

​

$

9,540

​

$

4,043

​

$

6,576

​

​

​

​

​

​

​

​

​

​

Derivative assets - interest rate lock commitments

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

30

​

$

140

​

$

28

Gain (loss) recognized

​

 

197

​

 

(110)

​

 

112

Balance, end of period

​

$

227

​

$

30

​

$

140

​

​

​

​

​

​

​

​

​

​

Derivative liabilities - interest rate lock commitments

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

176

​

$

4

​

$

23

Gain (loss) recognized

​

 

(69)

​

 

172

​

 

(19)

Balance, end of period

​

$

107

​

​

176

​

$

4

​

Two residential mortgage-backed, non-Agency securities with a fair value of $430.8 million as of December 31, 2024 were transferred from Level 3 to Level 2 because the valuation technique utilized contained more observable market data for the security.

​

Nonrecurring Measurements

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

December 31, 2025

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

Collateral dependent loans

​

$

143,771

​

$

—

​

$

—

​

$

143,771

Other real estate owned

​

​

60,145

​

​

—

​

​

—

​

​

60,145

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 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 cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the CCO’s office by comparison to historical results.

​

​

​

​

​

Unobservable (Level 3) Inputs:

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Valuation

​

​

​

​

​

Weighted

​

  ​ ​ ​

Fair Value

  ​ ​ ​

Technique

  ​ ​ ​

Unobservable Inputs

​

Range

  ​ ​ ​

Average

​

​

(In thousands)

December 31, 2025:

 

​

  ​

 

  ​

​

​

​

​

 

​

Collateral dependent loans

​

$

143,771

 

Market comparable properties

 

Marketability discount and costs to sell

​

12% - 70%

 

31%

Other real estate owned

​

​

60,145

​

Market comparable properties

​

Marketability discount and costs to sell

​

6% - 9%

​

9%

Servicing rights - Multi-family

​

​

164,224

 

Discounted cash flow

 

Discount rate

​

8% - 15%

 

9%

​

​

​

  ​

 

  ​

 

Constant prepayment rate

​

0% - 100%

 

8%

​

​

​

​

​

​

​

Earnings rate on escrows

​

3%

​

3%

Servicing rights - Single-family

​

​

33,151

​

Discounted cash flow

​

Discount rate

​

9% - 12%

​

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

3% - 53%

​

9%

Servicing rights - Healthcare

​

​

15,105

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

11%

​

​

​

​

​

​

​

Constant prepayment rate

​

1% - 100%

 

7%

​

​

​

​

​

​

​

Earnings rate on escrows

​

3%

​

3%

Servicing rights - SBA

​

​

4,816

​

Discounted cash flow

​

Discount rate

​

16%

​

16%

​

​

​

​

​

​

​

Constant prepayment rate

​

10% - 31%

​

16%

Derivative assets:

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

​

227

 

Discounted cash flow

 

Loan closing rates

​

45% - 99%

 

99%

Put options

​

​

31,930

​

Intrinsic value

​

Market credit spread

​

4%

​

4%

Interest rate floors

​

​

9,540

​

Discounted cash flow

​

Discount rate

​

5% - 7%

​

6%

Derivative liabilities - interest rate lock commitments

​

​

107

 

Discounted cash flow

 

Loan closing rates

​

45% - 99%

 

99%

​

​

​

​

​

​

​

​

​

​

​

​

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. Additionally, the earnings rate on escrow balances can influence the fair value of servicing rights because higher (lower) expected interest income earned on custodial escrow deposits increases (decreases) the net economic benefit a market participant would attribute to the servicing asset.

​

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.

​

For interest rate lock commitments, the loan closing rate represents a significant unobservable input, as higher (lower) expected pull-through or closing probabilities increase (decrease) the likelihood that the commitment will convert into a funded loan, thereby impacting the fair value attributed to the derivative.

​

​

​

Fair Value of Financial Instruments

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

December 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial assets:

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

Cash and cash equivalents

​

$

212,202

​

$

212,202

​

$

212,202

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

1,520

​

 

1,520

​

 

—

​

 

1,520

​

 

—

Securities held to maturity

​

​

1,543,659

​

​

1,543,554

​

 

—

​

 

712,490

​

 

831,064

FHLB stock and other equity securities

​

 

227,589

​

 

227,589

​

 

—

​

 

196,391

​

 

31,198

Loans held for sale

​

 

3,796,032

​

 

3,796,032

​

 

—

​

 

3,796,032

​

 

—

Loans receivable, net

​

 

10,904,063

​

 

10,950,634

​

 

—

​

 

—

​

 

10,950,634

Interest receivable

​

 

81,807

​

 

81,807

​

 

—

​

 

81,807

​

 

—

Financial liabilities:

​

 

  ​

​

 

​

​

 

  ​

​

 

  ​

​

 

  ​

Deposits

​

 

13,041,192

​

 

13,041,901

​

 

11,179,428

​

 

1,862,473

​

 

—

Subordinated debt

​

 

71,800

​

 

71,800

​

 

—

​

 

71,800

​

 

—

FHLB advances

​

 

3,762,858

​

 

3,762,110

​

 

—

​

 

3,762,110

​

 

—

Other borrowing

​

​

7,934

​

​

7,934

​

​

—

​

​

7,934

​

​

—

Interest payable

​

 

25,345

​

 

25,345

​

 

—

​

 

25,345

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

—

​
v3.25.4
Common Stock
 12 Months Ended
Dec. 31, 2025
Common Stock  
Common Stock

Note 17: Common Stock

Public Offerings of Common Stock:

On May 16, 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.
v3.25.4
Preferred Stock
 12 Months Ended
Dec. 31, 2025
Preferred Stock  
Preferred Stock

Note 18: 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 of 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 of 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 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 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 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 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 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 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.

v3.25.4
Employee Benefits
 12 Months Ended
Dec. 31, 2025
Employee Benefits  
Employee Benefits

Note 19: Employee Benefits

The Company offers employees a 401(k) plan. Pursuant to the plan agreement, matching contributions were made equal to 100% of the employees’ elective deferrals, which did not exceed 3% of the employees’ compensation. In 2022, the Company began providing contributions to employee 401(k) plans, regardless of their participation levels. Employees generally receive 3% of their salary, with some executives subject to certain limitations. Employer contributions to the plans were $2.9 million, $2.0 million, and $1.9 million for the years ended December 31, 2025, 2024, and 2023, respectively.

The Company also established an ESOP in 2020 to provide shares of stock for all employees who meet certain requirements. Expenses recognized for the contribution to the ESOP totaled $1.5 million, $1.2 million and $1.0 million for the years ended December 31, 2025, 2024, and 2023, respectively. The Company contributed 30,802 shares, 23,414 shares, and 33,293 shares to the ESOP for the years ended December 31, 2025, 2024, and 2023, respectively.

v3.25.4
Share-Based Payment Plans
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Plans  
Share-Based Payment Plans

Note 20: Share-Based Payment Plans

Equity-based incentive awards for Company officers are currently issued pursuant to the 2017 Equity Incentive Plan. Additionally, the Compensation Committee of the Board of Directors approved a plan for non-executive directors to receive a portion of their annual retainer fees in the form of shares of common stock. 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.

​

​

​

The following chart provides equity-based incentive awards and Board fees paid in shares for the years ended December 31, 2025, 2024, and 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

2025

​

2024

​

2023

​

​

(In thousands, except share data)

Equity-based incentive awards to Company officers:

​

​

​

​

​

​

​

​

​

Shares issued

​

​

80,875

​

​

88,658

​

​

84,335

Expenses recognized

​

$

3,312

 

$

3,274

​

$

2,671

Unvested shares awarded

​

 

209,597

 

 

253,816

​

 

256,192

Unrecognized compensation costs

​

$

6,461

 

$

7,122

​

$

6,801

​

​

​

​

​

​

​

​

​

​

Equity-based retainer fees to non-executive Board members:

​

 

  ​

 

 

  ​

​

 

  ​

Shares issued

​

 

14,329

 

 

12,166

​

 

12,173

Expenses recognized

​

$

490

 

$

491

​

$

351

​

​

​

​

​

The Company established an ESOP in 2020 to provide shares of stock for all employees who meet certain requirements. Additional details on these benefits were provided in Note 19: Employee Benefits.

v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes  
Income Taxes

Note 21: Income Taxes

For the year ended December 31, 2025, the Company adopted ASU 2023-09 – Improvements to Income Tax Disclosures (Topic 740) that requires public business entities to provide additional disclosures to enhance transparency and increase usefulness of the disclosures. The update requires a tabular tax rate reconciliation, disclosure of 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, and additional other information. The Company chose to apply the update on a retrospective basis as allowed per the amendment. The update did not have a material impact on the Company’s financial position or results of operations but did require expansion of the income tax disclosures below.

​

The data presented below is disaggregated as required by GAAP for each table presented. The Company’s income is derived from United States operations only.

​

The Company’s effective tax rate reconciliation for the years ended December 31, 2025, 2024, and 2023, is shown below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

  ​ ​ ​

2024

​

2023

​

 

(In thousands)

​

​

​

Amount

Percent

​

​

Amount

Percent

​

​

Amount

Percent

US federal statutory income tax rate

​

$

55,398

21.0%

​

$

88,755

21.0%

​

$

73,061

21.0%

State and local income taxes - net of federal income tax effect (1)

​

 

7,345

2.8%

​

 

15,960

3.8%

​

 

(2,655)

(0.8)%

Tax credits

​

​

​

​

​

​

​

​

​

​

​

​

Production tax credits

​

​

(8,461)

(3.2)%

​

​

—

—

​

​

—

—

Credits and benefits on investments using proportional amortization (2)

​

​

(7,317)

(2.8)%

​

​

(2,774)

(0.6)%

​

​

(2,136)

(0.6)%

Other

​

​

(550)

(0.2)%

​

​

(1,100)

(0.3)%

​

​

—

—

Nontaxable and nondeductible items

​

​

​

​

​

​

​

​

​

​

​

​

Tax-exempt interest income net of disallowed interest expense

​

​

(2,819)

(1.1)%

​

​

(2,783)

(0.7)%

​

​

(1,759)

(0.5)%

Other

​

​

4,434

1.7%

​

​

4,198

1.0%

​

​

2,162

0.6%

Other adjustments

​

​

​

​

​

​

​

​

​

​

​

​

Return-to-provision adjustments (3)

​

 

(3,000)

(1.1)%

​

 

—

—

​

 

—

—

Effective tax rate

​

$

45,030

17.1%

​

$

102,256

24.2%

​

$

68,673

19.7%

(1)In 2025, state and local income taxes in New York state, New York City, and California account for the majority of the domestic state and local income taxes, net of federal tax effect category. In 2024, state and local income taxes in New York state, New York City, New Jersey, Florida, California, and Illinois account for the majority of the domestic state and local income taxes, net of federal tax effect category. In 2023, state and local income taxes in New York state, New York City, Illinois, and Florida account for the majority of the domestic state and local income taxes, net of federal tax effect category.
(2)This line item includes the effects of Low-Income Housing Tax Credit (LIHTC) credits, related amortization, and permanent difference adjustments associated with LIHTC investments. These items are aggregated as they are not individually significant.
(3)The return-to-provision adjustment for 2025 is a result of changes in accounting estimates used on the income tax provision compared to actual amounts on the entity's filed income tax return.

​

The following table provides the amount of income taxes paid (net of refunds received), disaggregated as appropriate, for the years ended December 31, 2025, 2024, and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

 

​

  ​ ​ ​

2025

  ​ ​ ​

​

2024

​

2023

 

​

 

​

(In thousands)

​

United States federal

​

$

32,500

​

$

69,750

​

$

58,250

​

United States state and local

​

 

​

​

​

​

​

​

​

​

Indiana

​

​

—

​

​

(5,687)

​

​

(2,563)

​

New York state

​

​

2,012

​

​

5,077

​

​

2,789

​

New York City

​

 

9,161

​

 

—

​

 

5

​

Other

​

 

3,963

​

 

10,438

​

 

8,907

​

Total United States state and local

​

 

15,136

​

 

9,828

​

 

9,138

​

Total income taxes paid, net

​

$

47,636

​

$

79,578

​

$

67,388

​

​

​

​

​

​

​

The following table includes the components of pretax income and expense, disaggregated by foreign and state jurisdictions for the years ended December 31, 2025, 2024, and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

  ​ ​ ​

2024

​

2023

​

 

(In thousands)

Income from continuing operations before income tax expense (benefit)

​

​

​

​

​

​

​

​

​

United States federal

​

$

263,800

​

$

422,642

​

$

347,907

Total

​

$

263,800

​

$

422,642

​

$

347,907

​

​

​

​

​

​

​

​

​

​

Income tax expense (benefit) from continuing operations

​

​

​

​

​

​

​

​

​

Current tax expense (benefit)

​

​

​

​

​

​

​

​

​

United States federal

​

$

29,060

​

$

78,386

​

$

72,537

United States state and local

​

​

8,192

​

​

19,240

​

​

(1,422)

Total current tax expense (benefit)

​

​

37,252

​

​

97,626

​

​

71,115

Deferred tax expense (benefit)

​

​

​

​

​

​

​

​

​

United States federal

​

​

6,672

​

​

3,666

​

​

(503)

United States state and local

​

​

1,106

​

​

964

​

​

(1,939)

Total deferred tax expense (benefit)

​

​

7,778

​

​

4,630

​

​

(2,442)

Total income tax expense (benefit)

​

​

​

​

​

​

​

​

​

United States federal

​

​

35,732

​

​

82,052

​

​

72,034

United States state and local

​

​

9,298

​

​

20,204

​

​

(3,361)

Total income tax expense (benefit)

​

$

45,030

​

$

102,256

​

$

68,673

​

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

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Deferred tax assets

​

​

​

​

​

​

Allowance for credit losses on loans

​

$

22,389

​

$

23,880

Unrealized loss on securities available for sale

​

 

10

​

 

42

Other

​

 

6,513

​

 

5,532

Total assets

​

 

28,912

​

 

29,454

Deferred tax liabilities

​

 

  ​

​

 

  ​

Depreciation

​

 

(2,910)

​

 

(2,532)

Intangible assets

​

 

(556)

​

 

(391)

Servicing rights

​

 

(49,394)

​

 

(44,854)

Limited partnership investments

​

 

(5,177)

​

 

(4,575)

State tax receivable

​

​

(734)

​

​

(110)

Derivative assets

​

​

(1,870)

​

​

(967)

Other

​

 

(1,370)

​

 

(1,314)

Total liabilities

​

 

(62,011)

​

 

(54,743)

Net deferred tax liability

​

$

(33,099)

​

$

(25,289)

​
v3.25.4
Earnings Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share  
Earnings Per Share

Note 22: Earnings Per Share

Earnings per share were computed as follows for years ended December 31, 2025, 2024, and 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

2025

​

2024

​

2023

​

​

​

​

​

Weighted-

​

Per

​

​

​

​

Weighted-

​

Per

​

​

​

​

Weighted-

​

Per

​

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

  ​ ​ ​

Income

  ​ ​ ​

Shares

  ​ ​ ​

Amount

  ​ ​ ​

Income

  ​ ​ ​

Shares

  ​ ​ ​

Amount

  ​ ​ ​

Income

  ​ ​ ​

Shares

  ​ ​ ​

Amount

​

  ​ ​ ​

(In thousands, except share data)

Net income

​

$

218,770

​

​

​

​

​

​

$

320,386

​

​

​

​

​

​

$

279,234

 

  ​

​

​

​

Dividends on preferred stock

​

​

(41,062)

​

​

​

​

​

​

​

(34,909)

​

​

​

​

​

​

​

(34,670)

​

​

​

​

​

Preferred stock redemption

​

 

(4,156)

 

  ​

 

​

  ​

​

 

(1,823)

​

​

​

​

​

​

 

—

 

  ​

 

​

  ​

Net income allocated to common shareholders

​

$

173,552

 

  ​

 

​

  ​

​

$

283,654

​

​

​

​

​

​

$

244,564

 

  ​

 

​

  ​

Basic earnings per share

​

 

  ​

 

45,871,698

​

$

3.78

​

 

​

​

44,855,100

​

$

6.32

​

 

  ​

 

43,224,042

​

$

5.66

Effect of dilutive securities—restricted stock awards

​

 

  ​

 

71,032

​

 

  ​

​

​

​

​

149,686

​

 

  ​

​

 

  ​

 

121,757

​

 

  ​

Diluted earnings per share

​

 

  ​

 

45,942,730

​

$

3.78

​

​

​

​

45,004,786

​

$

6.30

​

 

  ​

 

43,345,799

​

$

5.64

​
v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Information  
Segment Information

​

Note 23: Segment Information

For the year ended December 31, 2024, the Company adopted ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures that required disclosures to include additional details on reportable segments so financial statement users may better understand an entity’s overall performance and assist in assessing potential future cash flows. The new guidance required public entities to present information regarding significant segment expenses that are regularly provided to the CODM as well as details regarding segment’s profit and loss. The update did not have a material impact on the Company’s financial position or results of operations but did require the expansion of the segment disclosures below.

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 borrowing 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 the Company with a ready platform to sell or refinance the underlying collateral to secure repayment. These and other synergies form a part of the Company’s 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 accounting policies of the segments are the same as those described in the summary of significant accounting policies. See Note 1: Nature of Operations and Summary of Significant Accounting Policies for more details.

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, salary and employee benefits, and net income (loss). The CODM uses the above-mentioned metrics, along with total assets, in deciding how to allocate capital and both human and financial resources among the segments. Major decisions are also made with input from segment leadership, the Board, and various management committees, as appropriate.

​

The tables below present selected business segment financial information for the years ended December 31, 2025, 2024, and 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

  ​ ​ ​

Banking

  ​ ​ ​

Warehousing

  ​ ​ ​

Banking

  ​ ​ ​

Other

  ​ ​ ​

Total

​

​

(In thousands)

Year Ended December 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

4,613

​

$

413,656

​

$

767,786

​

$

14,796

 

$

1,200,851

Interest expense

​

 

80

​

 

274,031

​

 

412,964

​

 

(3,283)

 

 

683,792

Net interest income

​

 

4,533

​

 

139,625

​

 

354,822

​

 

18,079

 

 

517,059

Provision for credit losses

​

 

(403)

​

 

3,020

​

 

115,137

​

 

—

 

 

117,754

Net interest income after provision for credit losses

​

 

4,936

​

 

136,605

​

 

239,685

​

 

18,079

 

 

399,305

Noninterest income

​

 

168,874

​

 

12,596

​

 

933

​

 

(18,015)

 

 

164,388

Noninterest expense

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

 

 

  ​

Salaries and employee benefits

​

 

103,504

​

 

8,107

​

 

24,765

​

 

30,136

 

 

166,512

Other noninterest expense

​

 

18,314

​

 

24,661

​

 

69,589

​

 

20,817

 

 

133,381

Total noninterest expense

​

 

121,818

​

 

32,768

​

 

94,354

​

 

50,953

 

 

299,893

Income (loss) before income taxes

​

 

51,992

​

 

116,433

​

 

146,264

​

 

(50,889)

 

 

263,800

Income tax expense (benefit)

​

 

11,837

​

 

19,489

​

 

24,259

​

 

(10,555)

 

 

45,030

Net income (loss)

​

$

40,155

​

$

96,944

​

$

122,005

​

$

(40,334)

 

$

218,770

Total assets

​

$

526,423

​

$

7,251,653

​

$

11,307,401

​

$

363,466

 

$

19,448,943

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Significant non-cash items:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Included in other noninterest income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Servicing rights fair value adjustments

​

$

3,807

​

$

—

​

$

(2,359)

​

$

—

 

$

1,448

Derivative fair value adjustments

​

​

—

​

​

5,496

​

​

—

​

​

—

 

​

5,496

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

  ​ ​ ​

Banking

  ​ ​ ​

Warehousing

  ​ ​ ​

Banking

  ​ ​ ​

Other

  ​ ​ ​

​

Total

​

​

(In thousands)

Year Ended December 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

5,239

​

$

391,743

​

$

891,490

​

$

14,248

 

$

1,302,720

Interest expense

​

 

80

​

 

262,149

​

 

521,030

​

 

(3,159)

 

 

780,100

Net interest income

​

 

5,159

​

 

129,594

​

 

370,460

​

 

17,407

 

 

522,620

Provision for credit losses

​

 

(1,003)

​

 

1,466

​

 

23,815

​

 

—

 

 

24,278

Net interest income after provision for credit losses

​

 

6,162

​

 

128,128

​

 

346,645

​

 

17,407

 

 

498,342

Noninterest income

​

 

168,028

​

 

3,016

​

 

(8,523)

​

 

(14,409)

 

 

148,112

Noninterest expense

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

 

 

  ​

Salaries and employee benefits

​

 

77,685

​

 

8,115

​

 

19,437

​

 

25,486

 

 

130,723

Other noninterest expense

​

 

20,228

​

 

13,818

​

 

43,230

​

 

15,813

 

 

93,089

Total noninterest expense

​

 

97,913

​

 

21,933

​

 

62,667

​

 

41,299

 

 

223,812

Income (loss) before income taxes

​

 

76,277

​

 

109,211

​

 

275,455

​

 

(38,301)

 

 

422,642

Income tax expense (benefit)

​

 

20,380

​

 

26,409

​

 

65,382

​

 

(9,915)

 

 

102,256

Net income (loss)

​

$

55,897

​

$

82,802

​

$

210,073

​

$

(28,386)

 

$

320,386

Total assets

​

$

479,099

​

$

6,000,624

​

$

11,761,202

​

$

564,807

 

$

18,805,732

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Significant non-cash items:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Included in other noninterest income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Servicing rights fair value adjustments

​

$

20,487

​

$

—

​

$

2,222

​

$

—

 

$

22,709

Derivative fair value adjustments

​

​

—

​

​

(2,533)

​

​

—

​

​

—

 

​

(2,533)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

  ​ ​ ​

Banking

  ​ ​ ​

Warehousing

  ​ ​ ​

Banking

  ​ ​ ​

Other

  ​ ​ ​

​

Total

​

​

(In thousands)

Year Ended December 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

5,718

​

$

276,366

​

$

789,399

​

$

6,315

 

$

1,077,798

Interest expense

​

 

52

​

 

184,486

​

 

451,952

​

 

(6,763)

 

 

629,727

Net interest income

​

 

5,666

​

 

91,880

​

 

337,447

​

 

13,078

 

 

448,071

Provision for credit losses

​

 

—

​

 

2,782

​

 

37,449

​

 

—

 

 

40,231

Net interest income after provision for credit losses

​

 

5,666

​

 

89,098

​

 

299,998

​

 

13,078

 

 

407,840

Noninterest income

​

 

123,980

​

 

14,315

​

 

(12,527)

​

 

(11,100)

 

 

114,668

Noninterest expense

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

 

 

  ​

Salaries and employee benefits

​

 

64,453

​

 

6,026

​

 

16,192

​

 

21,510

 

 

108,181

Other noninterest expense

​

 

19,409

​

 

7,977

​

 

26,619

​

 

12,415

 

 

66,420

Total noninterest expense

​

 

83,862

​

 

14,003

​

 

42,811

​

 

33,925

 

 

174,601

Income (loss) before income taxes

​

 

45,784

​

 

89,410

​

 

244,660

​

 

(31,947)

 

 

347,907

Income tax expense (benefit)

​

 

9,311

​

 

15,885

​

 

50,262

​

 

(6,785)

 

 

68,673

Net income (loss)

​

$

36,473

​

$

73,525

​

$

194,398

​

$

(25,162)

 

$

279,234

Total assets

​

$

411,097

​

$

4,522,175

​

$

11,760,943

​

$

258,301

 

$

16,952,516

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Significant non-cash items:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Included in other noninterest income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Servicing rights fair value adjustments

​

$

3,874

​

$

—

​

$

688

​

$

—

 

$

4,562

Derivative fair value adjustments

​

​

—

​

​

6,576

​

​

—

​

​

—

 

​

6,576

​
v3.25.4
Condensed Financial Information (Parent Company Only)
 12 Months Ended
Dec. 31, 2025
Condensed Financial Information (Parent Company Only)  
Condensed Financial Information (Parent Company Only)

Note 24: Condensed Financial Information (Parent Company Only)

Presented below is condensed financial information of the Company as to financial position as of December 31, 2025 and 2024, and results of operations and cash flows for the years ended December 31, 2025, 2024, and 2023.

Condensed Balance Sheets

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

​

2024

​

​

(In thousands)

Assets

 

​

  ​

​

​

  ​

Cash and cash equivalents

​

$

55,240

​

$

55,829

Other equity securities

​

​

30,000

​

​

30,000

Investment in joint ventures

​

​

27,290

​

​

27,638

Investment in subsidiaries

​

 

2,239,777

​

 

2,077,085

Other assets

​

 

749

​

 

128,591

Total assets

​

$

2,353,056

​

$

2,319,143

Liabilities

​

 

  ​

​

 

  ​

Subordinated debt

​

$

71,800

​

$

71,800

Unfunded commitments to joint ventures

​

​

—

​

​

2,752

Other liabilities

​

 

497

​

 

1,281

Total liabilities

​

 

72,297

​

 

75,833

Shareholders’ Equity

​

 

2,280,759

​

 

2,243,310

Total liabilities and shareholders’ equity

​

$

2,353,056

​

$

2,319,143

​

​

Condensed Statements of Income and Comprehensive Income

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

2024

  ​ ​ ​

2023

​

​

(In thousands)

Income

 

​

  ​

​

​

  ​

 

​

  ​

Dividends and return of capital from subsidiaries

​

$

66,313

​

$

124,864

​

$

53,006

Other Income

​

 

2,683

​

 

3,956

​

 

3,488

Total income

​

 

68,996

​

 

128,820

​

 

56,494

Expenses

​

 

  ​

​

 

  ​

​

 

  ​

Interest expense

​

 

12,956

​

 

10,849

​

 

4,323

Salaries and employee benefits

​

 

410

​

 

410

​

 

1,012

Professional fees

​

 

862

​

 

681

​

 

481

Other

​

 

1,204

​

 

1,223

​

 

898

Total expense

​

 

15,432

​

 

13,163

​

 

6,714

Income Before Income Tax and Equity in Undistributed Income of Subsidiaries

​

 

53,564

​

 

115,657

​

 

49,780

Income Tax Benefit

​

 

(2,614)

​

 

(2,277)

​

 

(582)

Income Before Equity in Undistributed Income of Subsidiaries

​

 

56,178

​

 

117,934

​

 

50,362

Equity in Undistributed Income of Subsidiaries

​

 

162,592

​

 

202,452

​

 

228,872

Net Income

​

$

218,770

​

$

320,386

​

$

279,234

Comprehensive Income

​

$

218,870

​

$

322,741

​

$

287,267

​

​

​

​

​

Condensed Statements of Cash Flows

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

2023

​

​

(In thousands)

Operating Activities

 

​

  ​

 

​

  ​

​

​

  ​

Net income

​

$

218,770

​

$

320,386

​

$

279,234

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

​

​

​

​

​

​

​

​

​

Equity in undistributed earnings from subsidiaries and other operating activities

​

​

(157,048)

​

​

(205,422)

​

​

(229,428)

Net cash provided by operating activities

​

 

61,722

​

 

114,964

​

​

49,806

Investing Activities

​

 

  ​

​

 

  ​

​

​

  ​

Contributed capital to subsidiaries

​

 

—

​

 

(225,295)

​

​

(43,922)

Purchase of equity securities

​

​

—

​

​

(30,000)

​

​

—

Purchase of limited partnership interests or LLC's

​

 

(3,576)

​

 

(3,038)

​

​

(769)

Return of capital from subsidiaries

​

​

—

​

​

49,017

​

​

—

Other investing activity

​

 

683

​

 

8,301

​

​

554

Net cash used in investing activities

​

 

(2,893)

​

 

(201,015)

​

​

(44,137)

Financing Activities

​

 

  ​

​

 

  ​

​

​

  ​

Proceeds from notes payable

​

​

—

​

​

6,878

​

​

64,922

Repayment of notes payable

​

​

—

​

​

—

​

​

(21,000)

Dividends paid

​

 

(59,418)

​

 

(51,167)

​

​

(48,506)

Proceeds from issuance of common stock

​

 

—

​

 

97,655

​

​

—

Proceeds from issuance of preferred stock

​

 

—

​

 

222,748

​

​

—

Redemption of preferred stock

​

​

—

​

​

(52,044)

​

​

—

Funds disbursed for future redemption of Series B preferred stock

​

​

—

​

​

(125,000)

​

​

—

Net cash provided by (used in) financing activities

​

 

(59,418)

​

 

99,070

​

​

(4,584)

Net Change in Cash and Due From Banks

​

 

(589)

​

 

13,019

​

​

1,085

Cash and Due From Banks at Beginning of Year

​

 

55,829

​

 

42,810

​

​

41,725

Cash and Due From Banks at End of Year

​

$

55,240

​

$

55,829

​

$

42,810

Additional Cash Flows Information:

​

​

​

​

​

​

​

​

​

Interest paid

​

$

12,960

​

$

—

​

$

—

Reduction in commitment payable for limited partnership interest of LLCs

​

​

(2,752)

​

​

—

​

​

2,752

Change in prepaid assets for preferred stock repurchase

​

​

125,000

​

​

—

​

​

—

​
v3.25.4
Regulatory Matters
 12 Months Ended
Dec. 31, 2025
Regulatory Matters  
Regulatory Matters

Note 25: 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 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 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 that, as of December 31, 2025 and 2024, the Company and Merchants Bank met all capital adequacy requirements.

