Merchants Bancorp (MBIN) 10-K 16 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Mar. 05, 2020	Jun. 28, 2019
Document and Entity Information
Entity Registrant Name	MERCHANTS BANCORP
Entity Central Index Key	0001629019
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Small Business	false
Entity Shell Company	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 276.8
Entity Common Stock, Shares Outstanding		28,735,466
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 13,909	$ 25,855
Interest-earning demand accounts	492,800	310,669
Cash and cash equivalents	506,709	336,524
Securities purchased under agreements to resell	6,723	6,875
Trading securities	269,891	163,419
Available for sale securities	290,243	331,071
Federal Home Loan Bank (FHLB) stock	20,369	7,974
Loans held for sale (includes $19,592 and $11,886 at fair value, respectively)	2,093,789	832,455
Loans receivable, net of allowance for loan losses of $15,842 and $12,704, respectively	3,012,468	2,045,423
Premises and equipment, net	29,274	15,136
Mortgage servicing rights	74,387	77,844
Interest receivable	18,359	13,827
Goodwill	15,845	17,477
Intangible assets, net	3,799	3,542
Other assets and receivables	30,072	32,596
Total assets	6,371,928	3,884,163
Deposits
Noninterest-bearing	272,037	182,879
Interest-bearing	5,206,038	3,048,207
Total deposits	5,478,075	3,231,086
Borrowings	181,439	195,453
Deferred and current tax liabilities, net	16,917	15,444
Other liabilities	41,769	20,943
Total liabilities	5,718,200	3,462,926
Commitments and Contingencies
Shareholders' Equity
Common stock, without par value Authorized - 50,000,000 shares Issued and outstanding - 28,706,438 shares at December 31, 2019 and 28,694,036 shares at December 31, 2018	135,640	135,057
Retained earnings	304,984	244,909
Accumulated other comprehensive income (loss)	458	(310)
Total shareholders' equity	653,728	421,237
Total liabilities and shareholders' equity	6,371,928	3,884,163
8% Preferred Stock
Shareholders' Equity
Preferred stock	41,581	$ 41,581
7% Preferred Stock
Shareholders' Equity
Preferred stock	50,221
6% Preferred Stock
Shareholders' Equity
Preferred stock	$ 120,844

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loans held for sale at fair value	$ 19,592	$ 11,886
Allowance for loans losses	$ 15,842	$ 12,704
Stockholders' Equity:
Common stock, without par value (in dollars per share)
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	28,706,438	28,694,036
Common stock, shares outstanding	28,706,438	28,694,036
Preferred stock, without par value (in dollars per share)
Preferred stock, shares authorized	5,000,000	5,000,000
8% Preferred Stock
Stockholders' Equity:
Preferred stock, dividend rate (as a percent)	8.00%	8.00%
Preferred stock liquidation preference (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, shares authorized	50,000	50,000
Preferred stock, shares issued	41,625	41,625
Preferred stock, shares outstanding	41,625	41,625
7% Preferred Stock
Stockholders' Equity:
Preferred stock, dividend rate (as a percent)	7.00%
Preferred stock liquidation preference (in dollars per share)	$ 25
Preferred stock, shares authorized	3,500,000
Preferred stock, shares issued	2,081,800
Preferred stock, shares outstanding	2,081,800
6% Preferred Stock
Stockholders' Equity:
Preferred stock, dividend rate (as a percent)	6.00%
Preferred stock liquidation preference (in dollars per share)	$ 1,000
Preferred stock, shares authorized	125,000
Preferred stock, shares issued	125,000
Preferred stock, shares outstanding	125,000
Depositary shares	5,000,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest Income
Loans	$ 186,428,000	$ 119,457,000	$ 79,922,000
Investment securities:
Trading	6,690,000	5,012,000	5,187,000
Available for sale - taxable	6,208,000	6,448,000	4,531,000
Available for sale - tax exempt	272,000
Federal Home Loan Bank stock	932,000	385,000	321,000
Other	11,465,000	9,261,000	4,426,000
Total interest income	211,995,000	140,563,000	94,387,000
Interest Expense
Deposits	84,661,000	42,216,000	20,003,000
Borrowed funds	5,036,000	8,376,000	7,787,000
Total interest expense	89,697,000	50,592,000	27,790,000
Net interest income	122,298,000	89,971,000	66,597,000
Provision for loan losses	3,940,000	4,629,000	2,472,000
Net Interest Income After Provision for Loan Losses	118,358,000	85,342,000	64,125,000
Noninterest Income
Gain on sale of loans	35,411,000	39,266,000	37,790,000
Loan servicing fees, net	(1,118,000)	5,741,000	6,273,000
Mortgage warehouse fees	7,145,000	2,550,000	2,608,000
Gains/(losses) on sale of investments available for sale (includes $476, $0, and $0, respectively, related to accumulated other comprehensive earnings reclassifications)	476,000	0
Other income	5,175,000	2,028,000	1,009,000
Total noninterest income	47,089,000	49,585,000	47,680,000
Noninterest Expense
Salaries and employee benefits	38,093,000	32,240,000	21,472,000
Loan expenses	4,534,000	4,621,000	4,097,000
Occupancy and equipment	4,609,000	2,788,000	1,602,000
Professional fees	2,326,000	2,585,000	1,516,000
Deposit insurance expense	2,747,000	1,024,000	930,000
Technology expense	2,623,000	1,544,000	1,171,000
Other expense	8,381,000	6,098,000	3,856,000
Total noninterest expense	63,313,000	50,900,000	34,644,000
Income Before Income Taxes	102,134,000	84,027,000	77,161,000
Provision for income taxes (includes $(117), $0, and $0, respectively, related to income tax (expense)/benefit for reclassification items)	24,805,000	21,153,000	22,477,000
Net Income	77,329,000	62,874,000	54,684,000
Dividends on preferred stock	(9,216,000)	(3,330,000)	(3,330,000)
Net Income Allocated to Common Shareholders	$ 68,113,000	$ 59,544,000	$ 51,354,000
Basic Earnings Per Share (in dollar per share)	$ 2.37	$ 2.08	$ 2.28
Diluted Earnings Per Share (in dollar per share)	$ 2.37	$ 2.07	$ 2.28
Weighted-Average Shares Outstanding Basic (in Shares)	28,705,125	28,692,955	22,551,452
Weighted-Average Shares Outstanding Diluted (in Shares)	28,745,707	28,724,419	22,568,154

Consolidated Statements of In_2

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Income
Reclassifications included in gains/(losses) on sale of investments	$ 476	$ 0	$ 0
Provision for income taxes related to income tax (expense)/benefit for reclassification items	$ (117)	$ 0	$ 0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Comprehensive Income
Net Income	$ 77,329	$ 62,874	$ 54,684
Other Comprehensive Income (Loss):
Net change in unrealized losses on investment securities available for sale, net of (taxes) benefits of $(386), $(294), and $256, respectively	1,127	939	(378)
Less: Reclassification adjustment for gains/(losses) included in net income, net of tax (expense)/benefits of $(117), $0, and $0, respectively	359
Other comprehensive income (loss) for the period	768	939	(378)
Comprehensive Income	$ 78,097	$ 63,813	$ 54,306

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Comprehensive Income
Net change in unrealized losses on investment securities available for sale, net of (taxes) benefits	$ (386)	$ (294)	$ 256
Reclassification adjustment for gains/(losses) included in net income, tax (expense)/benefits	$ (117)	$ 0	$ 0

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Preferred Stock8% Preferred Stock	Preferred Stock7% Preferred Stock	Preferred Stock6% Preferred Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	7% Preferred Stock	6% Preferred Stock	Total
Balance at beginning of the period at Dec. 31, 2016	$ 20,061	$ 41,581			$ 145,274	$ (628)			$ 206,288
Balance at beginning of the period (in shares) at Dec. 31, 2016	21,111,200	41,625
Condensed Consolidated Statements of Shareholders’ Equity
Net income					54,684				54,684
Shares issued for stock compensation plans	$ 458								458
Shares issued for stock compensation plans (in shares)	3,196
Shares issued for MCS acquisition	$ 8,127								8,127
Shares issued for MCS acquisition (in shares)	383,271
Issuance of shares	$ 106,245								106,245
Issuance of shares (in shares)	7,187,500
Dividends on preferred stock, annually					(3,330)				(3,330)
Dividends on common stock, annually					(4,620)				(4,620)
Other comprehensive income (loss)						(378)			(378)
Balance at end of the period at Dec. 31, 2017	$ 134,891	$ 41,581			192,008	(1,006)			367,474
Balance at end of the period (in shares) at Dec. 31, 2017	28,685,167	41,625
Condensed Consolidated Statements of Shareholders’ Equity
Net income					62,874				62,874
Shares issued for stock compensation plans	$ 166								166
Shares issued for stock compensation plans (in shares)	8,869
Dividends on preferred stock, annually					(3,330)				(3,330)
Dividends on common stock, annually					(6,886)				(6,886)
Reclassification of deferred tax asset due to tax reform					243	(243)
Other comprehensive income (loss)						939			939
Balance at end of the period at Dec. 31, 2018	$ 135,057	$ 41,581			244,909	(310)			421,237
Balance at end of the period (in shares) at Dec. 31, 2018	28,694,036	41,625
Condensed Consolidated Statements of Shareholders’ Equity
Net income					77,329				77,329
Shares issued for stock compensation plans	$ 583								583
Shares issued for stock compensation plans (in shares)	12,402
Issuance of shares			$ 72,071	$ 120,844			$ 72,071	$ 120,844
Issuance of shares (in shares)			2,955,800	125,000
Repurchase of Preferred Stock			$ (21,850)				$ (21,850)
Repurchase of Preferred Stock (in shares)			(874,000)
Dividends on 8% preferred stock, annually					(3,330)				(3,330)
Dividends on 7% preferred stock, annually, pro-rated					(3,115)				(3,115)
Dividends on 6% preferred stock, annually, pro-rated					(2,771)				(2,771)
Dividends on common stock, annually					(8,038)				(8,038)
Other comprehensive income (loss)						768			768
Balance at end of the period at Dec. 31, 2019	$ 135,640	$ 41,581	$ 50,221	$ 120,844	$ 304,984	$ 458			$ 653,728
Balance at end of the period (in shares) at Dec. 31, 2019	28,706,438	41,625	2,081,800	125,000

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Dividends on preferred stock per share		$ 80	$ 80
Dividends on common stock per share	$ 0.28	$ 0.24	$ 0.20
8% Preferred Stock
Dividends on preferred stock per share	80
7% Preferred Stock
Dividends on preferred stock per share	$ 1.75
Offering expenses on issuance of stock	$ 1,824
6% Preferred Stock
Dividends on preferred stock per share	$ 60
Offering expenses on issuance of stock	$ 4,156

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating activities:
Net income	$ 77,329	$ 62,874	$ 54,684
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	852	461	296
Provision for loan losses	3,940	4,629	2,472
Deferred income tax, net	(978)	2,313	(2,415)
Gain on sale of securities	(476)
Gain on sale of loans	(35,411)	(39,266)	(37,790)
Proceeds from sales of loans	32,792,977	18,027,460	18,498,028
Loans and participations originated and purchased for sale	(34,025,666)	(17,832,035)	(18,702,694)
Change in mortgage servicing rights for paydowns and fair value adjustments	10,789	2,348	2,554
Net change in:
Trading securities	(106,472)	(22,582)	(3,162)
Other assets and receivables	(3,663)	(10,023)	11,501
Other liabilities	24,046	4,164	(850)
Other	5,730	3,992	1,490
Net cash provided by (used in) operating activities	(1,257,003)	204,335	(175,886)
Investing activities:
Net change in securities purchased under agreements to resell	152	168	(1,651)
Purchases of available-for-sale securities	(647,374)	(47,040)	(199,635)
Proceeds from the sale of available-for-sale securities	37,817	6,431	0
Proceeds from calls, maturities and paydowns of available-for-sale securities	651,798	188,252	116,506
Purchases of loans	(87,302)	(138,965)	(133,329)
Net change in loans receivable	(885,150)	(484,102)	(300,889)
Purchase of Federal Home Loan Bank stock	(15,875)	(956)
Proceeds from sale of Federal Home Loan Bank stock	3,481	700
Proceeds from sale of assets		10
Purchases of premises and equipment	(13,983)	(9,195)	(788)
Purchases of mortgage servicing rights		(6,313)	(1,209)
Purchase of limited partnership interests	(1,365)	(3,810)	(2,694)
Cash (paid) received in acquisition of subsidiary		(14,320)	363
Other investing activities	126	74	189
Net cash used in investing activities	(957,675)	(509,066)	(523,137)
Financing activities:
Net change in deposits	2,247,064	155,002	514,940
Proceeds from Federal Home Loan Bank borrowings	8,917,286	1,089,107	754,150
Repayment of Federal Home Loan Bank borrowings	(8,907,917)	(931,994)	(754,544)
Payments of contingent consideration	(1,999)	(745)
Proceeds from issuance of common stock			106,245
Proceeds from issuance of preferred stock	192,915
Repurchase of preferred stock	(21,850)
Proceeds from notes payable	6,318	19,116
Payments on notes payable	(29,700)	(38,534)
Dividends	(17,254)	(10,216)	(7,950)
Net cash provided by financing activities	2,384,863	281,736	612,841
Net Change in Cash and Cash Equivalents	170,185	(22,995)	(86,182)
Cash and Cash Equivalents, Beginning of Period	336,524	359,519	445,701
Cash and Cash Equivalents, End of Period	506,709	336,524	359,519
Additional Cash Flows Information:
Interest paid	81,892	49,276	26,763
Income taxes paid	$ 19,326	16,965	27,050
The Company purchased all of the capital stock of FMBI on January 2, 2018, the capital stock of FMNBP on October 1, 2018, and the assets of NattyMac, LLC on December 31, 2018. The Company also purchased all of the capital stock for MCS on August 15, 2017. In conjunction with the acquisitions, liabilities were assumed as follows:
Fair value of assets acquired		168,153	12,666
Cash paid for the capital stock/fair value common stock issued		29,872	8,127
Fair value of liabilities assumed		$ 138,281	$ 4,539

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Nature of Operations and Summary of Significant Accounting Policies
Basis of Presentation	Note 1: Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Principles of Consolidation The accompanying consolidated financial statements include the accounts of Merchants Bancorp, a registered bank holding company (the “Company”) and its wholly owned subsidiaries, Merchants Bank of Indiana (“Merchants Bank”) and Farmers-Merchants Bank of Illinois (“FMBI,” formerly Joy State Bank prior to October 22, 2018). Merchants Bank’s direct and indirect subsidiaries include Merchants Capital Corp. (“MCC”), Merchants Capital Servicing, LLC (“MCS”), Ash Realty Holdings, LLC (“Ash Realty”), MBI Midtown West, LLC (“MMW”), Natty Mac Funding, Inc. (“NMF,” which became dormant in the first quarter of 2019 after the Company’s acquisitions of the assets of NattyMac, LLC (“NattyMac”)), and OneTrust Funding, Inc. The Company also acquired Farmers-Merchants National Bank of Paxton (“FMNBP”) on October 1, 2018 through a merger with FMBI, with FMBI as the surviving entity. In August 2019 the company also formed PR Mortgage Investment, LP (“PRMI”), PRMIGP, LLC (“PRMIGP”), and PR Mortgage Investment Management, LLC (“PRMIM”). All these entities are collectively referred to as the “Company”. All significant intercompany accounts and transactions have been eliminated in consolidation. Merchants Bank operates under an Indiana state bank charter and provides full banking services. As a state bank and non-Federal Reserve member, it is subject to the regulation of the Indiana Department of Financial Institutions (“IDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). The Company is further subject to regulations of the Board of Governors of the Federal Reserve System (“Federal Reserve”) governing bank holding companies. Merchants Bank operates from six locations in Indiana, including Lynn, Spartanburg, Richmond, Carmel and Indianapolis. Merchants Bank generates commercial, mortgage and consumer loans and receives deposits from customers located primarily in Hamilton, Marion, Wayne, Randolph and surrounding counties in Indiana. Merchants Bank’s loans are generally secured by specific items of collateral including real property, consumer assets and business assets. Merchants Bank’s Mortgage Warehousing segment funds and participates in single-family and multi‑family, agency eligible loans across the nation. FMBI operates under an Illinois state bank charter and provides full banking services. As a state bank and non-Federal Reserve member, it is subject to the regulation of the Illinois Department of Financial and Professional Regulation (“IDFPR”) and the FDIC. FMBI operates from five offices located in Joy, New Boston, 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, and Freddie Mac issuer. Ash Realty is primarily for the purpose of acquiring, holding and liquidating real estate acquired by Merchants Bank as a result of various foreclosures. Prior to the Company acquiring all the assets of NattyMac from Home Point Financial Corporation (“Home Point”) on December 31, 2018, NMF provided loan participations and participation warehouse financing to Home Point, its subsidiaries, and customers. This entity is no longer active. MMW is primarily for the purposes of holding the land and building for the Company’s new headquarters building that was completed in 2019. OneTrust Funding, Inc. is primarily for the purposes of facilitating certain warehouse financing arrangements, similar to those between NMF and Home Point. PRMI was formed as a limited partnership in a real estate financing fund, while PRMIGP will serve as the general partner of the fund and PRMIM will serve as the management company of the fund on behalf of PRMIGP. Recent Acquisitions On August 15, 2017, Merchants Bank acquired 100% of the equity interests of MCS (formerly RICHMAC Funding, LLC), which was a national multi-family housing mortgage lender and servicer. The purchase price was paid in shares of Company common stock with a value of $8.1 million. As of December 31, 2018, the Company recorded goodwill and intangible assets totaling $3.8 million and $1.6 million, respectively, in connection with the acquisition. As a result of the acquisition, the Company expanded its product offerings and benefited from economies of scale. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows. On May 8, 2017, the Company entered into a Stock Purchase Agreement to acquire FMBI (formerly Joy State Bank). The acquisition closed on January 2, 2018 at a total cost of approximately $5.5 million. At December 31, 2017 Joy State Bank had $43 million in assets. The Company recorded goodwill and intangible assets totaling $988,000 and $478,000, respectively, in connection with the acquisition. The intangible assets consisted of core deposit intangibles that are being amortized over 10 years on an accelerated basis. The acquired time deposits of $16.7 million were recorded at a fair value of $16.9 million. The fair value premium of $185,000 is being accreted against interest expense over 20 months. The acquired loan portfolio of $27.9 million was recorded at a fair value of $27.5 million. The fair value discount of $458,000 is being accreted to interest income on a straight-line basis over an average of 39 months in accordance with ASC 310-20. While there were some loans identified for potential classification under ASC 310-30, they were not material to the transaction. On October 22, 2018, the Company changed the name of Joy State Bank to Farmers-Merchants Bank of Illinois (“FMBI”). Certain fair value measurements and the purchase price allocation are still being evaluated by management and are subject to change during the measurement period. As a result of the acquisition, the Company increased its deposit base and benefited from economies of scale. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows. On October 1, 2018, the Company acquired FM Bancorp, Inc., a bank holding company, and its wholly owned subsidiary, FMNBP. On that date, FM Bancorp, Inc. ultimately merged with and into the Company, with the Company as the surviving entity, and FMNBP merged with and into Joy State Bank, with Joy State Bank as the surviving bank. Effective October 22, 2018, Joy State Bank’s name changed to Farmers-Merchants Bank of Illinois (“FMBI”). Under the terms of the merger agreement, shareholders of the 27,537 outstanding shares of FM Bancorp, Inc. were compensated $795.29 per share, for a total purchase price of $21.9 million. As of December 31, 2018, FM Bancorp, Inc. and Farmers-Merchants National Bank of Paxton had total assets of approximately $110.0 million, available for sale securities of $66.3 million, deposits of approximately $95.7 million, and net loan receivables of approximately $35.0 million. The Company recorded goodwill and intangible assets totaling $6.9 million and $1.9 million. The intangible assets consisted of core deposit intangibles that are being amortized over 10 years on an accelerated basis. The acquired available for sale securities of $66.3 million were recorded at fair value. A fair value discount associated with securities of $1.0 million is being accreted into interest income, in accordance with ASC 310-20. While there were some loans identified for potential classification under ASC 310-30, they were not material to the transaction. The acquired gross loan portfolio of $35.4 million was recorded at a fair value of $34.8 million. The fair value discount of $625,000 includes a discount related to interest assumptions for $279,000 and to credit assumptions for $346,000. The portion related to interest assumptions is being accreted into interest income on a straight-line basis over an average of 72 months in accordance with ASC 310-20. The discount portion related to credit assumptions is being accreted into interest income over the life of the loan. The acquired deposits of $95.7 million were recorded at a fair value of $95.7 million. As a result of the acquisition, the Company increased its deposit base and benefited from economies of scale. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows. On December 31, 2018, the Company acquired the assets of NattyMac, LLC, a warehouse lender operating out of Clearwater, Florida, from Home Point. The Company also fully repaid Home Point the balance of, and all interest owed on, the $30 million subordinated debt it had previously invested in the Company. Goodwill and intangible assets of $3.7 million and $1.6 million, respectively, have been recorded by the Company. The intangible assets related to customer lists that are being amortized using the straight-line method over 21 months. As a result of the acquisition, the Company expects to increase its geographic footprint in the warehouse business, reduce its costs of borrowing, increase the earnings generated from its warehouse business, and benefit from its experienced talent pool. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows. Given the impact of the acquisitions was immaterial to the Company and its results of operations, pro forma information has not been included. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, loan servicing rights and fair values of financial instruments. Cash and Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of cash amounts due from depository institutions, interest‑bearing deposits in other banks, money market accounts, and federal funds sold. At December 31, 2019, the Company’s cash accounts exceeded federally insured limits by approximately $492.1 million. Included in this amount is approximately $478.8 million with the Federal Reserve and $2.3 million with the Federal Home Loan Bank of Indianapolis (“FHLBI”), and $20,000 with the Federal Home Loan Bank of Chicago (“FHLBC”). At December 31, 2018, the Company’s cash accounts exceeded federally insured limits by approximately $331.2 million. Included in this amount is approximately $295.4 million with the FHLBI, $12.9 million with the FHLBC, and $15,000 with the Federal Home Loan Bank of Chicago. Securities purchased under agreements to resell Securities purchased pursuant to a simultaneous agreement (RRA) to resell the same securities at a specified price and date generally have maturity dates of 90 days or less and are carried at cost. Every 90 days the RRAs rollover. Trading Activities The Company engages in trading activities. Securities that are held principally for resale in the near term are recorded in the trading assets account at fair value with changes in fair value recorded in earnings. Trading securities include FHA and conventional participation certificates. Interest is included in net interest income. Securities Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. The Company had no securities held to maturity at December 31, 2019 or 2018. Securities not classified as held to maturity or trading are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other‑than‑temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held‑to‑maturity debt securities, the amount of other‑than‑temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other‑than‑temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. Loans Held for Sale under Mortgage Banking Activities The Company uses participation agreements to fund mortgage loans held for sale from closing or purchase until sale to an investor. Under a participation agreement the Company elects to purchase a participation interest of up to 100% in individual loans. The Company shares proportionately in the interest income and the credit risk until the loan is sold to an investor. The Company holds the collateral until it is sent under a bailee arrangement to the investor. Typical investors are large financial institutions or government agencies. These loans are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance and included in noninterest income. Other mortgage loans originated and intended for sale in the secondary market, for which the fair value option has been elected, are carried at fair value at each balance sheet date. The Company believes that the fair value is the best indicator of the resolution of these loans. The difference between the cost and fair value was not material at December 31, 2019. For all loans held for sale, interest earned from the time of funding to the time of sale is accrued and recognized as interest income. Gains and losses on loan sales are recorded in noninterest income, and generally direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income and noninterest expense upon sale of the loan. The gain on sale of loans in the income statement may include placement and origination fees, capitalized mortgage servicing rights, trading gains and losses and other related income . Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances adjusted for unearned income, charge‑offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well‑secured and in process of collection. Past‑due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. For loans that are placed on nonaccrual or that are charged off, all accrued interest is reversed against interest income. The interest on these loans is applied to the principal balance until the loan can be returned to an accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. For all loan portfolio segments, the Company promptly charges off loans, or portions thereof, when available information confirms that specific loans are uncollectable based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge‑off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms. The Company uses warehouse loans or credit to fund mortgage loans held for sale from closing until sale to an investor. Under a warehousing arrangement the Company funds a mortgage loan as secured financing. The warehousing arrangement is secured by the underlying mortgages and a combination of deposits, personal guarantees and advance rates. The Company holds the collateral until it is sent under a bailee arrangement instructing the investor to send proceeds to the Company. Typical investors are large financial institutions or government agencies. Interest earned from the time of funding to the time of sale is recognized as interest income as accrued. Fees earned agreements are recognized when collected as noninterest income. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to net interest income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non‑impaired loans and is based on historical charge off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case‑by‑case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by the fair value of the collateral if the loan is collateral dependent, the loan’s obtainable market price, or present value of expected future cash flows discounted at the loan’s effective interest rate. For impaired loans where the Company utilizes discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In restructuring the loan, the Company attempts to work out an alternative payment schedule with the borrower in order to optimize collectability of the loan. A troubled debt restructuring (TDR) occurs when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status, and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. Nonaccrual loans, including TDRs that have not met the six-month minimum performance criterion, are reported as nonperforming loans. For all loan classes, it is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until three months of satisfactory borrower performance, at which time management would consider its return to accrual status. A loan is generally classified as nonaccrual when the Company believes that receipt of principal and interest is doubtful under the terms of the loan agreement. Most generally, this is at 90 or more days past due. With regard to determination of the amount of the allowance for credit losses, restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously above. Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight‑line method over the estimated useful lives of the assets. The estimated useful lives for premises and equipment are as follows: Buildings 10 to 40 years Leasehold improvements 5 to 39 years Furniture, fixtures and equipment 3 to 10 years Vehicles 5 years Expenditures for property and equipment and for renewals or betterments that extend the originally estimated economic life of the assets are capitalized. Expenditures for maintenance and repairs are charged to expense. When an asset is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the results of operations. Federal Home Loan Bank Stock Federal Home Loan Bank (FHLB) stock is a required investment for institutions that are members of a FHLB. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from other real estate. Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860‑50), servicing rights resulting from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company has elected to initially and subsequently measure the mortgage servicing rights for mortgage loans using the fair value method. Under the fair value method, the servicing rights are carried in the balance sheet at fair value and the changes in fair value are reported in earnings in the period in which the changes occur. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model is from an independent third party and it incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, prepayment penalties, and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage‑servicing right and may result in a reduction to noninterest income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The change in the fair value of the mortgage‑servicing rights is netted against loan servicing fee income. Goodwill and Intangible Assets Goodwill is tested annually for impairment or more frequently if impairment indicators are present. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. Intangible assets, which include licenses and trade names, are amortized over a period ranging from 84 to 120 months using a straight-line method of amortization. Customer list intangible assets are amortized over 21 months using a straight-line method of amortization. Also included are core deposit intangibles that are amortized over a 10 year period using the accelerated sum of the years digits method of amortization. On a periodic basis, the Company evaluates events and circumstances that may indicate a change in the recoverability of the carrying value. Investment in Qualified Affordable Housing Limited Partnerships The Company has elected to account for its investment in affordable housing tax credit limited partnerships using the proportional amortization method described in FASB ASU 2014‑01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (A Consensus of the FASB Emerging Issues Task Force).” Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The investment in the limited partnerships is included in other assets in the consolidated balance sheets. Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes ). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more‑likely‑than‑not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more‑likely‑than‑not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non‑U.S. income tax examinations by tax authorities for years before 2016. The Company recognizes interest and penalties, if any, on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. Earnings Per Share Basic earnings per share is the Company’s net income available to common shareholders, which represents net income less dividends paid or payable to preferred stock shareholders, if any, divided by the weighted‑average number of common shares outstanding during each period. Diluted earnings per share is calculated in the same manner as basic earnings per share, but also reflects the issuance of additional common shares that would have been diluted if such shares had been outstanding, as well as any adjustment to income that would result from the assumed issuance. Share‑based Compensation Plan The Company has a restricted stock plan that provides for annual awards of shares to certain members of senior management based upon the Company’s performance and attainment of certain performance goals established by the Board of Directors. Share awards are valued at the estimated fair value on the date of the award and generally vest over three years. Compensation expense for the awards is recognized in the consolidated financial statements ratably over the vesting period. In 2018, the Compensation Committee of the Board of Directors also approved a plan for non-executive directors to receive a portion of their annual fees in the form of common stock, which is typically issued once per year, subsequent to the annual meeting of shareholders. Revenue Recognition The Company’s principal source of revenue is interest income from loans, investment securities and other financial instruments that are not within the scope of Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers”. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. Because performance obligations are satisfied as

Restriction on Cash and Due Fro

Restriction on Cash and Due From Banks	12 Months Ended
	Dec. 31, 2019
Restriction on Cash and Due From Banks
Restriction on Cash and Due From Banks	Note 2: Restriction on Cash and Due From Banks The Company is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve. The reserve required at December 31, 2019 and 2018 was $184.5 million and $114.2 million, respectively.

Securities

Securities	12 Months Ended
	Dec. 31, 2019
Securities
Securities	Note 3: Securities Trading Securities Securities that are held principally for resale in the near term are recorded as trading securities at fair value. Trading securities include FHA and conventional Fannie Mae and Freddie Mac participation certificates. The unrealized gains included in earnings for trading securities totaled $3.1 million and $870,000 at December 31, 2019 and 2018, respectively. Securities Available-For-Sale The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows: December 31, 2019 Gross Gross Approximate Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available-for-sale securities: Treasury notes $ 4,744 $ 21 $ — $ 4,765 Federal agencies 244,986 24 37 244,973 Municipals 5,577 360 — 5,937 Mortgage-backed - Government-sponsored entity (GSE) - residential 34,357 213 2 34,568 Total available-for-sale securities $ 289,664 $ 618 $ 39 $ 290,243 December 31, 2018 Gross Gross Approximate Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available-for-sale securities: Treasury notes $ 11,928 $ 26 $ 13 $ 11,941 Federal agencies 237,894 8 972 236,930 Municipals 21,014 336 18 21,332 Mortgage-backed - Government-sponsored entity (GSE) - residential 60,693 254 79 60,868 Total available-for-sale securities $ 331,529 $ 624 $ 1,082 $ 331,071 The amortized cost and fair value of available‑for‑sale securities at December 31, 2019 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, 2019 Amortized Fair Cost Value Contractual Maturity (In thousands) Within one year $ 23,250 $ 23,233 After one through five years 226,748 226,783 After five through ten years — — After ten years 5,309 5,659 255,307 255,675 Mortgage-backed - Government-sponsored entity (GSE) - residential 34,357 34,568 $ 289,664 $ 290,243 Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2019 and 2018 was $95.8 million and $240.2 million, respectively, which is approximately 33%, and 73%, respectively, of the Company’s available‑for‑sale investment portfolio. The following tables show the Company’s gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other‑than‑temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019, and 2018: December 31, 2019 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available-for-sale securities: Treasury notes $ — $ — $ — $ — $ — $ — Federal agencies 94,963 37 — — 94,963 37 Municipals — — — — — — Mortgage-backed - Government-sponsored entity (GSE) - residential 809 2 — — 809 2 $ 95,772 $ 39 $ — $ — $ 95,772 $ 39 December 31, 2018 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available-for-sale securities: Treasury notes $ 1,990 $ 8 $ 995 $ 5 $ 2,985 $ 13 Federal agencies 28,296 97 191,280 875 219,576 972 Municipals 2,051 18 — — 2,051 18 Mortgage-backed - Government-sponsored entity (GSE) - residential 15,543 79 — — 15,543 79 $ 47,880 $ 202 $ 192,275 $ 880 $ 240,155 $ 1,082 Unrealized losses on securities have not been recognized to income because the Company has the intent and ability to hold the securities for the foreseeable future, and the decline in fair value is primarily due to increased market interest rates. The fair value is expected to recover as the bonds approach the maturity date. During the year ended December 31, 2019, proceeds from the sale of securities available for sale were $37.8 million, and a net gain of $476,000 was recognized, consisting of gross gains of $713,000 and gross losses of $237,000. During the year ended December 31, 2018, proceeds from the sale of securities available for sale were $6.4 million, and no gains or losses were recognized. There were no sales of securities available for sale during the year ended December 31, 2017. The carrying value of securities pledged as collateral, to secure borrowings, pubic deposits and for other purposes, was $290.2 million, and $281.2 million at December 31, 2019 and 2018, respectively.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2019
Loans and Allowance for Loan Losses
Loans and Allowance for Loan Losses	Note 4: Loans and Allowance for Loan Losses Classes of loans at December 31, 2019 and 2018, include: December 31, December 31, 2019 2018 (In thousands) Mortgage warehouse lines of credit $ 765,151 $ 337,332 Residential real estate 413,835 410,871 Multi-family and healthcare financing 1,347,125 914,393 Commercial and commercial real estate 398,601 299,194 Agricultural production and real estate 85,210 79,255 Consumer and margin loans 18,388 17,082 3,028,310 2,058,127 Less Allowance for loan losses 15,842 12,704 Loans Receivable $ 3,012,468 $ 2,045,423 Risk characteristics applicable to each segment of the loan portfolio are described as follows. Mortgage Warehouse Lines of Credit (MTG WHLOC): Under its warehouse program, the Company provides warehouse financing arrangements to approved mortgage companies for the origination and sale of residential mortgage loans and to a lesser extent multi‑family loans. Agency eligible, governmental and jumbo residential mortgage loans that are secured by mortgages placed on existing one-to-four family dwellings may be originated or purchased and placed on each mortgage warehouse line. As a secured line of credit, collateral pledged to the Company secures each individual mortgage until the lender sells the loan in the secondary market. A traditional secured warehouse line of credit typically carries a base interest rate of 30‑day LIBOR, plus a margin, or mortgage note rate, less a margin. The interest rate will typically not go below an agreed upon threshold. Risk is evident if there is a change in the fair value of mortgage loans originated by mortgage bankers in warehouse, the sale of which is the expected source of repayment of the borrowings under a warehouse line of credit. Residential Real Estate Loans (RES RE): Real estate loans are secured by owner occupied 1‑4 family residences. Repayment of residential real estate loans is primarily dependent on the personal income and credit rating of the borrowers. All-in-One mortgages included in this segment typically carry a base rate of 30-day LIBOR, plus a margin. Multi‑Family and Healthcare Financing (MF RE): The Company engages in multi‑family and healthcare financing, including construction loans, specializing in originating and servicing loans for multi‑family rental and senior living properties. In addition, the Company originates loans secured by an assignment of federal income tax credits by partnerships invested in multi‑family real estate projects. Construction and land loans are generally based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent agency-eligible financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long‑term financing. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economy in the Company’s market area. Repayment of these loans depends on the successful operation of a business or property and the borrower’s cash flows. Commercial Lending and Commercial Real Estate Loans (CML & CRE): The commercial lending and commercial real estate portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions, as well as loans to commercial customers to finance land and improvements. It also includes loans collateralized by mortgage servicing rights of mortgage warehouse customers. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations. Agricultural Production and Real Estate Loans (AG & AGRE): Agricultural production loans are generally comprised of seasonal operating lines of credit to grain farmers to plant and harvest corn and soybeans and term loans to fund the purchase of equipment. The Company also offers long‑term financing to purchase agricultural real estate. Specific underwriting standards have been established for agricultural related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop and other farm assets as considered necessary. The Company is approved to sell agricultural loans in the secondary market through the Federal Agricultural Mortgage Corporation and uses this relationship to manage interest rate risk within the portfolio. Consumer and Margin Loans (CON & MAR): Consumer loans are those loans secured by household assets. Margin loans are those loans secured by marketable securities. The term and maximum amount for these loans are determined by considering the purpose of the loan, the margin (advance percentage against value) in all collateral, the primary source of repayment, and the borrower’s other related cash flow. The following tables present by loan portfolio segment, the activity in the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 and the recorded investment in loans and impairment method as of December 31, 2019, 2018 and 2017: At or For the Year Ended December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 1,068 $ 1,986 $ 6,030 $ 3,051 $ 429 $ 140 $ 12,704 Provision for loan losses 952 56 988 1,817 94 33 3,940 Loans charged to the allowance (107) — — (857) — — (964) Recoveries of loans previously charged off — — — 162 — — 162 Balance, end of period $ 1,913 $ 2,042 $ 7,018 $ 4,173 $ 523 $ 173 $ 15,842 Ending balance: individually evaluated for impairment $ — $ 23 $ — $ 650 $ — $ 8 $ 681 Ending balance: collectively evaluated for impairment $ 1,913 $ 2,019 $ 7,018 $ 3,523 $ 523 $ 165 $ 15,161 Loans Ending balance $ 765,151 $ 413,835 $ 1,347,125 $ 398,601 $ 85,210 $ 18,388 $ 3,028,310 Ending balance individually evaluated for impairment $ 233 $ 3,109 $ — $ 9,152 $ — $ 23 $ 12,517 Ending balance collectively evaluated for impairment $ 764,918 $ 410,726 $ 1,347,125 $ 389,449 $ 85,210 $ 18,365 $ 3,015,793 At or For the Year Ended December 31, 2018 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 283 $ 1,587 $ 3,502 $ 2,362 $ 320 $ 257 $ 8,311 Provision (credit) for loan losses 785 399 2,528 779 109 29 4,629 Loans charged to the allowance — — — (90) — (146) (236) Recoveries of loans previously charged off — — — — — — — Balance, end of period $ 1,068 $ 1,986 $ 6,030 $ 3,051 $ 429 $ 140 $ 12,704 Ending balance: individually evaluated for impairment $ 225 $ — $ — $ 400 $ 20 $ — $ 645 Ending balance: collectively evaluated for impairment $ 843 $ 1,986 $ 6,030 $ 2,651 $ 409 $ 140 $ 12,059 Loans Ending balance $ 337,332 $ 410,871 $ 914,393 $ 299,194 $ 79,255 $ 17,082 $ 2,058,127 Ending balance individually evaluated for impairment $ 575 $ 1,606 $ — $ 8,576 $ 370 $ 58 $ 11,185 Ending balance collectively evaluated for impairment $ 336,757 $ 409,265 $ 914,393 $ 290,618 $ 78,885 $ 17,024 $ 2,046,942 For the Year Ended December 31, 2017 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of year $ 373 $ 2,170 $ 1,962 $ 1,374 $ 269 $ 102 $ 6,250 Provision for loan losses (90) (583) 1,540 1,399 51 155 2,472 Loans charged to the allowance — — — (546) — — (546) Recoveries of loans previously charged off — — — 135 — — 135 Balance, end of year $ 283 $ 1,587 $ 3,502 $ 2,362 $ 320 $ 257 $ 8,311 Internal Risk Categories In adherence with policy, the Company uses the following internal risk grading categories and definitions for loans: Average or above - Loans to borrowers of satisfactory financial strength or better. Earnings performance is consistent with primary and secondary sources of repayment that are well defined and adequate to retire the debt in a timely and orderly fashion. These businesses would generally exhibit satisfactory asset quality and liquidity with moderate leverage, average performance to their peer group and experienced management in key positions. These loans are disclosed as “Acceptable and Above” in the following table. Acceptable - Loans to borrowers involving more than average risk and which contain certain characteristics that require some supervision and attention by the lender. Asset quality is acceptable, but debt capacity is modest and little excess liquidity is available. The borrower may be fully leveraged and unable to sustain major setbacks. Covenants are structured to ensure adequate protection. Borrower’s management may have limited experience and depth. This category includes loans which are highly leveraged due to regulatory constraints, as well as loans involving reasonable exceptions to policy. These loans are disclosed as “Acceptable and Above” in the following table. Special Mention (Watch) - This is a loan that is sound and collectable but contains considerable risk. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well‑defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The following tables present the credit risk profile of the Company’s loan portfolio based on internal rating category and payment activity as of December 31, 2019 and 2018: December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 2,472 $ 41,882 $ 13,806 $ 2,114 $ 31 $ 60,305 Substandard 233 3,109 — 9,152 — 23 12,517 Doubtful — — — — — — — Acceptable and Above 764,918 408,254 1,305,243 375,643 83,096 18,334 2,955,488 Total $ 765,151 $ 413,835 $ 1,347,125 $ 398,601 $ 85,210 $ 18,388 $ 3,028,310 December 31, 2018 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 443 $ 71,734 $ 14,650 $ 3,096 $ 681 $ 90,604 Substandard 575 1,606 — 8,576 370 58 11,185 Doubtful — — — — — — — Acceptable and Above 336,757 408,822 842,659 275,968 75,789 16,343 1,956,338 Total $ 337,332 $ 410,871 $ 914,393 $ 299,194 $ 79,255 $ 17,082 $ 2,058,127 The Company evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. No significant changes were made to either during the past year. The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2019 and 2018: December 31, 2019 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 765,151 $ 765,151 RES RE 3,089 562 2,324 5,975 407,860 413,835 MF RE — — — — 1,347,125 1,347,125 CML & CRE 2,293 335 1,663 4,291 394,310 398,601 AG & AGRE 2,047 — 195 2,242 82,968 85,210 CON & MAR 50 31 19 100 18,288 18,388 $ 7,479 $ 928 $ 4,201 $ 12,608 $ 3,015,702 $ 3,028,310 December 31, 2018 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ 324 $ 324 $ 337,008 $ 337,332 RES RE 579 178 825 1,582 409,289 410,871 MF RE — — — — 914,393 914,393 CML & CRE 245 52 253 550 298,644 299,194 AG & AGRE 91 — 588 679 78,576 79,255 CON & MAR 2 52 28 82 17,000 17,082 $ 917 $ 282 $ 2,018 $ 3,217 $ 2,054,910 $ 2,058,127 A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310‑10‑35‑16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings. The following tables present impaired loans and specific valuation allowance information based on class level as of December 31, 2019 and 2018: December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ 233 $ 2,899 $ — $ 6,662 $ — $ 12 $ 9,806 Unpaid principal balance 233 2,899 — 6,662 — 12 9,806 Impaired loans with a specific allowance: Recorded investment — 210 — 2,490 — 11 2,711 Unpaid principal balance — 210 — 2,490 — 11 2,711 Specific allowance — 23 — 650 — 8 681 Total impaired loans: Recorded investment 233 3,109 — 9,152 — 23 12,517 Unpaid principal balance 233 3,109 — 9,152 — 23 12,517 Specific allowance — 23 — 650 — 8 681 December 31, 2018 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ 251 $ 1,606 $ — $ 5,636 $ 88 $ 58 $ 7,639 Unpaid principal balance 251 1,606 — 5,636 88 58 7,639 Impaired loans with a specific allowance: Recorded investment 324 — — 2,940 282 — 3,546 Unpaid principal balance 324 — — 2,940 282 — 3,546 Specific allowance 225 — — 400 20 — 645 Total impaired loans: Recorded investment 575 1,606 — 8,576 370 58 11,185 Unpaid principal balance 575 1,606 — 8,576 370 58 11,185 Specific allowance 225 — — 400 20 — 645 The following tables present by portfolio class, information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2019, 2018and 2017: December 31, 2019 MTG CML & AG & CON & WHLOC RES RE MF RE CRE AGRE MAR TOTAL (In thousands) Average recorded investment in impaired loans $ 242 $ 3,175 $ — $ 8,675 $ — $ 25 $ 12,117 Interest income recognized — 71 — 463 — — 534 December 31, 2018 MTG CML & AG & CON & WHLOC RES RE MF RE CRE AGRE MAR TOTAL (In thousands) Average recorded investment in impaired loans $ 932 $ 1,485 $ — $ 8,872 $ 489 $ 52 $ 11,830 Interest income recognized 59 50 — 375 43 1 528 December 31, 2017 MTG CML & AG & CON & WHLOC RES RE MF RE CRE AGRE MAR TOTAL (In thousands) Average recorded investment in impaired loans $ — $ 156 $ — $ 3,703 $ 282 $ 197 $ 4,338 Interest income recognized — 1 — 182 — — 183 The following table presents the Company’s nonaccrual loans and loans past due 90 days or more and still accruing at December 31, 2019 and 2018. December 31, December 31, 2019 2018 Total Loans > Total Loans > 90 Days & 90 Days & Nonaccrual Accruing Nonaccrual Accruing (In thousands) MTG WHLOC $ 233 $ — $ 575 $ — RES RE 740 1,851 893 74 MF RE — — — — CML & CRE 1,118 486 136 117 AG & AGRE — 231 282 307 CON & MAR 18 1 18 9 $ 2,109 $ 2,569 $ 1,904 $ 507 No troubled loans were restructured during 2019. During 2018, the Company had one newly classified troubled debt restructuring in the CML & CRE loan class. The loan had a pre and post modification balance of $2.0 million. During 2017, the Company had one newly classified troubled debt restructuring to the same borrower in the CML & CRE loan class. This loan also had a pre and post modification balance of $2.0 million. The modifications on both loans included a combination of term and rate concessions which reflect the unlikeliness of the borrower being able to obtain similar financing from another financial institution. For 2019, 2018 and 2017, no troubled debt restructurings modified in the prior 12 months subsequently defaulted. There was one customer with a residential loan balance of $725,000 in the process of foreclosure at December 31, 2019. No residential loans were in the process of foreclosure at December 31, 2018.