As of December 31, 2025 and 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 and as of December 31, 2025, Merchants Bank’s capital exceeded the levels agreed to in its MOU described below.

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)

​

December 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

 

​

  ​

 

  ​

 

​

​

​

​

​

​

  ​

 

  ​

 

Company

​

$

2,365,600

 

13.6

%  

$

1,822,759

 

10.5

%  

$

—

 

N/A

%  

Merchants Bank

​

​

2,320,227

 

13.4

%  

 

1,821,535

 

10.5

%  

 

1,734,795

 

10.0

%  

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

​

 

  ​

 

  ​

​

 

  ​

 

  ​

​

 

  ​

 

  ​

​

Company

​

 

2,272,014

 

13.1

%  

 

1,475,567

 

8.5

%  

 

—

 

N/A

%  

Merchants Bank

​

​

2,226,641

 

12.8

%  

 

1,474,576

 

8.5

%  

 

1,387,836

 

8.0

%  

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Company

​

 

1,720,724

 

9.9

%  

 

1,215,172

 

7.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

2,226,641

 

12.8

%  

 

1,214,357

 

7.0

%  

 

1,127,617

 

6.5

%  

Tier I capital(1) (to average assets)

​

 

​

 

  ​

​

 

  ​

 

​

​

 

  ​

 

  ​

​

Company

​

 

2,272,014

 

11.5

%  

 

990,358

 

5.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

2,226,641

 

11.3

%  

 

987,284

 

5.0

%  

 

987,284

 

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.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

The Company’s principal source of funds for dividend payments to shareholders is dividends received from Merchants 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, Merchants Bank may not pay a dividend if such dividend would be greater than retained net income (as defined) for the current year plus those for the previous two years, subject to the capital requirements described above. At December 31, 2025, the amount available, without prior regulatory approval, for dividends which could be paid by Merchants Bank to the Company was $583.9 million.

Memorandum of Understanding

​

On June 30, 2025, Merchants Bank entered into a confidential MOU with the FDIC and IDFI. While the contents of the MOU are confidential under IDFI and FDIC regulations, certain provisions, with the authorization of the IDFI and FDIC, are summarized below. The MOU is an informal administrative agreement among Merchants Bank, FDIC, and IDFI pursuant to which Merchants Bank has agreed to take various actions and enhance specific areas of Merchants Bank’s operations. In particular, Merchants Bank has agreed to maintain certain capital thresholds, manage asset concentrations, and implement certain plans regarding Merchants Bank’s operations and strategy to mitigate risk of certain assets, which it has already implemented. As of December 31, 2025, and as of each of the reporting periods beginning on or after December 31, 2024, Merchants Bank’s capital exceeded the levels agreed to in its MOU and Merchants 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 IDFI.

​

Additionally, under its MOU, if Merchants Bank’s capital ratios fall below the minimums agreed to, Merchants Bank may not pay dividends without the FDIC and IDFI’s prior consent. Merchants Bank has established an internal minimum leverage ratio of 9.0% and a minimum total capital ratio of 12.5%.

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 Merchants Bank’s ongoing day-to-day operations, although they may have the effect of limiting or delaying the Company’s or Merchants Bank’s ability or plans to expand.
v3.25.4
Commitments, Credit Risk, and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments, Credit Risk, and Contingencies  
Commitments, Credit Risk, and Contingencies

Note 26: Commitments, Credit Risk, and Contingencies

Financial Instruments

Merchants offers certain financial instruments, including commitments with contracts that contain credit risk to the Company and others that are subject to certain performance criteria by the client and or cancellation by the Company. Such commitments were as follows at December 31, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Commitments subject to credit risk:

​

​

​

​

​

​

Commitments to extend credit

​

$

3,608,270

​

$

4,348,628

Standby letters of credit

​

 

186,509

​

 

204,745

Unfunded warehouse repurchase agreements and other (not cancellable)

​

​

184,144

​

 

108,532

Total commitments subject to credit risk

​

$

3,978,923

​

$

4,661,905

​

​

​

​

​

​

​

Commitments subject to certain performance criteria and cancellation:

​

​

​

​

​

​

Outstanding commitments to originate loans

​

$

734,216

​

$

740,886

Unfunded construction draws

​

 

228,972

​

 

281,152

Unfunded warehouse repurchase agreements and other (cancellable)

​

​

250,891

​

​

2,681,313

Total commitments subject to certain performance criteria and cancellation

​

$

1,214,079

​

$

3,703,351

​

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

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

Standby letters of credit. These instruments are irrevocable, conditional commitments issued by the Company or by another party on behalf of the Company, for a fee, to guarantee the performance of a customer to a third party and they generally have fixed expiration dates or other termination clauses. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers. The Company’s policy for obtaining collateral and/or guarantees and the nature thereof is generally the same as that involved extending commitments to its customers. The Company has not been required to fund nor has it incurred any losses on any standby letter of credit commitment during the years ended December 31, 2025, 2024, and 2023.

Unfunded warehouse repurchase agreements and other lines of credit. Through the Mortgage Warehousing segment, the Company has repurchase agreements with certain non-depository financial institution customers engaged in mortgage lending. Funds drawn on the warehouse repurchase agreements are used by the borrowers to fund the loans they originate. The customers’ loans must meet certain credit and underwriting criteria before the Company will fund the draw requests on the repurchase agreements, and the draw requests can typically be denied by the Company. The majority of the warehouse repurchase agreements are unconditionally cancellable by the Company, but some are not subject to cancellation.

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

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

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

Allowance for credit losses – off-balance sheet credit exposures (ACL-OBCE)

The ACL-OBCE is a liability account representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from contractual obligations to extend credit such as those included in the categories above. No allowance is recognized if there is an unconditional right to cancel the obligation. The amount of the allowance represents management’s best estimate of expected credit losses on unfunded commitments expect to be funded over the contractual life of the commitment. The allowance was $8.0 million and $12.8 million as of December 31, 2025 and 2024, respectively. The ACL-OBCE is adjusted through the statements of income as a component of provision for credit loss.

Risk-Sharing Arrangements

As a Fannie Mae multi-family lender, the Company assumes a limited portion of the risk of loss during the remaining term on each commercial mortgage loan that is sold to Fannie Mae. Under this loss sharing agreement, Merchants bears a risk of up to one-third of incurred losses resulting from borrower defaults. Accordingly, Merchants maintained a reserve liability for this risk-sharing obligation of $2.9 million and $1.5 million at December 31, 2025 and 2024, respectively. There have been no loans in default during the years ended December 31, 2025, 2024, and 2023.

Repurchase Obligations

Certain single-family loans sold to Fannie Mae or Freddie Mac may require the Company to repurchase loans if it is determined that the Company did not adhere to underwriting guidelines required by these government-sponsored entities. There was a reserve for potential obligations in other liabilities on the balance sheet for $1.2 million and $1.1 million at December 2025 and 2024, respectively.

Indemnification Agreements

As part of a Freddie Mac Q-Series Securitization transaction occurring in 2022, the Company established reserve liabilities in other liabilities on the balance sheet related to an indemnification agreement for potential loan losses. The Company established a reserve for contingent financial guarantees, which had a balance of $0.7 million and $0.8 million for December 31, 2025 and 2024, respectively. The Company also established a non-contingent stand-by reserve, which had a balance of $1.5 million and $1.8 million for December 31, 2025 and 2024, respectively. See Note 5: Loans and Allowance for Credit Losses on Loans for additional information on this transaction.

Unconditional Investment Obligations

The Company is contractually obligated to provide additional capital funding to certain investments in LIHTC limited partnerships and LLCs. There was an unfunded liability for these investments of $118.0 million and $93.9 million at December 31, 2025 and 2024, respectively. Additionally, the Company had an obligation to invest in joint ventures for $8.4 million and $3.8 million at December 31, 2025 and 2024, respectively. See Note 9: Qualified Affordable Housing and Other Tax Credits and Note 11: Other Assets and Receivables for additional information on these investments and joint ventures.

Tax Credits

The Company periodically enters into transactions to acquire certain tax credits as part of its overall tax planning strategy. As of December 31, 2025, the Company had commitment to purchase $19.7 million in credits in the first quarter of 2026. The Company had no such commitments as of December 31, 2024.

Other

The Company and its subsidiaries can be parties to various claims and proceedings arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings and claims will not be material to the Company’s consolidated financial position or results of operations.
v3.25.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2025
Related Party Transactions  
Related Party Transactions

Note 27: Related Party Transactions

The Company has entered into transactions with certain directors, executive officers, and their affiliates or associates (related parties). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. The aggregate amount of loans to directors, executive officers and their affiliates was not greater than 5% of the Company’s shareholders’ equity at December 31, 2025 and 2024.

Legal Services

The Company retained a law firm of which a Board member is a partner. Services rendered are primarily related to documentation of current loan originations, and loan collections from Merchants Bank’s borrowers. Fees paid to the law firm, both directly and indirectly, totaled $9.7 million, $4.0 million, and $9.4 million for the years ended December 31, 2025, 2024, and 2023 respectively.

Speaking Engagements

The Company made payments to a Board member during 2023 for speaking engagements at corporate events. Fees paid to the Board member totaled $0, $0, and $30,000 for the years ended December 31, 2025, 2024, and 2023, respectively.

​

​

Corporate Travel

The Company made payments to a company that is owned by the Company’s Chairman and Chief Executive Officer. Payments were made for charter flights taken during 2025, 2024 and 2023 as part of corporate travel expenses. Payments made to the company totaled $25,000, $104,000, and $62,000 for the years ended December 31, 2025, 2024, and 2023, respectively.

Land Sale

During 2025, the Company sold certain land to an entity owned by the Company’s Chairman and Chief Executive Officer. The transaction was effective on December 30, 2025, and the land was sold for $2.2 million, which was paid in cash at closing. The carrying value of the land sold approximated the sales price, and accordingly, no gain or loss was recognized on the transaction. There were no amounts due to or from either party related to this transaction as of December 31, 2025.

Investments

Investments in a Senior Housing and Healthcare Entity

The Company holds a 30% ownership in an LLC that provides funding to the senior housing and healthcare sectors that is accounted for using the equity method of accounting. Transactions with this entity are included in the chart below. As of December 31, 2025, there was an unfunded commitment of $1.5 million for a standby letter of credit issued on behalf of this entity.

Investments in Low-Income Housing Tax Credit Syndications

The Company has a low-income housing tax credit syndication business through one of its subsidiaries and serves as a general partner, limited partner, or managing member. This business is generally funded through capital investments from external investors and in some cases by Merchants Bank, in the form of limited partnership or managing member interests, and bridge loans. Merchants Bank also serves as a warehouse to fund certain low-income housing tax credit projects until they are sold into the syndicated funds. Due to the short time between purchase and sale, no gains or losses were recognized on the sales during 2025, 2024 or 2023. Transactions with these entities are included in the chart below.

Investments in Debt Financing Entities

The Company has invested in single-family, multi-family, and healthcare debt financing entities (debt funds) through its subsidiaries. This business is funded through capital investments from external investors and by the Company, in the form of limited partnership interests. The Company also serves as a warehouse to acquire certain loans until they are sold into the debt funds. Transactions with these entities are included in the chart below. As of December 31, 2025 and 2024, there was an unfunded commitment of $20.0 million for a standby letter of credit issued on behalf of this entity.

See Note 26: Commitments and Credit Risk, and Contingencies for information on commitments for standby letters of credit.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

The table below provides a summary of the transactions with related entities for which the Company holds an ownership investment. Additional information regarding these investments is provided in Note 12: Variable Interest Entities.

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Year Ended December 31, 

​

​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

​

​

(In thousands)

Investments in Senior Housing and Healthcare Entity

​

​

​

​

​

​

​

​

​

Origination fees received from borrowers referred by the LLC

​

$

45,801

​

$

26,287

​

$

12,669

Fees paid to LLC for loans referred and originated

​

​

(41,835)

​

​

(20,882)

​

​

(9,866)

Servicing income received for loans referred by the LLC

​

​

1,515

​

​

841

​

​

561

Servicing income participation paid to LLC

​

​

(884)

​

​

(428)

​

​

(281)

Income from investment in LLC

​

​

7,063

​

​

3,536

​

​

1,612

Distributions received from LLC

​

​

4,221

​

​

1,153

​

​

993

Interest income paid to LLC for loans originated and referred by the LLC

​

​

(1,075)

​

​

(2,158)

​

​

(3,587)

​

​

​

​

​

​

​

​

​

​

Investments in LIHTC Syndications

​

​

​

​

​

​

​

​

​

Interest income, financing (1) and other fees received from syndicated funds

​

$

35,461

​

$

31,683

​

$

16,592

Loans and other receivables outstanding, net of participations sold, to syndicated funds

​

​

323,300

​

​

334,536

​

​

127,449

​

​

​

​

​

​

​

​

​

​

Investments in Debt Financing Entities

​

​

​

​

​

​

​

​

​

Income from investments, servicing, interest income, and management of debt funds

​

$

52,176

​

$

53,274

​

$

29,992

Distributions received from debt funds

​

​

1,184

​

​

8,871

​

​

890

Loans outstanding, net of participations sold, to debt funds

​

​

107,705

​

​

133,044

​

​

108,055

Loans sold to debt funds

​

​

513,015

​

​

98,184

​

​

102,336

Gains (losses) recognized on loans sold to debt funds

​

​

2,075

​

​

—

​

​

(263)

Carrying value, at year-end, of securities held-to-maturity purchased from debt funds

​

​

699,957

​

​

526,242

​

​

472,539

(1)Financing fees, net of costs to originate, are deferred and recognized in income over the life of the loan.
v3.25.4
Subsequent Events
 12 Months Ended
Dec. 31, 2025
Subsequent Events  
Subsequent Events

​

Note 28: Subsequent Events

None.

v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 218,770 $ 320,386 $ 279,234
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 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
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Risk Management and Strategy

To combat the ever-present cyber risks, the Company maintains a comprehensive ISP, which includes continuous risk assessments, an Incident Response Plan, and a multilayered control environment meant to protect, detect, respond to, and limit unauthorized or harmful actions across our information environment. The control environment is based off industry leading recommendations, including the Center for Internet Security (CIS) Critical Security Controls and the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF). Our Information Security Officer (ISO) is primarily responsible for coordinating the various aspects of the ISP with cross-functional support teams across various teams within the Company.

Standards over information security are Board-approved and various types of control testing is conducted throughout the year, by internal and external parties. Recommendations are implemented and reported to various committees. These security and privacy policies and procedures, aimed at protecting personal and confidential information, are in effect across all businesses and geographic locations. Board-approved policies are in place to effectively mitigate risks linked to third-party service providers, encompassing factors such as availability, confidentiality, governance and compliance. As part of this risk mitigation, the Company actively monitors vendors’ cybersecurity practices through periodic assessments and contractual security requirements. This ensures that vendors adhere to our security standards and promptly address emerging threats or vulnerabilities.

The Company employs a defense in depth posture, designed to safeguard information, prevent unauthorized access, detect, and respond to threats, and maintain the confidentiality, integrity, and availability of data. The ISP establishes controls across many domains, including but not limited to: information security governance, inventory and control of enterprise assets and software, data protection, secure configuration of enterprise assets and software, account and access control management, continuous vulnerability management, audit log management, email and web browser protections, malware defenses, data recovery, network infrastructure management, network monitoring and defense, security awareness and skills training, service provider management, application software security, incident response management, and penetration testing.

Recognizing people as a key component of an effective information security program, the Merchants Information Security Program strives to enhance education and awareness at all levels of the Company. One critical component of education and awareness is an internal Cyber Champions program, comprised of employees from all levels and departments, who act as embedded security representatives for their business units.

However, it is difficult or impossible to defend against every risk being posed by evolving technologies as well as criminal intent on committing cyber-crime. Increasing sophistication of criminal organizations and advanced persistent threats makes staying ahead of new dangers difficult and could result in a security breach. Controls employed by our information technology department and cloud vendors could prove inadequate. A breach of our security that results in unauthorized access to our data could expose us to a disruption or challenges relating to our daily operations, as well as to data loss, litigation, damages, fines and penalties, significant increases in compliance costs and reputational damage, any of which could have an adverse effect on our business, financial condition, and results of operations. The Company has established conditions to quickly respond to a cyber incident, ensuring a resilient, information environment. 

Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

To combat the ever-present cyber risks, the Company maintains a comprehensive ISP, which includes continuous risk assessments, an Incident Response Plan, and a multilayered control environment meant to protect, detect, respond to, and limit unauthorized or harmful actions across our information environment. The control environment is based off industry leading recommendations, including the Center for Internet Security (CIS) Critical Security Controls and the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF). Our Information Security Officer (ISO) is primarily responsible for coordinating the various aspects of the ISP with cross-functional support teams across various teams within the Company.

Standards over information security are Board-approved and various types of control testing is conducted throughout the year, by internal and external parties. Recommendations are implemented and reported to various committees. These security and privacy policies and procedures, aimed at protecting personal and confidential information, are in effect across all businesses and geographic locations. Board-approved policies are in place to effectively mitigate risks linked to third-party service providers, encompassing factors such as availability, confidentiality, governance and compliance. As part of this risk mitigation, the Company actively monitors vendors’ cybersecurity practices through periodic assessments and contractual security requirements. This ensures that vendors adhere to our security standards and promptly address emerging threats or vulnerabilities.

Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Governance

The Board established an IT Committee to assist executive management and the board of Merchants Bank in fulfilling their oversight responsibilities related to information security for all Merchants Bancorp entities. The IT committee membership includes the President & COO and senior management from business units, as well as information security risk experts such as the Information Security Officer, experts from Enterprise Risk Management, Internal Audit, and Information Technology Leaders. At the quarterly IT Committee meetings, security-related policies and standards are reviewed and approved, annual risk assessment results and action plans are noted, annual penetration

test reports shared, current security incidents discussed, emerging threats reported on, and relevant cyber risks and trends are presented. The IT Committee is responsible for governing the assessment and treatment of cyber risks. The Committee reports its activities, key conclusions, and recommendations to Merchants Bank‘s board on a quarterly basis. 

​

The Chief Administrative Officer is responsible for the appointment of the Information Security Officer. The Information Security Officer serves as the focal point for the information security program and is responsible and accountable for its implementation and monitoring, and management of the Information Security team. The current Information Security Officer has over a decade of experience in the cyber security field, including critical roles in security operations, security governance, risk, and compliance, and cyber threat intelligence. They have multiple industry leading certifications, including eleven GIAC certifications and the CISSP from the ISC2 and a Master of Engineering in Cybersecurity Policy and Compliance.

​

The Information Security Officer presents an Annual Information Security Review to Merchants Bank’s
board which summarizes the previous year’s threat landscape, risk assessment, service provider, and audit testing activities, results of security incidents, information security program changes, and future strategies and recommendations.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] IT Committee
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board established an IT Committee to assist executive management and the board of Merchants Bank in fulfilling their oversight responsibilities related to information security for all Merchants Bancorp entities. The IT committee membership includes the President & COO and senior management from business units, as well as information security risk experts such as the Information Security Officer, experts from Enterprise Risk Management, Internal Audit, and Information Technology Leaders. At the quarterly IT Committee meetings, security-related policies and standards are reviewed and approved, annual risk assessment results and action plans are noted, annual penetration test reports shared, current security incidents discussed, emerging threats reported on, and relevant cyber risks and trends are presented. The IT Committee is responsible for governing the assessment and treatment of cyber risks. The Committee reports its activities, key conclusions, and recommendations to Merchants Bank‘s board on a quarterly basis.
Cybersecurity Risk Role of Management [Text Block] The Chief Administrative Officer is responsible for the appointment of the Information Security Officer. The Information Security Officer serves as the focal point for the information security program and is responsible and accountable for its implementation and monitoring, and management of the Information Security team. The current Information Security Officer has over a decade of experience in the cyber security field, including critical roles in security operations, security governance, risk, and compliance, and cyber threat intelligence. They have multiple industry leading certifications, including eleven GIAC certifications and the CISSP from the ISC2 and a Master of Engineering in Cybersecurity Policy and Compliance.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Information Security Officer
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The current Information Security Officer has over a decade of experience in the cyber security field, including critical roles in security operations, security governance, risk, and compliance, and cyber threat intelligence. They have multiple industry leading certifications, including eleven GIAC certifications and the CISSP from the ISC2 and a Master of Engineering in Cybersecurity Policy and Compliance.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Information Security Officer presents an Annual Information Security Review to Merchants Bank’s
board which summarizes the previous year’s threat landscape, risk assessment, service provider, and audit testing activities, results of security incidents, information security program changes, and future strategies and recommendations.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Nature of Operations and Summary of Significant Accounting Policies  
Nature of Operations

Nature of Operations

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

Merchants Bank operates under an Indiana state bank charter and provides full banking services. As a state bank and non-Federal Reserve member, it is subject to the regulation of the IDFI and the FDIC. The Company is further subject to regulations of the Federal Reserve governing bank holding companies. Merchants Bank operates nationally through online banking and from seven depository branches in Indiana, including Lynn, Spartanburg, Richmond, Carmel, and Indianapolis. Merchants Bank generates multi-family, commercial, mortgage and consumer loans and also receives deposits from warehouse custodial customers nationally and from retail customers located primarily in Hamilton, Marion, Wayne, Randolph and surrounding counties in Indiana. Merchants Bank’s loans are generally secured by specific items of collateral, including real property, consumer assets, and business assets. Merchants Bank’s Mortgage Warehousing segment funds and participates in single-family and multi-family, agency eligible loans across the nation.

Prior to the sale of its branches, and merger of its remaining charter into Merchants Bank, on January 26, 2024, FMBI operated under an Illinois state bank charter and provided full banking services. As a state bank and non-Federal Reserve member, it was subject to the regulation of the IDFPR and the FDIC. FMBI operated from four offices located in Joy, Paxton, Melvin, and Piper City, Illinois.

MCC is primarily engaged in mortgage banking, specializing in lending for multi-family rental properties and healthcare facilities. It is an FHA approved mortgagee and a Ginnie Mae, Fannie Mae Affordable, and Freddie Mac issuer. It is also a fully integrated syndicator of low-income housing tax credit and debt funds.

Sale of Farmers-Merchants Bank of Illinois branches

Sale of Farmers-Merchants Bank of Illinois branches

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

​

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

​

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

​

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

​

Total assets and liabilities of approximately $60.8 million and $230.6 million, respectively, were sold. A net gain of $715,000 was recognized from the transaction, which included a $10.1 million deposit premium and the extinguishment of $7.8 million in goodwill and $0.5 million in intangibles in 2024.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements as of and for the years ended December 31, 2025, 2024, and 2023 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, FMBI (until its branches were sold and its bank charter merged into Merchants Bank on January 26, 2024), and MIP. Also included are Merchants Bank’s

primary operating subsidiaries, MCC, MCS and MCI, as well as all directly and indirectly owned subsidiaries owned by Merchants Bancorp.

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

In addition, when the Company makes an equity investment in or has a relationship with an entity for which it holds a variable interest, it is evaluated for consolidation requirements under 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 the 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 with significant exposure to the entity’s economics. 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. The investment is recorded on the consolidated balance sheets in other assets and its significant liabilities in borrowings. Additionally, the Company has certain variable interest investments that it was deemed not to be a primary beneficiary as of December 31, 2025 and 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 12: 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 consolidated financial statements in conformity with GAAP requires management to make estimates and judgement that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates are based upon historical experience and on various other assumptions that management believes are reasonable under the current circumstances. These estimates form the basis for making judgements about the carrying value of certain assets and liabilities that are not readily available from other sources. Actual results could differ from those estimates under different assumptions or conditions.

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.

Reclassifications

Reclassifications

​

Certain reclassifications have been made to the 2024 consolidated financial statements to conform to the audited consolidated financial statement presentation as of and for the year ended December 31, 2025. These reclassifications had no effect on net income.
Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of cash amounts due from depository institutions, interest-bearing deposits in other banks, money market accounts, and federal funds sold. For information on restricted cash see Note 2: Restriction on Cash and Due from Banks.

At December 31, 2025, the Company’s cash accounts exceeded federally insured limits by approximately $197.1 million. Included in this amount is approximately $176.0 million with the Federal Reserve and $5.7 million with the FHLB (Indianapolis), and $2.4 million with the FHLB (Chicago).

At December 31, 2024, the Company’s cash accounts exceeded federally insured limits by approximately $461.7 million. Included in this amount is approximately $324.6 million with the Federal Reserve and $93.4 million with the FHLB (Indianapolis), and $1.8 million with the FHLB (Chicago).
Securities Purchased Under Agreements to Resell

Securities Purchased Under Agreements to Resell

Securities purchased pursuant to a simultaneous Reverse Repurchase Agreement to resell the same securities at a specified price and date generally have maturity dates of 90 days or less and are carried at cost. Every 90 days the Reverse Repurchase Agreements rollover.
Mortgage Loans In Process of Securitization

Mortgage Loans in Process of Securitization

Mortgage loans in process of securitization are recorded at fair value with changes in fair value recorded in earnings. These include multi-family rental real estate loan originations to be sold as Ginnie Mae mortgage-backed securities and Fannie Mae and Freddie Mac participation certificates, all of which are pending settlement with firm investor commitments to purchase the securities, typically occurring within 30 days.
Investment Securities

Investment Securities

Securities classified as “held to maturity” are carried at amortized cost when the Company has the positive intent and ability to hold to maturity. Securities not classified as held to maturity or trading are classified as “available for sale” and recorded at fair value. If fair value option is not elected, unrealized gains and losses are excluded from earnings and reported in other comprehensive income. For securities available for sale utilizing the fair value option, the Company measures the securities at fair value and changes are recognized in current period income. The securities are held with the intent that the gains or losses will offset changes in the fair value of other financial instruments. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Regular assessments are performed on securities available for sale to confirm there are no expected credit losses that would require an allowance for credit losses to be established. Securities held to maturity generally require an allowance for lifetime expected credit losses when the security is purchased. Management considers several factors when making such estimates, including issuer bond ratings, historical loss rates for given bond ratings, the financial condition of the issuer, and whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, among others.

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 non-credit related factors. Any expected loss that is not credit-related is recognized in AOCL, net of tax. Credit-related expected losses are recognized as an ACL for securities available for sale on the consolidated balance sheets, 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.