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2019
Derivative Financial Instruments
Derivative Financial Instruments	Note 5: Derivative Financial Instruments The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. Forward Sales Commitments and Interest Rate Lock Commitments The Company enters into forward contracts for the future delivery of mortgage loans to third party investors and enters into interest rate lock commitments with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts are entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans. Each of these items are considered derivatives, but are not designated as accounting hedges, and are recorded at fair value with changes in fair value reflected in noninterest income on the consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in other assets in the consolidated balance sheets while derivative instruments with a negative fair value are reported in other liabilities in the consolidated balance sheets. The following table presents the notional amount and fair value of interest rate locks and forward contracts utilized by the Company at December 31, 2019 and December 31, 2018. Notional Fair Value Amount Balance Sheet Location Asset (Liability) December 31, 2019 (In thousands) (In thousands) Interest rate lock commitments $ 17,826 Derivative assets/liabilities $ 186 $ — Forward contracts 34,268 Derivative assets/liabilities — 27 $ 186 $ 27 Notional Fair Value Amount Balance Sheet Location Asset (Liability) December 31, 2018 (In thousands) (In thousands) Interest rate lock commitments $ 8,812 Derivative assets/liabilities $ 70 $ — Forward contracts 19,640 Derivative assets/liabilities — 9 $ 70 $ 9 Fair values of derivative financial instruments were estimated using changes in mortgage interest rates from the date the Company entered into the interest rate lock commitment and the balance sheet date. The following tables summarizes the periodic changes in the fair value of the derivative financial instruments on the consolidated statements of income for the years ended December 31, 2019, 2018, and 2017. Year Ended December 31, 2019 2018 2017 (In thousands) Interest rate lock commitments $ 116 $ 70 $ — Forward contracts (1) (53) (64) — Net gains (losses) 63 $ 6 $ — (1) Amounts include pair-off settlements . Derivatives on Behalf of Customers The Company began offering derivative contracts to some customers in connection with their risk management needs during the year ended December 31, 2019. These derivatives include interest rate swaps. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party dealer. These derivatives generally work together as an economic interest rate hedge, but the Company does not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred, typically resulting in no net earnings impact. The fair values of derivative assets and liabilities related to derivatives for customers with interest rate swaps were recorded in the condensed consolidated balance sheets as follows: Notional Fair Value Amount Balance Sheet Location Asset Liability (In thousands) (In thousands) December 31, 2019 $ 58,067 Other assets/liabilities $ 511 $ 511 December 31, 2018 — Other assets/liabilities $ — $ — The gross gains and losses on these derivative assets and liabilities recorded in Other income in the condensed consolidated statements of income as follows: Year Ended December 31, 2019 2018 2017 (In thousands) Gross swap gains $ 511 $ — $ — Gross swap losses (511) — — Net swap gains (losses) — $ — $ — The Company pledged $590,000 and $0 in collateral to secure its obligations under swap contracts at December 31, 2019 and December 31, 2018, respectively.

Loan Servicing

Loan Servicing	12 Months Ended
	Dec. 31, 2019
Loan Servicing
Loan Servicing	Note 6: Loan Servicing Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets and represent agency eligible multi‑family loans. The risks inherent in mortgage servicing assets relate primarily to changes in prepayments that result from shifts in mortgage interest rates. Call protection is in place to deter from prepayments on a 10‑year sliding scale. The unpaid principal balances of mortgage and other loans serviced for others were $6.3 billion and $5.8 billion at December 31, 2019 and 2018, respectively. Mortgage loans sub‑serviced for others are not included in the accompanying balance sheets. The unpaid principal balances of loans sub‑serviced for others were $3.8 billion and $3.1 billion at December 31, 2019 and 2018, respectively. The following summarizes the activity in mortgage servicing rights measured using the fair value method for the years ended December 31, 2019, 2018, and 2017: For the Year Ended December 31, 2019 2018 2017 (In thousands) Balance, beginning of period $ 77,844 $ 66,079 $ 53,670 Additions Originated and purchased servicing 7,332 14,113 10,993 Acquisition of MCS — — 3,970 Subtractions Paydowns (5,994) (4,196) (5,504) Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model (4,795) 1,848 2,950 Balance, end of period $ 74,387 $ 77,844 $ 66,079 Contractually specified servicing fees for retained, purchased and sub‑serviced loans were $9.7 million, $8.7 million, and $8.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. In connection with certain loan servicing and sub‑servicing agreements, the Company is to reconcile the payments received monthly on these loans, for principal and interest, taxes, insurance, and reserves for replacements. The funds are required to be maintained in separate trust accounts and not commingled with the Company’s general operating funds. At December 31, 2019 and 2018, MCC held restricted escrow funds for these loans, amounting to $459.3 million and $412.4 million, respectively.

Goodwill and Intangibles

Goodwill and Intangibles	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangibles
Goodwill and Intangibles	Note 7: Goodwill and Intangibles Goodwill at December 31, 2019 decreased by approximately $1.6 million, compared with December 31, 2018, primarily as a result of purchase accounting adjustments to the FMNBP and NattyMac, LLC acquisitions. Included in those adjustments was a $1.6 million transfer of goodwill, related to the NattyMac, LLC acquisition, to intangible assets. Goodwill represents the amount by which the cost of an acquisition exceeded the fair value of net assets acquired. Goodwill is tested for impairment as of year‑end, or more frequently if events and circumstances exist that indicate a goodwill impairment test should be performed. Based upon management’s assessment and evaluation of goodwill at year‑end, the likelihood that an impairment of the current carrying amount of goodwill has occurred is considered remote. 2019 2018 2017 Multifamily Banking Warehouse Total Multifamily Banking Warehouse Total Multifamily Banking Warehouse Total (In thousands) (In thousands) (In thousands) Balance, beginning of period $ 3,791 $ 8,686 $ 5,000 $ 17,477 $ 3,379 $ 523 $ — $ 3,902 $ — $ 523 $ — $ 523 Goodwill acquired during the period — — — — — 8,163 5,000 13,163 3,379 — — 3,379 Post-acquisition adjustments — (333) (1,299) (1,632) 412 — — 412 — — — — Impairment losses — — — — — — — — — — — — Balance, end of period $ 3,791 $ 8,353 $ 3,701 $ 15,845 $ 3,791 $ 8,686 $ 5,000 $ 17,477 $ 3,379 $ 523 $ — $ 3,902 In conjunction with the acquisition of the assets of NattyMac, LLC on December 31, 2018, the Company recorded goodwill of $3.7 million in the Warehouse segment, after reflecting a $1.6 million transfer to intangible assets and a $271,000 purchase accounting adjustment related to contingent consideration that increased goodwill during 2019. Intangible assets of $1.6 million, related to customer lists, were recorded and are being amortized over 21 months using the straight-line method. Amortization of these intangible assets was $673,000 for the year ended December 31, 2019. In conjunction with the acquisition of FMNBP on October 1, 2018, the Company recorded goodwill of $6.9 million in the Banking segment as of December 31, 2019, after reflecting a $333,000 purchase accounting adjustment, primarily related to the valuation of securities, that decreased goodwill during 2019. The Company also recorded intangible assets for core deposits, as summarized below. The core deposit intangibles are being amortized over 10 years using the accelerated sum of the years digits method. Amortization for these intangible assets was $339,000 and $85,000 for the years ended December 31, 2019 and December 31, 2018, respectively. In conjunction with the acquisition of FMBI on January 2, 2018, the Company recorded goodwill of $988,000 in the Banking segment as of December 31, 2019. The Company also recorded intangible assets for core deposits, as summarized below. The core deposit intangibles are being amortized over 10 years using the accelerated sum of the years digits method. Amortization for these intangible assets was $82,000 and $84,000 for the years ended December 31, 2019 and December 31, 2018, respectively. In conjunction with the acquisition of MCS on August 15, 2017, the Company recorded goodwill of $3.8 million in the Multi-family segment, after reflecting a purchase accounting adjustment of $412,000, related to contingent consideration for loans closed after the acquisition date, that increased goodwill during the year ended December 31, 2018. The Company also recorded intangible assets for licenses and trade names as summarized below. The licenses are being amortized over 84 months and trade names are being amortized over 120 months, both using the straight-line method. Amortization of these intangible assets was $218,000 for the year ended December 31, 2019, $218,000 for the year ended December 31, 2018, and $82,000 for the year ended December 31, 2017. 2019 2018 2017 Gross Gross Gross Carrying Accumulated Carrying Accumulated Carrying Accumulated Amount Amortization Total Amount Amortization Total Amount Amortization Total (In thousands) (In thousands) (In thousands) Licenses $ 1,370 $ (465) $ 905 $ 1,370 $ (269) $ 1,101 $ 1,370 $ (74) $ 1,296 Trade names 224 (53) 171 224 (31) 193 224 (8) 216 Customer list 1,570 (673) 897 — — — — — — Core deposit intangible 2,417 (591) 1,826 2,417 (169) 2,248 — — — Total intangible Assets $ 5,581 $ (1,782) $ 3,799 $ 4,011 $ (469) $ 3,542 $ 1,594 $ (82) $ 1,512 Estimated amortization expense for future years is as follows (in thousands): Year ending December 31, 2020 $ 1,516 2021 577 2022 521 2023 462 2024 335 Thereafter 388 Total $ 3,799

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2019
Premises and Equipment
Premises and Equipment	Note 8: Premises and Equipment Major classifications of premises and equipment, stated at cost, are as follows: December 31, 2019 2018 (In thousands) Land $ 3,072 $ 3,072 Buildings 22,775 4,095 Building in progress — 8,272 Leasehold improvements 53 83 Furniture, fixtures and equipment 6,445 2,427 Total cost 32,345 17,949 Accumulated depreciation (3,071) (2,813) Net premises and equipment $ 29,274 $ 15,136

Other Assets and Receivables

Other Assets and Receivables	12 Months Ended
	Dec. 31, 2019
Other Assets and Receivables.
Other Assets and Receivables	Note 9: Other Assets and Receivables The following items are included in other assets and receivables in the consolidated balance sheets. Investment in Qualified Affordable Housing Limited Partnerships The Company invests in qualified affordable housing limited partnerships. At December 31, 2019 and 2018, the balance of the investments for qualified affordable housing limited partnerships was $14.9 million and $17.2 million, respectively. The Company does not expect to contribute any additional investments related to the partnerships outstanding at December 31, 2019. During the years ended December 31, 2019 and 2018, the Company recorded amortization expense of $2.3 million and $1.2 million, respectively. Tax credits related to these investments were $2.5 million for the 2019 tax year and was $1.5 for the 2018 tax year. The Company expects to receive additional tax credits and other benefits in 2020 and will continue to amortize this investment based on the proportional amortization method. Other items included in other assets and receivables on the balance sheet are not individually significant.

Deposits

Deposits	12 Months Ended
	Dec. 31, 2019
Deposits
Deposits	Note 10: Deposits Deposits were comprised of the following at and December 31, 2019 and 2018: December 31, 2019 2018 (In thousands) Demand deposits $ 2,099,373 $ 1,548,969 Savings deposits 1,204,363 1,001,663 Certificates of deposit 2,174,339 680,454 Total deposits $ 5,478,075 $ 3,231,086 At December 31, 2019, the scheduled maturities of time deposits are as follows: December 31, 2019 (In thousands) Due within one year $ 2,084,369 Due in one year to two years 57,085 Due in two years to three years 25,038 Due in three years to four years 6,284 Due in four years to five years 1,563 $ 2,174,339 Certificates of deposit of $250,000 or more totaled $128.9 million at December 31, 2019 and $46.7 million at December 31, 2018. Brokered deposit amounts at December 31, 2019 and 2018, were as follows: December 31, 2019 2018 (In thousands) Brokered certificates of deposit $ 1,962,389 $ 578,471 Brokered savings deposits 184,603 109,607 Brokered deposit on demand accounts 10,001 300,134 $ 2,156,993 $ 988,212

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2019
Borrowings
Borrowings	Note 11: Borrowings Borrowings were comprised of the following at December 31, 2019 and 2018: December 31, 2019 2018 (In thousands) Lines of credit $ 6,540 $ 33,150 Short-term subordinated debt 12,200 10,582 FHLB advances 162,699 151,721 Total borrowings $ 181,439 $ 195,453 The Company has a revolving line of credit (“LOC”) with the FHLB. This arrangement has a maximum borrowing limit of collateral pledged, with an outstanding balance at both December 31, 2019 and 2018 of $6.5 million and $8.2 million, respectively. The floating interest rate on the LOC is set daily at a fixed spread to the actual Federal Funds rate earned by the FHLB, or 1.77% at December 31, 2019 and 2.61% at December 31, 2018. The LOC is automatically renewed daily, unless either party notifies the other of its desire not to continue the arrangement. During 2019 the Company also paid off a LOC with a bank for up to $25.0 million and allowed it to expire in August of 2019. The LOC had an outstanding balance at both December 31, 2018 of $25.0 million. The interest rate on the note was LIBOR Rate plus 1.85%, or 4.2%, at December 31, 2018. The LOC was collateralized by a pledge and first lien security interest in and to all of the issued and outstanding common stock of Merchants Bank of Indiana, the 100% owned subsidiary of the Company. The agreement also required Merchants Bank to maintain at all times a Tier 1 leverage ratio of not less than 8% and was tested on a quarterly basis. The Company entered into a warehouse financing arrangement in April 24, 2018, whereby a customer agreed to invest up to $30 million in the Company’s subordinated debt. The subordinated debt balance as of December 31, 2019 and 2018 was $12.2 million and $10.6 million, respectively. Interest on the debt is paid quarterly by the Company at a rate equal to one-month LIBOR, plus 350 basis points, plus additional interest equal to 50% of the earnings generated. The agreement is automatically renewed annually on April 24 th , unless either party notifies the other party at least 180 days prior to its renewable date, of its desire not to continue the relationship. FHLB advances and the LOC are secured by mortgage loans totaling $1.4 billion and $88.1 million at, December 31, 2019 and 2018, respectively. In addition, available for sale securities and securities purchased under agreements to resell with a carrying value of $276.7 million and $269.3. million were pledged as of December 31, 2019 and 2018, respectively. At December 31, 2019, the FHLB advances had interest rates ranging from 1.58% to 4.74%, and at December 31, 2018, the FHLB advances had interest rates ranging from 1.79% to 4.74%, and were subject to restrictions or penalties in the event of prepayment. Maturities of FHLB advances were as follows December 31, 2019: December 31, 2019 (In thousands) Due within one year $ 145,589 Due in one year to two years 15,077 Due in two years to three years 59 Due in three years to four years 342 Due in four years to five years 61 Thereafter 1,571 $ 162,699 At December 31, 2019, the Company has excess borrowing capacity with the FHLB for approximately $425.0 million based on currently owned FHLB stock and $1.5 billion based on current collateral.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Taxes
Income Taxes	Note 12: Income Taxes The provision for income taxes includes these components for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 (In thousands) Income tax expense Current tax payable Federal $ 21,396 $ 13,312 $ 21,413 State 4,387 5,528 3,479 Deferred tax payable Federal (375) 1,583 (2,627) State (603) 730 212 Income tax expense $ 24,805 $ 21,153 $ 22,477 Effective tax rate 24.3 % 29.1 % 29.1 % A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense for the years ended December 31, 2019, 2018 and 2017, is shown below: Year Ended December 31, 2019 2018 2017 (In thousands) Computed at the statutory rate (21% for 2019 and 2018, and 35% for 2017) $ 21,448 $ 17,646 $ 27,006 Increase resulting from State income taxes 2,989 4,944 2,399 Effect of Tax Cuts and Jobs Act — — (6,928) Tax Credits net of related amortization (190) (1,533) — Other 558 96 — Actual tax expense $ 24,805 $ 21,153 $ 22,477 The tax effects of temporary differences related to deferred taxes shown on the balance sheet were: December 31, 2019 2018 (In thousands) Deferred tax assets Allowance for loan losses $ 4,069 $ 3,366 Unrealized loss on available for sale securities — 148 Fair value adjustments on acquisitions 228 — Other 1,309 854 Total assets 5,606 4,368 Deferred tax liabilities Depreciation (1,374) (466) Intangible assets (466) (618) Mortgage servicing rights (17,035) (17,477) Limited partnership investments (1,791) (2,212) Unrealized loss on available for sale securities (121) — Fair value adjustments on acquisitions — (3) Total liabilities (20,787) (20,776) Net deferred tax liability $ (15,181) $ (16,408) On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act, which significantly changes the existing U.S. tax laws, including a reduction in the corporate tax rate from 35% to 21%. As a result of enactment of the legislation, the Company recorded in the fourth quarter of 2017, an additional one-time income tax benefit of $6.9 million, primarily related to the re-measurement of certain deferred tax assets and liabilities and included an expense of $243,000 related to the adjustment of the deferred tax asset for net unrealized losses on available for sale securities.

Regulatory Matters

Regulatory Matters	12 Months Ended
	Dec. 31, 2019
Regulatory Matters
Regulatory Matters	Note 13: Regulatory Matters The Company, Merchants Bank, and FMBI are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by federal and state banking regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company, Merchants Bank and FMBI must meet specific capital guidelines that involve quantitative measures of the Company’s, Merchants Bank’s, and FMBI’s assets, liabilities and certain off‑balance‑sheet items as calculated under regulatory accounting practices. The Company’s, Merchants Bank’s, and FMBI’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s, Merchants Bank’s, and FMBI’s regulators could require adjustments to regulatory capital not reflected in these financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Company, Merchants Bank, and FMBI to maintain minimum amounts and ratios (set forth in the table below). Management believes, as of December 31, 2019 and 2018, that the Company, Merchants Bank, and FMBI met all capital adequacy requirements to which they were subject. As of December 31, 2019, the most recent notifications from the Federal Reserve categorized the Company as well capitalized and most recent notifications from the FDIC categorized Merchants Bank and FMBI as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, a company must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Company, Merchants Bank, or FMBI’s category. The Company’s, Merchants Bank’s, and FMBI’s actual capital amounts and ratios are also presented in the following tables. Minimum Amount Required for Minimum Amount Adequately To Be Well Actual Capitalized (1) Capitalized (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2019 Total capital (1) (to risk-weighted assets) Company $ 637,472 11.6 % $ 440,063 8.0 % $ — N/A Merchants Bank 639,104 12.0 % 426,748 8.0 % 533,435 10.0 % FMBI 21,726 13.1 % 13,306 8.0 % 16,632 10.0 % Tier 1 capital (1) (to risk-weighted assets) Company 621,630 11.3 % 330,047 6.0 % — N/A Merchants Bank 623,716 11.7 % 320,061 6.0 % 426,748 8.0 % FMBI 21,272 12.8 % 9,979 6.0 % 13,306 8.0 % Common Equity Tier 1 capital (1) (to risk-weighted assets) Company 408,984 7.4 % 247,536 4.5 % — N/A Merchants Bank 623,716 11.7 % 240,046 4.5 % 346,733 6.5 % FMBI 21,272 12.8 % 7,484 4.5 % 10,811 6.5 % Tier 1 capital (1) (to average assets) Company 621,630 9.4 % 264,324 4.0 % — N/A Merchants Bank 623,716 9.7 % 257,487 4.0 % 321,859 5.0 % FMBI 21,272 11.7 % 7,302 4.0 % 9,128 5.0 % (1) As defined by regulatory agencies. Minimum Minimum Amount Required Amount To Be for Adequately Well Actual Capitalized (1) Capitalized (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2018 Total capital(1) (to risk-weighted assets) Company $ 393,654 12.3 % $ 255,884 8.0 % $ — N/A Merchants Bank 412,386 13.3 % 248,290 8.0 % 310,363 10.0 % FMBI 17,537 18.6 % 7,559 8.0 % 9,448 10.0 % Tier 1 capital(1) (to risk-weighted assets) Company 380,950 11.9 % 191,913 6.0 % — N/A Merchants Bank 399,815 12.9 % 186,218 6.0 % 248,290 8.0 % FMBI 17,404 18.4 % 5,669 6.0 % 7,559 8.0 % Common Equity Tier 1 capital(1) (to risk-weighted assets) Company 339,369 10.6 % 143,935 4.5 % — N/A Merchants Bank 399,815 12.9 % 139,663 4.5 % 201,736 6.5 % FMBI 17,404 18.4 % 4,252 4.5 % 6,141 6.5 % Tier 1 capital(1) (to average assets) Company 380,950 10.0 % 152,081 4.0 % — N/A Merchants Bank 399,815 11.0 % 145,723 4.0 % 182,154 5 % FMBI 17,404 10.8 % 6,453 4.0 % 8,066 5.0 % (1) As defined by regulatory agencies. Beginning January 1, 2015, the Basel III capital rules applied to Merchants Bank. The following table lists the capital categories and ratios determined by the Federal Reserve and FDIC. Common Equity Total Risk-based Tier 1 Risk-based Tier 1 Risk-based Tier 1 Capital Category Capital ratio Capital ratio Capital ratio Leverage ratio Well capitalized 10 % 8 % 6.5 % 5 % Adequately capitalized 8 6 4.5 4 Undercapitalized <8 <6 <4.5 <4 Significantly undercapitalized <6 <4 <3 <3 Critically undercapitalized Tangible Equity/Total Assets </= 2% The Basel III capital rules, among other things, (i) introduced a new capital measure called “Common Equity Tier 1” (CET1), (ii) specified that Tier 1 capital consist of CET1 and “Additional Tier 1 Capital” instruments meeting specified requirements, (iii) defined CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital and (iv) expanded the scope of the deductions/adjustments as compared to existing regulations. Implementation of the deductions and other adjustments to CET1 began on January 1, 2015, and were phased in over a four-year period, becoming fully phased in on January 1, 2019. Additionally, under the Basel III Capital Rules, in order to avoid limitations on capital distributions of dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a capital conservation buffer composed of capital above its minimum risk-based capital requirements. On January 1, 2019 the capital conservation buffer became fully phased in at 2.5%. The Company’s principal source of funds for dividend payments to shareholders is dividends received from Merchants Bank and FMBI. Banking regulations limit the maximum amount of dividends that a bank may pay without requesting prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to Merchants Bank’s and FMBI’s 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, 2019, the amount available, without prior regulatory approval, for dividends which could be paid by Merchants Bank and FMBI to the Company was $117.7 million.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2019
Earnings Per Share
Earnings Per Share	Note 14: Earnings Per Share Earnings per share were computed as follows for years ended December 31, 2019, 2018 and 2017. Year Ended December 31, 2019 2018 2017 Weighted- Per Weighted- Per Weighted- Per Net Average Share Net Average Share Net Average Share Income Shares Amount Income Shares Amount Income Shares Amount (In thousands) (In thousands) (In thousands) Net income $ 77,329 $ 62,874 $ 54,684 Dividends on preferred stock (9,216) (3,330) (3,330) Net income allocated to common shareholders $ 68,113 $ 59,544 $ 51,354 Basic earnings per share 28,705,125 $ 2.37 28,692,955 $ 2.08 22,551,452 $ 2.28 Effect of dilutive securities—restricted stock awards 40,582 31,464 16,702 Diluted earnings per share 28,745,707 $ 2.37 28,724,419 $ 2.07 22,568,154 $ 2.28

Stock Splits

Stock Splits	12 Months Ended
	Dec. 31, 2019
Stock Splits
Stock Splits	Note 15: Stock Splits On July 5, 2017, the Company approved an increase of authorized common shares to 50.0 million shares, and declared a 2.5‑for‑1 stock split effective July 6, 2017. The presentation of authorized common shares has been retrospectively adjusted to give effect to the increase, and all share and per share amounts have been retrospectively adjusted to give effect to these splits.

Initial Public Offering of Comm

Initial Public Offering of Common Stock	12 Months Ended
	Dec. 31, 2019
Initial Public Offering of Common Stock
Initial Public Offering of Common Stock	Note 16: Initial Public Offering of Common Stock On October 26, 2017, the Company issued 6,250,000 shares of common stock in its initial public offering, and on November 2, 2017, the Company issued an additional 937,500 shares of common stock to the underwriters related to their exercise of an option to purchase additional shares. The aggregate gross offering proceeds for the shares issued by the Company was $115.0 million, and after deducting underwriting discounts and offering expenses of approximately $8.8 million paid to third parties, the Company received total net proceeds of $106.2 million.

Preferred Stock

Preferred Stock	12 Months Ended
	Dec. 31, 2019
Preferred Stock
Private Placement Offering of Preferred Stock	Note 17: Preferred Stock Public Offerings of Preferred Stock On March 28, 2019 the Company issued 2,000,000 shares of 7.00% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock, without par value, and with a liquidation preference of $25.00 per share (the “Series A Preferred Stock”). The aggregate gross offering proceeds for the shares issued by the Company was $50.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $1.7 million paid to third parties, the Company received total net proceeds of $48.3 million. On April 12, 2019, the Company issued an additional 81,800 shares of Series A Preferred Stock to the underwriters related to their exercise of an option to purchase additional shares under the associated underwriting agreement, resulting in an additional $2.0 million in net proceeds, after deducting $41,000 underwriting discounts. The Series A Preferred Stock have no voting rights with respect to matters that generally require the approval of our common shareholders. Dividends on the Series A Preferred Stock, to the extent declared by the Company’s board, are payable quarterly. The Company may redeem the Series A Preferred Stock, in whole or in part, at our option, on any dividend payment date on or after April 1, 2024, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption. On August 19, 2019 the Company issued 5,000,000 depositary shares, each representing a 1/40 th interest in a share of its 6.00% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, without par value (the “Series B Preferred Stock”), and with a liquidation preference of $1,000.00 per share (equivalent to $25.00 per depositary share). The aggregate gross offering proceeds for the shares issued by the Company was $125.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $4.2 million paid to third parties, the Company received total net proceeds of $120.8 million. The Series B Preferred Stock have no voting rights with respect to matters that generally require the approval of our common shareholders. Dividends on the Series B Preferred Stock, to the extent declared by the Company’s board, are payable quarterly. The Company may redeem the Series A Preferred Stock, in whole or in part, at our option, on any dividend payment date on or after October 1, 2024, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption. Private Placement Offerings of Preferred Stock The Company previously issued a total of 41,625 shares of 8% Non-Cumulative, Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000.00 per share (8% Preferred Stock”) in private placement offerings. The Company may redeem this Preferred Stock, in whole or in part, at our option, on any dividend payment date on or after December 31, 2020, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption. On June 27, 2019 the Company issued an additional 874,000 shares of its 7.00% Series A Preferred Stock, without par value and with a liquidation preference of $25.00 per share, for aggregate proceeds of $21.85 million. No underwriter or placement agent was involved in this private placement and the Company did not pay any brokerage or underwriting fees or discounts in connection with the issuance of such shares. The shares were purchased primarily by related parties, including Michael Petrie, Chairman and Chief Executive Officer; Randall Rogers, Vice Chairman and a director and members of his family; Michael Dury, President of Merchants Capital; and other accredited investors. Repurchase of Preferred Stock On September 23, 2019 the Company repurchased and subsequently retired 874,000 shares of its 7.00% Series A Preferred Stock, for its liquidation preference of $25 per share, at an aggregate cost of $21.85 million. There were no brokerage fees in connection with the transaction.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2019
Related Party Transactions
Related Party Transactions	Note 18: Related Party Transactions The Company has entered into transactions with certain directors, executive officers and their affiliates or associates (related parties). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. In 2016, the Company purchased a 30% ownership in one of its key loan processing vendors, and in 2019 increased its ownership to 44.23%. The investment is accounted for using the equity method of accounting. Fees paid to this company during each of the years ended December 31, 2019, 2018, and 2017 were $3.1 million, $3.4 million, and $3.7 million, respectively. At December 31, 2019, 2018, and 2017, fees of $214,000, $226,000, and $253,000 were accrued for services received. The Company retained a law firm of which a Board member of Merchants Bank, and previously of Merchants Bancorp through July 5, 2017, is a partner. Services rendered are primarily related to documentation of current loan originations, and loan collections from Merchants Bank’s borrowers. Fees paid to the law firm totaled $3.6 million, $3.7 million, and $3.0 million for the years ended December 31, 2019, 2018 and 2017 respectively. During 2019 the Company purchased technology equipment and services for its new corporate headquarters building from a company owned by a Board member of Merchants Bancorp. Fees paid directly and indirectly to this company totaled $641,000 for the year ended December 31, 2019. No fees were incurred for the years ended December 31, 2018 or 2017. On May 8, 2017, the Company entered into a purchase agreement to acquire FMBI from Mr. Petrie, the Company’s Chairman and Chief Executive Officer and Mr. Rogers, a director of the Company. On October 31, 2016, the Company had entered into an Agreement and Plan of Merger to acquire FMBI. Because the timing and regulatory approval of the transaction was uncertain due to the Company’s capital position at December 31, 2016, the parties agreed that Messrs. Petrie and Rogers, would acquire FMBI. The acquisition of FMBI by the Messrs. Petrie and Rogers closed on April 3, 2017. The purchase agreement provided for the Company to pay a purchase price equal to approximately $5.4 million plus an approximate cost of funds of $16,000 for each 30 days after June 30, 2017, prorated to the closing date. The purchase price was equal to the price paid by Messrs. Petrie and Rogers, plus expenses and a cost of funds equal to 3.75%. The acquisition closed on January 2, 2018 at a total cost of approximately $5.5 million. At December 31, 2017 FMBI had $43 million in assets and $36.9 million of deposits.

Employee Benefits

Employee Benefits	12 Months Ended
	Dec. 31, 2019
Employee Benefits
Employee Benefits	Note 19: Employee Benefits Effective January 1, 2016, the Company discontinued its SIMPLE IRA plan and began offering a 401(k) plan. Pursuant to the plan agreement, matching contributions equal to 100% of the employees’ elective deferrals which do not exceed 3% of the employees’ compensation will be made unless management elects to make either the alternative matching contribution or the non‑elective contribution. Employer contributions to the plans were $629,000, $464,000, and $294,000 for the years ended December 31, 2019, 2018, and 2017, respectively.

Share-Based Payment Plan

Share-Based Payment Plan	12 Months Ended
	Dec. 31, 2019
Share-Based Payment Plan
Share-Based Payment Plan	Note 20: Share‑Based Payment Plan Equity-based incentive awards are currently issued pursuant to the 2017 Equity Incentive Plan (the “2017 Incentive Plan”). Prior to the adoption of the 2017 Incentive Plan, the equity awards issued historically consisted of restricted stock awards issued pursuant to the Incentive Plan for Merchants Bank Executive Officers (the “Prior Incentive Plan”). As of the effective date of the 2017 Equity Incentive Plan, no further awards will be granted under the Prior Incentive Plan. However, any previously outstanding incentive award granted under the Prior Incentive Plan remains subject to the terms of such plans until the time it is no longer outstanding. During the years ended December 31, 2019 and 2018, the Company issued 10,127 and 7,039 shares, respectively, pursuant under these plans. Expense recognized for these plans totaled $533,000, $171,000, and $458,000 for the years ended December 31, 2019, 2018, and 2017, respectively. At December 31, 2019 and 2018, there were 91,266 and 83,708 unvested shares awarded under the 2017 Plan, respectively. Unrecognized compensation cost totaled $1.3 million and $1.1 million at December 31, 2019 and 2018, respectively. During 2018, the Compensation Committee of the Board of Directors approved a plan for non-executive directors to receive a portion of their annual fees in the form of common stock equal to $10,000, rounded up to the nearest whole share. Accordingly, there were 2,275 total shares issued during the year ended December 31, 2019, reflecting $50,000 in expenses. There were 1,830 total shares issued during the year ended December 31, 2018, reflecting $50,000 in expenses.

Disclosures about Fair Value of

Disclosures about Fair Value of Assets and Liabilities	12 Months Ended
	Dec. 31, 2019
Disclosures about Fair Value of Assets and Liabilities
Disclosures about Fair Value of Assets and Liabilities	Note 21: Disclosures About Fair Value of Assets and Liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities Recurring Measurements The following tables present the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018: 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, 2019 Trading securities $ 269,891 $ — $ 269,891 $ — Available-for-sale securities: Treasury notes 4,765 4,765 — — Federal agencies 244,973 — 244,973 — Municipals 5,937 — 5,937 — Mortgage-backed - Government-sponsored entity (GSE) - residential 34,568 — 34,568 — Loans held for sale 19,592 — 19,592 — Mortgage servicing rights 74,387 — — 74,387 Derivative assets - interest rate lock commitments 186 — — 186 Derivative asset - interest rate swap 511 — 511 — Derivative liabilities - forward contracts 27 — 27 — Derivative liabilities - interest rate swap 511 — 511 — December 31, 2018 Trading securities $ 163,419 $ — $ 163,419 $ — Available-for-sale securities: Treasury notes 11,941 11,941 — — Federal agencies 236,930 — 236,930 — Municipals 21,332 — 21,332 — Mortgage-backed - Government-sponsored entity (GSE) - residential 60,868 60,868 — Loans held for sale 11,886 — 11,886 — Mortgage servicing rights 77,844 — — 77,844 Derivative assets - interest rate lock commitments 70 — — 70 Derivative liabilities - forward contracts 9 — 9 — Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the years ended December 31, 2019 and 2018. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Trading and Available‑for‑Sale Securities Where quoted market prices are available in an active market, securities such as U.S. Treasuries are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market‑based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy including federal agencies, mortgage backed securities, equities and FHA participation certificates. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Loans Held for Sale Certain loans held for sale at fair value are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices, or market price equivalents, which would be used by other market participants. These saleable loans are considered Level 2. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed, and default rate. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. The Chief Financial Officer’s (CFO) office contracts with a pricing specialist to generate fair value estimates on a quarterly basis. The CFO’s office challenges the reasonableness of the assumptions used and reviews the methodology to ensure the estimated fair value complies with accounting standards generally accepted in the United States. Derivative Financial Instruments The Company estimates the fair value of interest rate lock commitments based on the value of the underlying mortgage loan, quoted mortgage backed security prices, estimates of the fair value of the mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the interest rate lock commitment, net of expenses. With respect to its interest rate lock commitments, management determined that a Level 3 classification was most appropriate based on the various significant unobservable inputs utilized in estimating the fair value of its interest rate lock commitments. The Company estimates the fair value of forward sales commitments based on market quotes of mortgage backed security prices for securities similar to the ones used, which are considered Level 2. The fair value of interest rate swaps is based on prices that are obtained from a third-party that uses observable market inputs, thereby supporting a Level 2 classification. Changes in fair value of the Company’s derivative financial instruments are recognized through noninterest income and/or noninterest expense on its condensed consolidated statement of income. Level 3 Reconciliation The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable (Level 3) inputs: Year Ended December 31, 2019 2018 2017 (In thousands) Mortgage servicing rights Balance, beginning of period $ 77,844 $ 66,079 $ 53,670 Additions Originated and purchased servicing 7,332 14,113 10,993 Acquisition of MCS — — 3,970 Subtractions Paydowns (5,994) (4,196) (5,504) Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model (4,795) 1,848 2,950 Balance, end of period $ 74,387 $ 77,844 $ 66,079 Available-for-sale securities - Municipals Balance, beginning of period $ — $ 6,688 $ — Additions Purchased securities — — 6,688 Subtractions Paydowns — (257) — Sales — (6,431) — Unrealized gains (losses) included in other comprehensive income — — — Balance, end of period $ — $ — $ 6,688 Derivative Assets - interest rate lock commitments Balance, beginning of period $ 70 $ — $ — Purchases — — — Changes in fair value 116 70 — Balance, end of period $ 186 $ 70 $ — Nonrecurring Measurements The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018: 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, 2019 Impaired loans (collateral-dependent) $ 1,570 $ — $ — $ 1,570 December 31, 2018 Impaired loans (collateral-dependent) $ 2,639 $ — $ — $ 2,639 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Collateral-Dependent Impaired Loans, Net of Allowance for Loan Losses The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral‑dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral dependent loans are obtained when the loan is determined to be collateral‑dependent and subsequently as deemed necessary by the Chief Credit Officer’s (CCO) office. Appraisals and evaluations are reviewed for accuracy and consistency by the CCO’s office. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the CCO’s office by comparison to historical results. Unobservable (Level 3) Inputs: The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill. Valuation Fair Value Technique Unobservable Inputs Range (In thousands) At December 31, 2019: Collateral-dependent impaired loans $ 1,570 Market comparable properties Marketability discount 37%-55% Mortgage servicing rights $ 74,387 Discounted cash flow Discount rate 8% - 13% Constant prepayment rate 1% - 39% Derivative assets - interest rate lock commitments $ 186 Discounted cash flow Loan closing rates 73-99% At December 31, 2018: Collateral-dependent impaired loans $ 2,639 Market comparable properties Marketability discount 5% - 47% Mortgage servicing rights $ 77,844 Discounted cash flow Discount rate 8% - 13% Constant prepayment rate 1% - 36% Derivative assets - interest rate lock commitments $ 70 Discounted cash flow loan closing rates 95-100% At December 31, 2017, municipal securities of $6.7 million were classified as Level 3, as there was no active market for these or similar securities. These securities were purchased on December 28, 2017, as such, they were valued as of December 31, 2017 at their purchase price. These securities were sold as of December 31, 2018. Sensitivity of Significant Unobservable Inputs The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and of how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. Mortgage Servicing Rights The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are discount rates and constant prepayment rates. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. 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, 2019 and 2018. Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Assets Value Value (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2019 Financial assets: Cash and cash equivalents $ 506,709 $ 506,709 $ 506,709 $ — $ — Securities purchased under agreements to resell 6,723 6,723 — 6,723 — FHLB stock 20,369 20,369 — 20,369 — Loans held for sale 2,074,197 2,074,197 — 2,074,197 — Loans, net 3,012,468 2,999,580 — — 2,999,580 Interest receivable 18,359 18,359 — 18,359 — Financial liabilities: Deposits 5,478,075 5,478,682 3,303,736 2,174,946 — Lines of credit 6,540 6,540 — 6,540 — Short-term subordinated debt 12,200 12,200 — 12,200 — FHLB advances 162,699 162,803 — 162,803 — Interest payable 11,938 11,938 — 11,938 — December 31, 2018 Financial assets: Cash and cash equivalents $ 336,524 $ 336,524 $ 336,524 $ — $ — Securities purchased under agreements to resell 6,875 6,875 — 6,875 — FHLB stock 7,974 7,974 — 7,974 — Loans held for sale 820,569 820,569 — 820,569 — Loans, net 2,045,423 2,041,772 — — 2,041,772 Interest receivable 13,827 13,827 — 13,827 — Financial liabilities: Deposits 3,231,086 3,230,397 2,550,632 679,765 — Lines of credit 33,150 33,150 — 33,150 — Short-term subordinated debt 10,582 10,582 — 10,582 — FHLB advances 151,721 151,723 — 151,723 — Interest payable 4,132 4,132 — 4,132 —

Significant Estimates and Conce

Significant Estimates and Concentrations	12 Months Ended
	Dec. 31, 2019
Significant Estimates and Concentrations
Significant Estimates and Concentrations	Note 22: Significant Estimates and Concentrations Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the provision and allowance for loan losses are reflected in the footnotes regarding loans and the allowance for loan losses (Notes 1 and 4). Estimates related to mortgage servicing rights are reflected in the notes on mortgage servicing rights and loan servicing (Notes 1 and 6). Estimates related to fair values are reflected in the footnote regarding fair values (Note 21). Current vulnerabilities due to certain concentrations of credit risk are discussed in the footnote on commitments, credit risk, and contingencies (Note 23). Other significant estimates and concentrations not discussed in those footnotes include: Mortgage‑backed Securities and Secondary Mortgage Market Programs The Company is involved in government programs for issuing mortgage‑backed securities (MBS). The objective of these programs is to facilitate secondary market activities in order to provide funding for the multi‑family mortgage market. The Company is subject to cancellation of secondary mortgage market programs, rapid increases in general interest rates, and competition associated with conventional mortgage programs. In addition, the Company could be responsible for covering shortfalls in amounts due to investors for delinquencies or foreclosures. No amounts have been reported in the consolidated financial statements since management believes that no near term financial losses will be incurred and these MBS programs will not be significantly affected by the controlling regulatory bodies. Major Customer The Company had no major customers whose business represented more than 10% of revenues during the year ended December 31, 2019 or 2018. For the year ended 2017 the Company had a major customer of the Mortgage Warehousing segment, whose business represented $14.3 million, or 10% of total revenues.