For other equity securities, the Company reports the carrying value utilizing the measurement alternative election, reflecting any expected losses or other adjustments if observable price changes occur for identical or similar investments of the same issuer.
Loans Held for Sale and Loans at Fair Value

Loans Held for Sale and Loans at Fair Value

The Company uses participation agreements to fund certain mortgage loans held for sale from closing or purchase until sold to an investor. Under a participation agreement the Company elects to purchase a participation interest of up to 100% in individual loans. The Company shares proportionately in the interest income and the credit risk until the loan is sold to an investor. The Company holds the participating interest as the collateral until it is sent under a bailee arrangement to the investor. Typical investors are large financial institutions or government agencies.

​

Loans held for sale are typically carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance and included in noninterest income.

​

For all loans held for sale, interest earned from the time of funding to the time of sale is accrued on the unpaid principal balance and recognized as interest income.

​

Gain on loan sales are recorded in noninterest income. The gain on sale of loans in the statements of income may include origination fees, capitalized servicing rights, trading gains and losses, derivative gains and losses, and other related income or expense.

​

As a result of changes in events and circumstances or developments regarding management’s view of the foreseeable future, loans not originated or purchased with the intent to sell may subsequently be transferred to held for sale. At the date of transfer to held for sale, any ACL-Loans is reversed into earnings and the loans to be sold are transferred to the held for sale portfolio at the new amortized cost basis and accounted for at the lower of amortized cost or fair value. Any subsequent lower of cost or fair value adjustments are recognized in non-interest income as a valuation allowance adjustment. Similarly, if it is determined that a loan should be transferred from held for sale to loans receivable, the valuation allowance (net of any write downs), is reversed into earnings and the loan is transferred at the amortized cost basis on the transfer date, which coincides with the date of change in management’s intent. An ACL-Loans, excluding the amounts already charged off, is also established for the loan at the date of transfer to loans receivable, if it is held at amortized cost.

​

An ACL-Loans is not maintained on any loans held for sale or reported at fair value.
Loans Receivable

Loans Receivable

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 charge-offs, the ACL-Loans, and deferred fees or costs, including premiums or discounts on purchased loans.

For loans receivable held at amortized cost or fair value, interest income is accrued based on the unpaid principal balance.

The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and reports accrued interest separately from the related loan balance in the consolidated balance sheets. Accrued interest on loans totaled $51.4 million and $51.9 million at December 31, 2025 and 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.

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 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 is 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.

ACL-OBCEs

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

Premises and Equipment

Premises and Equipment

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

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

​

​

​

​

​

Buildings

  ​ ​ ​

5 to 40

years

Leasehold improvements

 

2 to 10

years

Software and intangible assets

​

4 to 10

years

Furniture, fixtures, and equipment

 

3 to 15

years

Vehicles

 

5

years

​

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

​

Leases

The Company has operating leases for various locations with terms ranging from one to six years. Operating leases are included in other assets and other liabilities on the consolidated balance sheets and lease expense for lease payments is recognized on a straight-line basis over the lease term. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term. An ROU asset represents the right to use the underlying asset for the lease term and also includes any direct costs and payments made prior to lease commencement and excludes lease incentives. When an implicit rate is not available, an incremental borrowing rate based on the information available at commencement date is used in determining the present value of the lease payments. The Company elected not to separate non-lease components from lease components for its operating leases. A lease term may include an option to extend or terminate the lease when it is reasonably certain the option will be exercised. Renewal and termination options are considered when determining short-term leases. Leases are accounted for at the individual level.
FHLB Stock and Other Equity Securities

FHLB Stock and Other Equity Securities

FHLB stock is a required investment for institutions that are members of a FHLB. Merchants Bank is a member of the FHLB of Indianapolis. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for expected losses. Both cash and stock dividends are reported as interest income.

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

Other Real Estate Owned

Other Real Estate Owned

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

Servicing Rights

Servicing Rights

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

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

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

Goodwill

Goodwill is tested annually, on December 31, for impairment or more frequently if impairment indicators are present. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements.
Other Assets

Other Assets

Investment in Low-Income Housing Tax Credit Limited Partnerships or LLC

The Company accounts for its investment in affordable housing tax credit limited partnerships or LLCs using the proportional amortization method. Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the statements of income as a component of income tax expense. The investment in the limited partnerships or LLCs are included in other assets and unfunded commitments are grossed up in other liabilities in the consolidated balance sheets. During the years ended December 31, 2025, 2024, and 2023, the Company sold some of these assets to funds in which it is a general partner and, in some cases, holds a minority interest in the limited partnership or LLC.
Joint Ventures and Equity Method Accounting

Joint Ventures and Equity Method Accounting

The Company accounts for its investments in joint ventures using the equity method or proportional amortization method as appropriate. The investments in the limited partnerships or LLCs are included in other assets on the consolidated balance sheets.

Intangible Assets

Intangible Assets

Until the sale of its FMBI branches in January 2024, intangible assets, which included licenses and trade names, were amortized over a period ranging from 84 to 120 months using a straight-line method of amortization. Customer list intangible assets were amortized over 21 months using a straight-line method of amortization. Also included were core deposit intangibles that were amortized over a 10-year period using the accelerated sum of the years digits method of amortization. The only intangible asset remaining as of December 31, 2025 is a trade name that is being amortized over 120 months using a straight-line method of amortization. The balance of intangible assets are no longer material and therefore included in other assets. On a periodic basis, the Company evaluates events and circumstances that may indicate a change in the recoverability of the carrying value.
Freestanding Credit Enhancements

Freestanding Credit Enhancements

Freestanding credit enhancements, such as credit default swaps that qualify for a derivative scope exception, are used to mitigate credit risk on certain loans included in identified reference pools. These instruments are accounted for separately from the loans they protect. The Company does not offset its estimate of expected credit losses with potential recoveries from these enhancements. This ensures that the ACL-Loans reflects the Company's own credit risk exposure. Instead, any expected recoveries are recognized as separate assets and measured using assumptions consistent with the loss estimate for the protected loans. These enhancements are recognized in other assets and other noninterest income when the criteria for recognition are met. The nature, terms, and additional details on these enhancements are described in Note 11: Other Assets and Receivables.

Income Taxes

Income Taxes

The Company accounts for income taxes in accordance with income tax accounting guidance. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and changes in tax rates and laws are recognized

in the period in which they are enacted. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2022.

The Company recognizes interest and penalties, if any, as other noninterest expense.

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

Earnings Per Share

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

Share-based Compensation Plans

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

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

In 2020, the Company established an ESOP to provide certain benefits for all employees who meet certain requirements.

Revenue Recognition

Revenue Recognition

​

The Company’s principal source of revenue is interest income from loans, investment securities and other financial instruments that are not within the scope of the revenue accounting guidance. For other revenue sources, the Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying the revenue guidance that significantly affects the determination of the amount and timing of revenue from contracts with customers.

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

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

The Company also earns other noninterest income through a variety of financial and transaction services provided to corporate and consumer clients such as deposit service charges, debit card network fees, safe deposit box rental fees, LIHTC syndication fees, asset management fees, and derivatives. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed.

Comprehensive Income

Comprehensive Income (Loss)

​

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

Derivative Financial Instruments

The Company enters into non-hedging designated derivative financial instruments as part of its interest rate and credit risk management strategies. These derivative financial instruments consist primarily of interest rate locks, forward sale commitments, interest rate swaps, caps, put options, interest rate floor contracts, and credit default swaps not receiving a scope exception. These derivative instruments are recorded on the consolidated balance sheets, as either an asset or liability, at their fair value. Typically, changes in fair value of derivatives are recognized in noninterest income on the consolidated statements of income. The Company also offers interest rate swaps to some customers and enters an offsetting contract with a third-party dealer. These derivatives generally work together as an economically neutral interest rate position to assist the customer, but the Company does not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability are recorded as either a charge or credit to current earnings during the period in which the changes occurred, typically resulting in no net earnings impact.
Recent Accounting Pronouncements

New Accounting Pronouncements Not Yet Adopted

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

​

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 update 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 shall apply the ASU on a prospective basis to financial statements for annual periods beginning after the effective date. The Company is continuing to evaluate the impact of adopting this new guidance.

​

FASB ASU 2025-08 – Financial Instruments – Credit Losses – Purchased Loans

​

In November 2025, the FASB issued an ASU update to simplify and enhance comparability in the accounting for purchased loans under CECL. The update will require updates to CECL models and accounting processes for the new category of certain acquired loans.

​

The updates in ASU 2025-08 are effective for fiscal periods beginning after December 15, 2026, including interim periods. An entity shall apply the ASU on a prospective basis to financial statements for annual periods beginning after the effective date. Early adoption is permitted. The Company is continuing to evaluate the impact of adopting this new guidance.
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Nature of Operations and Summary of Significant Accounting Policies  
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 estimated useful lives

​

​

​

​

​

Buildings

  ​ ​ ​

5 to 40

years

Leasehold improvements

 

2 to 10

years

Software and intangible assets

​

4 to 10

years

Furniture, fixtures, and equipment

 

3 to 15

years

Vehicles

 

5

years
v3.25.4
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2025
Investment Securities  
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

​

​

​

​

Gross

​

Gross

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

​

  ​ ​ ​

Cost

  ​ ​ ​

Gains

  ​ ​ ​

Losses

  ​ ​ ​

Value

​

​

(In thousands)

Securities available for sale:

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

Treasury notes

​

$

30,635

​

$

45

​

$

—

​

$

30,680

Federal agencies

​

 

259,591

​

 

21

​

 

104

​

 

259,508

Mortgage-backed - Government Agency (1) - multi-family

​

 

3,562

​

 

—

​

 

6

​

 

3,556

Mortgage-backed - Non-Agency - residential - fair value option (2)

​

​

385,460

​

​

—

​

​

—

​

​

385,460

Mortgage-backed - Agency - residential - fair value option (2)

​

​

185,854

​

​

—

​

​

—

​

​

185,854

Total securities available for sale

​

$

865,102

​

$

66

​

$

110

​

$

865,058

Securities held to maturity:

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage-backed - Non-Agency - multi-family

​

$

438,430

​

$

—

​

$

950

​

$

437,480

Mortgage-backed - Non-Agency - residential

​

​

699,957

​

​

1,655

​

​

127

​

​

701,485

Mortgage-backed - Non-Agency - healthcare

​

​

393,588

​

​

—

​

​

4

​

​

393,584

Mortgage-backed - Agency - multi-family

​

​

11,684

​

​

—

​

​

679

​

​

11,005

Total securities held to maturity

​

$

1,543,659

​

$

1,655

​

$

1,760

​

$

1,543,554

​

​

​

​

​

​

​

​

​

​

​

​

​

FHLB and other equity securities (3)

​

$

227,589

​

​

​

​

​

​

​

​

​

​

(1)Agency includes government sponsored entities, such as Fannie Mae, Freddie Mac, Ginnie Mae, FHLB, and FCB.
(2)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.
(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 (1) - multi-family

​

 

1,162

​

 

—

​

 

—

​

 

1,162

Mortgage-backed - Non-Agency - residential - fair value option (2)

​

​

430,779

​

​

—

​

​

—

​

​

430,779

Mortgage-backed - Agency - residential - fair value option (2)

​

​

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)Agency includes government sponsored entities, such as Fannie Mae, Freddie Mac, Ginnie Mae, FHLB, and FCB.
(2)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.
(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

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

​

​

Amortized

​

Fair

​

​

  ​ ​ ​

Cost

  ​ ​ ​

Value

  ​ ​ ​

​

​

(In thousands)

Securities available for sale:

​

​

Within one year

​

$

85,226

​

$

85,292

​

After one through five years

​

 

205,000

​

 

204,896

​

​

​

 

290,226

​

 

290,188

​

Mortgage-backed - Agency - multi-family

​

​

3,562

​

​

3,556

​

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

​

​

385,460

​

​

385,460

​

Mortgage-backed - Agency - residential - fair value option

​

 

185,854

​

 

185,854

​

​

​

$

865,102

​

$

865,058

​

Securities held to maturity:

​

​

​

​

​

​

​

Mortgage-backed - Non-Agency - multi-family

​

$

438,430

​

$

437,480

​

Mortgage-backed - Non-Agency - residential

​

​

699,957

​

​

701,485

​

Mortgage-backed - Non-Agency - healthcare

​

​

393,588

​

​

393,584

​

Mortgage-backed - Agency - multi-family

​

​

11,684

​

 

11,005

​

​

​

$

1,543,659

​

$

1,543,554

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 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:

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

Federal agencies

​

$

204,896

​

$

104

​

$

—

​

$

—

​

$

204,896

​

$

104

Mortgage-backed - Government Agency - multi-family

​

​

3,556

​

​

6

​

​

—

​

​

—

​

​

3,556

​

​

6

​

​

$

208,452

​

$

110

​

$

—

​

$

—

​

$

208,452

​

$

110

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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
v3.25.4
Loans and Allowance for Credit Losses on Loans (Tables)
 12 Months Ended
Dec. 31, 2025
Loans and Allowance for Credit Losses on Loans  
Schedule of loans

​

​

​

​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Mortgage warehouse repurchase agreements(1)

​

$

1,600,285

​

$

1,446,068

Residential real estate(2)

​

 

1,018,780

​

 

1,322,853

Multi-family financing

​

 

5,332,680

​

 

4,624,299

Healthcare financing

​

​

1,385,359

​

​

1,484,483

Commercial and commercial real estate(1)(3)(4)

​

 

1,603,551

​

 

1,476,211

Agricultural production and real estate

​

 

92,077

​

 

77,631

Consumer and margin loans

​

 

1,950

​

 

6,843

Loans Receivable

​

 

11,034,682

​

 

10,438,388

Less:

​

 

  ​

​

 

  ​

ACL - Loans

​

 

83,301

​

 

84,386

Loans Receivable, net

​

$

10,951,381

​

$

10,354,002

(1)The warehouse portfolio is exclusively made up of loans to residential and multi-family mortgage bankers that are funding agency-eligible mortgages and commercial loans, which represent all of the Company’s loans to non-depository institutions.
(2)Includes $832.2 million and $1.2 billion of All-in-One© first-lien home equity lines of credit at December 31, 2025 and 2024, respectively.
(3)Includes $944.3 million and $908.9 million of revolving lines of credit collateralized primarily by servicing rights as of December 31, 2025 and 2024, respectively.
(4)Includes only $19.5 million and $18.7 million of non-owner occupied commercial real estate as of December 31, 2025 and 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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 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

​

 

453

​

 

(1,270)

 

​

102,147

​

​

17,530

​

 

3,965

​

 

158

​

 

(79)

​

 

122,904

Loans charged to the allowance

​

 

—

​

 

—

 

​

(114,281)

​

​

(7,497)

​

 

(2,338)

​

 

—

​

 

—

​

 

(124,116)

Recoveries of loans previously charged-off

​

 

—

​

 

—

 

​

49

​

​

—

​

 

78

​

 

—

​

 

—

​

​

127

Balance, end of period

​

$

4,269

​

$

4,672

​

$

43,041

​

$

18,595

​

$

11,998

​

$

697

​

$

29

​

$

83,301

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2023

​

  ​

MTG WHRA

  ​

RES RE

  ​

MF FIN

  ​

HC FIN

​

CML & CRE

  ​

AG & AGRE

  ​

CON & MAR

  ​

TOTAL

​

​

(In thousands)

ACL - Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance, beginning of year

​

$

1,249

​

$

7,029

 

$

16,781

​

$

9,882

​

$

8,326

​

$

565

​

$

182

​

$

44,014

Provision for credit losses

​

 

821

​

 

328

 

​

18,493

​

​

12,572

​

 

5,232

​

 

54

​

 

(12)

​

 

37,488

Loans charged to the allowance

​

 

—

​

 

(34)

 

​

(8,400)

​

​

—

​

 

(1,356)

​

 

—

​

 

(1)

​

 

(9,791)

Recoveries of loans previously charged off

​

 

—

​

 

—

 

​

—

​

​

—

​

 

41

​

 

—

​

 

—

​

 

41

Balance, end of year

​

$

2,070

​

$

7,323

​

$

26,874

​

$

22,454

​

$

12,243

​

$

619

​

$

169

​

$

71,752
Schedule of allowance for credit loss allocated to collateral dependent loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

 

Real Estate

 

Accounts Receivable / Equipment

 

Other

 

Total

 

ACL-Loans Allocation

​

​

(In thousands)

RES RE

​

$

7,681

​

$

—

 

$

—

​

$

7,681

​

$

39

MF FIN

​

 

213,289

​

 

—

 

​

—

​

 

213,289

​

 

5,618

HC FIN

​

​

72,825

​

​

—

​

​

—

​

​

72,825

​

​

12,515

CML & CRE

​

 

8,725

​

 

—

 

​

566

​

 

9,291

​

 

270

AG & AGRE

​

 

181

​

 

4

 

​

—

​

 

185

​

 

2

Total collateral dependent loans

​

$

302,701

​

$

4

​

$

566

​

$

303,271

​

$

18,444

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

  ​ ​ ​

2022

  ​ ​ ​

2021

  ​ ​ ​

Prior

  ​ ​ ​

Revolving Loans

​

Total

​

​

(In thousands)

MTG WHRA

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1,600,285

​

$

1,600,285

Total

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

1,600,285

​

$

1,600,285

RES RE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

66,511

​

$

33,386

​

$

21,645

​

$

6,378

​

$

4,608

​

$

21,283

​

$

857,288

​

$

1,011,099

Substandard

​

​

—

​

​

—

​

​

431

​

​

22

​

​

—

​

​

129

​

​

7,099

​

​

7,681

Total

​

$

66,511

​

$

33,386

​

$

22,076

​

$

6,400

​

$

4,608

​

$

21,412

​

$

864,387

​

$

1,018,780

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

1,193,011

​

$

650,672

​

$

348,888

​

$

189,881

​

$

22,868

​

$

9,291

​

$

2,539,144

​

$

4,953,755

Special Mention

​

​

70,127

​

​

71,723

​

​

—

​

​

21,924

​

​

—

​

​

232

​

​

1,630

​

​

165,636

Substandard

​

​

39,936

​

​

8,302

​

​

79,463

​

​

74,992

​

​

—

​

​

—

​

​

10,596

​

​

213,289

Total

​

$

1,303,074

​

$

730,697

​

$

428,351

​

$

286,797

​

$

22,868

​

$

9,523

​

$

2,551,370

​

$

5,332,680

Charge-offs

​

$

—

​

$

—

​

$

42,884

​

$

65,405

​

$

—

​

$

5,992

​

$

—

​

$

114,281

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

693,986

​

$

6,922

​

$

32,305

​

$

—

​

$

—

​

$

—

​

$

548,130

​

$

1,281,343

Special Mention

​

​

13,503

​

​

17,688

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

31,191

Substandard

​

​

21,967

​

​

—

​

​

24,691

​

​

—

​

​

20,317

​

​

—

​

​

5,850

​

​

72,825

Total

​

$

729,456

​

$

24,610

​

$

56,996

​

$

—

​

$

20,317

​

$

—

​

$

553,980

​

$

1,385,359

Charge-offs

​

$

—

​

$

—

​

$

—

​

$

—

​

$

5,296

​

$

2,201

​

$

—

​

$

7,497

CML & CRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

65,578

​

$

48,115

​

$

43,092

​

$

59,178

​

$

35,950

​

$

30,767

​

$

1,303,578

​

$

1,586,258

Special Mention

​

​

5,123

​

​

116

​

​

561

​

​

502

​

​

883

​

​

142

​

​

675

​

​

8,002

Substandard

​

​

—

​

​

213

​

​

128

​

​

600

​

​

8,330

​

​

20

​

​

—

​

​

9,291

Total

​

$

70,701

​

$

48,444

​

$

43,781

​

$

60,280

​

$

45,163

​

$

30,929

​

$

1,304,253

​

$

1,603,551

Charge-offs

​

$

—

​

$

302

​

$

316

​

$

160

​

$

1,560

​

$

—

​

$

—

​

$

2,338

AG & AGRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

14,702

​

$

15,457

​

$

7,007

​

$

4,386

​

$

2,807

​

$

19,840

​

$

27,604

​

$

91,803

Special Mention

​

​

89

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

89

Substandard

​

​

—

​

​

—

​

​

4

​

​

181

​

​

—

​

​

—

​

​

—

​

​

185

Total

​

$

14,791

​

$

15,457

​

$

7,011

​

$

4,567

​

$

2,807

​

$

19,840

​

$

27,604

​

$

92,077

CON & MAR

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

133

​

$

108

​

$

15

​

$

2

​

$

—

​

$

—

​

$

1,692

​

$

1,950

Special Mention

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Total

​

$

133

​

$

108

​

$

15

​

$

2

​

$

—

​

$

—

​

$

1,692

​

$

1,950

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Pass

​

$

2,033,921

​

$

754,660

​

$

452,952

​

$

259,825

​

$

66,233

​

$

81,181

​

$

6,877,721

​

$

10,526,493

Total Special Mention

​

$

88,842

​

$

89,527

​

$

561

​

$

22,426

​

$

883

​

$

374

​

$

2,305

​

$

204,918

Total Substandard

​

$

61,903

​

$

8,515

​

$

104,717

​

$

75,795

​

$

28,647

​

$

149

​

$

23,545

​

$

303,271

Total Loans

​

$

2,184,666

​

$

852,702

​

$

558,230

​

$

358,046

​

$

95,763

​

$

81,704

​

$

6,903,571

​

$

11,034,682

Total Charge-offs

​

$

—

​

$

302

​

$

43,200

​

$

65,565

​

$

6,856

​

$

8,193

​

$

—

​

$

124,116

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

  ​ ​ ​

30-59 Days

  ​ ​ ​

​

60-89 Days

  ​ ​ ​

​

90+ Days

  ​ ​ ​

​

Total

  ​ ​ ​

​

​

​

  ​ ​ ​

​

Total

​

​

​

Past Due

​

​

Past Due

​

​

Past Due

​

​

Past Due

​

​

Current

​

​

Loans

​

​

​

(In thousands)

MTG WHRA

​

$

—

 

​

$

—

​

​

$

—

​

​

$

—

​

​

$

1,600,285

​

​

$

1,600,285

​

RES RE

​

 

5,077

 

​

​

2,430

​

​

 

3,479

​

​

 

10,986

​

​

 

1,007,794

​

​

 

1,018,780

​

MF FIN

​

 

—

 

​

​

47,475

​

​

 

111,348

​

​

 

158,823

​

​

 

5,173,857

​

​

 

5,332,680

​

HC FIN

​

​

—

 

​

​

—

​

​

 

26,167

​

​

 

26,167

​

​

 

1,359,192

​

​

 

1,385,359

​

CML & CRE

​

 

7,517

 

​

​

659

​

​

 

2,280

​

​

 

10,456

​

​

 

1,593,095

​

​

 

1,603,551

​

AG & AGRE

​

 

—

 

​

​

125

​

​

 

4

​

​

 

129

​

​

 

91,948

​

​

 

92,077

​

CON & MAR

​

 

—

 

​

​

—

​

​

 

—

​

​

 

—

​

​

 

1,950

​

​

 

1,950

​

​

​

$

12,594

​

​

$

50,689

​

​

$

143,278

​

​

$

206,561

​

​

$

10,828,121

​

​

$

11,034,682

​

​

​

​

—

%

​

​

—

%

​

​

1

%

​

​

2

%

​

​

98

%

​

​

100

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

  ​ ​ ​

30-59 Days

  ​

​

60-89 Days

  ​

​

90+ Days

  ​

​

Total

  ​

​

​

​

  ​

​

Total

​

​

​

Past Due

​

​

Past Due

​

​

Past Due

​

​

Past Due

​

​

Current

​

​

Loans

​

​

​

(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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

​

2025

​

2024

​

​

​

​

​

Total Loans >

​

​

​

​

Total Loans >

​

​

​

​

​

90 Days &

​

​

​

​

90 Days &

​

  ​ ​ ​

Nonaccrual

  ​ ​ ​

Accruing

  ​ ​ ​

Nonaccrual

  ​ ​ ​

Accruing

​

​

(In thousands)

RES RE

​

$

7,680

​

$

—

​

$

6,154

​

$

—

MF FIN

​

 

128,241

​

 

—

​

 

201,508

​

 

—

HC FIN

​

​

59,574

​

 

—

​

 

69,001

​

 

—

CML & CRE

​

 

2,313

​

​

—

​

 

3,047

​

​

—

AG & AGRE

​

 

4

​

 

—

​

 

6

​

 

6

​

​

$

197,812

​

$

—

​

$

279,716

​

$

6
Schedule of company's modified loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

December 31, 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

  ​ ​ ​

Total
Class of
Financing
Receivable

  ​ ​ ​

% of Total
Class of
Financing
Receivable

​

​

​

(In thousands)

​

(In thousands)

​

MF FIN

 

$

—

 

$

80,932

​

$

32,537

 

$

113,469

 

​

2

%

$

40,398

 

$

51,786

​

$

92,184

 

​

2

%

HC FIN

​

​

24,691

​

​

40,892

​

​

8,716

​

​

74,299

​

​

5

%

​

9,737

​

​

4,224

​

​

13,961

​

​

1

%

CML & CRE

​

​

—

​

​

768

​

​

177

​

​

945

​

​

—

%

​

—

​

​

—

​

​

—

​

​

—

%

Total

​

$

24,691

​

$

122,592

​

$

41,430

​

$

188,713

​

​

2

%

$

50,135

​

$

56,010

​

$

106,145

​

​

1

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

​

Payment Delay

​

Term Extension

​

Combination - Term Extension and Payment Delay

Loan Type

​

Financial Effect

​

Financial Effect

​

Financial Effect

MF FIN

​

—

​

Added a weighted average 7 months.

​

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

HC FIN

​

Forbearance average of 9 months.

​

Added a weighted average 8 months.

​

Term extension added a weighted average of 14 months and forbearance average of 6 months.

CML & CRE

​

—

​

Added a weighted average 74 months.

​

Term extension added a weighted average of 60 months and forbearance average of 12 months.

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

​

Payment Delay

​

Term Extension

​

Combination - Term Extension and Payment Delay

Loan Type

​

Financial Effect

​

Financial Effect

​

Financial Effect

MF FIN

​

Forbearance average of 7 months.

​

Added a weighted average 23 months.

​

—

HC FIN

​

Forbearance average of 6 months.

​

Added a weighted average 12 months.