Commitments, Credit Risk, and C

Commitments, Credit Risk, and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments, Credit Risk, and Contingencies
Commitments, Credit Risk, and Contingencies	Note 23: Commitments, Credit Risk, and Contingencies Financial Instruments Merchants offers certain financial instruments, including commitments with contracts that contain credit risk for the Company and others that are subject to certain performance criteria and cancellation by the Company. Such commitments were as follows at December 31, 2019 and 2018: December 31, 2019 2018 (In thousands) Commitments subject to credit risk: Commitments to extend credit $ 761,068 $ 676,987 Standby letters of credit 26,944 23,030 Total commitments subject to credit risk 788,012 700,017 Commitments subject to certain performance criteria and cancellation: Outstanding commitments to originate loans $ 886,017 $ 507,216 Unfunded construction draws 287,659 457,762 Unfunded lines of warehouse credit 774,424 782,431 Total commitments subject to certain performance criteria and cancellation 1,948,100 1,747,409 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, 2019, 2018 or 2017. Included in the chart above are the following commitments that are subject to certain performance criteria and can be denied by the Company: Outstanding commitments to originate loans. The Company has entered into funding commitments with customers who have applied for loans that are awaiting closing. The customers must meet certain credit and underwriting criteria before the Company is required to fund the loans. Closing and funding of the majority of these loans is contingent upon various performance criteria by the potential borrower and the commitment may be rescinded by the Company. The Company may also enter into a corresponding sales commitment if it is the Company’s intent to close the loan and to sell the loan after closing. Unfunded construction draws. Through the Multi-family Mortgage Banking segment, the Company has made commitments to fund certain FHA insured construction loans that are drawn upon throughout the construction period. These commitments are subject to certain performance criteria and inspections throughout the project, and funding can be denied by the Company. As construction draws are disbursed, the amounts are securitized and sold to Ginnie Mae, and the Company continues to service the loans. Unfunded warehouse lines of credit . Through the Mortgage Warehousing segment, the Company has line of credit agreements with its non‑depository financial institution customers engaged in mortgage lending. Funds drawn on the lines of credit are used by the borrowers to fund the loans they originate. The customers’ loans must meet certain credit and underwriting criteria before the Company will fund the draw requests on the lines of credit, and the draw requests can be denied by the Company. Risk-Sharing Arrangements As a Fannie Mae multifamily lender, Merchants assumes a limited portion of the risk of loss during the remaining term on each commercial mortgage loan that is sold to Fannie Mae. Under this loss sharing agreement, Merchants bears a risk of up to one-third of incurred losses resulting from borrower defaults. Accordingly, Merchants maintained a reserve liability for this risk-sharing obligation of $277,000 at December 31, 2019 and none at December 31, 2018. There have been no loans in default during the year ended December 31, 2019, 2018 or 2017. Leases The Company has several non-cancellable operating leases, primarily for office space, that expire over the next 1‑10 years. Rental expense for these leases was $1.8 million, $1.1 million, and $764,000 for the years ended December 31, 2019, 2018 and 2017, respectively. Future minimum lease payments under operating leases as of December 31, 2019 are as follows: December 31, 2019 (In thousands) Due within one year $ 1,564 Due in one year to two years 1,383 Due in two years to three years 1,208 Due in three years to four years 1,208 Due in four years to five years 1,003 Thereafter 1,551 Total minimum lease payments $ 7,917 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.

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2019
Segment Information
Segment Information	Note 24: Segment Information The Company’s business segments are defined as Multi‑family Mortgage Banking, Mortgage Warehousing, and Banking. The reportable business segments are consistent with the internal reporting and evaluation of the principal lines of business of the Company. The Multi-family Mortgage Banking segment originates and services government sponsored mortgages for multi-family and healthcare facilities. The Mortgage Warehousing segment funds agency eligible residential loans from the date of origination or purchase, until the date of sale in the secondary market, as well as commercial loans to non-depository financial institutions. The Banking segment provides a wide range of financial products and services to consumers and businesses, including retail banking, commercial lending, agricultural lending, retail and correspondent residential mortgage banking, and Small Business Administration (“SBA”) lending. Other includes general and administrative expenses that provide services to all segments; internal funds transfer pricing offsets resulting from allocations to/from the other segments; certain elimination entries and investments in qualified affordable housing limited partnerships. All operations are domestic. The tables below present selected business segment financial information for the years ended December 31, 2019, 2018 and 2017. Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Year Ended December 31, 2019 Interest income $ 1,328 $ 102,157 $ 106,443 $ 2,067 $ 211,995 Interest expense — 50,880 45,681 (6,864) 89,697 Net interest income 1,328 51,277 60,762 8,931 122,298 Provision for loan losses — 1,358 2,582 — 3,940 Net interest income after provision for loan losses 1,328 49,919 58,180 8,931 118,358 Noninterest income 41,682 7,178 1,005 (2,776) 47,089 Noninterest expense 22,556 11,397 17,738 11,622 63,313 Income before income taxes 20,454 45,700 41,447 (5,467) 102,134 Income taxes 5,691 10,934 9,593 (1,413) 24,805 Net income $ 14,763 $ 34,766 $ 31,854 $ (4,054) $ 77,329 Total assets $ 188,866 $ 3,124,684 $ 3,018,568 $ 39,810 $ 6,371,928 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Year Ended December 31, 2018 Interest income $ 712 $ 58,784 $ 79,332 $ 1,735 $ 140,563 Interest expense — 24,369 29,508 (3,285) 50,592 Net interest income 712 34,415 49,824 5,020 89,971 Provision for loan losses — 1,372 3,257 — 4,629 Net interest income after provision for loan losses 712 33,043 46,567 5,020 85,342 Noninterest income 45,831 2,550 3,150 (1,946) 49,585 Noninterest expense 19,205 7,721 14,876 9,098 50,900 Income before income taxes 27,338 27,872 34,841 (6,024) 84,027 Income taxes 7,528 6,872 8,572 (1,819) 21,153 Net income $ 19,810 $ 21,000 $ 26,269 $ (4,205) $ 62,874 Total assets $ 166,102 $ 1,430,776 $ 2,256,687 $ 30,598 $ 3,884,163 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Year Ended December 31, 2017 Interest income $ 414 $ 48,798 $ 44,454 $ 721 $ 94,387 Interest expense — 13,673 14,853 (736) 27,790 Net interest income 414 35,125 29,601 1,457 66,597 Provision for loan losses — 452 2,020 — 2,472 Net interest income after provision for loan losses 414 34,673 27,581 1,457 64,125 Noninterest income 43,715 2,836 1,943 (814) 47,680 Noninterest expense 10,911 7,710 9,835 6,188 34,644 Income before income taxes 33,218 29,799 19,689 (5,545) 77,161 Income taxes 4,557 11,558 8,279 (1,917) 22,477 Net income $ 28,661 $ 18,241 $ 11,410 $ (3,628) $ 54,684 Total assets $ 134,390 $ 1,352,748 $ 1,889,140 $ 16,855 $ 3,393,133

Condensed Financial Information

Condensed Financial Information (Parent Company Only)	12 Months Ended
	Dec. 31, 2019
Condensed Financial Information (Parent Company Only)
Condensed Financial Information (Parent Company Only)	Note 25: Condensed Financial Information (Parent Company Only) Presented below is condensed financial information of the Company as to financial position as of December 31, 2019 and 2018, and results of operations and cash flows for the years ended December 31, 2019, 2018 and 2017: Condensed Balance Sheets December 31, 2019 2018 (In thousands) Assets Cash and cash equivalents $ 463 $ 2,224 Investment in subsidiaries 664,878 453,028 Other assets 2,213 2,104 Total assets $ 667,554 $ 457,356 Liabilities Lines of credit $ — $ 25,000 Short-term subordinated debt 12,200 10,582 Other liabilities 1,626 537 Total liabilities 13,826 36,119 Shareholders’ Equity 653,728 421,237 Total liabilities and shareholders’ equity $ 667,554 $ 457,356 Condensed Statements of Income and Comprehensive Income Year Ended December 31, 2019 2018 2017 (In thousands) Income Dividends and return of capital from subsidiaries 43,903 37,816 13,632 Other Income — 195 208 Total income 43,903 38,011 13,840 Expenses Interest expense 3,641 8,055 7,603 Salaries and employee benefits 1,611 1,216 1,617 Professional fees 335 707 341 Other 423 420 251 Total expense 6,010 10,398 9,812 Income Before Income Tax and Equity in Undistributed Income of Subsidiaries 37,893 27,613 4,028 Income Tax Benefit (1,433) (2,542) (3,670) Income Before Equity in Undistributed Income of Subsidiaries 39,326 30,155 7,698 Equity in Undistributed Income of Subsidiaries 38,003 32,719 46,986 Net Income $ 77,329 $ 62,874 $ 54,684 Comprehensive Income $ 78,097 $ 63,813 $ 54,306 Condensed Statements of Cash Flows Year Ended December 31, 2019 2018 2017 (In thousands) Operating Activities Net income $ 77,329 $ 62,874 $ 54,684 Adjustments to reconcile net income to net cash used in operating activities (36,567) (30,522) (44,185) Net cash provided by operating activities 40,762 32,352 10,499 Investing Activities Return of capital from/(contributed capital to) subsidiaries (173,078) 19,368 (101,868) Net cash paid for acquisitions — (27,209) — Other investing activity 126 74 189 Net cash used in investing activities (172,952) (7,767) (101,679) Financing Activities Net change in lines of credit and subordinated debt (23,382) (19,418) — Dividends paid (17,254) (10,216) (7,950) Proceeds from issuance of common stock — — 106,245 Proceeds from issuance of preferred stock 192,915 — — Repurchase of preferred stock (21,850) — — Net cash provided by (used in) financing activities 130,429 (29,634) 98,295 Net Change in Cash and Due From Banks (1,761) (5,049) 7,115 Cash and Due From Banks at Beginning of Year 2,224 7,273 158 Cash and Due From Banks at End of Year $ 463 $ 2,224 7,273

Recent Accounting Pronouncement

Recent Accounting Pronouncements	12 Months Ended
	Dec. 31, 2019
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 26: Recent Accounting Pronouncements The Company is an emerging growth company and as such will be subject to the effective dates noted for the private companies if they differ from the effective dates noted for public companies. FASB ASU 2014‑09, Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014‑09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in U.S. GAAP. In March 2016 the FASB issued ASU 2016‑08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the guidance in determining revenue recognition as principal versus agent. In April 2016, the FASB issued ASU 2016‑10, “Identifying Performance Obligations and Licensing,” which provides guidance in accounting for immaterial performance obligations and shipping and handling. In May 2016, the FASB issued ASU 2016‑12, “Narrow‑Scope Improvements and Practical Expedients,” which provides clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. This ASU also provides a practical expedient for contract modifications. As an emerging growth company, these amendments were effective for annual reporting periods beginning after December 15, 2018, and for interim periods within annual periods beginning after December 15, 2019. The Company’s revenue is primarily comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09. The Company’s services that fall within the scope of this ASU are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. The services that are within scope include services charges on deposits, interchange income, collection fees, safe deposit box rental fees, and gain/(loss) on sale of other real estate owned. 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 this ASU that significantly affects the determination of the amount and timing of revenue from contracts with customers. The Company adopted ASU 2014-09 on December 31, 2019, and it did not have an impact on the Company’s financial position or results of operations. FASB ASU 2016‑01, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016‑01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” For public business entities, the amendments in this update include the elimination of the requirement to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, the requirement to use the exit price notion when measuring fair value of financial instruments for disclosure purposes, the requirement to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument‑specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, the requirement for separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or accompanying notes to the financial statements, and the amendments clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available‑for‑sale securities in combination with the entity’s other deferred tax assets. An entity should apply the amendments to this update by means of a cumulative‑effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. As an emerging growth company, the amendments in this update were effective for fiscal years beginning after December 15, 2018, and interim periods within years beginning after December 15, 2019. An entity should present separately in other comprehensive income the portion of the total change in the fair value of a liability at fair value in accordance with the fair value option for financial instruments. An entity should apply the amendments to this update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company adopted ASU 2016-01 on December 31, 2019, and the impact did not have a material impact on the Company’s financial position or results of operation, nor did it require any cumulative-effect adjustments. FASB ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued Accounting Standards Update ASU 2016-15 "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments". ASU 2016-15 provides specific guidance on eight cash flow classification issues, including contingent consideration, debt prepayment or debt extinguishment costs and distributions received from equity method investees, to reduce diversity in practice. ASU 2016-15 requires a retrospective transition. As an emerging growth company, the amendments in this update were effective for fiscal years beginning after December 15, 2018, and interim periods within years beginning after December 15, 2019. The Company adopted ASU 2016-15 on December 31, 2019 and the impact did not have a material impact on the Company’s financial position or results of operation. FASB ASU 2016‑02, Leases In February 2016, the FASB issued ASU 2016‑02, “Leases.” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short‑term leases) at the commencement date: · A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and · A right‑of‑use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, “Revenue from Contracts with Customers.” The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off‑balance sheet financing. Lessees (for capital and operating leases) and lessors (for sales‑type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. As an emerging growth company, the amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2020, and for interim periods for years beginning after January 1, 2021. The Company is continuing to evaluate the impact of adopting this new guidance, but it does not expect the adoption to have a material impact on the Company’s financial position or results of operations. FASB ASU 2016‑13, Financial Instruments—Credit Losses In June 2016, the FASB issued ASU 2016‑13, “Financial Instruments—Credit Losses”, commonly referred to as “CECL”. The amendments in this ASU replace the incurred loss model with a methodology that reflects the “current expected credit losses” over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. ASU 2016‑13 replaces the incurred loss impairment methodology with a new methodology that reflects expected credit losses over the lives of the loans and requires consideration of a broader range of information to form credit loss estimates. The ASU requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held‑to‑maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. Additional disclosures are required. As an emerging growth company, the amendments in ASU 2016‑13 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.. Because the Company’s status as an emerging growth company is expected to expire on December 31, 2022, this standard will likely be implemented by December 31, 2022. The Company has established a cross-functional committee that has developed a project plan to review modeling data currently available and technology needed to ensure compliance of this standard. The committee has contracted with a vendor to assist in generating specific loan level details within our core systems, as well as compiling peer and industry data that would be useful in our modeling forecasts. While the Company generally expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, the Company cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial statements. Management continues to recognize that the implementation of this ASU may increase the balance of the allowance for loan losses and is continuing to evaluate the potential impact on the Company’s financial position and results of operations. FASB ASU No. 2017‑04, Intangibles—Goodwill and Other (Topic 350) In January 2017, the FASB issued ASU 2017‑04, “Intangibles—Goodwill and Other (Topic 350).” This ASU simplifies the test for goodwill impairment. Specifically, these amendments eliminate Step 2 from the goodwill impairment test, and also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. As an emerging growth company, the amendments in this ASU are effective for annual goodwill impairment tests in fiscal years beginning after December 15, 2021. Management continues to believe that the changes will not have a material effect on the Company’s financial position and results of operations.

Quarterly Condensed Financial I

Quarterly Condensed Financial Information (Unaudited)	12 Months Ended
	Dec. 31, 2019
Quarterly Condensed Financial Information (Unaudited)
Quarterly Condensed Financial Information (Unaudited)	Note 27: Quarterly Condensed Financial Information (Unaudited) The following tables present the unaudited quarterly condensed financial information for the years ended December 31, 2019 and 2018: 2019 Quarter Ended (Dollars in thousands, except per share data) March 31 June 30 September 30 December 31 Interest income $ 39,674 $ 48,761 $ 59,761 $ 63,799 Interest expense 15,543 20,839 27,137 26,178 Net interest income 24,131 27,922 32,624 37,621 Provision for loan losses 649 105 1,193 1,993 Net interest income after provision for loan losses 23,482 27,817 31,431 35,628 Noninterest income 3,664 9,870 10,852 22,703 Noninterest expense 13,035 15,920 15,522 18,836 Income before income taxes 14,111 21,767 26,761 39,495 Income taxes 3,541 5,328 6,502 9,434 Net income 10,570 16,439 20,259 30,061 Less: preferred stock dividends 833 1,743 3,022 3,618 Net income allocated to common shareholders $ 9,737 $ 14,696 $ 17,237 $ 26,443 Per common share data: Basic earnings per common share $ 0.34 $ 0.51 $ 0.60 $ 0.92 Diluted earnings per common share 0.34 0.51 0.60 0.92 2018 Quarter Ended (Dollars in thousands, except per share data) March 31 June 30 September 30 December 31 Interest income $ 29,038 $ 34,123 $ 37,577 $ 39,825 Interest expense 8,930 11,917 14,095 15,650 Net interest income 20,108 22,206 23,482 24,175 Provision for loan losses 1,406 998 617 1,608 Net interest income after provision for loan losses 18,702 21,208 22,865 22,567 Noninterest income 11,313 11,630 11,907 14,735 Noninterest expense 10,270 12,000 12,449 16,181 Income before income taxes 19,745 20,838 22,323 21,121 Income taxes 4,684 5,186 5,584 5,699 Net income 15,061 15,652 16,739 15,422 Less: preferred stock dividends 833 832 833 832 Net income allocated to common shareholders $ 14,228 $ 14,820 $ 15,906 $ 14,590 Per common share data: Basic earnings per common share $ 0.50 $ 0.52 $ 0.55 $ 0.51 Diluted earnings per common share 0.50 0.52 0.55 0.51

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events
Subsequent Events	Note 28: Subsequent Events No material events were noted.

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations and Principles of Consolidation	Nature of Operations and Principles of Consolidation The accompanying consolidated financial statements include the accounts of Merchants Bancorp, a registered bank holding company (the “Company”) and its wholly owned subsidiaries, Merchants Bank of Indiana (“Merchants Bank”) and Farmers-Merchants Bank of Illinois (“FMBI,” formerly Joy State Bank prior to October 22, 2018). Merchants Bank’s direct and indirect subsidiaries include Merchants Capital Corp. (“MCC”), Merchants Capital Servicing, LLC (“MCS”), Ash Realty Holdings, LLC (“Ash Realty”), MBI Midtown West, LLC (“MMW”), Natty Mac Funding, Inc. (“NMF,” which became dormant in the first quarter of 2019 after the Company’s acquisitions of the assets of NattyMac, LLC (“NattyMac”)), and OneTrust Funding, Inc. The Company also acquired Farmers-Merchants National Bank of Paxton (“FMNBP”) on October 1, 2018 through a merger with FMBI, with FMBI as the surviving entity. In August 2019 the company also formed PR Mortgage Investment, LP (“PRMI”), PRMIGP, LLC (“PRMIGP”), and PR Mortgage Investment Management, LLC (“PRMIM”). All these entities are collectively referred to as the “Company”. All significant intercompany accounts and transactions have been eliminated in consolidation. Merchants Bank operates under an Indiana state bank charter and provides full banking services. As a state bank and non-Federal Reserve member, it is subject to the regulation of the Indiana Department of Financial Institutions (“IDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). The Company is further subject to regulations of the Board of Governors of the Federal Reserve System (“Federal Reserve”) governing bank holding companies. Merchants Bank operates from six locations in Indiana, including Lynn, Spartanburg, Richmond, Carmel and Indianapolis. Merchants Bank generates commercial, mortgage and consumer loans and receives deposits from customers located primarily in Hamilton, Marion, Wayne, Randolph and surrounding counties in Indiana. Merchants Bank’s loans are generally secured by specific items of collateral including real property, consumer assets and business assets. Merchants Bank’s Mortgage Warehousing segment funds and participates in single-family and multi‑family, agency eligible loans across the nation. FMBI operates under an Illinois state bank charter and provides full banking services. As a state bank and non-Federal Reserve member, it is subject to the regulation of the Illinois Department of Financial and Professional Regulation (“IDFPR”) and the FDIC. FMBI operates from five offices located in Joy, New Boston, 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, and Freddie Mac issuer. Ash Realty is primarily for the purpose of acquiring, holding and liquidating real estate acquired by Merchants Bank as a result of various foreclosures. Prior to the Company acquiring all the assets of NattyMac from Home Point Financial Corporation (“Home Point”) on December 31, 2018, NMF provided loan participations and participation warehouse financing to Home Point, its subsidiaries, and customers. This entity is no longer active. MMW is primarily for the purposes of holding the land and building for the Company’s new headquarters building that was completed in 2019. OneTrust Funding, Inc. is primarily for the purposes of facilitating certain warehouse financing arrangements, similar to those between NMF and Home Point. PRMI was formed as a limited partnership in a real estate financing fund, while PRMIGP will serve as the general partner of the fund and PRMIM will serve as the management company of the fund on behalf of PRMIGP.
Recent Acquisitions	Recent Acquisitions On August 15, 2017, Merchants Bank acquired 100% of the equity interests of MCS (formerly RICHMAC Funding, LLC), which was a national multi-family housing mortgage lender and servicer. The purchase price was paid in shares of Company common stock with a value of $8.1 million. As of December 31, 2018, the Company recorded goodwill and intangible assets totaling $3.8 million and $1.6 million, respectively, in connection with the acquisition. As a result of the acquisition, the Company expanded its product offerings and benefited from economies of scale. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows. On May 8, 2017, the Company entered into a Stock Purchase Agreement to acquire FMBI (formerly Joy State Bank). The acquisition closed on January 2, 2018 at a total cost of approximately $5.5 million. At December 31, 2017 Joy State Bank had $43 million in assets. The Company recorded goodwill and intangible assets totaling $988,000 and $478,000, respectively, in connection with the acquisition. The intangible assets consisted of core deposit intangibles that are being amortized over 10 years on an accelerated basis. The acquired time deposits of $16.7 million were recorded at a fair value of $16.9 million. The fair value premium of $185,000 is being accreted against interest expense over 20 months. The acquired loan portfolio of $27.9 million was recorded at a fair value of $27.5 million. The fair value discount of $458,000 is being accreted to interest income on a straight-line basis over an average of 39 months in accordance with ASC 310-20. While there were some loans identified for potential classification under ASC 310-30, they were not material to the transaction. On October 22, 2018, the Company changed the name of Joy State Bank to Farmers-Merchants Bank of Illinois (“FMBI”). Certain fair value measurements and the purchase price allocation are still being evaluated by management and are subject to change during the measurement period. As a result of the acquisition, the Company increased its deposit base and benefited from economies of scale. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows. On October 1, 2018, the Company acquired FM Bancorp, Inc., a bank holding company, and its wholly owned subsidiary, FMNBP. On that date, FM Bancorp, Inc. ultimately merged with and into the Company, with the Company as the surviving entity, and FMNBP merged with and into Joy State Bank, with Joy State Bank as the surviving bank. Effective October 22, 2018, Joy State Bank’s name changed to Farmers-Merchants Bank of Illinois (“FMBI”). Under the terms of the merger agreement, shareholders of the 27,537 outstanding shares of FM Bancorp, Inc. were compensated $795.29 per share, for a total purchase price of $21.9 million. As of December 31, 2018, FM Bancorp, Inc. and Farmers-Merchants National Bank of Paxton had total assets of approximately $110.0 million, available for sale securities of $66.3 million, deposits of approximately $95.7 million, and net loan receivables of approximately $35.0 million. The Company recorded goodwill and intangible assets totaling $6.9 million and $1.9 million. The intangible assets consisted of core deposit intangibles that are being amortized over 10 years on an accelerated basis. The acquired available for sale securities of $66.3 million were recorded at fair value. A fair value discount associated with securities of $1.0 million is being accreted into interest income, in accordance with ASC 310-20. While there were some loans identified for potential classification under ASC 310-30, they were not material to the transaction. The acquired gross loan portfolio of $35.4 million was recorded at a fair value of $34.8 million. The fair value discount of $625,000 includes a discount related to interest assumptions for $279,000 and to credit assumptions for $346,000. The portion related to interest assumptions is being accreted into interest income on a straight-line basis over an average of 72 months in accordance with ASC 310-20. The discount portion related to credit assumptions is being accreted into interest income over the life of the loan. The acquired deposits of $95.7 million were recorded at a fair value of $95.7 million. As a result of the acquisition, the Company increased its deposit base and benefited from economies of scale. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows. On December 31, 2018, the Company acquired the assets of NattyMac, LLC, a warehouse lender operating out of Clearwater, Florida, from Home Point. The Company also fully repaid Home Point the balance of, and all interest owed on, the $30 million subordinated debt it had previously invested in the Company. Goodwill and intangible assets of $3.7 million and $1.6 million, respectively, have been recorded by the Company. The intangible assets related to customer lists that are being amortized using the straight-line method over 21 months. As a result of the acquisition, the Company expects to increase its geographic footprint in the warehouse business, reduce its costs of borrowing, increase the earnings generated from its warehouse business, and benefit from its experienced talent pool. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows. Given the impact of the acquisitions was immaterial to the Company and its results of operations, pro forma information has not been included.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, loan servicing rights and fair values of financial instruments.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents consist primarily of cash amounts due from depository institutions, interest‑bearing deposits in other banks, money market accounts, and federal funds sold. At December 31, 2019, the Company’s cash accounts exceeded federally insured limits by approximately $492.1 million. Included in this amount is approximately $478.8 million with the Federal Reserve and $2.3 million with the Federal Home Loan Bank of Indianapolis (“FHLBI”), and $20,000 with the Federal Home Loan Bank of Chicago (“FHLBC”). At December 31, 2018, the Company’s cash accounts exceeded federally insured limits by approximately $331.2 million. Included in this amount is approximately $295.4 million with the FHLBI, $12.9 million with the FHLBC, and $15,000 with the Federal Home Loan Bank of Chicago.
Securities purchased under agreements to resell	Securities purchased under agreements to resell Securities purchased pursuant to a simultaneous agreement (RRA) to resell the same securities at a specified price and date generally have maturity dates of 90 days or less and are carried at cost. Every 90 days the RRAs rollover.
Trading Activities	Trading Activities The Company engages in trading activities. Securities that are held principally for resale in the near term are recorded in the trading assets account at fair value with changes in fair value recorded in earnings. Trading securities include FHA and conventional participation certificates. Interest is included in net interest income.
Securities	Securities Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. The Company had no securities held to maturity at December 31, 2019 or 2018. Securities not classified as held to maturity or trading are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other‑than‑temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held‑to‑maturity debt securities, the amount of other‑than‑temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other‑than‑temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security.
Loans Held for Sale under Mortgage Banking Activities	Loans Held for Sale under Mortgage Banking Activities The Company uses participation agreements to fund mortgage loans held for sale from closing or purchase until sale to an investor. Under a participation agreement the Company elects to purchase a participation interest of up to 100% in individual loans. The Company shares proportionately in the interest income and the credit risk until the loan is sold to an investor. The Company holds the collateral until it is sent under a bailee arrangement to the investor. Typical investors are large financial institutions or government agencies. These loans are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance and included in noninterest income. Other mortgage loans originated and intended for sale in the secondary market, for which the fair value option has been elected, are carried at fair value at each balance sheet date. The Company believes that the fair value is the best indicator of the resolution of these loans. The difference between the cost and fair value was not material at December 31, 2019. For all loans held for sale, interest earned from the time of funding to the time of sale is accrued and recognized as interest income. Gains and losses on loan sales are recorded in noninterest income, and generally direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income and noninterest expense upon sale of the loan. The gain on sale of loans in the income statement may include placement and origination fees, capitalized mortgage servicing rights, trading gains and losses and other related income .
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances adjusted for unearned income, charge‑offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well‑secured and in process of collection. Past‑due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. For loans that are placed on nonaccrual or that are charged off, all accrued interest is reversed against interest income. The interest on these loans is applied to the principal balance until the loan can be returned to an accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. For all loan portfolio segments, the Company promptly charges off loans, or portions thereof, when available information confirms that specific loans are uncollectable based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge‑off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms. The Company uses warehouse loans or credit to fund mortgage loans held for sale from closing until sale to an investor. Under a warehousing arrangement the Company funds a mortgage loan as secured financing. The warehousing arrangement is secured by the underlying mortgages and a combination of deposits, personal guarantees and advance rates. The Company holds the collateral until it is sent under a bailee arrangement instructing the investor to send proceeds to the Company. Typical investors are large financial institutions or government agencies. Interest earned from the time of funding to the time of sale is recognized as interest income as accrued. Fees earned agreements are recognized when collected as noninterest income.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to net interest income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non‑impaired loans and is based on historical charge off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case‑by‑case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by the fair value of the collateral if the loan is collateral dependent, the loan’s obtainable market price, or present value of expected future cash flows discounted at the loan’s effective interest rate. For impaired loans where the Company utilizes discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In restructuring the loan, the Company attempts to work out an alternative payment schedule with the borrower in order to optimize collectability of the loan. A troubled debt restructuring (TDR) occurs when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status, and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. Nonaccrual loans, including TDRs that have not met the six-month minimum performance criterion, are reported as nonperforming loans. For all loan classes, it is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until three months of satisfactory borrower performance, at which time management would consider its return to accrual status. A loan is generally classified as nonaccrual when the Company believes that receipt of principal and interest is doubtful under the terms of the loan agreement. Most generally, this is at 90 or more days past due. With regard to determination of the amount of the allowance for credit losses, restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously above.
Premises and Equipment	Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight‑line method over the estimated useful lives of the assets. The estimated useful lives for premises and equipment are as follows: Buildings 10 to 40 years Leasehold improvements 5 to 39 years Furniture, fixtures and equipment 3 to 10 years Vehicles 5 years Expenditures for property and equipment and for renewals or betterments that extend the originally estimated economic life of the assets are capitalized. Expenditures for maintenance and repairs are charged to expense. When an asset is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the results of operations.
Federal Home Loan Bank Stock	Federal Home Loan Bank Stock Federal Home Loan Bank (FHLB) stock is a required investment for institutions that are members of a FHLB. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment.
Other Real Estate Owned	Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expense from other real estate.
Mortgage Servicing Rights	Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860‑50), servicing rights resulting from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company has elected to initially and subsequently measure the mortgage servicing rights for mortgage loans using the fair value method. Under the fair value method, the servicing rights are carried in the balance sheet at fair value and the changes in fair value are reported in earnings in the period in which the changes occur. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model is from an independent third party and it incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, prepayment penalties, and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage‑servicing right and may result in a reduction to noninterest income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The change in the fair value of the mortgage‑servicing rights is netted against loan servicing fee income.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill is tested annually for impairment or more frequently if impairment indicators are present. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. Intangible assets, which include licenses and trade names, are amortized over a period ranging from 84 to 120 months using a straight-line method of amortization. Customer list intangible assets are amortized over 21 months using a straight-line method of amortization. Also included are core deposit intangibles that are amortized over a 10 year period using the accelerated sum of the years digits method of amortization. On a periodic basis, the Company evaluates events and circumstances that may indicate a change in the recoverability of the carrying value.
Investment in Qualified Affordable Housing Limited Partnerships	Investment in Qualified Affordable Housing Limited Partnerships The Company has elected to account for its investment in affordable housing tax credit limited partnerships using the proportional amortization method described in FASB ASU 2014‑01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (A Consensus of the FASB Emerging Issues Task Force).” Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The investment in the limited partnerships is included in other assets in the consolidated balance sheets.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes ). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more‑likely‑than‑not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more‑likely‑than‑not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non‑U.S. income tax examinations by tax authorities for years before 2016. The Company recognizes interest and penalties, if any, on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries.
Earnings Per Share	Earnings Per Share Basic earnings per share is the Company’s net income available to common shareholders, which represents net income less dividends paid or payable to preferred stock shareholders, if any, divided by the weighted‑average number of common shares outstanding during each period. Diluted earnings per share is calculated in the same manner as basic earnings per share, but also reflects the issuance of additional common shares that would have been diluted if such shares had been outstanding, as well as any adjustment to income that would result from the assumed issuance.
Share based Compensation Plan	Share‑based Compensation Plan The Company has a restricted stock plan that provides for annual awards of shares to certain members of senior management based upon the Company’s performance and attainment of certain performance goals established by the Board of Directors. Share awards are valued at the estimated fair value on the date of the award and generally vest over three years. Compensation expense for the awards is recognized in the consolidated financial statements ratably over the vesting period. In 2018, the Compensation Committee of the Board of Directors also approved a plan for non-executive directors to receive a portion of their annual fees in the form of common stock, which is typically issued once per year, subsequent to the annual meeting of shareholders.
Revenue Recognition	Revenue Recognition The Company’s principal source of revenue is interest income from loans, investment securities and other financial instruments that are not within the scope of Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers”. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. Interest income on loans is accrued as earned using the interest method based on unpaid principal balances except for interest on loans in nonaccrual status. Interest on loans in nonaccrual status is recorded as a reduction of loan principal when received. The Company also earns other noninterest income through a variety of financial and transaction services provided to corporate and consumer clients such as deposit service charges, debit card network fees, collection fees, safe deposit box rental fees and gain/(loss) on sale of other real estate owned. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed.
Comprehensive Income	Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss), net of applicable income taxes. Other comprehensive income (loss) and accumulated other comprehensive income consist of unrealized appreciation (depreciation) on available‑for‑sale investment securities and reclassification adjustments for investment gains/(losses) on the sale of available-for-sale investment securities.
Reclassifications	Derivative Financial Instruments The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies. These derivative financial instruments consist primarily of interest rate swaps and forward sale commitments. These derivative instruments are recorded on the Consolidated Statements of Financial Condition, as either an asset or liability, at their fair value. Changes in fair value are recognized in noninterest income on the Consolidated Statements of Income. The Company also began offering interest rate swaps to some customers through a third-party dealer. These derivatives generally work together as an economic interest rate hedge, but the Company does not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability are recorded as either a charge or credit to current earnings during the period in which the changes occurred, typically resulting in no net earnings impact. Reclassifications Certain reclassifications have been made to the 2018 and 2017 financial statements to conform to the financial statement presentation as of and for the year ended December 31, 2019. These reclassifications had no effect on net income.

Nature of Operations and Summ_3

Nature of Operations and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Nature of Operations and Summary of Significant Accounting Policies
Schedule of estimated useful lives	Buildings 10 to 40 years Leasehold improvements 5 to 39 years Furniture, fixtures and equipment 3 to 10 years Vehicles 5 years

Securities (Tables)

Securities (Tables)	12 Months Ended
	Dec. 31, 2019
Securities
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses	December 31, 2019 Gross Gross Approximate Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available-for-sale securities: Treasury notes $ 4,744 $ 21 $ — $ 4,765 Federal agencies 244,986 24 37 244,973 Municipals 5,577 360 — 5,937 Mortgage-backed - Government-sponsored entity (GSE) - residential 34,357 213 2 34,568 Total available-for-sale securities $ 289,664 $ 618 $ 39 $ 290,243 December 31, 2018 Gross Gross Approximate Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available-for-sale securities: Treasury notes $ 11,928 $ 26 $ 13 $ 11,941 Federal agencies 237,894 8 972 236,930 Municipals 21,014 336 18 21,332 Mortgage-backed - Government-sponsored entity (GSE) - residential 60,693 254 79 60,868 Total available-for-sale securities $ 331,529 $ 624 $ 1,082 $ 331,071
Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity	December 31, 2019 Amortized Fair Cost Value Contractual Maturity (In thousands) Within one year $ 23,250 $ 23,233 After one through five years 226,748 226,783 After five through ten years — — After ten years 5,309 5,659 255,307 255,675 Mortgage-backed - Government-sponsored entity (GSE) - residential 34,357 34,568 $ 289,664 $ 290,243
Schedule of gross unrealized losses and fair value of investments with unrealized losses have been in continuous	December 31, 2019 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available-for-sale securities: Treasury notes $ — $ — $ — $ — $ — $ — Federal agencies 94,963 37 — — 94,963 37 Municipals — — — — — — Mortgage-backed - Government-sponsored entity (GSE) - residential 809 2 — — 809 2 $ 95,772 $ 39 $ — $ — $ 95,772 $ 39 December 31, 2018 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available-for-sale securities: Treasury notes $ 1,990 $ 8 $ 995 $ 5 $ 2,985 $ 13 Federal agencies 28,296 97 191,280 875 219,576 972 Municipals 2,051 18 — — 2,051 18 Mortgage-backed - Government-sponsored entity (GSE) - residential 15,543 79 — — 15,543 79 $ 47,880 $ 202 $ 192,275 $ 880 $ 240,155 $ 1,082

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2019
Loans and Allowance for Loan Losses
Summary of loans	December 31, December 31, 2019 2018 (In thousands) Mortgage warehouse lines of credit $ 765,151 $ 337,332 Residential real estate 413,835 410,871 Multi-family and healthcare financing 1,347,125 914,393 Commercial and commercial real estate 398,601 299,194 Agricultural production and real estate 85,210 79,255 Consumer and margin loans 18,388 17,082 3,028,310 2,058,127 Less Allowance for loan losses 15,842 12,704 Loans Receivable $ 3,012,468 $ 2,045,423
Summary of activity in the allowance for loans and recorded investment by loan portfolio	At or For the Year Ended December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 1,068 $ 1,986 $ 6,030 $ 3,051 $ 429 $ 140 $ 12,704 Provision for loan losses 952 56 988 1,817 94 33 3,940 Loans charged to the allowance (107) — — (857) — — (964) Recoveries of loans previously charged off — — — 162 — — 162 Balance, end of period $ 1,913 $ 2,042 $ 7,018 $ 4,173 $ 523 $ 173 $ 15,842 Ending balance: individually evaluated for impairment $ — $ 23 $ — $ 650 $ — $ 8 $ 681 Ending balance: collectively evaluated for impairment $ 1,913 $ 2,019 $ 7,018 $ 3,523 $ 523 $ 165 $ 15,161 Loans Ending balance $ 765,151 $ 413,835 $ 1,347,125 $ 398,601 $ 85,210 $ 18,388 $ 3,028,310 Ending balance individually evaluated for impairment $ 233 $ 3,109 $ — $ 9,152 $ — $ 23 $ 12,517 Ending balance collectively evaluated for impairment $ 764,918 $ 410,726 $ 1,347,125 $ 389,449 $ 85,210 $ 18,365 $ 3,015,793 At or For the Year Ended December 31, 2018 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 283 $ 1,587 $ 3,502 $ 2,362 $ 320 $ 257 $ 8,311 Provision (credit) for loan losses 785 399 2,528 779 109 29 4,629 Loans charged to the allowance — — — (90) — (146) (236) Recoveries of loans previously charged off — — — — — — — Balance, end of period $ 1,068 $ 1,986 $ 6,030 $ 3,051 $ 429 $ 140 $ 12,704 Ending balance: individually evaluated for impairment $ 225 $ — $ — $ 400 $ 20 $ — $ 645 Ending balance: collectively evaluated for impairment $ 843 $ 1,986 $ 6,030 $ 2,651 $ 409 $ 140 $ 12,059 Loans Ending balance $ 337,332 $ 410,871 $ 914,393 $ 299,194 $ 79,255 $ 17,082 $ 2,058,127 Ending balance individually evaluated for impairment $ 575 $ 1,606 $ — $ 8,576 $ 370 $ 58 $ 11,185 Ending balance collectively evaluated for impairment $ 336,757 $ 409,265 $ 914,393 $ 290,618 $ 78,885 $ 17,024 $ 2,046,942 For the Year Ended December 31, 2017 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of year $ 373 $ 2,170 $ 1,962 $ 1,374 $ 269 $ 102 $ 6,250 Provision for loan losses (90) (583) 1,540 1,399 51 155 2,472 Loans charged to the allowance — — — (546) — — (546) Recoveries of loans previously charged off — — — 135 — — 135 Balance, end of year $ 283 $ 1,587 $ 3,502 $ 2,362 $ 320 $ 257 $ 8,311
Schedule of credit risk profile of loan portfolio	December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 2,472 $ 41,882 $ 13,806 $ 2,114 $ 31 $ 60,305 Substandard 233 3,109 — 9,152 — 23 12,517 Doubtful — — — — — — — Acceptable and Above 764,918 408,254 1,305,243 375,643 83,096 18,334 2,955,488 Total $ 765,151 $ 413,835 $ 1,347,125 $ 398,601 $ 85,210 $ 18,388 $ 3,028,310 December 31, 2018 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 443 $ 71,734 $ 14,650 $ 3,096 $ 681 $ 90,604 Substandard 575 1,606 — 8,576 370 58 11,185 Doubtful — — — — — — — Acceptable and Above 336,757 408,822 842,659 275,968 75,789 16,343 1,956,338 Total $ 337,332 $ 410,871 $ 914,393 $ 299,194 $ 79,255 $ 17,082 $ 2,058,127
Schedule of aging analysis of the recorded investment in loans	December 31, 2019 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 765,151 $ 765,151 RES RE 3,089 562 2,324 5,975 407,860 413,835 MF RE — — — — 1,347,125 1,347,125 CML & CRE 2,293 335 1,663 4,291 394,310 398,601 AG & AGRE 2,047 — 195 2,242 82,968 85,210 CON & MAR 50 31 19 100 18,288 18,388 $ 7,479 $ 928 $ 4,201 $ 12,608 $ 3,015,702 $ 3,028,310 December 31, 2018 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ 324 $ 324 $ 337,008 $ 337,332 RES RE 579 178 825 1,582 409,289 410,871 MF RE — — — — 914,393 914,393 CML & CRE 245 52 253 550 298,644 299,194 AG & AGRE 91 — 588 679 78,576 79,255 CON & MAR 2 52 28 82 17,000 17,082 $ 917 $ 282 $ 2,018 $ 3,217 $ 2,054,910 $ 2,058,127
Schedule of components of impaired loans and specific valuation allowance	December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ 233 $ 2,899 $ — $ 6,662 $ — $ 12 $ 9,806 Unpaid principal balance 233 2,899 — 6,662 — 12 9,806 Impaired loans with a specific allowance: Recorded investment — 210 — 2,490 — 11 2,711 Unpaid principal balance — 210 — 2,490 — 11 2,711 Specific allowance — 23 — 650 — 8 681 Total impaired loans: Recorded investment 233 3,109 — 9,152 — 23 12,517 Unpaid principal balance 233 3,109 — 9,152 — 23 12,517 Specific allowance — 23 — 650 — 8 681 December 31, 2018 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ 251 $ 1,606 $ — $ 5,636 $ 88 $ 58 $ 7,639 Unpaid principal balance 251 1,606 — 5,636 88 58 7,639 Impaired loans with a specific allowance: Recorded investment 324 — — 2,940 282 — 3,546 Unpaid principal balance 324 — — 2,940 282 — 3,546 Specific allowance 225 — — 400 20 — 645 Total impaired loans: Recorded investment 575 1,606 — 8,576 370 58 11,185 Unpaid principal balance 575 1,606 — 8,576 370 58 11,185 Specific allowance 225 — — 400 20 — 645
Schedule of average recorded investment and interest income recognized in impaired loans	December 31, 2019 MTG CML & AG & CON & WHLOC RES RE MF RE CRE AGRE MAR TOTAL (In thousands) Average recorded investment in impaired loans $ 242 $ 3,175 $ — $ 8,675 $ — $ 25 $ 12,117 Interest income recognized — 71 — 463 — — 534 December 31, 2018 MTG CML & AG & CON & WHLOC RES RE MF RE CRE AGRE MAR TOTAL (In thousands) Average recorded investment in impaired loans $ 932 $ 1,485 $ — $ 8,872 $ 489 $ 52 $ 11,830 Interest income recognized 59 50 — 375 43 1 528 December 31, 2017 MTG CML & AG & CON & WHLOC RES RE MF RE CRE AGRE MAR TOTAL (In thousands) Average recorded investment in impaired loans $ — $ 156 $ — $ 3,703 $ 282 $ 197 $ 4,338 Interest income recognized — 1 — 182 — — 183
Schedule of nonaccrual loans and loans past due 90 days or more and still accruing	December 31, December 31, 2019 2018 Total Loans > Total Loans > 90 Days & 90 Days & Nonaccrual Accruing Nonaccrual Accruing (In thousands) MTG WHLOC $ 233 $ — $ 575 $ — RES RE 740 1,851 893 74 MF RE — — — — CML & CRE 1,118 486 136 117 AG & AGRE — 231 282 307 CON & MAR 18 1 18 9 $ 2,109 $ 2,569 $ 1,904 $ 507