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

  ​ ​ ​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

30 - 89 Days

​

  ​ ​ ​

90+ Days

  ​ ​ ​

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

Past Due

​

​

Past Due

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(In thousands)

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

101,929

​

$

11,540

​

​

$

—

​

$

113,469

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

65,584

​

​

8,715

​

​

​

—

​

​

74,299

CML & CRE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

945

​

​

—

​

​

​

—

​

​

945

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

168,458

​

$

20,255

​

​

$

—

​

$

188,713

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

  ​ ​ ​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

30 - 89 Days

​

  ​ ​ ​

90+ Days

  ​ ​ ​

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

Past Due

​

​

Past Due

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(In thousands)

MF FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

78,519

​

$

13,665

​

​

$

—

​

$

92,184

HC FIN

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

—

​

​

13,961

​

​

​

—

​

​

13,961

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

78,519

​

$

27,626

​

​

$

—

​

$

106,145
Schedule of supplemental cash flow information related to loans

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

2024

​

2023

​

​

(In thousands)

​

​

​

​

​

​

​

​

​

​

Cash Flow Statement

​

​

​

​

​

​

​

​

​

Supplemental cash flow information:

​

​

​

​

​

​

​

​

​

Transfer of loans to other real estate owned

​

$

55,798

​

$

6,285

​

$

—

Investments received in securitization of loans sold

​

 

3,583

​

 

534,538

​

 

—

Deposits received upon loan origination

​

 

189,206

​

 

—

​

 

—

Transfer of loans from loans held for sale to loans receivable

​

​

390,728

​

​

118,000

​

​

377,460

Transfer of loans from loans receivable to loans held for sale

​

 

431,520

​

 

612,469

​

 

65,768

​
v3.25.4
Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2025
Premises and Equipment  
Schedule of premises and equipment stated at cost

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Land

​

$

8,016

​

$

8,016

Buildings

​

 

58,295

​

 

28,200

Building and remodeling in progress

​

 

3,731

​

 

20,453

Leasehold improvements

​

 

1,084

​

 

1,017

Furniture, fixtures, equipment and software

​

 

19,152

​

 

14,335

Total cost

​

 

90,278

​

 

72,021

Accumulated depreciation

​

 

(16,349)

​

 

(13,404)

Net premises and equipment

​

$

73,929

​

$

58,617
v3.25.4
Loan Servicing (Tables)
 12 Months Ended
Dec. 31, 2025
Loan Servicing  
Schedule of mortgage servicing rights measured using fair value method

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

2024

  ​ ​ ​

2023

​

 

​

(In thousands)

Balance, beginning of period

​

$

189,935

​

$

158,457

​

$

146,248

Purchased servicing

​

 

14,482

​

 

—

​

 

513

Originated servicing

​

 

23,654

​

 

18,670

​

 

14,755

Paydowns

​

 

(12,223)

​

 

(9,901)

​

 

(7,621)

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

​

 

1,448

​

 

22,709

​

 

4,562

Balance, end of period

​

$

217,296

​

$

189,935

​

$

158,457
v3.25.4
Goodwill (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill.  
Schedule of goodwill

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2025

​

​

2024

​

​

2023

​

Multi-family

  ​ ​ ​

Banking

  ​ ​ ​

Warehouse

  ​ ​ ​

Total

  ​ ​ ​

Multi-family

  ​ ​ ​

Banking

  ​ ​ ​

Warehouse

  ​ ​ ​

Total

  ​ ​ ​

Multi-family

  ​ ​ ​

Banking

  ​ ​ ​

Warehouse

  ​ ​ ​

Total

​

(In thousands)

​

(In thousands)

​

(In thousands)

Balance, beginning of period

$

3,791

​

$

522

​

$

3,701

​

$

8,014

​

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

​

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

Sale of FMBI branches

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

(7,831)

​

​

—

​

​

(7,831)

​

​

—

​

​

—

​

​

—

​

​

—

Balance, end of period

$

3,791

​

$

522

​

$

3,701

​

$

8,014

​

$

3,791

​

$

522

​

$

3,701

​

$

8,014

​

$

3,791

​

$

8,353

​

$

3,701

​

$

15,845

​
v3.25.4
Qualified Affordable Housing and Other Tax Credits (Tables)
 12 Months Ended
Dec. 31, 2025
Qualified Affordable Housing and Other Tax Credits  
Schedule of investments and unfunded commitments of qualified affordable housing

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

December 31, 2024

​

​

​

(In thousands)

Investment

Accounting Method

​

Investment

​

Unfunded Commitments

​

Investment

​

Unfunded Commitments

LIHTC

Proportional amortization

​

$

218,110

​

$

118,043

​

$

123,574

​

$

93,929

LIHTC (1)

Lower of cost or market

​

​

49,725

​

​

—

​

​

56,533

​

​

—

LIHTC subtotal

​

​

$

267,835

​

$

118,043

​

$

180,107

​

$

93,929

Joint Venture

Consolidated

​

​

10,903

​

​

—

​

​

10,937

​

​

—

Total

​

​

$

278,738

​

$

118,043

​

$

191,044

​

$

93,929

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31,

​

​

​

​

​

​

2025

​

2024

​

2023

​

​

​

​

​

​

(In thousands)

Amortization expense

​

​

​

​

​

$

24,892

​

$

10,430

​

$

7,949

Expected tax credits

​

​

​

​

​

​

27,532

​

​

12,114

​

​

8,416
Schedule of supplemental cash flow information related to qualified affordable housing investments

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

2024

​

2023

​

​

(In thousands)

​

​

​

​

​

​

​

​

​

​

Cash Flow Statement

​

​

​

​

​

​

​

​

​

Supplemental cash flow information:

​

​

​

​

​

​

​

​

​

Qualified affordable housing investments obtained in exchange for funding commitments

​

$

66,307

​

$

—

​

$

—

Deposits received upon reduction of funding commitments

​

 

42,193

​

 

—

​

 

—

Deposits received upon purchase of LIHTCs

​

​

11,166

​

​

—

​

​

—

Beneficial interests received in exchange for LIHTC's sold

​

 

14,637

​

 

38,793

​

 

—
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases  
Schedule of balance sheet, income statement and cash flow detail regarding operating leases

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

December 31, 2024

​

​

​

​

(In thousands)

​

Balance Sheet

​

​

​

​

​

​

  ​ ​ ​

Operating lease ROU asset (in other assets)

​

$

6,006

​

$

8,332

​

Operating lease liability (in other liabilities)

​

​

7,264

​

​

9,303

​

​

​

​

​

​

​

​

​

Weighted average remaining lease term (years)

​

​

3.7

​

​

4.6

​

Weighted average discount rate

​

​

3.44%

​

​

3.43%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31,

​

​

2025

​

2024

​

2023

​

​

(In thousands)

Statement of Income

​

​

​

​

​

​

​

​

​

Components of lease expense:

​

​

​

​

​

​

​

​

​

Operating lease cost

​

$

3,402

​

$

2,692

​

$

2,438

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31,

​

​

2025

​

2024

​

2023

​

​

(In thousands)

Statement of Cash Flow

​

​

Supplemental cash flow information:

​

​

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

2,325

​

$

2,505

​

$

2,129

Change in ROU assets due to lease renegotiation

​

​

—

​

​

(1,063)

​

​

—

ROU assets obtained in exchange for new operating lease liabilities

​

​

—

​

​

1,337

​

​

1,113

​
Schedule of future minimum lease payments

​

​

​

​

​

​

​

December 31, 2025

​

​

(In thousands)

Maturities of operating lease liabilities:

​

​

​

One year or less

​

$

2,293

Year two

​

​

2,203

Year three

​

​

1,597

Year four

​

​

1,101

Year five

​

​

419

Thereafter

​

​

128

Total future minimum lease payments

​

$

7,741

Less: imputed interest

​

​

477

Total

​

$

7,264
v3.25.4
Other Assets and Receivables (Tables)
 12 Months Ended
Dec. 31, 2025
Other Assets and Receivables  
Schedule of intangible assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

2025

  ​ ​ ​ ​

2024

  ​ ​ ​ ​

2023

​

​

Gross

  ​ ​ ​

​

​

  ​ ​

​

​

​

Gross

  ​ ​ ​

​

​

​

Sale of

  ​ ​ ​

​

​

  ​ ​ ​

Gross

  ​ ​ ​

​

​

  ​ ​ ​

​

​

​

​

Carrying

​

Accumulated

​

​

​

​

Carrying

​

Accumulated

​

FMBI

​

​

​

​

Carrying

​

Accumulated

​

​

​

​

​

Amount

​

Amortization

​

Total

  ​ ​ ​

Amount

​

Amortization

​

branches

​

Total

  ​ ​ ​

Amount

​

Amortization

​

Total

​

​

(In thousands)

​

(In thousands)

​

(In thousands)

Licenses

​

$

—

​

$

—

​

$

—

​

$

1,370

​

$

(1,370)

​

$

—

​

$

—

​

$

1,370

​

$

(1,247)

​

$

123

Trade names

​

​

224

​

​

(188)

​

​

36

​

​

224

​

​

(165)

​

​

—

​

​

59

​

​

224

​

​

(143)

​

​

81

Core deposit intangible

​

​

—

​

​

—

​

​

—

​

​

2,417

​

​

(1,879)

​

​

(538)

​

​

—

​

​

2,417

​

​

(1,879)

​

​

538

Total intangible assets

​

$

224

​

$

(188)

​

$

36

​

$

4,011

​

$

(3,414)

​

$

(538)

​

$

59

​

$

4,011

​

$

(3,269)

​

$

742
Schedule of estimated amortization expense

​

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

​

​

​

​

​

Year ending December 31,

  ​ ​ ​

​

​

2026

​

$

22

2027

​

​

14

Total

​

$

36
v3.25.4
Variable Interest Entities (VIEs) (Tables)
 12 Months Ended
Dec. 31, 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

​

of VIEs

​

Exposure to Loss

​

for VIEs

​

​

​

(In thousands)

​

December 31, 2025

​

 

  ​

​

 

  ​

​

​

​

​

​

​

​

  ​

​

​

Low-income housing tax credit investments

​

$

239,698

​

$

284,391

​

$

—

​

$

524,089

​

$

88,708

​

Debt funds

​

​

32,038

​

​

82,955

​

​

—

​

​

114,993

​

​

—

​

Mortgage-backed securitizations (1)

​

​

—

​

​

24,750

​

​

1,531,975

​

​

1,556,725

​

​

—

​

Total Unconsolidated VIEs

​

$

271,736

​

$

392,096

​

$

1,531,975

​

$

2,195,807

​

$

88,708

​

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.
v3.25.4
Deposits (Tables)
 12 Months Ended
Dec. 31, 2025
Deposits  
Schedule of deposits

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Noninterest-bearing deposits

​

​

​

​

​

​

Core demand deposits

​

$

604,081

​

$

239,005

​

​

​

​

​

​

​

Interest-bearing deposits

​

​

​

​

​

​

Demand deposits:

​

​

​

​

​

​

Core demand deposits

​

$

6,207,814

​

$

4,319,512

Brokered demand deposits

​

​

600,000

​

​

—

Total interest-earning demand deposits

​

​

6,807,814

​

​

4,319,512

Money market/savings deposits:

​

 

​

​

 

​

Core money market/savings deposits

​

​

3,566,523

​

​

3,442,111

Brokered money market/savings deposits

​

​

201,010

​

​

859

Total money market/savings deposits

​

​

3,767,533

​

​

3,442,970

Certificates of deposit:

​

 

​

​

 

​

Core certificates of deposits

​

​

905,448

​

​

1,385,270

Brokered certificates of deposits

​

​

956,316

​

​

2,533,219

Total certificates of deposits

​

​

1,861,764

​

​

3,918,489

Total interest-bearing deposits

​

​

12,437,111

​

​

11,680,971

Total deposits

​

$

13,041,192

​

$

11,919,976

​

​

​

​

​

​

​

Total core deposits

​

$

11,283,866

​

$

9,385,898

Total brokered deposits

​

​

1,757,326

​

​

2,534,078

Total deposits

​

$

13,041,192

​

$

11,919,976
Schedule of maturities for certificates of deposit

​

​

​

​

​

​

  ​ ​ ​

December 31, 2025

​

​

(In thousands)

Due within one year

​

$

1,800,531

Due in one year to two years

​

 

49,338

Due in two years to three years

​

 

11,895

Due in three years to four years

​

 

—

Due in four years to five years

​

​

—

Due in five years to six years

​

 

—

​

​

$

1,861,764
v3.25.4
Borrowings (Tables)
 12 Months Ended
Dec. 31, 2025
Borrowings  
Schedule of borrowings

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Federal Reserve discount window borrowings

​

$

—

​

$

50,000

Subordinated debt

​

​

71,800

​

​

71,800

FHLB advances

​

​

3,762,858

​

​

4,172,030

Credit-linked notes, net of debt discount

​

​

—

​

​

84,358

Other borrowings

​

 

7,934

​

 

7,934

Total borrowings

​

$

3,842,592

​

$

4,386,122
Schedule of maturities of FHLB advances

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

​

​

​

​

​

​

​

​

​

​

​

​

​

Subordinated

​

FHLB

​

Other

​

Borrowings

​

​

Debt

​

Advances

​

Borrowings

​

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

Due within one year

​

$

—

​

$

3,760,026

​

$

—

​

$

3,760,026

Due in one year to two years

​

 

71,800

​

 

62

​

 

—

​

 

71,862

Due in two years to three years

​

 

—

​

 

59

​

 

—

​

 

59

Due in three years to four years

​

 

—

​

 

211

​

 

—

​

 

211

Due in four years to five years

​

 

—

​

 

2,500

​

 

—

​

 

2,500

Thereafter

​

 

—

​

 

—

​

 

7,934

​

 

7,934

​

​

$

71,800

​

$

3,762,858

​

$

7,934

​

$

3,842,592
v3.25.4
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 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

December 31, 2025

​

(In thousands)

Interest rate lock commitments

$

142,540

​

​

Other assets/liabilities

​

$

227

​

$

107

Forward contracts

 

146,452

​

​

Other assets/liabilities

​

​

2

​

​

467

Interest rate swaps

 

49,480

​

​

Other assets

​

 

2,354

​

​

—

Put options

​

608,885

​

​

Other assets

​

​

37,570

​

​

—

Interest rate floors

​

1,089,679

​

​

Other assets

​

​

9,540

​

​

—

Credit derivatives

​

123,222

​

​

​

​

​

—

​

​

—

​

​

​

​

​

​

​

$

49,693

​

$

574

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

​

​

​

​

Fair Value

​

​

Amount

 

​

Balance Sheet Location

 

​

Asset

 

​

Liability

December 31, 2024

​

(In thousands)

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

​

 

4,199

​

​

—

Put options

​

680,354

​

​

Other assets

​

​

43,777

​

​

—

Interest rate floors

​

1,228,274

​

​

Other assets

​

​

4,043

​

​

—

Credit derivatives

​

58,526

​

​

​

​

​

—

​

​

—

​

​

​

​

​

​

​

$

52,278

​

$

177
Summarizes the periodic changes in the fair value of the derivative financial instruments on the consolidated statements of income

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

  ​ ​ ​

2025

​

2024

  ​ ​ ​

2023

​

​

​

(In thousands)

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

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

​

$

266

​

$

(282)

​

$

130

Forward contracts (includes pair-off settlements)

​

​

​

(1,621)

​

​

338

​

​

201

Interest rate swaps

​

​

​

(1,166)

​

​

2,282

​

​

(420)

Net (loss) gain

​

​

$

(2,521)

​

$

2,338

​

$

(89)

​

​

​

​

​

​

​

​

​

​

​

Derivative (loss) gain included in other income:

​

​

​

​

​

​

​

​

​

​

Put options (1)

​

​

$

(6,207)

​

$

17,901

​

$

5,629

Interest rate floors

​

​

​

5,496

​

​

(2,533)

​

​

6,575

Net (loss) gain

​

​

$

(711)

​

$

15,368

​

$

12,204

(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)

December 31, 2025

$

1,178,034

​

​

Other assets/liabilities

​

$

7,289

​

$

7,289

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

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

2023

​

​

(In thousands)

Gross IRRM derivative gains

​

$

6,980

​

$

12,117

​

$

9,385

Gross IRRM derivative losses

​

 

6,980

​

​

12,117

​

​

9,385

Net IRRM derivative gains

​

$

—

​

$

—

​

$

—
v3.25.4
Disclosures About Fair Value of Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 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

​

  ​ ​ ​

Value

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

​

​

(In thousands)

December 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage loans in process of securitization

​

$

620,094

​

$

—

​

$

620,094

​

$

—

Securities available for sale:

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

Treasury notes

​

 

30,680

​

 

30,680

​

 

—

​

 

—

Federal agencies

​

 

259,508

​

 

—

​

 

259,508

​

 

—

Mortgage-backed - Agency

​

 

3,556

​

 

—

​

 

3,556

​

 

—

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

​

​

385,460

​

​

—

​

​

385,460

​

​

—

Mortgage-backed - Agency - fair value option

​

​

185,854

​

​

—

​

​

185,854

​

​

—

Loans held for sale

​

 

76,980

​

 

—

​

 

76,980

​

 

—

Loans receivable

​

​

47,318

​

​

—

​

​

47,318

​

​

—

Servicing rights

​

 

217,296

​

 

—

​

 

—

​

 

217,296

Derivative assets:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

 

227

​

 

—

​

 

—

​

 

227

Forward contracts

​

 

2

​

 

—

​

 

2

​

 

—

Interest rate swaps

​

​

2,354

​

​

—

​

​

2,354

​

​

—

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

​

​

7,289

​

​

—

​

​

7,289

​

​

—

Put options

​

​

37,570

​

​

—

​

​

5,640

​

​

31,930

Interest rate floors

​

​

9,540

​

​

—

​

​

—

​

​

9,540

Derivative liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

 

107

​

​

—

​

​

—

​

​

107

Forward contracts

​

​

467

​

​

—

​

​

467

​

​

—

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

​

 

7,289

​

​

—

​

​

7,289

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

​

​

(In thousands)

Servicing rights

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

189,935

​

$

158,457

​

$

146,248

Purchased servicing

​

 

14,482

​

 

—

​

 

513

Originated servicing

​

 

23,654

​

 

18,670

​

 

14,755

Paydowns

​

 

(12,223)

​

 

(9,901)

​

 

(7,621)

Changes in fair value

​

 

1,448

​

 

22,709

​

 

4,562

Balance, end of period

​

$

217,296

​

$

189,935

​

$

158,457

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

—

​

$

485,500

​

$

—

Purchases

​

​

—

​

​

—

​

​

483,906

Paydowns

​

 

—

​

 

(42,079)

​

 

—

Changes in fair value

​

 

—

​

 

(12,642)

​

 

1,594

Transfers out of Level 3

​

​

—

​

​

(430,779)

​

​

—

Balance, end of period

​

$

—

​

$

—

​

$

485,500

​

​

​

​

​

​

​

​

​

​

Derivative assets - put options

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

31,296

​

$

18,654

​

$

—

Purchases

​

 

—

​

 

—

​

 

20,248

Changes in fair value

​

 

634

​

 

12,642

​

 

(1,594)

Balance, end of period

​

$

31,930

​

$

31,296

​

$

18,654

​

​

​

​

​

​

​

​

​

​

Derivative assets - interest rate floors

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

4,043

​

$

6,576

​

$

—

Purchases

​

 

—

​

 

—

​

 

6,576

Changes in fair value

​

 

5,497

​

 

(2,533)

​

 

—

Balance, end of period

​

$

9,540

​

$

4,043

​

$

6,576

​

​

​

​

​

​

​

​

​

​

Derivative assets - interest rate lock commitments

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

30

​

$

140

​

$

28

Gain (loss) recognized

​

 

197

​

 

(110)

​

 

112

Balance, end of period

​

$

227

​

$

30

​

$

140

​

​

​

​

​

​

​

​

​

​

Derivative liabilities - interest rate lock commitments

​

​

​

​

​

​

​

​

​

Balance, beginning of period

​

$

176

​

$

4

​

$

23

Gain (loss) recognized

​

 

(69)

​

 

172

​

 

(19)

Balance, end of period

​

$

107

​

​

176

​

$

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

Quoted Prices in

​

Significant

​

 

​

​

​

​

​

​

Active Markets 

​

Other

​

Significant

​

​

​

​

​

for Identical

​

Observable

​

Unobservable 

​

​

Fair

​

Assets

​

Inputs

​

Inputs

Assets

  ​ ​ ​

Value

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

​

​

(In thousands)

December 31, 2025

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

Collateral dependent loans

​

$

143,771

​

$

—

​

$

—

​

$

143,771

Other real estate owned

​

​

60,145

​

​

—

​

​

—

​

​

60,145

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)

December 31, 2025:

 

​

  ​

 

  ​

​

​

​

​

 

​

Collateral dependent loans

​

$

143,771

 

Market comparable properties

 

Marketability discount and costs to sell

​

12% - 70%

 

31%

Other real estate owned

​

​

60,145

​

Market comparable properties

​

Marketability discount and costs to sell

​

6% - 9%

​

9%

Servicing rights - Multi-family

​

​

164,224

 

Discounted cash flow

 

Discount rate

​

8% - 15%

 

9%

​

​

​

  ​

 

  ​

 

Constant prepayment rate

​

0% - 100%

 

8%

​

​

​

​

​

​

​

Earnings rate on escrows

​

3%

​

3%

Servicing rights - Single-family

​

​

33,151

​

Discounted cash flow

​

Discount rate

​

9% - 12%

​

9%

​

​

​

​

​

​

​

Constant prepayment rate

​

3% - 53%

​

9%

Servicing rights - Healthcare

​

​

15,105

 

Discounted cash flow

 

Discount rate

​

8% - 13%

 

11%

​

​

​

​

​

​

​

Constant prepayment rate

​

1% - 100%

 

7%

​

​

​

​

​

​

​

Earnings rate on escrows

​

3%

​

3%

Servicing rights - SBA

​

​

4,816

​

Discounted cash flow

​

Discount rate

​

16%

​

16%

​

​

​

​

​

​

​

Constant prepayment rate

​

10% - 31%

​

16%

Derivative assets:

​

​

​

​

​

​

​

​

​

​

​

Interest rate lock commitments

​

​

227

 

Discounted cash flow

 

Loan closing rates

​

45% - 99%

 

99%

Put options

​

​

31,930

​

Intrinsic value

​

Market credit spread

​

4%

​

4%

Interest rate floors

​

​

9,540

​

Discounted cash flow

​

Discount rate

​

5% - 7%

​

6%

Derivative liabilities - interest rate lock commitments

​

​

107

 

Discounted cash flow

 

Loan closing rates

​

45% - 99%

 

99%

​

​

​

​

​

​

​

​

​

​

​

​

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)

December 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial assets:

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

Cash and cash equivalents

​

$

212,202

​

$

212,202

​

$

212,202

​

$

—

​

$

—

Securities purchased under agreements to resell

​

 

1,520

​

 

1,520

​

 

—

​

 

1,520

​

 

—

Securities held to maturity

​

​

1,543,659

​

​

1,543,554

​

 

—

​

 

712,490

​

 

831,064

FHLB stock and other equity securities

​

 

227,589

​

 

227,589

​

 

—

​

 

196,391

​

 

31,198

Loans held for sale

​

 

3,796,032

​

 

3,796,032

​

 

—

​

 

3,796,032

​

 

—

Loans receivable, net

​

 

10,904,063

​

 

10,950,634

​

 

—

​

 

—

​

 

10,950,634

Interest receivable

​

 

81,807

​

 

81,807

​

 

—

​

 

81,807

​

 

—

Financial liabilities:

​

 

  ​

​

 

​

​

 

  ​

​

 

  ​

​

 

  ​

Deposits

​

 

13,041,192

​

 

13,041,901

​

 

11,179,428

​

 

1,862,473

​

 

—

Subordinated debt

​

 

71,800

​

 

71,800

​

 

—

​

 

71,800

​

 

—

FHLB advances

​

 

3,762,858

​

 

3,762,110

​

 

—

​

 

3,762,110

​

 

—

Other borrowing

​

​

7,934

​

​

7,934

​

​

—

​

​

7,934

​

​

—

Interest payable

​

 

25,345

​

 

25,345

​

 

—

​

 

25,345

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

—

​
v3.25.4
Share-Based Payment Plans (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Plans  
Schedule of equity-based incentive awards and Board of Directors fees paid in shares

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

2025

​

2024

​

2023

​

​

(In thousands, except share data)

Equity-based incentive awards to Company officers:

​

​

​

​

​

​

​

​

​

Shares issued

​

​

80,875

​

​

88,658

​

​

84,335

Expenses recognized

​

$

3,312

 

$

3,274

​

$

2,671

Unvested shares awarded

​

 

209,597

 

 

253,816

​

 

256,192

Unrecognized compensation costs

​

$

6,461

 

$

7,122

​

$

6,801

​

​

​

​

​

​

​

​

​

​

Equity-based retainer fees to non-executive Board members:

​

 

  ​

 

 

  ​

​

 

  ​

Shares issued

​

 

14,329

 

 

12,166

​

 

12,173

Expenses recognized

​

$

490

 

$

491

​

$

351
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Taxes  
Schedule of a reconciliation of statutory federal tax rate and effective tax rate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

  ​ ​ ​

2024

​

2023

​

 

(In thousands)

​

​

​

Amount

Percent

​

​

Amount

Percent

​

​

Amount

Percent

US federal statutory income tax rate

​

$

55,398

21.0%

​

$

88,755

21.0%

​

$

73,061

21.0%

State and local income taxes - net of federal income tax effect (1)

​

 

7,345

2.8%

​

 

15,960

3.8%

​

 

(2,655)

(0.8)%

Tax credits

​

​

​

​

​

​

​

​

​

​

​

​

Production tax credits

​

​

(8,461)

(3.2)%

​

​

—

—

​

​

—

—

Credits and benefits on investments using proportional amortization (2)

​

​

(7,317)

(2.8)%

​

​

(2,774)

(0.6)%

​

​

(2,136)

(0.6)%

Other

​

​

(550)

(0.2)%

​

​

(1,100)

(0.3)%

​

​

—

—

Nontaxable and nondeductible items

​

​

​

​

​

​

​

​

​

​

​

​

Tax-exempt interest income net of disallowed interest expense

​

​

(2,819)

(1.1)%

​

​

(2,783)

(0.7)%

​

​

(1,759)

(0.5)%

Other

​

​

4,434

1.7%

​

​

4,198

1.0%

​

​

2,162

0.6%

Other adjustments

​

​

​

​

​

​

​

​

​

​

​

​

Return-to-provision adjustments (3)

​

 

(3,000)

(1.1)%

​

 

—

—

​

 

—

—

Effective tax rate

​

$

45,030

17.1%

​

$

102,256

24.2%

​

$

68,673

19.7%

(1)In 2025, state and local income taxes in New York state, New York City, and California account for the majority of the domestic state and local income taxes, net of federal tax effect category. In 2024, state and local income taxes in New York state, New York City, New Jersey, Florida, California, and Illinois account for the majority of the domestic state and local income taxes, net of federal tax effect category. In 2023, state and local income taxes in New York state, New York City, Illinois, and Florida account for the majority of the domestic state and local income taxes, net of federal tax effect category.
(2)This line item includes the effects of Low-Income Housing Tax Credit (LIHTC) credits, related amortization, and permanent difference adjustments associated with LIHTC investments. These items are aggregated as they are not individually significant.
(3)The return-to-provision adjustment for 2025 is a result of changes in accounting estimates used on the income tax provision compared to actual amounts on the entity's filed income tax return.
Schedule of income taxes paid net of refunds

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

 

​

  ​ ​ ​

2025

  ​ ​ ​

​

2024

​

2023

 

​

 

​

(In thousands)

​

United States federal

​

$

32,500

​

$

69,750

​

$

58,250

​

United States state and local

​

 

​

​

​

​

​

​

​

​

Indiana

​

​

—

​

​

(5,687)

​

​

(2,563)

​

New York state

​

​

2,012

​

​

5,077

​

​

2,789

​

New York City

​

 

9,161

​

 

—

​

 

5

​

Other

​

 

3,963

​

 

10,438

​

 

8,907

​

Total United States state and local

​

 

15,136

​

 

9,828

​

 

9,138

​

Total income taxes paid, net

​

$

47,636

​

$

79,578

​

$

67,388

​
Schedule of income before income tax, domestic and foreign

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

  ​ ​ ​

2024

​

2023

​

 

(In thousands)

Income from continuing operations before income tax expense (benefit)

​

​

​

​

​

​

​

​

​

United States federal

​

$

263,800

​

$

422,642

​

$

347,907

Total

​

$

263,800

​

$

422,642

​

$

347,907

​

​

​

​

​

​

​

​

​

​

Income tax expense (benefit) from continuing operations

​

​

​

​

​

​

​

​

​

Current tax expense (benefit)

​

​

​

​

​

​

​

​

​

United States federal

​

$

29,060

​

$

78,386

​

$

72,537

United States state and local

​

​

8,192

​

​

19,240

​

​

(1,422)

Total current tax expense (benefit)

​

​

37,252

​

​

97,626

​

​

71,115

Deferred tax expense (benefit)

​

​

​

​

​

​

​

​

​

United States federal

​

​

6,672

​

​

3,666

​

​

(503)

United States state and local

​

​

1,106

​

​

964

​

​

(1,939)

Total deferred tax expense (benefit)

​

​

7,778

​

​

4,630

​

​

(2,442)

Total income tax expense (benefit)

​

​

​

​

​

​

​

​

​

United States federal

​

​

35,732

​

​

82,052

​

​

72,034

United States state and local

​

​

9,298

​

​

20,204

​

​

(3,361)

Total income tax expense (benefit)

​

$

45,030

​

$

102,256

​

$

68,673
Schedule of tax effects of temporary differences related to deferred taxes