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2019
Derivative [Line Items]
Summary of notional amount and fair value of derivative assets and liabilities	Notional Fair Value Amount Balance Sheet Location Asset (Liability) December 31, 2019 (In thousands) (In thousands) Interest rate lock commitments $ 17,826 Derivative assets/liabilities $ 186 $ — Forward contracts 34,268 Derivative assets/liabilities — 27 $ 186 $ 27 Notional Fair Value Amount Balance Sheet Location Asset (Liability) December 31, 2018 (In thousands) (In thousands) Interest rate lock commitments $ 8,812 Derivative assets/liabilities $ 70 $ — Forward contracts 19,640 Derivative assets/liabilities — 9 $ 70 $ 9
Summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income	Year Ended December 31, 2019 2018 2017 (In thousands) Interest rate lock commitments $ 116 $ 70 $ — Forward contracts (1) (53) (64) — Net gains (losses) 63 $ 6 $ —
Interest rate swaps
Derivative [Line Items]
Summary of notional amount and fair value of derivative assets and liabilities	Notional Fair Value Amount Balance Sheet Location Asset Liability (In thousands) (In thousands) December 31, 2019 $ 58,067 Other assets/liabilities $ 511 $ 511 December 31, 2018 — Other assets/liabilities $ — $ —
Summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income	Year Ended December 31, 2019 2018 2017 (In thousands) Gross swap gains $ 511 $ — $ — Gross swap losses (511) — — Net swap gains (losses) — $ — $ —

Loan Servicing (Tables)

Loan Servicing (Tables)	12 Months Ended
	Dec. 31, 2019
Loan Servicing
Schedule of mortgage servicing rights measured using fair value method	For the Year Ended December 31, 2019 2018 2017 (In thousands) Balance, beginning of period $ 77,844 $ 66,079 $ 53,670 Additions Originated and purchased servicing 7,332 14,113 10,993 Acquisition of MCS — — 3,970 Subtractions Paydowns (5,994) (4,196) (5,504) Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model (4,795) 1,848 2,950 Balance, end of period $ 74,387 $ 77,844 $ 66,079

Goodwill and Intangibles (Table

Goodwill and Intangibles (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangibles
Schedule of goodwill	2019 2018 2017 Multifamily Banking Warehouse Total Multifamily Banking Warehouse Total Multifamily Banking Warehouse Total (In thousands) (In thousands) (In thousands) Balance, beginning of period $ 3,791 $ 8,686 $ 5,000 $ 17,477 $ 3,379 $ 523 $ — $ 3,902 $ — $ 523 $ — $ 523 Goodwill acquired during the period — — — — — 8,163 5,000 13,163 3,379 — — 3,379 Post-acquisition adjustments — (333) (1,299) (1,632) 412 — — 412 — — — — Impairment losses — — — — — — — — — — — — Balance, end of period $ 3,791 $ 8,353 $ 3,701 $ 15,845 $ 3,791 $ 8,686 $ 5,000 $ 17,477 $ 3,379 $ 523 $ — $ 3,902
Schedule of intangible assets	2019 2018 2017 Gross Gross Gross Carrying Accumulated Carrying Accumulated Carrying Accumulated Amount Amortization Total Amount Amortization Total Amount Amortization Total (In thousands) (In thousands) (In thousands) Licenses $ 1,370 $ (465) $ 905 $ 1,370 $ (269) $ 1,101 $ 1,370 $ (74) $ 1,296 Trade names 224 (53) 171 224 (31) 193 224 (8) 216 Customer list 1,570 (673) 897 — — — — — — Core deposit intangible 2,417 (591) 1,826 2,417 (169) 2,248 — — — Total intangible Assets $ 5,581 $ (1,782) $ 3,799 $ 4,011 $ (469) $ 3,542 $ 1,594 $ (82) $ 1,512
Estimated amortization expense	Estimated amortization expense for future years is as follows (in thousands): Year ending December 31, 2020 $ 1,516 2021 577 2022 521 2023 462 2024 335 Thereafter 388 Total $ 3,799

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2019
Premises and Equipment
Schedule of premises and equipment stated at cost	December 31, 2019 2018 (In thousands) Land $ 3,072 $ 3,072 Buildings 22,775 4,095 Building in progress — 8,272 Leasehold improvements 53 83 Furniture, fixtures and equipment 6,445 2,427 Total cost 32,345 17,949 Accumulated depreciation (3,071) (2,813) Net premises and equipment $ 29,274 $ 15,136

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2019
Deposits
Schedule of deposits	December 31, 2019 2018 (In thousands) Demand deposits $ 2,099,373 $ 1,548,969 Savings deposits 1,204,363 1,001,663 Certificates of deposit 2,174,339 680,454 Total deposits $ 5,478,075 $ 3,231,086
Schedule of maturities of time deposits	December 31, 2019 (In thousands) Due within one year $ 2,084,369 Due in one year to two years 57,085 Due in two years to three years 25,038 Due in three years to four years 6,284 Due in four years to five years 1,563 $ 2,174,339
Schedule of brokered deposit amounts	December 31, 2019 2018 (In thousands) Brokered certificates of deposit $ 1,962,389 $ 578,471 Brokered savings deposits 184,603 109,607 Brokered deposit on demand accounts 10,001 300,134 $ 2,156,993 $ 988,212

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2019
Borrowings
Schedule of borrowings	December 31, 2019 2018 (In thousands) Lines of credit $ 6,540 $ 33,150 Short-term subordinated debt 12,200 10,582 FHLB advances 162,699 151,721 Total borrowings $ 181,439 $ 195,453
Schedule of maturities of FHLB advances	December 31, 2019 (In thousands) Due within one year $ 145,589 Due in one year to two years 15,077 Due in two years to three years 59 Due in three years to four years 342 Due in four years to five years 61 Thereafter 1,571 $ 162,699

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes
Schedule of provision for income taxes includes components	Year Ended December 31, 2019 2018 2017 (In thousands) Income tax expense Current tax payable Federal $ 21,396 $ 13,312 $ 21,413 State 4,387 5,528 3,479 Deferred tax payable Federal (375) 1,583 (2,627) State (603) 730 212 Income tax expense $ 24,805 $ 21,153 $ 22,477 Effective tax rate 24.3 % 29.1 % 29.1 %
Schedule of a reconciliation of statutory federal tax rate and effective tax rate	Year Ended December 31, 2019 2018 2017 (In thousands) Computed at the statutory rate (21% for 2019 and 2018, and 35% for 2017) $ 21,448 $ 17,646 $ 27,006 Increase resulting from State income taxes 2,989 4,944 2,399 Effect of Tax Cuts and Jobs Act — — (6,928) Tax Credits net of related amortization (190) (1,533) — Other 558 96 — Actual tax expense $ 24,805 $ 21,153 $ 22,477
Schedule of tax effects of temporary differences related to deferred taxes	December 31, 2019 2018 (In thousands) Deferred tax assets Allowance for loan losses $ 4,069 $ 3,366 Unrealized loss on available for sale securities — 148 Fair value adjustments on acquisitions 228 — Other 1,309 854 Total assets 5,606 4,368 Deferred tax liabilities Depreciation (1,374) (466) Intangible assets (466) (618) Mortgage servicing rights (17,035) (17,477) Limited partnership investments (1,791) (2,212) Unrealized loss on available for sale securities (121) — Fair value adjustments on acquisitions — (3) Total liabilities (20,787) (20,776) Net deferred tax liability $ (15,181) $ (16,408)

Regulatory Matters (Tables)

Regulatory Matters (Tables)	12 Months Ended
	Dec. 31, 2019
Regulatory Matters
Summary of bank's actual capital amounts and ratios	Minimum Amount Required for Minimum Amount Adequately To Be Well Actual Capitalized (1) Capitalized (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2019 Total capital (1) (to risk-weighted assets) Company $ 637,472 11.6 % $ 440,063 8.0 % $ — N/A Merchants Bank 639,104 12.0 % 426,748 8.0 % 533,435 10.0 % FMBI 21,726 13.1 % 13,306 8.0 % 16,632 10.0 % Tier 1 capital (1) (to risk-weighted assets) Company 621,630 11.3 % 330,047 6.0 % — N/A Merchants Bank 623,716 11.7 % 320,061 6.0 % 426,748 8.0 % FMBI 21,272 12.8 % 9,979 6.0 % 13,306 8.0 % Common Equity Tier 1 capital (1) (to risk-weighted assets) Company 408,984 7.4 % 247,536 4.5 % — N/A Merchants Bank 623,716 11.7 % 240,046 4.5 % 346,733 6.5 % FMBI 21,272 12.8 % 7,484 4.5 % 10,811 6.5 % Tier 1 capital (1) (to average assets) Company 621,630 9.4 % 264,324 4.0 % — N/A Merchants Bank 623,716 9.7 % 257,487 4.0 % 321,859 5.0 % FMBI 21,272 11.7 % 7,302 4.0 % 9,128 5.0 % (1) As defined by regulatory agencies. Minimum Minimum Amount Required Amount To Be for Adequately Well Actual Capitalized (1) Capitalized (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2018 Total capital(1) (to risk-weighted assets) Company $ 393,654 12.3 % $ 255,884 8.0 % $ — N/A Merchants Bank 412,386 13.3 % 248,290 8.0 % 310,363 10.0 % FMBI 17,537 18.6 % 7,559 8.0 % 9,448 10.0 % Tier 1 capital(1) (to risk-weighted assets) Company 380,950 11.9 % 191,913 6.0 % — N/A Merchants Bank 399,815 12.9 % 186,218 6.0 % 248,290 8.0 % FMBI 17,404 18.4 % 5,669 6.0 % 7,559 8.0 % Common Equity Tier 1 capital(1) (to risk-weighted assets) Company 339,369 10.6 % 143,935 4.5 % — N/A Merchants Bank 399,815 12.9 % 139,663 4.5 % 201,736 6.5 % FMBI 17,404 18.4 % 4,252 4.5 % 6,141 6.5 % Tier 1 capital(1) (to average assets) Company 380,950 10.0 % 152,081 4.0 % — N/A Merchants Bank 399,815 11.0 % 145,723 4.0 % 182,154 5 % FMBI 17,404 10.8 % 6,453 4.0 % 8,066 5.0 % (1) As defined by regulatory agencies. Beginning January 1, 2015, the Basel III capital rules applied to Merchants Bank. The following table lists the capital categories and ratios determined by the Federal Reserve and FDIC. Common Equity Total Risk-based Tier 1 Risk-based Tier 1 Risk-based Tier 1 Capital Category Capital ratio Capital ratio Capital ratio Leverage ratio Well capitalized 10 % 8 % 6.5 % 5 % Adequately capitalized 8 6 4.5 4 Undercapitalized <8 <6 <4.5 <4 Significantly undercapitalized <6 <4 <3 <3 Critically undercapitalized Tangible Equity/Total Assets </= 2%

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings Per Share
Schedule of computation of earnings per share	Year Ended December 31, 2019 2018 2017 Weighted- Per Weighted- Per Weighted- Per Net Average Share Net Average Share Net Average Share Income Shares Amount Income Shares Amount Income Shares Amount (In thousands) (In thousands) (In thousands) Net income $ 77,329 $ 62,874 $ 54,684 Dividends on preferred stock (9,216) (3,330) (3,330) Net income allocated to common shareholders $ 68,113 $ 59,544 $ 51,354 Basic earnings per share 28,705,125 $ 2.37 28,692,955 $ 2.08 22,551,452 $ 2.28 Effect of dilutive securities—restricted stock awards 40,582 31,464 16,702 Diluted earnings per share 28,745,707 $ 2.37 28,724,419 $ 2.07 22,568,154 $ 2.28

Disclosures about Fair Value _2

Disclosures about Fair Value of Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Disclosures about Fair Value of Assets and Liabilities
Schedule of fair value measurement of assets measured at fair value on recurring basis	Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Assets Value (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2019 Trading securities $ 269,891 $ — $ 269,891 $ — Available-for-sale securities: Treasury notes 4,765 4,765 — — Federal agencies 244,973 — 244,973 — Municipals 5,937 — 5,937 — Mortgage-backed - Government-sponsored entity (GSE) - residential 34,568 — 34,568 — Loans held for sale 19,592 — 19,592 — Mortgage servicing rights 74,387 — — 74,387 Derivative assets - interest rate lock commitments 186 — — 186 Derivative asset - interest rate swap 511 — 511 — Derivative liabilities - forward contracts 27 — 27 — Derivative liabilities - interest rate swap 511 — 511 — December 31, 2018 Trading securities $ 163,419 $ — $ 163,419 $ — Available-for-sale securities: Treasury notes 11,941 11,941 — — Federal agencies 236,930 — 236,930 — Municipals 21,332 — 21,332 — Mortgage-backed - Government-sponsored entity (GSE) - residential 60,868 60,868 — Loans held for sale 11,886 — 11,886 — Mortgage servicing rights 77,844 — — 77,844 Derivative assets - interest rate lock commitments 70 — — 70 Derivative liabilities - forward contracts 9 — 9 —
Schedule of Level 3 reconciliation of recurring fair value measurements	Year Ended December 31, 2019 2018 2017 (In thousands) Mortgage servicing rights Balance, beginning of period $ 77,844 $ 66,079 $ 53,670 Additions Originated and purchased servicing 7,332 14,113 10,993 Acquisition of MCS — — 3,970 Subtractions Paydowns (5,994) (4,196) (5,504) Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model (4,795) 1,848 2,950 Balance, end of period $ 74,387 $ 77,844 $ 66,079 Available-for-sale securities - Municipals Balance, beginning of period $ — $ 6,688 $ — Additions Purchased securities — — 6,688 Subtractions Paydowns — (257) — Sales — (6,431) — Unrealized gains (losses) included in other comprehensive income — — — Balance, end of period $ — $ — $ 6,688 Derivative Assets - interest rate lock commitments Balance, beginning of period $ 70 $ — $ — Purchases — — — Changes in fair value 116 70 — Balance, end of period $ 186 $ 70 $ —
Schedule of fair value measurement of assets and liabilities measured at fair value on nonrecurring basis	Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Assets Value (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2019 Impaired loans (collateral-dependent) $ 1,570 $ — $ — $ 1,570 December 31, 2018 Impaired loans (collateral-dependent) $ 2,639 $ — $ — $ 2,639
Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill	Valuation Fair Value Technique Unobservable Inputs Range (In thousands) At December 31, 2019: Collateral-dependent impaired loans $ 1,570 Market comparable properties Marketability discount 37%-55% Mortgage servicing rights $ 74,387 Discounted cash flow Discount rate 8% - 13% Constant prepayment rate 1% - 39% Derivative assets - interest rate lock commitments $ 186 Discounted cash flow Loan closing rates 73-99% At December 31, 2018: Collateral-dependent impaired loans $ 2,639 Market comparable properties Marketability discount 5% - 47% Mortgage servicing rights $ 77,844 Discounted cash flow Discount rate 8% - 13% Constant prepayment rate 1% - 36% Derivative assets - interest rate lock commitments $ 70 Discounted cash flow loan closing rates 95-100%
Schedule of carrying amount and estimated fair value of financial instruments	Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Assets Value Value (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2019 Financial assets: Cash and cash equivalents $ 506,709 $ 506,709 $ 506,709 $ — $ — Securities purchased under agreements to resell 6,723 6,723 — 6,723 — FHLB stock 20,369 20,369 — 20,369 — Loans held for sale 2,074,197 2,074,197 — 2,074,197 — Loans, net 3,012,468 2,999,580 — — 2,999,580 Interest receivable 18,359 18,359 — 18,359 — Financial liabilities: Deposits 5,478,075 5,478,682 3,303,736 2,174,946 — Lines of credit 6,540 6,540 — 6,540 — Short-term subordinated debt 12,200 12,200 — 12,200 — FHLB advances 162,699 162,803 — 162,803 — Interest payable 11,938 11,938 — 11,938 — December 31, 2018 Financial assets: Cash and cash equivalents $ 336,524 $ 336,524 $ 336,524 $ — $ — Securities purchased under agreements to resell 6,875 6,875 — 6,875 — FHLB stock 7,974 7,974 — 7,974 — Loans held for sale 820,569 820,569 — 820,569 — Loans, net 2,045,423 2,041,772 — — 2,041,772 Interest receivable 13,827 13,827 — 13,827 — Financial liabilities: Deposits 3,231,086 3,230,397 2,550,632 679,765 — Lines of credit 33,150 33,150 — 33,150 — Short-term subordinated debt 10,582 10,582 — 10,582 — FHLB advances 151,721 151,723 — 151,723 — Interest payable 4,132 4,132 — 4,132 —

Commitments, Credit Risk, and_2

Commitments, Credit Risk, and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments, Credit Risk, and Contingencies
Schedule of business segment financial information	December 31, 2019 2018 (In thousands) Commitments subject to credit risk: Commitments to extend credit $ 761,068 $ 676,987 Standby letters of credit 26,944 23,030 Total commitments subject to credit risk 788,012 700,017 Commitments subject to certain performance criteria and cancellation: Outstanding commitments to originate loans $ 886,017 $ 507,216 Unfunded construction draws 287,659 457,762 Unfunded lines of warehouse credit 774,424 782,431 Total commitments subject to certain performance criteria and cancellation 1,948,100 1,747,409
Schedule of future minimum lease payments under operating leases	December 31, 2019 (In thousands) Due within one year $ 1,564 Due in one year to two years 1,383 Due in two years to three years 1,208 Due in three years to four years 1,208 Due in four years to five years 1,003 Thereafter 1,551 Total minimum lease payments $ 7,917

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Information
Schedule of business segment financial information	Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Year Ended December 31, 2019 Interest income $ 1,328 $ 102,157 $ 106,443 $ 2,067 $ 211,995 Interest expense — 50,880 45,681 (6,864) 89,697 Net interest income 1,328 51,277 60,762 8,931 122,298 Provision for loan losses — 1,358 2,582 — 3,940 Net interest income after provision for loan losses 1,328 49,919 58,180 8,931 118,358 Noninterest income 41,682 7,178 1,005 (2,776) 47,089 Noninterest expense 22,556 11,397 17,738 11,622 63,313 Income before income taxes 20,454 45,700 41,447 (5,467) 102,134 Income taxes 5,691 10,934 9,593 (1,413) 24,805 Net income $ 14,763 $ 34,766 $ 31,854 $ (4,054) $ 77,329 Total assets $ 188,866 $ 3,124,684 $ 3,018,568 $ 39,810 $ 6,371,928 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Year Ended December 31, 2018 Interest income $ 712 $ 58,784 $ 79,332 $ 1,735 $ 140,563 Interest expense — 24,369 29,508 (3,285) 50,592 Net interest income 712 34,415 49,824 5,020 89,971 Provision for loan losses — 1,372 3,257 — 4,629 Net interest income after provision for loan losses 712 33,043 46,567 5,020 85,342 Noninterest income 45,831 2,550 3,150 (1,946) 49,585 Noninterest expense 19,205 7,721 14,876 9,098 50,900 Income before income taxes 27,338 27,872 34,841 (6,024) 84,027 Income taxes 7,528 6,872 8,572 (1,819) 21,153 Net income $ 19,810 $ 21,000 $ 26,269 $ (4,205) $ 62,874 Total assets $ 166,102 $ 1,430,776 $ 2,256,687 $ 30,598 $ 3,884,163 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Year Ended December 31, 2017 Interest income $ 414 $ 48,798 $ 44,454 $ 721 $ 94,387 Interest expense — 13,673 14,853 (736) 27,790 Net interest income 414 35,125 29,601 1,457 66,597 Provision for loan losses — 452 2,020 — 2,472 Net interest income after provision for loan losses 414 34,673 27,581 1,457 64,125 Noninterest income 43,715 2,836 1,943 (814) 47,680 Noninterest expense 10,911 7,710 9,835 6,188 34,644 Income before income taxes 33,218 29,799 19,689 (5,545) 77,161 Income taxes 4,557 11,558 8,279 (1,917) 22,477 Net income $ 28,661 $ 18,241 $ 11,410 $ (3,628) $ 54,684 Total assets $ 134,390 $ 1,352,748 $ 1,889,140 $ 16,855 $ 3,393,133