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Deferred tax assets

​

​

​

​

​

​

Allowance for credit losses on loans

​

$

22,389

​

$

23,880

Unrealized loss on securities available for sale

​

 

10

​

 

42

Other

​

 

6,513

​

 

5,532

Total assets

​

 

28,912

​

 

29,454

Deferred tax liabilities

​

 

  ​

​

 

  ​

Depreciation

​

 

(2,910)

​

 

(2,532)

Intangible assets

​

 

(556)

​

 

(391)

Servicing rights

​

 

(49,394)

​

 

(44,854)

Limited partnership investments

​

 

(5,177)

​

 

(4,575)

State tax receivable

​

​

(734)

​

​

(110)

Derivative assets

​

​

(1,870)

​

​

(967)

Other

​

 

(1,370)

​

 

(1,314)

Total liabilities

​

 

(62,011)

​

 

(54,743)

Net deferred tax liability

​

$

(33,099)

​

$

(25,289)

​
v3.25.4
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share  
Schedule of computation of earnings per share

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

2025

​

2024

​

2023

​

​

​

​

​

Weighted-

​

Per

​

​

​

​

Weighted-

​

Per

​

​

​

​

Weighted-

​

Per

​

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

Net

​

Average

​

Share

​

  ​ ​ ​

Income

  ​ ​ ​

Shares

  ​ ​ ​

Amount

  ​ ​ ​

Income

  ​ ​ ​

Shares

  ​ ​ ​

Amount

  ​ ​ ​

Income

  ​ ​ ​

Shares

  ​ ​ ​

Amount

​

  ​ ​ ​

(In thousands, except share data)

Net income

​

$

218,770

​

​

​

​

​

​

$

320,386

​

​

​

​

​

​

$

279,234

 

  ​

​

​

​

Dividends on preferred stock

​

​

(41,062)

​

​

​

​

​

​

​

(34,909)

​

​

​

​

​

​

​

(34,670)

​

​

​

​

​

Preferred stock redemption

​

 

(4,156)

 

  ​

 

​

  ​

​

 

(1,823)

​

​

​

​

​

​

 

—

 

  ​

 

​

  ​

Net income allocated to common shareholders

​

$

173,552

 

  ​

 

​

  ​

​

$

283,654

​

​

​

​

​

​

$

244,564

 

  ​

 

​

  ​

Basic earnings per share

​

 

  ​

 

45,871,698

​

$

3.78

​

 

​

​

44,855,100

​

$

6.32

​

 

  ​

 

43,224,042

​

$

5.66

Effect of dilutive securities—restricted stock awards

​

 

  ​

 

71,032

​

 

  ​

​

​

​

​

149,686

​

 

  ​

​

 

  ​

 

121,757

​

 

  ​

Diluted earnings per share

​

 

  ​

 

45,942,730

​

$

3.78

​

​

​

​

45,004,786

​

$

6.30

​

 

  ​

 

43,345,799

​

$

5.64

​
v3.25.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Information  
Schedule of business segment financial information

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

  ​ ​ ​

Banking

  ​ ​ ​

Warehousing

  ​ ​ ​

Banking

  ​ ​ ​

Other

  ​ ​ ​

Total

​

​

(In thousands)

Year Ended December 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

4,613

​

$

413,656

​

$

767,786

​

$

14,796

 

$

1,200,851

Interest expense

​

 

80

​

 

274,031

​

 

412,964

​

 

(3,283)

 

 

683,792

Net interest income

​

 

4,533

​

 

139,625

​

 

354,822

​

 

18,079

 

 

517,059

Provision for credit losses

​

 

(403)

​

 

3,020

​

 

115,137

​

 

—

 

 

117,754

Net interest income after provision for credit losses

​

 

4,936

​

 

136,605

​

 

239,685

​

 

18,079

 

 

399,305

Noninterest income

​

 

168,874

​

 

12,596

​

 

933

​

 

(18,015)

 

 

164,388

Noninterest expense

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

 

 

  ​

Salaries and employee benefits

​

 

103,504

​

 

8,107

​

 

24,765

​

 

30,136

 

 

166,512

Other noninterest expense

​

 

18,314

​

 

24,661

​

 

69,589

​

 

20,817

 

 

133,381

Total noninterest expense

​

 

121,818

​

 

32,768

​

 

94,354

​

 

50,953

 

 

299,893

Income (loss) before income taxes

​

 

51,992

​

 

116,433

​

 

146,264

​

 

(50,889)

 

 

263,800

Income tax expense (benefit)

​

 

11,837

​

 

19,489

​

 

24,259

​

 

(10,555)

 

 

45,030

Net income (loss)

​

$

40,155

​

$

96,944

​

$

122,005

​

$

(40,334)

 

$

218,770

Total assets

​

$

526,423

​

$

7,251,653

​

$

11,307,401

​

$

363,466

 

$

19,448,943

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Significant non-cash items:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Included in other noninterest income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Servicing rights fair value adjustments

​

$

3,807

​

$

—

​

$

(2,359)

​

$

—

 

$

1,448

Derivative fair value adjustments

​

​

—

​

​

5,496

​

​

—

​

​

—

 

​

5,496

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

  ​ ​ ​

Banking

  ​ ​ ​

Warehousing

  ​ ​ ​

Banking

  ​ ​ ​

Other

  ​ ​ ​

​

Total

​

​

(In thousands)

Year Ended December 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

5,239

​

$

391,743

​

$

891,490

​

$

14,248

 

$

1,302,720

Interest expense

​

 

80

​

 

262,149

​

 

521,030

​

 

(3,159)

 

 

780,100

Net interest income

​

 

5,159

​

 

129,594

​

 

370,460

​

 

17,407

 

 

522,620

Provision for credit losses

​

 

(1,003)

​

 

1,466

​

 

23,815

​

 

—

 

 

24,278

Net interest income after provision for credit losses

​

 

6,162

​

 

128,128

​

 

346,645

​

 

17,407

 

 

498,342

Noninterest income

​

 

168,028

​

 

3,016

​

 

(8,523)

​

 

(14,409)

 

 

148,112

Noninterest expense

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

 

 

  ​

Salaries and employee benefits

​

 

77,685

​

 

8,115

​

 

19,437

​

 

25,486

 

 

130,723

Other noninterest expense

​

 

20,228

​

 

13,818

​

 

43,230

​

 

15,813

 

 

93,089

Total noninterest expense

​

 

97,913

​

 

21,933

​

 

62,667

​

 

41,299

 

 

223,812

Income (loss) before income taxes

​

 

76,277

​

 

109,211

​

 

275,455

​

 

(38,301)

 

 

422,642

Income tax expense (benefit)

​

 

20,380

​

 

26,409

​

 

65,382

​

 

(9,915)

 

 

102,256

Net income (loss)

​

$

55,897

​

$

82,802

​

$

210,073

​

$

(28,386)

 

$

320,386

Total assets

​

$

479,099

​

$

6,000,624

​

$

11,761,202

​

$

564,807

 

$

18,805,732

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Significant non-cash items:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Included in other noninterest income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Servicing rights fair value adjustments

​

$

20,487

​

$

—

​

$

2,222

​

$

—

 

$

22,709

Derivative fair value adjustments

​

​

—

​

​

(2,533)

​

​

—

​

​

—

 

​

(2,533)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family

​

​

​

​

​

​

​

​

​

​

​

 

​

​

Mortgage 

​

Mortgage

​

​

​

​

​

​

​

​

 

​

  ​ ​ ​

Banking

  ​ ​ ​

Warehousing

  ​ ​ ​

Banking

  ​ ​ ​

Other

  ​ ​ ​

​

Total

​

​

(In thousands)

Year Ended December 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income

​

$

5,718

​

$

276,366

​

$

789,399

​

$

6,315

 

$

1,077,798

Interest expense

​

 

52

​

 

184,486

​

 

451,952

​

 

(6,763)

 

 

629,727

Net interest income

​

 

5,666

​

 

91,880

​

 

337,447

​

 

13,078

 

 

448,071

Provision for credit losses

​

 

—

​

 

2,782

​

 

37,449

​

 

—

 

 

40,231

Net interest income after provision for credit losses

​

 

5,666

​

 

89,098

​

 

299,998

​

 

13,078

 

 

407,840

Noninterest income

​

 

123,980

​

 

14,315

​

 

(12,527)

​

 

(11,100)

 

 

114,668

Noninterest expense

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

 

 

  ​

Salaries and employee benefits

​

 

64,453

​

 

6,026

​

 

16,192

​

 

21,510

 

 

108,181

Other noninterest expense

​

 

19,409

​

 

7,977

​

 

26,619

​

 

12,415

 

 

66,420

Total noninterest expense

​

 

83,862

​

 

14,003

​

 

42,811

​

 

33,925

 

 

174,601

Income (loss) before income taxes

​

 

45,784

​

 

89,410

​

 

244,660

​

 

(31,947)

 

 

347,907

Income tax expense (benefit)

​

 

9,311

​

 

15,885

​

 

50,262

​

 

(6,785)

 

 

68,673

Net income (loss)

​

$

36,473

​

$

73,525

​

$

194,398

​

$

(25,162)

 

$

279,234

Total assets

​

$

411,097

​

$

4,522,175

​

$

11,760,943

​

$

258,301

 

$

16,952,516

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Significant non-cash items:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Included in other noninterest income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Servicing rights fair value adjustments

​

$

3,874

​

$

—

​

$

688

​

$

—

 

$

4,562

Derivative fair value adjustments

​

​

—

​

​

6,576

​

​

—

​

​

—

 

​

6,576

​
v3.25.4
Condensed Financial Information (Parent Company Only) (Tables)
 12 Months Ended
Dec. 31, 2025
Condensed Financial Information (Parent Company Only)  
Summary of condensed balance sheets

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

​

2024

​

​

(In thousands)

Assets

 

​

  ​

​

​

  ​

Cash and cash equivalents

​

$

55,240

​

$

55,829

Other equity securities

​

​

30,000

​

​

30,000

Investment in joint ventures

​

​

27,290

​

​

27,638

Investment in subsidiaries

​

 

2,239,777

​

 

2,077,085

Other assets

​

 

749

​

 

128,591

Total assets

​

$

2,353,056

​

$

2,319,143

Liabilities

​

 

  ​

​

 

  ​

Subordinated debt

​

$

71,800

​

$

71,800

Unfunded commitments to joint ventures

​

​

—

​

​

2,752

Other liabilities

​

 

497

​

 

1,281

Total liabilities

​

 

72,297

​

 

75,833

Shareholders’ Equity

​

 

2,280,759

​

 

2,243,310

Total liabilities and shareholders’ equity

​

$

2,353,056

​

$

2,319,143
Summary of condensed statements of income and comprehensive income

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

​

2024

  ​ ​ ​

2023

​

​

(In thousands)

Income

 

​

  ​

​

​

  ​

 

​

  ​

Dividends and return of capital from subsidiaries

​

$

66,313

​

$

124,864

​

$

53,006

Other Income

​

 

2,683

​

 

3,956

​

 

3,488

Total income

​

 

68,996

​

 

128,820

​

 

56,494

Expenses

​

 

  ​

​

 

  ​

​

 

  ​

Interest expense

​

 

12,956

​

 

10,849

​

 

4,323

Salaries and employee benefits

​

 

410

​

 

410

​

 

1,012

Professional fees

​

 

862

​

 

681

​

 

481

Other

​

 

1,204

​

 

1,223

​

 

898

Total expense

​

 

15,432

​

 

13,163

​

 

6,714

Income Before Income Tax and Equity in Undistributed Income of Subsidiaries

​

 

53,564

​

 

115,657

​

 

49,780

Income Tax Benefit

​

 

(2,614)

​

 

(2,277)

​

 

(582)

Income Before Equity in Undistributed Income of Subsidiaries

​

 

56,178

​

 

117,934

​

 

50,362

Equity in Undistributed Income of Subsidiaries

​

 

162,592

​

 

202,452

​

 

228,872

Net Income

​

$

218,770

​

$

320,386

​

$

279,234

Comprehensive Income

​

$

218,870

​

$

322,741

​

$

287,267
Summary of condensed statements of cash flows

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

2023

​

​

(In thousands)

Operating Activities

 

​

  ​

 

​

  ​

​

​

  ​

Net income

​

$

218,770

​

$

320,386

​

$

279,234

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

​

​

​

​

​

​

​

​

​

Equity in undistributed earnings from subsidiaries and other operating activities

​

​

(157,048)

​

​

(205,422)

​

​

(229,428)

Net cash provided by operating activities

​

 

61,722

​

 

114,964

​

​

49,806

Investing Activities

​

 

  ​

​

 

  ​

​

​

  ​

Contributed capital to subsidiaries

​

 

—

​

 

(225,295)

​

​

(43,922)

Purchase of equity securities

​

​

—

​

​

(30,000)

​

​

—

Purchase of limited partnership interests or LLC's

​

 

(3,576)

​

 

(3,038)

​

​

(769)

Return of capital from subsidiaries

​

​

—

​

​

49,017

​

​

—

Other investing activity

​

 

683

​

 

8,301

​

​

554

Net cash used in investing activities

​

 

(2,893)

​

 

(201,015)

​

​

(44,137)

Financing Activities

​

 

  ​

​

 

  ​

​

​

  ​

Proceeds from notes payable

​

​

—

​

​

6,878

​

​

64,922

Repayment of notes payable

​

​

—

​

​

—

​

​

(21,000)

Dividends paid

​

 

(59,418)

​

 

(51,167)

​

​

(48,506)

Proceeds from issuance of common stock

​

 

—

​

 

97,655

​

​

—

Proceeds from issuance of preferred stock

​

 

—

​

 

222,748

​

​

—

Redemption of preferred stock

​

​

—

​

​

(52,044)

​

​

—

Funds disbursed for future redemption of Series B preferred stock

​

​

—

​

​

(125,000)

​

​

—

Net cash provided by (used in) financing activities

​

 

(59,418)

​

 

99,070

​

​

(4,584)

Net Change in Cash and Due From Banks

​

 

(589)

​

 

13,019

​

​

1,085

Cash and Due From Banks at Beginning of Year

​

 

55,829

​

 

42,810

​

​

41,725

Cash and Due From Banks at End of Year

​

$

55,240

​

$

55,829

​

$

42,810

Additional Cash Flows Information:

​

​

​

​

​

​

​

​

​

Interest paid

​

$

12,960

​

$

—

​

$

—

Reduction in commitment payable for limited partnership interest of LLCs

​

​

(2,752)

​

​

—

​

​

2,752

Change in prepaid assets for preferred stock repurchase

​

​

125,000

​

​

—

​

​

—

​
v3.25.4
Regulatory Matters (Tables)
 12 Months Ended
Dec. 31, 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)

​

December 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

 

​

  ​

 

  ​

 

​

​

​

​

​

​

  ​

 

  ​

 

Company

​

$

2,365,600

 

13.6

%  

$

1,822,759

 

10.5

%  

$

—

 

N/A

%  

Merchants Bank

​

​

2,320,227

 

13.4

%  

 

1,821,535

 

10.5

%  

 

1,734,795

 

10.0

%  

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

​

 

  ​

 

  ​

​

 

  ​

 

  ​

​

 

  ​

 

  ​

​

Company

​

 

2,272,014

 

13.1

%  

 

1,475,567

 

8.5

%  

 

—

 

N/A

%  

Merchants Bank

​

​

2,226,641

 

12.8

%  

 

1,474,576

 

8.5

%  

 

1,387,836

 

8.0

%  

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Company

​

 

1,720,724

 

9.9

%  

 

1,215,172

 

7.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

2,226,641

 

12.8

%  

 

1,214,357

 

7.0

%  

 

1,127,617

 

6.5

%  

Tier I capital(1) (to average assets)

​

 

​

 

  ​

​

 

  ​

 

​

​

 

  ​

 

  ​

​

Company

​

 

2,272,014

 

11.5

%  

 

990,358

 

5.0

%  

 

—

 

N/A

%  

Merchants Bank

​

​

2,226,641

 

11.3

%  

 

987,284

 

5.0

%  

 

987,284

 

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.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 
v3.25.4
Commitments, Credit Risk, and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments, Credit Risk, and Contingencies  
Schedule of business segment financial information

​

​

​

​

​

​

​

​

​

​

December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

​

​

(In thousands)

Commitments subject to credit risk:

​

​

​

​

​

​

Commitments to extend credit

​

$

3,608,270

​

$

4,348,628

Standby letters of credit

​

 

186,509

​

 

204,745

Unfunded warehouse repurchase agreements and other (not cancellable)

​

​

184,144

​

 

108,532

Total commitments subject to credit risk

​

$

3,978,923

​

$

4,661,905

​

​

​

​

​

​

​

Commitments subject to certain performance criteria and cancellation:

​

​

​

​

​

​

Outstanding commitments to originate loans

​

$

734,216

​

$

740,886

Unfunded construction draws

​

 

228,972

​

 

281,152

Unfunded warehouse repurchase agreements and other (cancellable)

​

​

250,891

​

​

2,681,313

Total commitments subject to certain performance criteria and cancellation

​

$

1,214,079

​

$

3,703,351
v3.25.4
Related Party Transactions (Tables)
 12 Months Ended
Dec. 31, 2025
Related Party Transactions  
Schedule of related party transactions

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Year Ended December 31, 

​

​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

​

​

(In thousands)

Investments in Senior Housing and Healthcare Entity

​

​

​

​

​

​

​

​

​

Origination fees received from borrowers referred by the LLC

​

$

45,801

​

$

26,287

​

$

12,669

Fees paid to LLC for loans referred and originated

​

​

(41,835)

​

​

(20,882)

​

​

(9,866)

Servicing income received for loans referred by the LLC

​

​

1,515

​

​

841

​

​

561

Servicing income participation paid to LLC

​

​

(884)

​

​

(428)

​

​

(281)

Income from investment in LLC

​

​

7,063

​

​

3,536

​

​

1,612

Distributions received from LLC

​

​

4,221

​

​

1,153

​

​

993

Interest income paid to LLC for loans originated and referred by the LLC

​

​

(1,075)

​

​

(2,158)

​

​

(3,587)

​

​

​

​

​

​

​

​

​

​

Investments in LIHTC Syndications

​

​

​

​

​

​

​

​

​

Interest income, financing (1) and other fees received from syndicated funds

​

$

35,461

​

$

31,683

​

$

16,592

Loans and other receivables outstanding, net of participations sold, to syndicated funds

​

​

323,300

​

​

334,536

​

​

127,449

​

​

​

​

​

​

​

​

​

​

Investments in Debt Financing Entities

​

​

​

​

​

​

​

​

​

Income from investments, servicing, interest income, and management of debt funds

​

$

52,176

​

$

53,274

​

$

29,992

Distributions received from debt funds

​

​

1,184

​

​

8,871

​

​

890

Loans outstanding, net of participations sold, to debt funds

​

​

107,705

​

​

133,044

​

​

108,055

Loans sold to debt funds

​

​

513,015

​

​

98,184

​

​

102,336

Gains (losses) recognized on loans sold to debt funds

​

​

2,075

​

​

—

​

​

(263)

Carrying value, at year-end, of securities held-to-maturity purchased from debt funds

​

​

699,957

​

​

526,242

​

​

472,539

(1)Financing fees, net of costs to originate, are deferred and recognized in income over the life of the loan.
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Operations (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
item
Merchants Bank  
Nature of Operations and Principles of Consolidation  
Number of locations of operation | $ 7
FMBI  
Nature of Operations and Principles of Consolidation  
Number of locations of operation | item 4
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Other (Details) - Disposed by sale
Jan. 26, 2024
USD ($)
Farmers Merchants Bank Of Illinois Branches  
Basis of Presentation  
Assets $ 60,800,000
Liabilities 230,600,000
Net gain 715,000
Deposit premium 10,100,000
Extinguishment Of goodwill 7,800,000
Extinguishment Of intangibles 500,000
Farmers-Merchants Bank of Illinois branch locations in Paxton, Melvin, and Piper City, Illinois | Bank of Pontiac  
Basis of Presentation  
Deposits 164,800,000
Loans 19,200,000
Farmers-Merchants Bank of Illinois branch located in Joy, Illinois | CBI Bank & Trust  
Basis of Presentation  
Deposits 65,100,000
Loans $ 28,600,000
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Cash, Cash Equivalents and Other (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Cash and Cash Equivalents    
Cash accounts in excess of federally insured limits $ 197,100 $ 461,700
Cash accounts in excess of federally insured limits with Federal Reserve Bank 176,000 324,600
Cash accounts in excess of federally insured limits with Federal Home Loan Bank of Indianapolis 5,700 93,400
Cash accounts in excess of federally insured limits with Federal Home Loan Bank of Chicago 2,400 1,800
Investment Securities    
Securities available for sale, allowance for credit losses $ 0 $ 0
Loans Held for Sale under Mortgage Banking Activities    
Maximum participation interest to be purchased in individual loans (as a percent) 100.00%  
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Loans (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Nature of Operations and Summary of Significant Accounting Policies    
Accrued interest on loans, excluded from amortized cost of loans $ 51.4 $ 51.9
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Premises and Equipment (Details)
Dec. 31, 2025
Vehicles  
Premises and Equipment  
Estimated useful lives 5 years
Minimum | Buildings  
Premises and Equipment  
Estimated useful lives 5 years
Minimum | Leasehold improvements  
Premises and Equipment  
Estimated useful lives 2 years
Minimum | Software and intangible assets  
Premises and Equipment  
Estimated useful lives 4 years
Minimum | Furniture, fixtures, and equipment  
Premises and Equipment  
Estimated useful lives 3 years
Maximum | Buildings  
Premises and Equipment  
Estimated useful lives 40 years
Maximum | Leasehold improvements  
Premises and Equipment  
Estimated useful lives 10 years
Maximum | Software and intangible assets  
Premises and Equipment  
Estimated useful lives 10 years
Maximum | Furniture, fixtures, and equipment  
Premises and Equipment  
Estimated useful lives 15 years
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Leases (Details)
 12 Months Ended
Dec. 31, 2025
Leases  
Lessee operating lease, option to extend true
Minimum  
Leases  
Lease period 1 year
Maximum  
Leases  
Lease period 6 years
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets (Details)
Dec. 31, 2025
Jan. 31, 2024
Customer list    
Intangible assets    
Amortization period   21 months
Core deposit intangible    
Intangible assets    
Amortization period   10 years
Trade names    
Intangible assets    
Amortization period 120 months  
Minimum | Licenses and Trade Names    
Intangible assets    
Amortization period   84 months
Maximum | Licenses and Trade Names    
Intangible assets    
Amortization period   120 months
v3.25.4
Nature of Operations and Summary of Significant Accounting Policies - Shared-based Compensation Plans (Details)
 12 Months Ended
Dec. 31, 2025
Share-based Compensation Plan  
Share awards vesting period 3 years
v3.25.4
Restriction on Cash and Due From Banks (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Mar. 30, 2023
Restriction on Cash and Due From Banks      
Percentage of reserve required for restriction on cash and due from banks 0.00% 0.00%  
Restricted cash   $ 33.5  
Credit linked notes, net of debt discount      
Restriction on Cash and Due From Banks      
Notes issued   $ 87.6 $ 158.1
v3.25.4
Investment Securities - Amortized Cost to Approximate Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Available for sale securities:    
Amortized Cost $ 865,102 $ 980,224
Gross Unrealized Gains 66 108
Gross Unrealized Losses 110 282
Securities available for sale 865,058 980,050
Accrued interest on securities available for sale 3,800 4,900
Held to maturity securities:    
Amortized Cost 1,543,659 1,664,686
Gross Unrealized Gains 1,655 2,245
Gross Unrealized Losses 1,760 2,257
Fair Value 1,543,554 1,664,674
Accrued interest on securities held to maturity 5,000 5,800
Equity securities:    
FHLB and other equity securities 227,589 217,804
Treasury notes    
Available for sale securities:    
Amortized Cost 30,635 89,898
Gross Unrealized Gains 45 108
Securities available for sale 30,680 90,006
Federal Agencies    
Available for sale securities:    
Amortized Cost 259,591 253,218
Gross Unrealized Gains 21  
Gross Unrealized Losses 104 282
Securities available for sale 259,508 252,936
Mortgage-backed - Government Agency - multi-family    
Available for sale securities:    
Amortized Cost 3,562 1,162
Gross Unrealized Losses 6  
Securities available for sale 3,556 1,162
Mortgage-backed - Non-Agency residential - fair value option    
Available for sale securities:    
Amortized Cost 385,460 430,779
Securities available for sale 385,460 430,779
Held to maturity securities:    
Amortized Cost 699,957 526,242
Gross Unrealized Gains 1,655 1,871
Gross Unrealized Losses 127 75
Fair Value 701,485 528,038
Mortgage-backed - Agency - residential - fair value option    
Available for sale securities:    
Amortized Cost 185,854 205,167
Securities available for sale 185,854 205,167
Mortgage-backed - Non-Agency - healthcare    
Available for sale securities:    
Amortized Cost   534,538
Gross Unrealized Gains   374
Securities available for sale   534,912
Held to maturity securities:    
Amortized Cost 393,588  
Gross Unrealized Losses 4  
Fair Value 393,584  
Mortgage-backed - Non-Agency multi-family    
Held to maturity securities:    
Amortized Cost 438,430 592,053
Gross Unrealized Losses 950 1,162
Fair Value 437,480 590,891
Mortgage-backed - Agency - multi-family    
Held to maturity securities:    
Amortized Cost 11,684 11,853
Gross Unrealized Losses 679 1,020
Fair Value $ 11,005 $ 10,833
v3.25.4
Investment Securities - Contractual Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Available for Sale Securities, Amortized Cost    
Within one year $ 85,226  
After one through five years 205,000  
Total, single maturity date 290,226  
Amortized Cost 865,102 $ 980,224
Available for Sale Securities, Fair Value    
Within one year 85,292  
After one through five years 204,896  
Total, single maturity date 290,188  
Total 865,058 980,050
Held to Maturity Securities, Amortized Cost    
Amortized Cost 1,543,659 1,664,686
Held to Maturity Securities, Fair Value    
Fair Value 1,543,554 1,664,674
Mortgage-backed - Agency - multi-family    
Available for Sale Securities, Amortized Cost    
Without single maturity date 3,562  
Available for Sale Securities, Fair Value    
Without single maturity date 3,556  
Held to Maturity Securities, Amortized Cost    
Amortized Cost 11,684 11,853
Held to Maturity Securities, Fair Value    
Fair Value 11,005 10,833
Mortgage-backed - Agency - residential - fair value option    
Available for Sale Securities, Amortized Cost    
Without single maturity date 185,854  
Amortized Cost 185,854 205,167
Available for Sale Securities, Fair Value    
Without single maturity date 185,854  
Total 185,854 205,167
Mortgage-backed - Non-Agency multi-family    
Held to Maturity Securities, Amortized Cost    
Amortized Cost 438,430 592,053
Held to Maturity Securities, Fair Value    
Fair Value 437,480 590,891
Mortgage-backed - Non-Agency residential    
Available for Sale Securities, Amortized Cost    
Without single maturity date 385,460  
Amortized Cost 385,460 430,779
Available for Sale Securities, Fair Value    
Without single maturity date 385,460  
Total 385,460 430,779
Held to Maturity Securities, Amortized Cost    
Amortized Cost 699,957 526,242
Held to Maturity Securities, Fair Value    
Fair Value 701,485 528,038
Mortgage-backed - Non-Agency - healthcare    
Available for Sale Securities, Amortized Cost    
Amortized Cost   534,538
Available for Sale Securities, Fair Value    
Total   $ 534,912
Held to Maturity Securities, Amortized Cost    
Amortized Cost 393,588  
Held to Maturity Securities, Fair Value    
Fair Value $ 393,584  
v3.25.4
Investment Securities - Sale of securities (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Investment Securities      
Proceeds from the sale of securities available for sale $ 0 $ 9,983,000 $ 1,516,000
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  
v3.25.4
Investment Securities - Continuous Unrealized Loss Position (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
position
Dec. 31, 2024
USD ($)
position
Securities    
Percentage of AFS investment portfolio 24.00% 26.00%
Percentage of HTM investment portfolio 63.00% 39.00%
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months $ 208,452  
Investment securities pledged as collateral 1,600,000 $ 1,500,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total $ 208,452 $ 252,900
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Number of Positions | position 8 9
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value    
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total $ 966,900 $ 642,600
Held-to-maturity Securities, Fair Value, Number of Positions | position 8 8
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 $ 110  
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total 110  
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 204,896 $ 252,936
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 204,896 252,936
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 104 282
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total 104 $ 282
Mortgage-backed - Agency    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value    
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months 3,556  
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 3,556  
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses    
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months 6  
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total $ 6  
v3.25.4
Investment Securities - Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 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 0
Amortized Cost 1,543,659 1,664,686
Fair Value 1,543,554 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 438,400  
Fair Value $ 437,500  
Delinquency rate 35.00%  
Value ratio 67.00%  
Credit Protection, Percentage on Losses 17.10%  
v3.25.4
Mortgage Loans in Process of Securitization (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Mortgage Loans in Process of Securitization    
Unrealized gains included in mortgage loans $ 5.2 $ 4.1
v3.25.4
Loans and Allowance for Credit Losses on Loans - Summary of Loans By Classification (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Loans and Allowance for Credit Losses on Loans        
Accrued interest on loans, excluded from amortized cost of loans $ 51,400 $ 51,900    
Loans Receivable 11,034,682 10,438,388    
ACL-Loans 83,301 84,386 $ 71,752 $ 44,014
Loans Receivable, net 10,951,381 10,354,002    
Mortgage warehouse repurchase agreements        
Loans and Allowance for Credit Losses on Loans        
Loans Receivable 1,600,285 1,446,068    
ACL-Loans 4,269 3,816 2,070 1,249
Residential real estate        
Loans and Allowance for Credit Losses on Loans        
Loans Receivable 1,018,780 1,322,853    
ACL-Loans 4,672 5,942 7,323 7,029
Residential real estate | Home equity line of credit        
Loans and Allowance for Credit Losses on Loans        
Loans Receivable 832,200 1,200,000    
Multi-family financing        
Loans and Allowance for Credit Losses on Loans        
Loans Receivable 5,332,680 4,624,299    
ACL-Loans 43,041 55,126 26,874 16,781
Healthcare        
Loans and Allowance for Credit Losses on Loans        
Loans Receivable 1,385,359 1,484,483    
ACL-Loans 18,595 8,562 22,454 9,882
Commercial and commercial real estate        
Loans and Allowance for Credit Losses on Loans        
Loans Receivable 1,603,551 1,476,211    
ACL-Loans 11,998 10,293 12,243 8,326
Revolving lines of credit collateralized primarily by mortgage servicing rights 944,300 908,900    
Commercial and commercial real estate | Non - Owner occupied commercial real estate        
Loans and Allowance for Credit Losses on Loans        
Loans Receivable 19,500 18,700    
Agricultural production and real estate        
Loans and Allowance for Credit Losses on Loans        
Loans Receivable 92,077 77,631    
ACL-Loans 697 539 619 565
Consumer and margin loans        
Loans and Allowance for Credit Losses on Loans        
Loans Receivable 1,950 6,843    
ACL-Loans $ 29 $ 108 $ 169 $ 182
v3.25.4
Loans and Allowance for Credit Losses on Loans - Allowance For Credit-Loan Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Allowance for credit losses      
Balance, beginning of period $ 84,386 $ 71,752 $ 44,014
FMBI's ACL for loans sold   (593)  
Provision for credit losses 122,904 23,678 37,488
Loans charged to the allowance (124,116) (10,587) (9,791)
Recoveries of loans previously charged-off 127 136 41
Balance, end of period 83,301 84,386 71,752
ACL Loans      
Provision for credit losses 117,754 24,278 40,231
Provision for credit losses, ACL Loans 122,900 23,700 37,500
Provision for credit losses, ACL-OBCE's 4,700 2,200 2,700
Provision for credit losses, ACL-Guarantees 400 1,000  
Release of FMBI's ACL-Loans for loans sold   600  
MTG WHRA      
Allowance for credit losses      
Balance, beginning of period 3,816 2,070 1,249
Provision for credit losses 453 1,746 821
Balance, end of period 4,269 3,816 2,070
RES RE      
Allowance for credit losses      
Balance, beginning of period 5,942 7,323 7,029
FMBI's ACL for loans sold   (55)  
Provision for credit losses (1,270) (1,340) 328
Loans charged to the allowance     (34)
Recoveries of loans previously charged-off   14  
Balance, end of period 4,672 5,942 7,323
MF FIN      
Allowance for credit losses      
Balance, beginning of period 55,126 26,874 16,781
FMBI's ACL for loans sold   (186)  
Provision for credit losses 102,147 33,674 18,493
Loans charged to the allowance (114,281) (5,282) (8,400)
Recoveries of loans previously charged-off 49 46  
Balance, end of period 43,041 55,126 26,874
HC FIN      
Allowance for credit losses      
Balance, beginning of period 8,562 22,454 9,882
FMBI's ACL for loans sold   (2)  
Provision for credit losses 17,530 (10,795) 12,572
Loans charged to the allowance (7,497) (3,095)  
Balance, end of period 18,595 8,562 22,454
CML & CRE      
Allowance for credit losses      
Balance, beginning of period 10,293 12,243 8,326
FMBI's ACL for loans sold   (92)  
Provision for credit losses 3,965 276 5,232
Loans charged to the allowance (2,338) (2,210) (1,356)
Recoveries of loans previously charged-off 78 76 41
Balance, end of period 11,998 10,293 12,243
AG & AGRE      
Allowance for credit losses      
Balance, beginning of period 539 619 565
FMBI's ACL for loans sold   (246)  
Provision for credit losses 158 166 54
Balance, end of period 697 539 619
CON & MAR      
Allowance for credit losses      
Balance, beginning of period 108 169 182
FMBI's ACL for loans sold   (12)  
Provision for credit losses (79) (49) (12)
Loans charged to the allowance     (1)
Balance, end of period $ 29 $ 108 $ 169
v3.25.4
Loans and Allowance for Credit Losses on Loans - Amortized cost basis and ACL (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis $ 11,034,682 $ 10,438,388    
ACL-Loans 83,301 84,386 $ 71,752 $ 44,014
Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 302,701 314,557    
Accounts Receivable / Equipment        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 4 1,453    
Other        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 566 1,322    
Collateral pledged        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 303,271 317,332    
ACL-Loans 18,444 25,224    
RES RE        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 1,018,780 1,322,853    
ACL-Loans 4,672 5,942 7,323 7,029
RES RE | Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 7,681 6,153    
RES RE | Collateral pledged        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 7,681 6,153    
ACL-Loans 39 31    
Multi-family and healthcare financing        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis   5,282    
MF FIN        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 5,332,680 4,624,299    
ACL-Loans 43,041 55,126 26,874 16,781
MF FIN | Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 213,289 227,054    
MF FIN | Other        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis   693    
MF FIN | Collateral pledged        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 213,289 227,747    
ACL-Loans 5,618 22,265    
HC FIN        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 1,385,359 1,484,483    
ACL-Loans 18,595 8,562 22,454 9,882
HC FIN | Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 72,825 73,225    
HC FIN | Collateral pledged        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 72,825 73,225    
ACL-Loans 12,515 2,569    
CML & CRE        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 1,603,551 1,476,211    
ACL-Loans 11,998 10,293 12,243 8,326
CML & CRE | Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 8,725 8,125    
CML & CRE | Accounts Receivable / Equipment        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis   1,447    
CML & CRE | Other        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 566 629    
CML & CRE | Collateral pledged        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 9,291 10,201    
ACL-Loans 270 358    
AG & AGRE        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 92,077 77,631    
ACL-Loans 697 539 $ 619 $ 565
AG & AGRE | Real Estate        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 181      
AG & AGRE | Accounts Receivable / Equipment        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 4 6    
AG & AGRE | Collateral pledged        
Loans and Allowance for Credit Losses on Loans        
Amortized Cost Basis 185 6    
ACL-Loans $ 2 $ 1    
v3.25.4
Loans and Allowance for Credit Losses on Loans - Credit Risk Profile of Loan Portfolio (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Credit risk profile of portfolio      
2025/2024 $ 2,184,666 $ 1,752,656  
2024/2023 852,702 923,749  
2023/2022 558,230 1,151,608  
2022/2021 358,046 163,431  
2021/2020 95,763 49,226  
Prior 81,704 53,272  
Revolving Loans 6,903,571 6,344,446  
Total Loans 11,034,682 10,438,388  
Net Charge-Offs      
Charge-offs 2024/2023 302 870  
Charge-offs 2023/2022 43,200 4,665  
Charge-offs 2022/2021 65,565 4,077  
Charge-offs 2021/2020 6,856    
Charge-offs Prior 8,193 975  
Total Charge-offs 124,116 10,587 $ 9,791
Pass      
Credit risk profile of portfolio      
2025/2024 2,033,921 1,598,887  
2024/2023 754,660 714,740  
2023/2022 452,952 1,006,473  
2022/2021 259,825 125,050  
2021/2020 66,233 49,226  
Prior 81,181 52,738  
Revolving Loans 6,877,721 6,193,973  
Total Loans 10,526,493 9,741,087  
Special Mention      
Credit risk profile of portfolio      
2025/2024 88,842 120,884  
2024/2023 89,527 77,700  
2023/2022 561 68,910  
2022/2021 22,426 1,633  
2021/2020 883    
Prior 374 290  
Revolving Loans 2,305 110,552  
Total Loans 204,918 379,969  
Substandard      
Credit risk profile of portfolio      
2025/2024 61,903 32,885  
2024/2023 8,515 131,309  
2023/2022 104,717 76,225  
2022/2021 75,795 36,748  
2021/2020 28,647    
Prior 149 244  
Revolving Loans 23,545 39,921  
Total Loans 303,271 317,332  
MTG WHRA      
Credit risk profile of portfolio      
Revolving Loans 1,600,285 1,446,068  
Total Loans 1,600,285 1,446,068  
MTG WHRA | Pass      
Credit risk profile of portfolio      
Revolving Loans 1,600,285 1,446,068  
Total Loans 1,600,285 1,446,068  
RES RE      
Credit risk profile of portfolio      
2025/2024 66,511 40,363  
2024/2023 33,386 30,750  
2023/2022 22,076 8,234  
2022/2021 6,400 6,181  
2021/2020 4,608 18,712  
Prior 21,412 6,413  
Revolving Loans 864,387 1,212,200  
Total Loans 1,018,780 1,322,853  
Net Charge-Offs      
Total Charge-offs     34
RES RE | Pass      
Credit risk profile of portfolio      
2025/2024 66,511 40,363  
2024/2023 33,386 30,750  
2023/2022 21,645 8,212  
2022/2021 6,378 6,181  
2021/2020 4,608 18,712  
Prior 21,283 6,210  
Revolving Loans 857,288 1,206,272  
Total Loans 1,011,099 1,316,700  
RES RE | Substandard      
Credit risk profile of portfolio      
2023/2022 431 22  
2022/2021 22    
Prior 129 203  
Revolving Loans 7,099 5,928  
Total Loans 7,681 6,153  
Multi-family and healthcare financing      
Credit risk profile of portfolio      
2024/2023   870  
2023/2022   4,412  
Total Loans   5,282  
MF FIN      
Credit risk profile of portfolio      
2025/2024 1,303,074 1,135,509  
2024/2023 730,697 701,573  
2023/2022 428,351 553,495  
2022/2021 286,797 69,337  
2021/2020 22,868 5,460  
Prior 9,523 10,694  
Revolving Loans 2,551,370 2,148,231  
Total Loans 5,332,680 4,624,299  
Net Charge-Offs      
Charge-offs 2023/2022 42,884    
Charge-offs 2022/2021 65,405    
Charge-offs Prior 5,992    
Total Charge-offs 114,281 5,282 8,400
MF FIN | Pass      
Credit risk profile of portfolio      
2025/2024 1,193,011 1,028,288  
2024/2023 650,672 518,320  
2023/2022 348,888 419,723  
2022/2021 189,881 66,787  
2021/2020 22,868 5,460  
Prior 9,291 10,456  
Revolving Loans 2,539,144 2,109,707  
Total Loans 4,953,755 4,158,741  
MF FIN | Special Mention      
Credit risk profile of portfolio      
2025/2024 70,127 88,337  
2024/2023 71,723 77,700  
2023/2022   57,679  
2022/2021 21,924    
Prior 232 238  
Revolving Loans 1,630 13,857  
Total Loans 165,636 237,811  
MF FIN | Substandard      
Credit risk profile of portfolio      
2025/2024 39,936 18,884  
2024/2023 8,302 105,553  
2023/2022 79,463 76,093  
2022/2021 74,992 2,550  
Revolving Loans 10,596 24,667  
Total Loans 213,289 227,747  
HC FIN      
Credit risk profile of portfolio      
2025/2024 729,456 506,767  
2024/2023 24,610 137,823  
2023/2022 56,996 475,293  
2022/2021   25,363  
2021/2020 20,317    
Revolving Loans 553,980 339,237  
Total Loans 1,385,359 1,484,483  
Net Charge-Offs      
Charge-offs 2022/2021   3,095  
Charge-offs 2021/2020 5,296    
Charge-offs Prior 2,201    
Total Charge-offs 7,497 3,095  
HC FIN | Pass      
Credit risk profile of portfolio      
2025/2024 693,986 460,259  
2024/2023 6,922 112,223  
2023/2022 32,305 466,393  
Revolving Loans 548,130 234,316  
Total Loans 1,281,343 1,273,191  
HC FIN | Special Mention      
Credit risk profile of portfolio      
2025/2024 13,503 32,547  
2024/2023 17,688    
2023/2022   8,900  
Revolving Loans   96,620  
Total Loans 31,191 138,067  
HC FIN | Substandard      
Credit risk profile of portfolio      
2025/2024 21,967 13,961  
2024/2023   25,600  
2023/2022 24,691    
2022/2021   25,363  
2021/2020 20,317    
Revolving Loans 5,850 8,301  
Total Loans 72,825 73,225  
CML & CRE      
Credit risk profile of portfolio      
2025/2024 70,701 52,363  
2024/2023 48,444 46,149  
2023/2022 43,781 109,892  
2022/2021 60,280 59,371  
2021/2020 45,163 16,264  
Prior 30,929 18,309  
Revolving Loans 1,304,253 1,173,863  
Total Loans 1,603,551 1,476,211  
Net Charge-Offs      
Charge-offs 2024/2023 302    
Charge-offs 2023/2022 316 253  
Charge-offs 2022/2021 160 982  
Charge-offs 2021/2020 1,560    
Charge-offs Prior   975  
Total Charge-offs 2,338 2,210 1,356
CML & CRE | Pass      
Credit risk profile of portfolio      
2025/2024 65,578 52,323  
2024/2023 48,115 45,999  
2023/2022 43,092 107,451  
2022/2021 59,178 48,903  
2021/2020 35,950 16,264  
Prior 30,767 18,216  
Revolving Loans 1,303,578 1,172,763  
Total Loans 1,586,258 1,461,919  
CML & CRE | Special Mention      
Credit risk profile of portfolio      
2025/2024 5,123    
2024/2023 116    
2023/2022 561 2,331  
2022/2021 502 1,633  
2021/2020 883    
Prior 142 52  
Revolving Loans 675 75  
Total Loans 8,002 4,091  
CML & CRE | Substandard      
Credit risk profile of portfolio      
2025/2024   40  
2024/2023 213 150  
2023/2022 128 110  
2022/2021 600 8,835  
2021/2020 8,330    
Prior 20 41  
Revolving Loans   1,025  
Total Loans 9,291 10,201  
AG & AGRE      
Credit risk profile of portfolio      
2025/2024 14,791 17,328  
2024/2023 15,457 7,379  
2023/2022 7,011 4,676  
2022/2021 4,567 3,170  
2021/2020 2,807 8,790  
Prior 19,840 13,705  
Revolving Loans 27,604 22,583  
Total Loans 92,077 77,631  
AG & AGRE | Pass      
Credit risk profile of portfolio      
2025/2024 14,702 17,328  
2024/2023 15,457 7,373  
2023/2022 7,007 4,676  
2022/2021 4,386 3,170  
2021/2020 2,807 8,790  
Prior 19,840 13,705  
Revolving Loans 27,604 22,583  
Total Loans 91,803 77,625  
AG & AGRE | Special Mention      
Credit risk profile of portfolio      
2025/2024 89    
Total Loans 89    
AG & AGRE | Substandard      
Credit risk profile of portfolio      
2024/2023   6  
2023/2022 4    
2022/2021 181    
Total Loans 185 6  
CON & MAR      
Credit risk profile of portfolio      
2025/2024 133 326  
2024/2023 108 75  
2023/2022 15 18  
2022/2021 2 9  
Prior   4,151  
Revolving Loans 1,692 2,264  
Total Loans 1,950 6,843  
Net Charge-Offs      
Total Charge-offs     $ 1
CON & MAR | Pass      
Credit risk profile of portfolio      
2025/2024 133 326  
2024/2023 108 75  
2023/2022 15 18  
2022/2021 2 9  
Prior   4,151  
Revolving Loans 1,692 2,264  
Total Loans $ 1,950 $ 6,843  
v3.25.4
Loans and Allowance for Credit Losses on Loans - Aging Analysis Of The Recorded Investment In Loans (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
loan
Dec. 31, 2024
USD ($)
loan
Aging analysis of loan portfolio    
Loans Receivable $ 11,034,682 $ 10,438,388
Loans percentage 100.00% 100.00%
30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable $ 12,594 $ 10,460
60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 50,689 15,633
90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable $ 143,278 $ 266,170
Loans percentage 1.00% 3.00%
Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable $ 206,561 $ 292,263
Loans percentage 2.00% 3.00%
Current    
Aging analysis of loan portfolio    
Loans Receivable $ 10,828,121 $ 10,146,125
Loans percentage 98.00% 97.00%
MTG WHRA    
Aging analysis of loan portfolio    
Loans Receivable $ 1,600,285 $ 1,446,068
MTG WHRA | Current    
Aging analysis of loan portfolio    
Loans Receivable 1,600,285 1,446,068
RES RE    
Aging analysis of loan portfolio    
Loans Receivable 1,018,780 1,322,853
RES RE | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 5,077 $ 1,294
Number of delinquent loans classified as held for sale | loan   2
Loan as held for sale   $ 2,100
RES RE | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 2,430 3,797
RES RE | 90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 3,479 $ 2,339
Number of delinquent loans classified as held for sale | loan   1
Loan as held for sale   $ 100
RES RE | Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable 10,986 7,430
RES RE | Current    
Aging analysis of loan portfolio    
Loans Receivable 1,007,794 1,315,423
Multi-family and healthcare financing    
Aging analysis of loan portfolio    
Loans Receivable   5,282
MF FIN    
Aging analysis of loan portfolio    
Loans Receivable $ 5,332,680 4,624,299
MF FIN | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable   $ 8,497
Number of delinquent loans classified as held for sale | loan 1 1
Loan as held for sale $ 300 $ 30,100
MF FIN | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 47,475 11,148
MF FIN | 90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 111,348 201,508
MF FIN | Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable 158,823 221,153
MF FIN | Current    
Aging analysis of loan portfolio    
Loans Receivable 5,173,857 4,403,146
HC FIN    
Aging analysis of loan portfolio    
Loans Receivable 1,385,359 1,484,483
HC FIN | 90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 26,167 59,264
HC FIN | Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable 26,167 59,264
HC FIN | Current    
Aging analysis of loan portfolio    
Loans Receivable 1,359,192 1,425,219
CML & CRE    
Aging analysis of loan portfolio    
Loans Receivable 1,603,551 1,476,211
CML & CRE | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 7,517 596
CML & CRE | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 659 688
CML & CRE | 90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 2,280 3,047
CML & CRE | Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable 10,456 4,331
CML & CRE | Current    
Aging analysis of loan portfolio    
Loans Receivable 1,593,095 1,471,880
AG & AGRE    
Aging analysis of loan portfolio    
Loans Receivable 92,077 77,631
AG & AGRE | 30-59 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable   73
AG & AGRE | 60-89 Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 125  
AG & AGRE | 90+ Days Past Due    
Aging analysis of loan portfolio    
Loans Receivable 4 12
AG & AGRE | Total Past Due    
Aging analysis of loan portfolio    
Loans Receivable 129 85
AG & AGRE | Current    
Aging analysis of loan portfolio    
Loans Receivable 91,948 77,546
CON & MAR    
Aging analysis of loan portfolio    
Loans Receivable 1,950 6,843
CON & MAR | Current    
Aging analysis of loan portfolio    
Loans Receivable $ 1,950 $ 6,843
v3.25.4
Loans and Allowance for Credit Losses on Loans - Non Accrual Loans and Loans Past Due 90 Days Or More and Still Accruing (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Loans and Allowance for Credit Losses on Loans    
Nonaccrual $ 197,812 $ 279,716
Total Loans Greater than 90 Days & Accruing   6
RES RE    
Loans and Allowance for Credit Losses on Loans    
Nonaccrual 7,680 6,154
RES RE | Greater Than 90 Days    
Loans and Allowance for Credit Losses on Loans    
Nonaccrual loans held for sale   100
MF FIN    
Loans and Allowance for Credit Losses on Loans    
Nonaccrual 128,241 201,508
HC FIN    
Loans and Allowance for Credit Losses on Loans    
Nonaccrual 59,574 69,001
CML & CRE    
Loans and Allowance for Credit Losses on Loans    
Nonaccrual 2,313 3,047
AG & AGRE    
Loans and Allowance for Credit Losses on Loans    
Nonaccrual $ 4 6
Total Loans Greater than 90 Days & Accruing   $ 6
v3.25.4
Loans and Allowance for Credit Losses on Loans - Modified loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 188,713 $ 106,145
% of Total Class of Financing Receivable 2.00% 1.00%
Specific reserves recorded on troubled loan modifications $ 0  
Commitment to lend 3,000 $ 0
Modified loans 188,713 106,145
Value of loans defaulted 11,500 23,400
Current    
Loans and Allowance for Credit Losses on Loans    
Modified loans 168,458 78,519
30 - 89 Days Past Due    
Loans and Allowance for Credit Losses on Loans    
Modified loans 20,255 27,626
Payment Delay    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified 24,691 50,135
Term Extension    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified 122,592 56,010
Combination - Term Extension and Payment Delay    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 41,430  
Weighted average term modification 14 months  
Forbearance    
Loans and Allowance for Credit Losses on Loans    
Weighted average term modification 6 months  
MF FIN    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 113,469 $ 92,184
% of Total Class of Financing Receivable 2.00% 2.00%
Modified loans $ 113,469 $ 92,184
MF FIN | Current    
Loans and Allowance for Credit Losses on Loans    
Modified loans 101,929 78,519
MF FIN | 30 - 89 Days Past Due    
Loans and Allowance for Credit Losses on Loans    
Modified loans 11,540 13,665
MF FIN | Payment Delay    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified   $ 40,398
Weighted average term modification   7 months
MF FIN | Term Extension    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 80,932 $ 51,786
Weighted average term modification 7 months 23 months
MF FIN | Combination - Term Extension and Payment Delay    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 32,537  
Weighted average term modification 6 months  
HC FIN    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 74,299 $ 13,961
% of Total Class of Financing Receivable 5.00% 1.00%
Modified loans $ 74,299 $ 13,961
HC FIN | Current    
Loans and Allowance for Credit Losses on Loans    
Modified loans 65,584  
HC FIN | 30 - 89 Days Past Due    
Loans and Allowance for Credit Losses on Loans    
Modified loans 8,715 13,961
HC FIN | Payment Delay    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 24,691 $ 9,737
Weighted average term modification 9 months 6 months
HC FIN | Term Extension    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 40,892 $ 4,224
Weighted average term modification 8 months 12 months
HC FIN | Combination - Term Extension and Payment Delay    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 8,716  
CML & CRE    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified 945  
Modified loans 945  
CML & CRE | Current    
Loans and Allowance for Credit Losses on Loans    
Modified loans 945  
CML & CRE | Term Extension    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 768  
Weighted average term modification 74 months  
CML & CRE | Combination - Term Extension and Payment Delay    
Loans and Allowance for Credit Losses on Loans    
Amortized cost of loan modified $ 177  
Weighted average term modification 60 months  
CML & CRE | Forbearance    
Loans and Allowance for Credit Losses on Loans    
Weighted average term modification 12 months  
v3.25.4
Loans and Allowance for Credit Losses on Loans - Narrative (Details)
 12 Months Ended
Dec. 11, 2025
USD ($)
loan
Jul. 31, 2025
USD ($)
loan
Jun. 27, 2025
USD ($)
Jun. 05, 2025
USD ($)
loan
Sep. 26, 2024
USD ($)
Apr. 30, 2024
USD ($)
loan
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Loans and Allowance for Credit Losses on Loans                  
Carrying value, at year-end, of securities held-to-maturity purchased from debt funds             $ 259,580,000 $ 155,268,000 $ 293,268,000
Purchase of loans             67,455,000 108,620,000 $ 358,462,000
Loan guarantee             $ 186,500,000 204,700,000  
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     $ 312,100,000            
Gain on sale of loans     2,200,000            
Mortgage servicing right established     $ 0            
Loan Sale and Freddie Mac Q Series Securitization | Other Liabilities [Member]                  
Loans and Allowance for Credit Losses on Loans                  
Non-contingent reserve             $ 1,500,000 1,800,000  
Multi-family financing | Special Mention                  
Loans and Allowance for Credit Losses on Loans                  
Loan as held for sale               $ 17,400,000  
Number of loans classified as held for sale               1  
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 $ 172,800,000 $ 237,000,000   $ 373,300,000   $ 324,600,000      
Number of loans securitized | loan 5 1   18   13      
Gain on sale of loans $ 597,000 $ 300,000   $ 5,900,000   $ 1,400,000      
Mortgage servicing right established $ 636,000 $ 497,000   $ 1,600,000   $ 1,300,000      
Multi-family financing | Loan Sale and Securitization                  
Loans and Allowance for Credit Losses on Loans                  
Amount of portfolio of loans sold in a securitization transaction         $ 628,900,000        
Carrying value, at year-end, of securities held-to-maturity purchased from debt funds         $ 534,500,000        
Percentage of first loss position         15.00%        
Proceeds and accrued interest on loans, net of the acquired securities         $ 94,000,000        
Allowance for credit losses associated with loans sold released through the provision for credit losses         4,400,000        
Gain (loss) on sale         $ 600,000        
Residential real estate                  
Loans and Allowance for Credit Losses on Loans                  
Value of residential loans in process of foreclosure             $ 3,500,000 $ 1,900,000  
v3.25.4
Loans and Allowance for Credit Losses on Loans - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Additional Cash Flows Information:      
Transfer of loans to other real estate owned $ 55,798 $ 6,285  
Investments received in securitization of loans sold 3,583 534,538  
Deposits received upon loan origination 189,206    
Transfer of loans from loans held for sale to loans receivable 390,728 118,000 $ 377,460
Transfer of loans from loans receivable to loans held for sale $ 431,520 $ 612,469 $ 65,768
v3.25.4
Premises and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Premises and Equipment      
Total cost $ 90,278 $ 72,021  
Accumulated depreciation (16,349) (13,404)  
Net premises and equipment 73,929 58,617  
Depreciation 3,465 3,014 $ 2,852
Land      
Premises and Equipment      
Total cost 8,016 8,016  
Buildings      
Premises and Equipment      
Total cost 58,295 28,200  
Building and remodeling in progress      
Premises and Equipment      
Total cost 3,731 20,453  
Leasehold improvements      
Premises and Equipment      
Total cost 1,084 1,017  
Furniture, fixtures, equipment and software      
Premises and Equipment      
Total cost $ 19,152 $ 14,335  
v3.25.4
Loan Servicing (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Loan Servicing      
Balance, beginning of period $ 189,935 $ 158,457 $ 146,248
Paydowns (12,223) (9,901) (7,621)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model 1,448 22,709 4,562
Balance, end of period 217,296 189,935 158,457
Revenue from specified servicing fee 33,100 30,900 29,300
Escrow funds 2,100,000 1,500,000  
Purchased servicing      
Loan Servicing      
Additions 14,482   513
Originated servicing      
Loan Servicing      
Additions $ 23,654 18,670 $ 14,755
Mortgage Loans      
Loan Servicing      
Sliding scale to deter prepayments (in years) 10 years    
Unpaid principal balances of mortgage and other loans serviced for others $ 21,300,000 17,600,000  
Unpaid principal balances of loans subserviced for others 3,700,000 3,000,000  
Unpaid principal balances of loans others servicing $ 680,600 $ 784,800  
v3.25.4
Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill      
Goodwill $ 8,014 $ 8,014 $ 15,845
Changes in goodwill:      
Balance, beginning of period 8,014 15,845 15,845
Sale of FMBI branches 0 (7,831) 0
Balance, end of period 8,014 8,014 15,845
Multi-family Mortgage Banking      
Goodwill      
Goodwill 3,791 3,791 3,791
Changes in goodwill:      
Balance, beginning of period 3,791 3,791 3,791
Sale of FMBI branches 0 0 0
Balance, end of period 3,791 3,791 3,791
Banking      
Goodwill      
Goodwill 522 522 8,353
Changes in goodwill:      
Balance, beginning of period 522 8,353 8,353
Sale of FMBI branches 0 (7,831) 0
Balance, end of period 522 522 8,353
Mortgage Warehousing      
Goodwill      
Goodwill 3,701 3,701 3,701
Changes in goodwill:      
Balance, beginning of period 3,701 3,701 3,701
Sale of FMBI branches 0 0 0
Balance, end of period $ 3,701 $ 3,701 $ 3,701
v3.25.4
Qualified Affordable Housing and Other Tax Credits - Investments And Commitments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Qualified Affordable Housing and Other Tax Credits    
Investment $ 267,835 $ 180,107
Investment, Proportional Amortization Method, Elected, Statement of Financial Position [Extensible Enumeration] Other Assets and Receivables. Other Assets and Receivables.
Total $ 278,738 $ 191,044
Unfunded Commitments 118,043 93,929
Total 118,043 93,929
LIHTC    
Qualified Affordable Housing and Other Tax Credits    
Investment $ 218,110 $ 123,574
Investment, Proportional Amortization Method, Elected, Statement of Financial Position [Extensible Enumeration] Other Assets and Receivables. Other Assets and Receivables.
Unfunded Commitments $ 118,043 $ 93,929
LIHTC projects held for future syndication    
Qualified Affordable Housing and Other Tax Credits    
Investment $ 49,725 $ 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 $ 10,903 $ 10,937
v3.25.4
Qualified Affordable Housing and Other Tax Credits - Amortization and Tax Credits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Qualified Affordable Housing and Other Tax Credits      
Amortization expense $ 24,892 $ 10,430 $ 7,949
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)
Investment Program Proportional Amortization Method Applied Income Tax Credit And Other Tax Benefit Amortization Statement Of Cash Flows Extensible Enumeration Not Disclosed Flag true true true
Expected tax credits $ 27,532 $ 12,114 $ 8,416
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)
Investment Program Proportional Amortization Method Elected Income Tax Credit And Other Income Tax Benefit Before Amortization Statement Of Cash Flows Extensible Enumeration Not Disclosed Flag true true true
v3.25.4
Qualified Affordable Housing and Other Tax Credits - Other (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Qualified Affordable Housing and Other Tax Credits    
Transferable energy production tax credits acquired $ 151,300  
Payments to acquire transferable energy production tax credits 142,754  
Reduction to current income tax expense relating to transferable energy production tax credits acquired 8,500  
LIHTC    
Qualified Affordable Housing and Other Tax Credits    
General partner services fee $ 32,900  
Revenue recognition constrained on fees (percent) 100.00%  
Payment to acquire projects $ 102,700 $ 98,800
LIHTC | Investor | Minimum    
Qualified Affordable Housing and Other Tax Credits    
Investment owned in percent 85.00%  
LIHTC | Investor | Maximum    
Qualified Affordable Housing and Other Tax Credits    
Investment owned in percent 99.99%  
v3.25.4
Qualified Affordable Housing and Other Tax Credits - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Additional Cash Flows Information:    
Qualified affordable housing investments obtained in exchange for funding commitments $ 66,307  
Deposits received upon reduction of funding commitments 42,193  
Deposits received upon purchase of LIHTCs 11,166  
Beneficial interests received in exchange for LIHTC's sold $ 14,637 $ 38,793
v3.25.4
Leases - Other (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Leases  
Total net future minimum lease payments $ 10.7
Unrecorded Unconditional Purchase Obligation, Category [Extensible Enumeration] us-gaap:OperatingLeaseLeaseNotYetCommencedMember
Operating Lease, lease not yet commenced, right-of-use asset $ 0.0
Operating Lease, lease not yet commenced, liability $ 0.0
Minimum  
Leases  
Lease period 1 year
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract 7 years
Maximum  
Leases  
Lease period 6 years
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract 10 years
v3.25.4
Leases - Balance sheet, Statement of Income and Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases      
Operating lease ROU asset (in other assets) $ 6,006 $ 8,332  
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets and Receivables. Other Assets and Receivables.  
Operating lease liability (in other liabilities) $ 7,264 $ 9,303  
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities Other Liabilities  
Weighted average remaining lease term (years) 3 years 8 months 12 days 4 years 7 months 6 days  
Weighted average discount rate 3.44% 3.43%  
Maturities of operating lease liabilities:      
One year or less $ 2,293    
Year two 2,203    
Year three 1,597    
Year four 1,101    
Year five 419    
Thereafter 128    
Total future minimum lease payments 7,741    
Less: imputed interest 477    
Total $ 7,264 $ 9,303  
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities Other Liabilities  
Leases, additional information      
Operating lease cost $ 3,402 $ 2,692 $ 2,438
Operating cash flows for operating leases $ 2,325 2,505 2,129
Change in ROU assets due to lease renegotiation   (1,063)  
ROU assets obtained in exchange for new operating lease liabilities   $ 1,337 $ 1,113
v3.25.4
Other Assets and Receivables - Federal Income Tax Receivable (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Other Assets and Receivables    
Income tax receivable $ 181.5 $ 2.6
Transferable energy production tax credits acquired $ 151.3  
v3.25.4
Other Assets and Receivables - Joint Ventures (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2025
Joint Ventures    
Investments in debt funds $ 31.8 $ 32.0
Additional investment in joint ventures 3.8 8.4
Other Prepaid Expense    
Other prepaid expenses   5.6
Decrease in prepaid expenses (125.2)  
Redemption amount of preferred stock   125.0
Corporate Joint Venture    
Joint Ventures    
Investment in joint ventures $ 42.2 $ 47.0
v3.25.4
Other Assets and Receivables - Freestanding Credit Enhancements (Details) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2025
Other Assets and Receivables    
Principal balance of warehouse loans $ 1.2 $ 2.0
Percentage of notional amount of warehouse repurchase 12.50%  
Percentage of portfolio notional amount 0.80%  
CDS recovery asset $ 0.0 $ 0.0
Minimum    
Other Assets and Receivables    
Replenishment amount of mutual agreement $ 1.2  
Replenishment period of mutual agreement 36 months  
Maximum    
Other Assets and Receivables    
Replenishment amount of mutual agreement $ 2.0  
Replenishment period of mutual agreement 48 months  
v3.25.4
Other Assets and Receivables - Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Summary      
Gross Carrying Amount $ 224 $ 4,011 $ 4,011
Accumulated Amortization (188) (3,414) (3,269)
Sale of FMBI branches   (538)  
Total 36 59 742
Licenses      
Summary      
Gross Carrying Amount   1,370 1,370
Accumulated Amortization   (1,370) (1,247)
Total     123
Trade names      
Summary      
Gross Carrying Amount 224 224 224
Accumulated Amortization (188) (165) (143)
Total $ 36 59 81
Core deposit intangible      
Summary      
Gross Carrying Amount   2,417 2,417
Accumulated Amortization   (1,879) (1,879)
Sale of FMBI branches   $ (538)  
Total     $ 538
v3.25.4
Other Assets and Receivables - Estimated Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Estimated amortization expense      
2026 $ 22    
2027 14    
Total $ 36 $ 59 $ 742
v3.25.4
Variable Interest Entities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Variable Interest Entities    
Liabilities for VIEs $ 17,168,184 $ 16,562,422
Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Investments in VIEs 271,736 257,499
Loans to VIEs 392,096 415,628
Securities for VIEs 1,531,975 1,652,833
Maximum Exposure to Loss 2,195,807 2,325,960
Liabilities for VIEs 88,708 92,708
Low-income housing tax credit investments | Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Investments in VIEs 239,698 225,727
Loans to VIEs 284,391 282,584
Maximum Exposure to Loss 524,089 508,311
Liabilities for VIEs 88,708 89,956
Debt funds | Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Investments in VIEs 32,038 31,772
Loans to VIEs 82,955 109,480
Maximum Exposure to Loss 114,993 141,252
Liabilities for VIEs   2,752
Mortgage-backed securitizations | Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entities    
Loans to VIEs 24,750 23,564
Securities for VIEs 1,531,975 1,652,833
Maximum Exposure to Loss $ 1,556,725 $ 1,676,397
v3.25.4
Deposits - Components (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Noninterest-bearing deposits    
Core demand deposits $ 604,081 $ 239,005
Interest-bearing deposits    
Core demand deposits 6,207,814 4,319,512
Brokered demand deposits 600,000  
Total interest-earning demand deposits 6,807,814 4,319,512
Core money market/savings deposits 3,566,523 3,442,111
Brokered money market/savings deposits 201,010 859
Total money market/savings deposits 3,767,533 3,442,970
Core certificates of deposits 905,448 1,385,270
Brokered certificates of deposits 956,316 2,533,219
Total certificates of deposits 1,861,764 3,918,489
Total interest-bearing deposits 12,437,111 11,680,971
Total core deposits 11,283,866 9,385,898
Total brokered deposits 1,757,326 2,534,078
Total deposits $ 13,041,192 $ 11,919,976
v3.25.4
Deposits - Maturities of deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deposits    
Due within one year $ 1,800,531  
Due in one year to two years 49,338  
Due in two years to three years 11,895  
Total certificates of deposits 1,861,764 $ 3,918,489
Certificates of deposit of 250,000 or more $ 497,500 $ 694,800
v3.25.4
Borrowings - Components (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Borrowings    
Other borrowings $ 7,934 $ 7,934
Total borrowings 3,842,592 4,386,122
Federal Reserve discount window borrowings    
Borrowings    
Total borrowings   50,000
Subordinated Debt    
Borrowings    
Total borrowings 71,800 71,800
FHLB advances    
Borrowings    
Total borrowings $ 3,762,858 4,172,030
Credit linked notes, net of debt discount    
Borrowings    
Total borrowings   $ 84,358
v3.25.4
Borrowings - Federal Reserve Discount Window Borrowings and Subordinated Debt (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
D
period
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jul. 20, 2023
USD ($)
Borrowings        
Total borrowings $ 3,842,592 $ 4,386,122    
Federal Reserve discount window borrowings        
Borrowings        
Maturity period, minimum (in hours) | period 24      
Maturity period, maximum (in days) | D 90      
Outstanding balance $ 0 50,000    
Total borrowings   50,000    
Federal Reserve discount window borrowings | Commercial, agricultural and construction loans        
Borrowings        
Amount of borrowings secured 3,400,000 3,100,000    
Subordinated Debt        
Borrowings        
Total borrowings 71,800 71,800    
Subordinated Debt | Customer        
Borrowings        
Maximum investment by counterparty in Company's subordinated debt     $ 60,000  
Total borrowings $ 41,800 $ 41,800    
Variable interest rate, basis points spread over variable reference rate (as a percent) 3.00%      
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] us-gaap:SecuredOvernightFinancingRateSofrMember us-gaap:SecuredOvernightFinancingRateSofrMember    
Additional interest as a percentage of earnings 50.00%      
Agreement renewal term 2 years      
Notice period of Non-renewal 180 days      
Additional Warehousing Financing Agreement, Subordinated Debt | Customer        
Borrowings        
Maximum investment by counterparty in Company's subordinated debt       $ 30,000
Total borrowings $ 30,000 $ 30,000    
Variable interest rate, basis points spread over variable reference rate (as a percent) 3.00%      
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] us-gaap:SecuredOvernightFinancingRateSofrMember us-gaap:SecuredOvernightFinancingRateSofrMember    
Additional interest as a percentage of earnings 50.00%      
Agreement renewal term 2 years      
Notice period of Non-renewal 180 days      
v3.25.4
Borrowings - FHLB Advances (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
FHLB advances    
Borrowings    
Mortgage loans pledged as collateral $ 4,400.0 $ 4,200.0
Available for sale securities and securities purchased under agreements to resell pledged as collateral 1,500.0 1,400.0
Outstanding balance 3,800.0 $ 4,200.0
Fixed-rate community development advance debt agreement, FHLB    
Borrowings    
Outstanding balance 2.5  
New variable-rate one, FHLB    
Borrowings    
Outstanding balance $ 2.0  
Variable interest rate, basis points spread over variable reference rate (as a percent) 0.15%  
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] New variable-rate one, FHLB  
FHLB advances interest rate 3.79%  
Option to cancel agreement (in days) 60 days  
Notice period (in days) 1 day  
new variable-rate two, FHLB    
Borrowings    
Outstanding balance $ 1,800.0  
Variable interest rate, basis points spread over variable reference rate (as a percent) 0.15%  
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] new variable-rate two, FHLB  
FHLB advances interest rate 3.79%  
Option to cancel agreement (in days) 60 days  
Notice period (in days) 1 day  
Minimum | FHLB advances    
Borrowings    
FHLB advances interest rate 0.00% 2.78%
Maximum | FHLB advances    
Borrowings    
FHLB advances interest rate 3.97% 4.48%
v3.25.4
Borrowings - Credit Linked Notes and Other Borrowings (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 30, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Borrowings        
Proceeds from borrowings   $ 323,574,587 $ 166,316,878 $ 95,570,319
Total borrowings   $ 3,842,592 4,386,122  
Credit linked notes, net of debt discount        
Borrowings        
Notes issued $ 158,100   $ 87,600  
Proceeds from borrowings 153,500      
Repayment of principal $ 1,100,000      
Credit risk percentage 1.00%      
Variable interest rate, basis points spread over variable reference rate (as a percent)   15.50%    
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]   us-gaap:SecuredOvernightFinancingRateSofrMember us-gaap:SecuredOvernightFinancingRateSofrMember  
Total borrowings     $ 84,358  
Other Borrowings        
Borrowings        
Total borrowings   $ 7,934 $ 7,900  
Fixed rate (as a percent)   1.00%    
v3.25.4
Borrowings - Maturities of Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Maturities of borrowings    
Due within one year $ 3,760,026  
Due in one year to two years 71,862  
Due in two years to three years 59  
Due in three years to four years 211  
Due in four years to five years 2,500  
Thereafter 7,934  
Total borrowings 3,842,592 $ 4,386,122
Subordinated debt    
Maturities of borrowings    
Due in one year to two years 71,800  
Total borrowings 71,800 71,800
FHLB Advances    
Maturities of borrowings    
Due within one year 3,760,026  
Due in one year to two years 62  
Due in two years to three years 59  
Due in three years to four years 211  
Due in four years to five years 2,500  
Total borrowings 3,762,858 4,172,030
Other Borrowings    
Maturities of borrowings    
Thereafter 7,934  
Total borrowings 7,934 7,900
Federal Reserve discount window borrowings    
Borrowings    
Excess borrowing capacity $ 5,300,000  
Maturities of borrowings    
Total borrowings   $ 50,000
v3.25.4
Derivative Financial Instruments (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
customer
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Derivative Financial Instruments      
Number of warehouse loan customers | customer 2    
Derivative assets, fair value $ 49,693    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other Assets and Receivables.    
Derivative liabilities, fair value $ 574    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities    
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Pledged in collateral $ 10 $ 263,000  
Derivative gain (loss) included in gain on sale of loans:      
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Net (loss) gain $ (2,521) $ 2,338 $ (89)
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
Derivative gain (loss) included in other income:      
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Net (loss) gain $ (711) $ 15,368 $ 12,204
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Noninterest Income, Other Noninterest Income, Other Noninterest Income, Other
Derivative assets      
Derivative Financial Instruments      
Derivative assets, fair value   $ 52,278  
Derivative liabilities | Derivative assets      
Derivative Financial Instruments      
Derivative liabilities, fair value   177  
Interest rate lock commitments      
Derivative Financial Instruments      
Notional amount $ 142,540 24,609  
Derivative assets, fair value 227    
Derivative liabilities, fair value 107    
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Net (loss) gain $ 266 $ (282) $ 130
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
Interest rate lock commitments | Derivative assets      
Derivative Financial Instruments      
Derivative assets, fair value   $ 30  
Interest rate lock commitments | Derivative liabilities      
Derivative Financial Instruments      
Derivative liabilities, fair value   176  
Forward contracts      
Derivative Financial Instruments      
Notional amount $ 146,452 33,000  
Derivative assets, fair value 2    
Derivative liabilities, fair value 467    
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Net (loss) gain (1,621) 338 $ 201
Forward contracts | Derivative assets      
Derivative Financial Instruments      
Derivative assets, fair value   229  
Forward contracts | Derivative liabilities      
Derivative Financial Instruments      
Derivative liabilities, fair value   1  
Interest rate swaps      
Derivative Financial Instruments      
Notional amount 49,480 49,891  
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Net (loss) gain $ (1,166) $ 2,282 $ (420)
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
Interest rate swaps | Derivative assets      
Derivative Financial Instruments      
Derivative assets, fair value $ 2,354 $ 4,199  
Interest rate swaps, caps and floors (back-to-back)      
Derivative Financial Instruments      
Notional amount 1,178,034 724,224  
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Gross swap gains 6,980 12,117 $ 9,385
Gross swap losses (6,980) (12,117) (9,385)
Interest rate swaps, caps and floors (back-to-back) | Derivative assets      
Derivative Financial Instruments      
Derivative assets, fair value 7,289 309  
Derivative liabilities, fair value 7,289 309  
Put options      
Derivative Financial Instruments      
Notional amount 608,885 680,354  
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Net (loss) gain $ (6,207) $ 17,901 $ 5,629
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Noninterest Income, Other Noninterest Income, Other Noninterest Income, Other
Put options | Derivative assets      
Derivative Financial Instruments      
Derivative assets, fair value $ 37,570 $ 43,777  
Interest rate floors      
Derivative Financial Instruments      
Notional amount 1,089,679 1,228,274  
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Net (loss) gain $ 5,496 $ (2,533) $ 6,575
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Noninterest Income, Other Noninterest Income, Other Noninterest Income, Other
Interest rate floors | Derivative assets      
Derivative Financial Instruments      
Derivative assets, fair value $ 9,540 $ 4,043  
Credit derivatives      
Derivative Financial Instruments      
Notional amount 123,222 58,526  
Credit Default Swap      
Derivative Financial Instruments      
Aggregate collateral obligation 134,200    
Changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income      
Net (loss) gain $ 0 $ 0  
v3.25.4
Disclosures About Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disclosures about Fair Value of Assets and Liabilities        
Mortgage loans in process of securitization $ 620,094 $ 428,206    
Securities available for sale 865,058 980,050    
Loans held for sale 76,980 78,170    
Loans receivable 47,318 0    
Servicing rights 217,296 189,935 $ 158,457 $ 146,248
Derivative assets 49,693      
Derivative liabilities 574      
Interest rate lock commitments        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 227      
Derivative liabilities 107      
Forward contracts        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 2      
Derivative liabilities 467      
Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Mortgage loans in process of securitization 620,094 428,206    
Loans held for sale 76,980 78,170    
Loans receivable 47,318      
Servicing rights 217,296 189,935    
Recurring | Interest rate lock commitments        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 227 30    
Derivative liabilities 107 176    
Recurring | Forward contracts        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 2 229    
Derivative liabilities 467 1    
Recurring | Interest rate swaps        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 2,354 4,199    
Recurring | Interest rate swaps, caps and floors (back-to-back)        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 7,289 309    
Derivative liabilities 7,289 309    
Recurring | Put options        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 37,570 43,777    
Recurring | Interest rate floors        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 9,540 4,043    
Level 2 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Mortgage loans in process of securitization 620,094 428,206    
Loans held for sale 76,980 78,170    
Loans receivable 47,318      
Level 2 | Recurring | Forward contracts        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 2 229    
Derivative liabilities 467 1    
Level 2 | Recurring | Interest rate swaps        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 2,354 4,199    
Level 2 | Recurring | Interest rate swaps, caps and floors (back-to-back)        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 7,289 309    
Derivative liabilities 7,289 309    
Level 2 | Recurring | Put options        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 5,640 12,481    
Level 3 | Interest rate lock commitments        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 227 30    
Derivative liabilities 107 176    
Level 3 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Servicing rights 217,296 189,935    
Level 3 | Recurring | Interest rate lock commitments        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 227 30    
Derivative liabilities 107 176    
Level 3 | Recurring | Put options        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 31,930 31,296    
Level 3 | Recurring | Interest rate floors        
Disclosures about Fair Value of Assets and Liabilities        
Derivative assets 9,540 4,043    
Treasury notes        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 30,680 90,006    
Treasury notes | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 30,680 90,006    
Treasury notes | Level 1 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 30,680 90,006    
Federal agencies        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 259,508 252,936    
Federal agencies | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 259,508 252,936    
Federal agencies | Level 2 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 259,508 252,936    
Mortgage-backed - Agency | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 3,556 1,162    
Mortgage-backed - Agency | Level 2 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 3,556 1,162    
Mortgage-backed - Non-Agency residential - fair value option        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 385,460 430,779    
Mortgage-backed - Non-Agency residential - fair value option | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 385,460 430,779    
Mortgage-backed - Non-Agency residential - fair value option | Level 2 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 385,460 430,779    
Mortgage-backed - Agency - fair value option        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 185,854 205,167    
Mortgage-backed - Agency - fair value option | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale 185,854 205,167    
Mortgage-backed - Agency - fair value option | Level 2 | Recurring        
Disclosures about Fair Value of Assets and Liabilities        
Securities available for sale $ 185,854 $ 205,167    
v3.25.4
Disclosures About Fair Value of Assets and Liabilities - Reconciliation of Unobservable Inputs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative liabilities | Interest rate lock commitments      
Reconciliation of significant unobservable inputs, liabilities:      
Balance, beginning of period $ 176 $ 4 $ 23
Gain (loss) recognized 69 (172) 19
Balance, end of period 107 176 4
Servicing rights      
Reconciliation of significant unobservable inputs, assets:      
Balance, beginning of period 189,935 158,457 146,248
Additions      
Purchased servicing 14,482   513
Originated servicing 23,654 18,670 14,755
Subtractions      
Paydowns (12,223) (9,901) (7,621)
Changes in fair value - assets 1,448 22,709 4,562
Balance, end of period 217,296 189,935 158,457
Securities available for sale      
Reconciliation of significant unobservable inputs, assets:      
Balance, beginning of period   485,500 0
Additions      
Purchases     483,906
Subtractions      
Paydowns   (42,079) 0
Changes in fair value   (12,642) 1,594
Transfers out of Level 3   (430,779) 0
Balance, end of period     485,500
Derivative assets | Put options      
Reconciliation of significant unobservable inputs, assets:      
Balance, beginning of period 31,296 18,654 0
Additions      
Purchases     20,248
Subtractions      
Changes in fair value - assets 634 12,642 (1,594)
Balance, end of period 31,930 31,296 18,654
Derivative assets | Interest rate floors      
Reconciliation of significant unobservable inputs, assets:      
Balance, beginning of period 4,043 6,576 0
Additions      
Purchases     6,576
Subtractions      
Changes in fair value - assets 5,497 (2,533) 0
Balance, end of period 9,540 4,043 6,576
Derivative assets | Interest rate lock commitments      
Reconciliation of significant unobservable inputs, assets:      
Balance, beginning of period 30 140 28
Subtractions      
Gain (loss) recognized 197 (110) 112
Balance, end of period $ 227 $ 30 $ 140
v3.25.4
Disclosures About Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Disclosures about Fair Value of Assets and Liabilities    
Other real estate owned $ 60,145 $ 8,209
Nonrecurring    
Disclosures about Fair Value of Assets and Liabilities    
Collateral-dependent loans 143,771 59,915
Other real estate owned 60,145 7,313
Level 3 | Nonrecurring    
Disclosures about Fair Value of Assets and Liabilities    
Collateral-dependent loans 143,771 59,915
Other real estate owned $ 60,145 $ 7,313
v3.25.4
Disclosures About Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Quantitative information about unobservable inputs        
Servicing rights $ 217,296 $ 189,935 $ 158,457 $ 146,248
Derivative assets 49,693      
Derivative liabilities 574      
Interest rate lock commitments        
Quantitative information about unobservable inputs        
Derivative assets 227      
Derivative liabilities $ 107      
Level 3        
Quantitative information about unobservable inputs        
Other real estate owned 60,145 7,313    
Level 3 | Measurement Input, Discount Rate | Minimum        
Quantitative information about unobservable inputs        
Other real estate owned 0.06 0.02    
Level 3 | Measurement Input, Discount Rate | Maximum        
Quantitative information about unobservable inputs        
Other real estate owned 0.09 0.08    
Level 3 | Measurement Input, Discount Rate | Weighted Average        
Quantitative information about unobservable inputs        
Other real estate owned 0.09 0.05    
Level 3 | Servicing rights | SBA        
Quantitative information about unobservable inputs        
Servicing rights $ 4,816 $ 4,259    
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 0.10 0.04    
Level 3 | Servicing rights | SBA | Measurement Input, Constant Prepayment Rate | Maximum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.31 0.24    
Level 3 | Servicing rights | SBA | Measurement Input, Constant Prepayment Rate | Weighted Average        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.16 0.14    
Level 3 | Servicing rights | Multi-family        
Quantitative information about unobservable inputs        
Servicing rights $ 164,224 $ 146,483    
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 0.08 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 | Single family        
Quantitative information about unobservable inputs        
Servicing rights $ 33,151 $ 34,986    
Level 3 | Servicing rights | Single family | Measurement Input, Discount Rate | Minimum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.09 0.10    
Level 3 | Servicing rights | Single family | Measurement Input, Discount Rate | Maximum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.12 0.11    
Level 3 | Servicing rights | Single family | Measurement Input, Discount Rate | Weighted Average        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.09 0.10    
Level 3 | Servicing rights | Single family | Measurement Input, Constant Prepayment Rate | Minimum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.03 0.06    
Level 3 | Servicing rights | Single family | Measurement Input, Constant Prepayment Rate | Maximum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.53 0.14    
Level 3 | Servicing rights | Single family | Measurement Input, Constant Prepayment Rate | Weighted Average        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.09 0.07    
Level 3 | Servicing rights | Healthcare        
Quantitative information about unobservable inputs        
Servicing rights $ 15,105 $ 4,207    
Level 3 | Servicing rights | Healthcare | Measurement Input, Discount Rate        
Quantitative information about unobservable inputs        
Servicing asset, measurement input   0.13    
Level 3 | Servicing rights | Healthcare | Measurement Input, Discount Rate | Minimum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.08      
Level 3 | Servicing rights | Healthcare | Measurement Input, Discount Rate | Maximum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.13      
Level 3 | Servicing rights | Healthcare | Measurement Input, Discount Rate | Weighted Average        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.11 0.13    
Level 3 | Servicing rights | Healthcare | Measurement Input, Constant Prepayment Rate | Minimum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.01 0.01    
Level 3 | Servicing rights | Healthcare | Measurement Input, Constant Prepayment Rate | Maximum        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 1 0.02    
Level 3 | Servicing rights | Healthcare | Measurement Input, Constant Prepayment Rate | Weighted Average        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.07 0.01    
Level 3 | Servicing rights | Healthcare | Earnings rate on escrows        
Quantitative information about unobservable inputs        
Servicing asset, measurement input 0.03 0.03    
Level 3 | Servicing rights | Healthcare | 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 $ 143,771 $ 59,915    
Level 3 | Collateral-dependent impaired loans | Minimum        
Quantitative information about unobservable inputs        
Marketability discount (as a percent) 0.12 0    
Level 3 | Collateral-dependent impaired loans | Maximum        
Quantitative information about unobservable inputs        
Marketability discount (as a percent) 0.70 0.90    
Level 3 | Collateral-dependent impaired loans | Weighted Average        
Quantitative information about unobservable inputs        
Marketability discount (as a percent) 0.31 0.29    
Level 3 | Interest rate lock commitments        
Quantitative information about unobservable inputs        
Derivative assets $ 227 $ 30    
Derivative liabilities $ 107 $ 176    
Level 3 | Interest rate lock commitments | Measurement Input, Maturity | Minimum        
Quantitative information about unobservable inputs        
Derivative assets, (as a percent) 0.45 0.71    
Derivative liabilities (as a percent) 0.45 0.71    
Level 3 | Interest rate lock commitments | Measurement Input, Maturity | Maximum        
Quantitative information about unobservable inputs        
Derivative assets, (as a percent) 0.99 0.99    
Derivative liabilities (as a percent) 0.99 0.99    
Level 3 | Interest rate lock commitments | Measurement Input, Maturity | Weighted Average        
Quantitative information about unobservable inputs        
Derivative assets, (as a percent) 0.99 0.87    
Derivative liabilities (as a percent) 0.99 0.87    
Level 3 | Put options | Measurement Input, Credit Spread        
Quantitative information about unobservable inputs        
Derivative assets $ 31,930 $ 31,296    
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 $ 9,540 $ 4,043    
Level 3 | Interest rate floors | Measurement Input, Discount Rate | Minimum        
Quantitative information about unobservable inputs        
Derivative assets, (as a percent) 0.05 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) 0.06 0.07    
v3.25.4
Disclosures About Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Financial assets:    
Securities held to maturity $ 1,543,554 $ 1,664,674
Loans held for sale 76,980 78,170
Loans receivable 47,318 0
Carrying Value    
Financial assets:    
Cash and cash equivalents 212,202 476,610
Securities purchased under agreements to resell 1,520 1,559
Securities held to maturity 1,543,659 1,664,686
FHLB stock and other equity securities 227,589 217,804
Loans held for sale 3,796,032 3,693,340
Loans receivable 10,904,063 10,354,002
Interest receivable 81,807 83,409
Financial liabilities:    
Deposits 13,041,192 11,919,976
Subordinated debt 71,800 71,800
FHLB advances 3,762,858 4,172,030
Other borrowing 7,934 57,934
Credit linked notes   84,358
Interest payable 25,345 34,475
Fair Value    
Financial assets:    
Cash and cash equivalents 212,202 476,610
Securities purchased under agreements to resell 1,520 1,559
Securities held to maturity 1,543,554 1,664,674
FHLB stock and other equity securities 227,589 217,804
Loans held for sale 3,796,032 3,693,340
Loans receivable 10,950,634 10,297,439
Interest receivable 81,807 83,409
Financial liabilities:    
Deposits 13,041,901 11,923,961
Subordinated debt 71,800 71,800
FHLB advances 3,762,110 4,171,843
Other borrowing 7,934 57,934
Credit linked notes   84,357
Interest payable 25,345 34,475
Level 1 | Fair Value    
Financial assets:    
Cash and cash equivalents 212,202 476,610
Financial liabilities:    
Deposits 11,179,428 8,001,487
Level 2 | Fair Value    
Financial assets:    
Securities purchased under agreements to resell 1,520 1,559
Securities held to maturity 712,490 538,871
FHLB stock and other equity securities 196,391 187,804
Loans held for sale 3,796,032 3,693,340
Interest receivable 81,807 83,409
Financial liabilities:    
Deposits 1,862,473 3,922,474
Subordinated debt 71,800 71,800
FHLB advances 3,762,110 4,171,843
Other borrowing 7,934 57,934
Credit linked notes   84,357
Interest payable 25,345 34,475
Level 3 | Fair Value    
Financial assets:    
Securities held to maturity 831,064 1,125,803
FHLB stock and other equity securities 31,198 30,000
Loans receivable $ 10,950,634 $ 10,297,439
v3.25.4
Common Stock (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
May 16, 2024
Dec. 31, 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
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  
v3.25.4
Preferred Stock (Details)
 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
Dec. 31, 2025
USD ($)
$ / shares
Dec. 31, 2024
USD ($)
$ / shares
Dec. 31, 2023
Public Offering of Preferred Stock                          
Preferred stock, dividend rate (as a percent)                     7.00% 7.00% 7.00%
Net proceeds                       $ 222,748,000  
Redemption of preferred stock                       $ 52,044,000  
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                          
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          
Preferred stock, redemption price (in dollars per share) | $ / shares $ 1,000                        
Redemption of preferred stock $ 125,000,000                        
Depositary shares issued (in shares) | shares               5,000,000          
Depositary shares equivalent preferred stock interest per share               0.025          
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares $ 25             $ 25          
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                          
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 issued (in shares) | shares             6,000,000            
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                          
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 issued (in shares) | shares         5,200,000                
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                  
Series E Preferred Stock | Public offering                          
Public Offering of Preferred Stock                          
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 issued (in shares) | shares   9,200,000                      
Depositary shares equivalent preferred stock interest per share   0.025                      
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares   $ 25                      
v3.25.4
Employee Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Employee benefits      
Matching contribution equals to employees deferrals 100.00%    
Matching contribution as a percentage of employees compensation 3.00%    
Employer contributions to contribution plans $ 2.9 $ 2.0 $ 1.9
Contribution to ESOP $ 1.5 $ 1.2 $ 1.0
Number of shares contributed to ESOP 30,802 23,414 33,293
Maximum      
Employee benefits      
Matching contribution as a percentage of employees compensation 3.00%    
v3.25.4
Share-Based Payment Plans - Incentive Plan (Details) - USD ($)
 12 Months Ended
Jan. 01, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Executive officers        
Plan disclosures        
Shares issued   80,875 88,658 84,335
Expenses recognized   $ 3,312,000 $ 3,274,000 $ 2,671,000
Unvested shares awarded   209,597 253,816 256,192
Unrecognized compensation costs   $ 6,461,000 $ 7,122,000 $ 6,801,000
Non-executive board members        
Plan disclosures        
Value of shares available for issuance for compensation related to annual fees $ 70,000      
Shares issued   14,329 12,166 12,173
Expenses recognized   $ 490,000 $ 491,000 $ 351,000
v3.25.4
Income Taxes - Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount      
US federal statutory income tax rate $ 55,398 $ 88,755 $ 73,061
State and local income taxes - net of federal income tax effect $ 7,345 $ 15,960 $ (2,655)
Effective Income Tax Rate Reconciliation, State and Local Jurisdiction, Contribution Greater than 50 Percent, Tax Effect [Extensible Enumeration] New York City, stpr:CA, stpr:NY New York City, stpr:CA, stpr:FL, stpr:IL, stpr:NJ, stpr:NY New York City, stpr:FL, stpr:IL, stpr:NY
Tax credits      
Production tax credits $ (8,461)    
Credits and benefits on investments using proportional amortization (7,317) $ (2,774) $ (2,136)
Other (550) (1,100)  
Nontaxable and nondeductible items      
Tax-exempt interest income net of disallowed interest expense (2,819) (2,783) (1,759)
Other 4,434 4,198 2,162
Other adjustments      
Return-to-provision adjustments (3,000)    
Total income tax expense (benefit) $ 45,030 $ 102,256 $ 68,673
Effective Income Tax Rate Reconciliation, Percent      
US federal statutory income tax rate (as a percent) 21.00% 21.00% 21.00%
State and local income taxes - net of federal income tax effect (in percent) 2.80% 3.80% (0.80%)
Tax credits (in percent)      
Production tax credits (in percent) (3.20%)    
Credits and benefits on investments using proportional amortization (in percent) (2.80%) (0.60%) (0.60%)
Other (in percent) (0.20%) (0.30%)  
Nontaxable and nondeductible items (in percent)      
Tax-exempt interest income net of disallowed interest expense (in percent) (1.10%) (0.70%) (0.50%)
Other (in percent) 1.70% 1.00% 0.60%
Other adjustments (in percent)      
Return-to-provision adjustments (in percent) (1.10%)    
Effective tax rate 17.10% 24.20% 19.70%
v3.25.4
Income Taxes - Amount of income taxes paid (net of refunds received) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Taxes      
United States federal $ 32,500 $ 69,750 $ 58,250
Total United States state and local 15,136 9,828 9,138
Total income taxes paid, net 47,636 79,578 67,388
Indiana      
Income Taxes      
Total United States state and local   (5,687) (2,563)
New York state      
Income Taxes      
Total United States state and local 2,012 5,077 2,789
New York City      
Income Taxes      
Total United States state and local 9,161   5
Other      
Income Taxes      
Total United States state and local $ 3,963 $ 10,438 $ 8,907
v3.25.4
Income Taxes - Components of pretax income and expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income from continuing operations before income tax expense (benefit)      
United States federal $ 263,800 $ 422,642 $ 347,907
Income Before Income Tax and Equity in Undistributed Income of Subsidiaries 263,800 422,642 347,907
Current tax expense (benefit)      
United States federal 29,060 78,386 72,537
United States state and local 8,192 19,240 (1,422)
Total current tax expense (benefit) 37,252 97,626 71,115
Deferred tax expense (benefit)      
United States federal 6,672 3,666 (503)
United States state and local 1,106 964 (1,939)
Total deferred tax expense (benefit) 7,778 4,630 (2,442)
Total income tax expense (benefit)      
United States federal 35,732 82,052 72,034
United States state and local 9,298 20,204 (3,361)
Total income tax expense (benefit) $ 45,030 $ 102,256 $ 68,673
v3.25.4
Income Taxes - Temporary Differences (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets    
Allowance for credit losses on loans $ 22,389 $ 23,880
Unrealized loss on securities available for sale 10 42
Other 6,513 5,532
Total assets 28,912 29,454
Deferred tax liabilities    
Depreciation (2,910) (2,532)
Intangible assets (556) (391)
Servicing rights (49,394) (44,854)
Limited partnership investments (5,177) (4,575)
State tax receivable (734) (110)
Derivative assets (1,870) (967)
Other (1,370) (1,314)
Total liabilities (62,011) (54,743)
Net deferred tax liability $ (33,099) $ (25,289)
v3.25.4
Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net Income      
Net Income $ 218,770 $ 320,386 $ 279,234
Dividends on preferred stock (41,062) (34,909) (34,670)
Preferred stock redemption (4,156) (1,823)  
Net Income Allocated to Common Shareholders $ 173,552 $ 283,654 $ 244,564
Weighted-Average Shares      
Weighted average shares - Basic 45,871,698 44,855,100 43,224,042
Effect of dilutive securities-restricted stock awards 71,032 149,686 121,757
Weighted average shares - diluted 45,942,730 45,004,786 43,345,799
Per Share Amount      
Basic earnings per share $ 3.78 $ 6.32 $ 5.66
Diluted earnings per share $ 3.78 $ 6.3 $ 5.64
v3.25.4
Segment Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Information      
Number of reportable segments | segment 3    
Interest income $ 1,200,851 $ 1,302,720 $ 1,077,798
Interest expense 683,792 780,100 629,727
Net Interest Income 517,059 522,620 448,071
Provision for credit losses 117,754 24,278 40,231
Net Interest Income After Provision for Credit Losses 399,305 498,342 407,840
Noninterest income 164,388 148,112 114,668
Noninterest Expense      
Salaries and employee benefits 166,512 130,723 108,181
Other noninterest expense 133,381 93,089 66,420
Total noninterest expense 299,893 223,812 174,601
Income Before Income Taxes 263,800 422,642 347,907
Income tax expense (benefit) 45,030 102,256 68,673
Net Income 218,770 320,386 279,234
Total assets 19,448,943 18,805,732 16,952,516
Included in other noninterest income:      
Servicing rights fair value adjustments 1,448 22,709 4,562
Derivative fair value adjustments 5,496 (2,533) 6,576
Other      
Segment Information      
Interest income 14,796 14,248 6,315
Interest expense (3,283) (3,159) (6,763)
Net Interest Income 18,079 17,407 13,078
Net Interest Income After Provision for Credit Losses 18,079 17,407 13,078
Noninterest income (18,015) (14,409) (11,100)
Noninterest Expense      
Salaries and employee benefits 30,136 25,486 21,510
Other noninterest expense 20,817 15,813 12,415
Total noninterest expense 50,953 41,299 33,925
Income Before Income Taxes (50,889) (38,301) (31,947)
Income tax expense (benefit) (10,555) (9,915) (6,785)
Net Income (40,334) (28,386) (25,162)
Total assets 363,466 564,807 258,301
Multi-family Mortgage Banking | Operating Segments      
Segment Information      
Interest income 4,613 5,239 5,718
Interest expense 80 80 52
Net Interest Income 4,533 5,159 5,666
Provision for credit losses (403) (1,003)  
Net Interest Income After Provision for Credit Losses 4,936 6,162 5,666
Noninterest income 168,874 168,028 123,980
Noninterest Expense      
Salaries and employee benefits 103,504 77,685 64,453
Other noninterest expense 18,314 20,228 19,409
Total noninterest expense 121,818 97,913 83,862
Income Before Income Taxes 51,992 76,277 45,784
Income tax expense (benefit) 11,837 20,380 9,311
Net Income 40,155 55,897 36,473
Total assets 526,423 479,099 411,097
Included in other noninterest income:      
Servicing rights fair value adjustments 3,807 20,487 3,874
Mortgage Warehousing | Operating Segments      
Segment Information      
Interest income 413,656 391,743 276,366
Interest expense 274,031 262,149 184,486
Net Interest Income 139,625 129,594 91,880
Provision for credit losses 3,020 1,466 2,782
Net Interest Income After Provision for Credit Losses 136,605 128,128 89,098
Noninterest income 12,596 3,016 14,315
Noninterest Expense      
Salaries and employee benefits 8,107 8,115 6,026
Other noninterest expense 24,661 13,818 7,977
Total noninterest expense 32,768 21,933 14,003
Income Before Income Taxes 116,433 109,211 89,410
Income tax expense (benefit) 19,489 26,409 15,885
Net Income 96,944 82,802 73,525
Total assets 7,251,653 6,000,624 4,522,175
Included in other noninterest income:      
Derivative fair value adjustments 5,496 (2,533) 6,576
Banking | Operating Segments      
Segment Information      
Interest income 767,786 891,490 789,399
Interest expense 412,964 521,030 451,952
Net Interest Income 354,822 370,460 337,447
Provision for credit losses 115,137 23,815 37,449
Net Interest Income After Provision for Credit Losses 239,685 346,645 299,998
Noninterest income 933 (8,523) (12,527)
Noninterest Expense      
Salaries and employee benefits 24,765 19,437 16,192
Other noninterest expense 69,589 43,230 26,619
Total noninterest expense 94,354 62,667 42,811
Income Before Income Taxes 146,264 275,455 244,660
Income tax expense (benefit) 24,259 65,382 50,262
Net Income 122,005 210,073 194,398
Total assets 11,307,401 11,761,202 11,760,943
Included in other noninterest income:      
Servicing rights fair value adjustments $ (2,359) $ 2,222 $ 688
v3.25.4
Condensed Financial Information (Parent Company Only) - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Assets      
Cash and cash equivalents $ 15,844 $ 10,989  
Total assets 19,448,943 18,805,732 $ 16,952,516
Liabilities      
Other liabilities 250,500 231,035  
Total liabilities 17,168,184 16,562,422  
Shareholders' Equity 2,280,759 2,243,310 $ 1,701,084
Total liabilities and shareholders' equity 19,448,943 18,805,732  
Reportable Legal Entities | Parent Company      
Assets      
Cash and cash equivalents 55,240 55,829  
Other equity securities 30,000 30,000  
Investment in joint ventures 27,290 27,638  
Investment in subsidiaries 2,239,777 2,077,085  
Other assets 749 128,591  
Total assets 2,353,056 2,319,143  
Liabilities      
Subordinated debt 71,800 71,800  
Unfunded commitments to joint ventures   2,752  
Other liabilities 497 1,281  
Total liabilities 72,297 75,833  
Shareholders' Equity 2,280,759 2,243,310  
Total liabilities and shareholders' equity $ 2,353,056 $ 2,319,143  
v3.25.4
Condensed Financial Information (Parent Company Only) - Condensed Statements of Income and Comprehensive Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Expenses      
Interest expense $ 683,792 $ 780,100 $ 629,727
Salaries and employee benefits 166,512 130,723 108,181
Professional fees 12,860 16,229 12,704
Income Before Income Tax and Equity in Undistributed Income of Subsidiaries 263,800 422,642 347,907
Income tax expense (benefit) 45,030 102,256 68,673
Net Income 218,770 320,386 279,234
Comprehensive Income 218,870 322,741 287,267
Reportable Legal Entities | Parent Company      
Income      
Dividends and return of capital from subsidiaries 66,313 124,864 53,006
Other Income 2,683 3,956 3,488
Total income 68,996 128,820 56,494
Expenses      
Interest expense 12,956 10,849 4,323
Salaries and employee benefits 410 410 1,012
Professional fees 862 681 481
Other 1,204 1,223 898
Total expense 15,432 13,163 6,714
Income Before Income Tax and Equity in Undistributed Income of Subsidiaries 53,564 115,657 49,780
Income tax expense (benefit) (2,614) (2,277) (582)
Income Before Equity in Undistributed Income of Subsidiaries 56,178 117,934 50,362
Equity in Undistributed Income of Subsidiaries 162,592 202,452 228,872
Net Income 218,770 320,386 279,234
Comprehensive Income $ 218,870 $ 322,741 $ 287,267
v3.25.4
Condensed Financial Information (Parent Company Only) - Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Adjustments to reconcile net income to net cash used in operating activities:      
Net cash used in operating activities $ (341,248) $ (835,278) $ (356,402)
Investing Activities      
Purchase of equity securities (1,198) (30,000)  
Purchase of limited partnership interests or LLC's (28,389) (23,301) (18,762)
Other investing activity 7,903 10,239 1,937
Net cash used in investing activities (195,671) (874,275) (3,260,081)
Financing Activities      
Proceeds from notes payable   6,878 64,922
Repayment of notes payable     (21,000)
Dividends paid (59,418) (51,167) (48,506)
Proceeds from issuance of common stock   97,655  
Proceeds from issuance of preferred stock   222,748  
Funds disbursed for future repurchase of Series B preferred stock   (125,000)  
Net cash provided by financing activities 272,511 1,601,741 3,974,741
Net Change in Cash and Due From Banks (264,408) (107,812) 358,258
Additional Cash Flows Information:      
Interest paid 692,922 789,047 609,689
Reduction in commitment payable for limited partnership interest of LLCs 3,154    
Change in prepaid assets for preferred stock repurchase 125,000    
Reportable Legal Entities | Parent Company      
Operating Activities      
Net income 218,770 320,386 279,234
Adjustments to reconcile net income to net cash used in operating activities:      
Equity in undistributed earnings from subsidiaries and other operating activities (157,048) (205,422) (229,428)
Net cash used in operating activities 61,722 114,964 49,806
Investing Activities      
Contributed capital to subsidiaries   (225,295) (43,922)
Purchase of equity securities   (30,000)  
Purchase of limited partnership interests or LLC's (3,576) (3,038) (769)
Return of capital from subsidiaries   49,017  
Other investing activity 683 8,301 554
Net cash used in investing activities (2,893) (201,015) (44,137)
Financing Activities      
Proceeds from notes payable   6,878 64,922
Repayment of notes payable     (21,000)
Dividends paid (59,418) (51,167) (48,506)
Proceeds from issuance of common stock   97,655  
Proceeds from issuance of preferred stock   222,748  
Redemption of preferred stock   (52,044)  
Funds disbursed for future repurchase of Series B preferred stock   (125,000)  
Net cash provided by financing activities (59,418) 99,070 (4,584)
Net Change in Cash and Due From Banks (589) 13,019 1,085
Cash and Due From Banks at Beginning of Year 55,829 42,810 41,725
Cash and Due From Banks at End of Year 55,240 $ 55,829 42,810
Additional Cash Flows Information:      
Interest paid 12,960    
Reduction in commitment payable for limited partnership interest of LLCs (2,752)   $ 2,752
Change in prepaid assets for preferred stock repurchase $ 125,000    
v3.25.4
Regulatory Matters (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Jun. 30, 2025
Dec. 31, 2024
USD ($)
Tier 1 Capital (to average assets)      
Amount available without prior regulatory approval for dividends $ 583,900    
Minimum leverage buffer percentage   0.09  
Total capital ratio   0.125  
Parent Company      
Total Capital (to risk-weighted assets)      
Total Capital (to risk-weighted assets), Actual, Amount $ 2,365,600   $ 2,334,479
Total Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.136   0.139
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,822,759   $ 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 $ 2,272,014   $ 2,234,658
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.131   0.133
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,475,567   $ 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 $ 1,720,724   $ 1,562,524
Common Equity Tier I Capital (to risk weighted assets), Ratio (as a percent) 0.099   0.093
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,215,172   $ 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 $ 2,272,014   $ 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 $ 990,358   $ 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 $ 2,320,227   $ 2,165,193
Total Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.134   0.129
Total Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,821,535   $ 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 $ 1,734,795   $ 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 $ 2,226,641   $ 2,065,372
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent) 0.128   0.123
Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,474,576   $ 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 $ 1,387,836   $ 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 $ 2,226,641   $ 2,065,372
Common Equity Tier I Capital (to risk weighted assets), Ratio (as a percent) 0.128   0.123
Common Equity Tier I Capital (to risk weighted assets), Minimum Amount to be Well Capitalized with Basel III Buffer, Amount $ 1,214,357   $ 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 $ 1,127,617   $ 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 $ 2,226,641   $ 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 $ 987,284   $ 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 $ 987,284   $ 922,006
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent) 0.05   0.05
v3.25.4
Commitments, Credit Risk, and Contingencies - Financial Instrument (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Commitments subject to credit risk    
Commitments and Credit Risk    
Financial instrument whose contract amount represents credit risk $ 3,978,923 $ 4,661,905
Commitments subject to certain performance criteria and cancellation    
Commitments and Credit Risk    
Financial instrument whose contract amount represents credit risk 1,214,079 3,703,351
Commitments to extend credit | Commitments subject to credit risk    
Commitments and Credit Risk    
Financial instrument whose contract amount represents credit risk 3,608,270 4,348,628
Standby letters of credit | Commitments subject to credit risk    
Commitments and Credit Risk    
Financial instrument whose contract amount represents credit risk 186,509 204,745
Outstanding commitments to originate loans | Commitments subject to certain performance criteria and cancellation    
Commitments and Credit Risk    
Financial instrument whose contract amount represents credit risk 734,216 740,886
Unfunded construction draws | Commitments subject to certain performance criteria and cancellation    
Commitments and Credit Risk    
Financial instrument whose contract amount represents credit risk 228,972 281,152
Unfunded warehouse repurchase agreements and other | Commitments subject to credit risk    
Commitments and Credit Risk    
Financial instrument whose contract amount represents credit risk 184,144 108,532
Unfunded warehouse repurchase agreements and other | Commitments subject to certain performance criteria and cancellation    
Commitments and Credit Risk    
Financial instrument whose contract amount represents credit risk $ 250,891 $ 2,681,313
v3.25.4
Commitments, Credit Risk, and Contingencies - Other (Details) - USD ($)
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Commitments and Credit Risk      
ACL - OBCEs $ 8,000,000 $ 12,800,000  
Reserve liability 2,900,000 1,500,000  
Outstanding line of credit 0 0 $ 0
Additional contribution on qualified affordable housing limited partnerships 118,043,000 93,929,000  
Other Liabilities      
Commitments and Credit Risk      
Additional contribution on qualified affordable housing limited partnerships 118,000,000 93,900,000  
Unfunded liability to invest in debt fund joint ventures 8,400,000 3,800,000  
Loan Sale and Freddie Mac Q Series Securitization | Other Liabilities      
Commitments and Credit Risk      
Non-contingent reserve 1,500,000 1,800,000  
Loan Sale and Freddie Mac Q Series Securitization | Indemnification Agreement | Other Liabilities      
Commitments and Credit Risk      
Financial guarantees 700,000 800,000  
Acquisition of Tax Credits      
Commitments and Credit Risk      
Financial guarantees 19,700,000 0  
Fannie Mae or Freddie Mac | Other Liabilities      
Commitments and Credit Risk      
Potential obligation for repurchase of loans $ 1,200,000 $ 1,100,000  
v3.25.4
Related Party Transactions - Other (Details) - USD ($)
 12 Months Ended
Dec. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Limited Liability Company, Senior Housing and Healthcare Sectors        
Related Party Transactions        
Equity method investee, ownership percentage   30.00%    
Directors, Executive Officers and their Affiliates | Maximum        
Related Party Transactions        
Percent of loan to related party   5.00% 5.00%  
Board of Directors        
Related Party Transactions        
Legal fees   $ 9,700,000 $ 4,000,000 $ 9,400,000
Speaking engagement - fee   0 0 30,000
Limited Liability Company, Senior Housing and Healthcare Sectors        
Related Party Transactions        
Unfunded loan commitment   1,500,000    
Low Income Housing Tax Credit Syndication Business        
Related Party Transactions        
Gain (loss) on sales   0 0 0
Single Family and Multi-Family Debt Financing Investments        
Related Party Transactions        
Unfunded loan commitment   20,000,000 20,000,000  
Gain (loss) on sales   2,075,000   (263,000)
Board Member And Executive        
Related Party Transactions        
Payment for charter flights   25,000 $ 104,000 $ 62,000
Affiliated Entity | Sale of land        
Related Party Transactions        
Amounts of Transaction $ 2,200,000      
Amount of receivables due to related party   $ 0    
Gain (loss) on sales $ 0      
v3.25.4
Related Party Transactions - Investments (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transactions      
Servicing income received for loans referred by the LLC $ 22,369,000 $ 43,673,000 $ 26,198,000
Carrying value, at year-end, of securities held-to-maturity purchased from debt funds 259,580,000 155,268,000 293,268,000
Limited Liability Company, Senior Housing and Healthcare Sectors      
Related Party Transactions      
Origination fees received from borrowers referred by the LLC 45,801,000 26,287,000 12,669,000
Fees paid to LLC for loans referred and originated (41,835,000) (20,882,000) (9,866,000)
Servicing income received for loans referred by the LLC 1,515,000 841,000 561,000
Servicing income participation paid to LLC (884,000) (428,000) (281,000)
Income from investment in LLC 7,063,000 3,536,000 1,612,000
Distributions received from LLC and debt funds 4,221,000 1,153,000 993,000
Interest income paid to LLC for loans originated and referred by the LLC (1,075,000) (2,158,000) (3,587,000)
Low Income Housing Tax Credit Syndication Business      
Related Party Transactions      
Interest income, financing (1) and other fees received from syndicated funds 35,461,000 31,683,000 16,592,000
Loans and other receivables outstanding, net of participations sold, to syndicated and debt funds 323,300,000 334,536,000 127,449,000
Gains (losses) recognized on loans sold to debt funds 0 0 0
Single Family and Multi-Family Debt Financing Investments      
Related Party Transactions      
Distributions received from LLC and debt funds 1,184,000 8,871,000 890,000
Loans and other receivables outstanding, net of participations sold, to syndicated and debt funds 107,705,000 133,044,000 108,055,000
Income from investments, servicing, interest income, and management of debt funds 52,176,000 53,274,000 29,992,000
Loans sold to debt funds 513,015,000 98,184,000 102,336,000
Gains (losses) recognized on loans sold to debt funds 2,075,000   (263,000)
Carrying value, at year-end, of securities held-to-maturity purchased from debt funds $ 699,957,000 $ 526,242,000 $ 472,539,000