Condensed Financial Informati_2

Condensed Financial Information (Parent Company Only) (Tables)	12 Months Ended
	Dec. 31, 2019
Condensed Financial Information (Parent Company Only)
Summary of condensed balance sheets	December 31, 2019 2018 (In thousands) Assets Cash and cash equivalents $ 463 $ 2,224 Investment in subsidiaries 664,878 453,028 Other assets 2,213 2,104 Total assets $ 667,554 $ 457,356 Liabilities Lines of credit $ — $ 25,000 Short-term subordinated debt 12,200 10,582 Other liabilities 1,626 537 Total liabilities 13,826 36,119 Shareholders’ Equity 653,728 421,237 Total liabilities and shareholders’ equity $ 667,554 $ 457,356
Summary of condensed statements of income and comprehensive income	Year Ended December 31, 2019 2018 2017 (In thousands) Income Dividends and return of capital from subsidiaries 43,903 37,816 13,632 Other Income — 195 208 Total income 43,903 38,011 13,840 Expenses Interest expense 3,641 8,055 7,603 Salaries and employee benefits 1,611 1,216 1,617 Professional fees 335 707 341 Other 423 420 251 Total expense 6,010 10,398 9,812 Income Before Income Tax and Equity in Undistributed Income of Subsidiaries 37,893 27,613 4,028 Income Tax Benefit (1,433) (2,542) (3,670) Income Before Equity in Undistributed Income of Subsidiaries 39,326 30,155 7,698 Equity in Undistributed Income of Subsidiaries 38,003 32,719 46,986 Net Income $ 77,329 $ 62,874 $ 54,684 Comprehensive Income $ 78,097 $ 63,813 $ 54,306
Summary of condensed statements of cash flows	Year Ended December 31, 2019 2018 2017 (In thousands) Operating Activities Net income $ 77,329 $ 62,874 $ 54,684 Adjustments to reconcile net income to net cash used in operating activities (36,567) (30,522) (44,185) Net cash provided by operating activities 40,762 32,352 10,499 Investing Activities Return of capital from/(contributed capital to) subsidiaries (173,078) 19,368 (101,868) Net cash paid for acquisitions — (27,209) — Other investing activity 126 74 189 Net cash used in investing activities (172,952) (7,767) (101,679) Financing Activities Net change in lines of credit and subordinated debt (23,382) (19,418) — Dividends paid (17,254) (10,216) (7,950) Proceeds from issuance of common stock — — 106,245 Proceeds from issuance of preferred stock 192,915 — — Repurchase of preferred stock (21,850) — — Net cash provided by (used in) financing activities 130,429 (29,634) 98,295 Net Change in Cash and Due From Banks (1,761) (5,049) 7,115 Cash and Due From Banks at Beginning of Year 2,224 7,273 158 Cash and Due From Banks at End of Year $ 463 $ 2,224 7,273

Quarterly Condensed Financial_2

Quarterly Condensed Financial Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Condensed Financial Information (Unaudited)
Schedule of quarterly condensed financial information (unaudited)	2019 Quarter Ended (Dollars in thousands, except per share data) March 31 June 30 September 30 December 31 Interest income $ 39,674 $ 48,761 $ 59,761 $ 63,799 Interest expense 15,543 20,839 27,137 26,178 Net interest income 24,131 27,922 32,624 37,621 Provision for loan losses 649 105 1,193 1,993 Net interest income after provision for loan losses 23,482 27,817 31,431 35,628 Noninterest income 3,664 9,870 10,852 22,703 Noninterest expense 13,035 15,920 15,522 18,836 Income before income taxes 14,111 21,767 26,761 39,495 Income taxes 3,541 5,328 6,502 9,434 Net income 10,570 16,439 20,259 30,061 Less: preferred stock dividends 833 1,743 3,022 3,618 Net income allocated to common shareholders $ 9,737 $ 14,696 $ 17,237 $ 26,443 Per common share data: Basic earnings per common share $ 0.34 $ 0.51 $ 0.60 $ 0.92 Diluted earnings per common share 0.34 0.51 0.60 0.92 2018 Quarter Ended (Dollars in thousands, except per share data) March 31 June 30 September 30 December 31 Interest income $ 29,038 $ 34,123 $ 37,577 $ 39,825 Interest expense 8,930 11,917 14,095 15,650 Net interest income 20,108 22,206 23,482 24,175 Provision for loan losses 1,406 998 617 1,608 Net interest income after provision for loan losses 18,702 21,208 22,865 22,567 Noninterest income 11,313 11,630 11,907 14,735 Noninterest expense 10,270 12,000 12,449 16,181 Income before income taxes 19,745 20,838 22,323 21,121 Income taxes 4,684 5,186 5,584 5,699 Net income 15,061 15,652 16,739 15,422 Less: preferred stock dividends 833 832 833 832 Net income allocated to common shareholders $ 14,228 $ 14,820 $ 15,906 $ 14,590 Per common share data: Basic earnings per common share $ 0.50 $ 0.52 $ 0.55 $ 0.51 Diluted earnings per common share 0.50 0.52 0.55 0.51

Nature of Operations and Summ_4

Nature of Operations and Summary of Significant Accounting Policies - Operations (Details)	12 Months Ended
	Dec. 31, 2019itemUSD ($)
Merchants Bank
Nature of Operations and Principles of Consolidation
Number of locations of operation | item	6
FMBI
Nature of Operations and Principles of Consolidation
Number of locations of operation | $	5

Nature of Operations and Summ_5

Nature of Operations and Summary of Significant Accounting Policies - Recent Acquisitions (Details) - USD ($)	Oct. 01, 2018	Jan. 02, 2018	Aug. 15, 2017	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Acquisitions
Goodwill				$ 15,845,000	$ 17,477,000		$ 3,902,000	$ 523,000
Total assets				6,371,928,000	3,884,163,000		3,393,133,000
Fair Value of available for sale securities				290,243,000	331,071,000
Time deposits at fair value				$ 2,174,339,000	$ 680,454,000
Core Deposits
Acquisitions
Useful life				10 years
Customer Lists
Acquisitions
Useful life					21 months
MCS
Acquisitions
Percentage of voting interests acquired			100.00%
Purchase price paid shares			$ 8,100,000
Goodwill			3,800,000
Intangible assets			$ 1,600,000
FMBI | Stock Purchase Agreement
Acquisitions
Total cost		$ 5,500,000
Goodwill		988,000
Intangible assets		478,000
Time deposits		16,700,000
Time deposits at fair value		16,900,000
Fair value premium of acquired time deposits		$ 185,000
Time deposits, fair value premium, accretion period		20 months
Acquired loan portfolio		$ 27,900,000
Acquired loan portfolio at fair value		27,500,000
Fair value discount on acquired loan portfolio		$ 458,000
Acquired loan portfolio, fair value discount, accretion period		39 months
FMBI | Core Deposits
Acquisitions
Useful life				10 years
FMBI | Core Deposits | Stock Purchase Agreement
Acquisitions
Useful life		10 years
FM Bancorp, Inc
Acquisitions
Outstanding shares of the acquiree	27,537
Share price per share	$ 795.29
Total cost	$ 21,900,000
Goodwill	6,900,000
Intangible assets	1,900,000
Fair Value of available for sale securities	66,300,000
Fair value discount on available for sale securities	1,000,000
Time deposits	95,700,000
Time deposits at fair value	95,700,000
Acquired loan portfolio	35,400,000
Acquired loan portfolio at fair value	34,800,000
Fair value discount on acquired loan portfolio	625,000
Discount related to interest assumption	279,000
Discount related to credit assumption	$ 346,000
Acquired loan portfolio, fair value discount, accretion period	72 months
FM Bancorp, Inc | Core Deposits
Acquisitions
Useful life	10 years
NattyMac, LLC
Acquisitions
Goodwill					$ 3,700,000
Intangible assets					1,600,000
Repayments of subordinated debt					$ 30,000,000
NattyMac, LLC | Customer Lists
Acquisitions
Useful life				21 months	21 months
FMBI
Acquisitions
Total assets							$ 43,000,000
FM Bancorp
Acquisitions
Total assets						$ 110,000,000
Fair Value of available for sale securities						66,300,000
Time deposits						95,700,000
Net loans receivable						$ 35,000,000

Nature of Operations and Summ_6

Nature of Operations and Summary of Significant Accounting Policies - Other (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents
Cash accounts in excess of federally insured limits	$ 492,100,000	$ 331,200,000
Cash accounts in excess of federally insured limits with Federal Reserve Bank	478,800,000	295,400,000
Cash accounts in excess of federally insured limits with Federal Home Loan Bank of Indianapolis	2,300,000	12,900,000
Cash accounts in excess of federally insured limits with Federal Home Loan Bank of Chicago	20,000	15,000
Securities
Securities, held-to-maturity	$ 0	$ 0
Loans Held for Sale under Mortgage Banking Activities
Maximum participation interest to be purchased in individual loans (as a percent)	100.00%

Nature of Operations and Summ_7

Nature of Operations and Summary of Significant Accounting Policies - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2019
Vehicles
Premises and Equipment
Estimated useful lives	5 years
Minimum | Buildings
Premises and Equipment
Estimated useful lives	10 years
Minimum | Leasehold improvements
Premises and Equipment
Estimated useful lives	5 years
Minimum | Furniture, fixtures and equipment
Premises and Equipment
Estimated useful lives	3 years
Maximum | Buildings
Premises and Equipment
Estimated useful lives	40 years
Maximum | Leasehold improvements
Premises and Equipment
Estimated useful lives	39 years
Maximum | Furniture, fixtures and equipment
Premises and Equipment
Estimated useful lives	10 years

Nature of Operations and Summ_8

Nature of Operations and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Customer Lists
Intangible assets
Amortization period		21 months
Core Deposits
Intangible assets
Amortization period	10 years
Minimum | Licenses and Trade Names
Intangible assets
Amortization period	84 months
Maximum | Licenses and Trade Names
Intangible assets
Amortization period	120 months

Nature of Operations and Summ_9

Nature of Operations and Summary of Significant Accounting Policies - Shared-based Compensation (Details)	12 Months Ended
	Dec. 31, 2019
Share-based Compensation Plan
Share awards vesting period	3 years

Restriction on Cash and Due F_2

Restriction on Cash and Due From Banks (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Restriction on Cash and Due From Banks
Reserve required for restriction on cash and due from banks	$ 184.5	$ 114.2

Securities - Trading Securities

Securities - Trading Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Trading Securities
Unrealized gains included in trading securities	$ 3,100,000	$ 870,000

Securities - Amortized Cost to

Securities - Amortized Cost to Approximate Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale securities:
Amortized Cost	$ 289,664	$ 331,529
Gross Unrealized Gains	618	624
Gross Unrealized Losses	39	1,082
Fair Value of available for sale securities	290,243	331,071
Treasury notes.
Available-for-sale securities:
Amortized Cost	4,744	11,928
Gross Unrealized Gains	21	26
Gross Unrealized Losses		13
Fair Value of available for sale securities	4,765	11,941
Federal agencies
Available-for-sale securities:
Amortized Cost	244,986	237,894
Gross Unrealized Gains	24	8
Gross Unrealized Losses	37	972
Fair Value of available for sale securities	244,973	236,930
Municipals
Available-for-sale securities:
Amortized Cost	5,577	21,014
Gross Unrealized Gains	360	336
Gross Unrealized Losses		18
Fair Value of available for sale securities	5,937	21,332
Mortgage-backed - Government-sponsored entity (GSE) - residential
Available-for-sale securities:
Amortized Cost	34,357	60,693
Gross Unrealized Gains	213	254
Gross Unrealized Losses	2	79
Fair Value of available for sale securities	$ 34,568	$ 60,868

Securities - Contractual Maturi

Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Contractual Maturities, Amortized Cost
Within one year	$ 23,250
After one through five years	226,748
After ten years	5,309
Amortized Costs, Gross	255,307
Amortized Costs, Net	289,664	$ 331,529
Contractual Maturities, Fair Value
Within one year	23,233
After one through five years	226,783
After ten years	5,659
Fair Value, Gross	255,675
Available-for-sale Securities, Debt Securities, Total	290,243	331,071
Mortgage-backed - Government-sponsored entity (GSE) - residential
Contractual Maturities, Amortized Cost
Amortized Costs, Mortgage-backed - Government-sponsored entity (GSE) - residential	34,357
Amortized Costs, Net	34,357	60,693
Contractual Maturities, Fair Value
Fair Value, Mortgage-backed - Government-sponsored entity (GSE) - residential	34,568
Available-for-sale Securities, Debt Securities, Total	$ 34,568	$ 60,868

Securities - Continuous Unreali

Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Securities
Percentage of investment portfolio	33.00%	73.00%
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	$ 95,772	$ 47,880
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer		192,275
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	95,772	240,155
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	39	202
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer		880
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	39	1,082
Treasury notes.
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months		1,990
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer		995
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total		2,985
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		8
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer		5
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total		13
Federal agencies
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	94,963	28,296
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer		191,280
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	94,963	219,576
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	37	97
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer		875
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	37	972
Municipals
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months		2,051
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total		2,051
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		18
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total		18
Mortgage-backed - Government-sponsored entity (GSE) - residential
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	809	15,543
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	809	15,543
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	2	79
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	$ 2	$ 79

Securities - Sale of securities

Securities - Sale of securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Securities
Proceeds from the sale of available-for-sale securities	$ 37,817,000	$ 6,431,000	$ 0
Net gain on sale of securities available for sale	476,000	0
Gains on sale of securities available for sale	713,000
Losses on sale of securities available for sale	237,000
Investment securities pledged as collateral	$ 290,200,000	$ 281,200,000

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses - Summary of Loans By Classification (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loans and Allowance for Loan Losses
Loans	$ 3,028,310	$ 2,058,127
Allowance for loan losses	15,842	12,704	$ 8,311	$ 6,250
Loans and Leases Receivable, Net Amount, Total	$ 3,012,468	2,045,423
Minimum
Loans and Allowance for Loan Losses
Repayment Of Warehouse Term	30 days
Mortgage warehouse lines of credit
Loans and Allowance for Loan Losses
Loans	$ 765,151	337,332
Allowance for loan losses	1,913	1,068	283	373
Residential real estate
Loans and Allowance for Loan Losses
Loans	413,835	410,871
Allowance for loan losses	2,042	1,986	1,587	2,170
Multi-family and healthcare financing
Loans and Allowance for Loan Losses
Loans	1,347,125	914,393
Allowance for loan losses	7,018	6,030	3,502	1,962
Commercial and commercial real estate
Loans and Allowance for Loan Losses
Loans	398,601	299,194
Allowance for loan losses	4,173	3,051	2,362	1,374
Agricultural production and real estate
Loans and Allowance for Loan Losses
Loans	85,210	79,255
Allowance for loan losses	523	429	320	269
Consumer and margin loans
Loans and Allowance for Loan Losses
Loans	18,388	17,082
Allowance for loan losses	$ 173	$ 140	$ 257	$ 102

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Allowance For Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for loan losses
Balance, beginning of period	$ 12,704	$ 8,311	$ 6,250
Provision (credit) for loan losses	(3,940)	(4,629)	(2,472)
Loans charged to the allowance	(964)	(236)	(546)
Recoveries of loans previously charged off	162		135
Balance, end of period	15,842	12,704	8,311
Ending balance: individually evaluated for impairment	681	645
Ending balance: collectively evaluated for impairment	15,161	12,059
Loans
Ending balance	3,028,310	2,058,127
Ending balance individually evaluated for impairment	12,517	11,185
Ending balance: collectively evaluated for impairment	3,015,793	2,046,942
Mortgage warehouse lines of credit
Allowance for loan losses
Balance, beginning of period	1,068	283	373
Provision (credit) for loan losses	(952)	(785)	90
Loans charged to the allowance	(107)
Balance, end of period	1,913	1,068	283
Ending balance: individually evaluated for impairment		225
Ending balance: collectively evaluated for impairment	1,913	843
Loans
Ending balance	765,151	337,332
Ending balance individually evaluated for impairment	233	575
Ending balance: collectively evaluated for impairment	764,918	336,757
Residential real estate
Allowance for loan losses
Balance, beginning of period	1,986	1,587	2,170
Provision (credit) for loan losses	(56)	(399)	583
Balance, end of period	2,042	1,986	1,587
Ending balance: individually evaluated for impairment	23
Ending balance: collectively evaluated for impairment	2,019	1,986
Loans
Ending balance	413,835	410,871
Ending balance individually evaluated for impairment	3,109	1,606
Ending balance: collectively evaluated for impairment	410,726	409,265
Multi-family and healthcare financing
Allowance for loan losses
Balance, beginning of period	6,030	3,502	1,962
Provision (credit) for loan losses	(988)	(2,528)	(1,540)
Balance, end of period	7,018	6,030	3,502
Ending balance: collectively evaluated for impairment	7,018	6,030
Loans
Ending balance	1,347,125	914,393
Ending balance: collectively evaluated for impairment	1,347,125	914,393
Commercial and commercial real estate
Allowance for loan losses
Balance, beginning of period	3,051	2,362	1,374
Provision (credit) for loan losses	(1,817)	(779)	(1,399)
Loans charged to the allowance	(857)	(90)	(546)
Recoveries of loans previously charged off	162		135
Balance, end of period	4,173	3,051	2,362
Ending balance: individually evaluated for impairment	650	400
Ending balance: collectively evaluated for impairment	3,523	2,651
Loans
Ending balance	398,601	299,194
Ending balance individually evaluated for impairment	9,152	8,576
Ending balance: collectively evaluated for impairment	389,449	290,618
Agricultural production and real estate
Allowance for loan losses
Balance, beginning of period	429	320	269
Provision (credit) for loan losses	(94)	(109)	(51)
Balance, end of period	523	429	320
Ending balance: individually evaluated for impairment		20
Ending balance: collectively evaluated for impairment	523	409
Loans
Ending balance	85,210	79,255
Ending balance individually evaluated for impairment		370
Ending balance: collectively evaluated for impairment	85,210	78,885
Consumer and margin loans
Allowance for loan losses
Balance, beginning of period	140	257	102
Provision (credit) for loan losses	(33)	(29)	(155)
Loans charged to the allowance		(146)
Balance, end of period	173	140	$ 257
Ending balance: individually evaluated for impairment	8
Ending balance: collectively evaluated for impairment	165	140
Loans
Ending balance	18,388	17,082
Ending balance individually evaluated for impairment	23	58
Ending balance: collectively evaluated for impairment	$ 18,365	$ 17,024

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses - Credit Risk Profile of Loan Portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Credit risk profile of portfolio
Loans	$ 3,028,310	$ 2,058,127
Special Mention (Watch)
Credit risk profile of portfolio
Loans	60,305	90,604
Substandard
Credit risk profile of portfolio
Loans	12,517	11,185
Acceptable and Above
Credit risk profile of portfolio
Loans	2,955,488	1,956,338
Mortgage warehouse lines of credit
Credit risk profile of portfolio
Loans	765,151	337,332
Mortgage warehouse lines of credit | Substandard
Credit risk profile of portfolio
Loans	233	575
Mortgage warehouse lines of credit | Acceptable and Above
Credit risk profile of portfolio
Loans	764,918	336,757
Residential real estate
Credit risk profile of portfolio
Loans	413,835	410,871
Residential real estate | Special Mention (Watch)
Credit risk profile of portfolio
Loans	2,472	443
Residential real estate | Substandard
Credit risk profile of portfolio
Loans	3,109	1,606
Residential real estate | Acceptable and Above
Credit risk profile of portfolio
Loans	408,254	408,822
Multi-family and healthcare financing
Credit risk profile of portfolio
Loans	1,347,125	914,393
Multi-family and healthcare financing | Special Mention (Watch)
Credit risk profile of portfolio
Loans	41,882	71,734
Multi-family and healthcare financing | Acceptable and Above
Credit risk profile of portfolio
Loans	1,305,243	842,659
Commercial and commercial real estate
Credit risk profile of portfolio
Loans	398,601	299,194
Commercial and commercial real estate | Special Mention (Watch)
Credit risk profile of portfolio
Loans	13,806	14,650
Commercial and commercial real estate | Substandard
Credit risk profile of portfolio
Loans	9,152	8,576
Commercial and commercial real estate | Acceptable and Above
Credit risk profile of portfolio
Loans	375,643	275,968
Agricultural production and real estate
Credit risk profile of portfolio
Loans	85,210	79,255
Agricultural production and real estate | Special Mention (Watch)
Credit risk profile of portfolio
Loans	2,114	3,096
Agricultural production and real estate | Substandard
Credit risk profile of portfolio
Loans		370
Agricultural production and real estate | Acceptable and Above
Credit risk profile of portfolio
Loans	83,096	75,789
Consumer and margin loans
Credit risk profile of portfolio
Loans	18,388	17,082
Consumer and margin loans | Special Mention (Watch)
Credit risk profile of portfolio
Loans	31	681
Consumer and margin loans | Substandard
Credit risk profile of portfolio
Loans	23	58
Consumer and margin loans | Acceptable and Above
Credit risk profile of portfolio
Loans	$ 18,334	$ 16,343

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Aging Analysis Of The Recorded Investment In Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Aging analysis of loan portfolio
Past due loans	$ 12,608	$ 3,217
Current loans	3,015,702	2,054,910
Loans and Leases Receivable, Net of Deferred Income, Total	3,028,310	2,058,127
30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	7,479	917
60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	928	282
Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	4,201	2,018
Mortgage warehouse lines of credit
Aging analysis of loan portfolio
Past due loans		324
Current loans	765,151	337,008
Loans and Leases Receivable, Net of Deferred Income, Total	765,151	337,332
Mortgage warehouse lines of credit | Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans		324
Residential real estate
Aging analysis of loan portfolio
Past due loans	5,975	1,582
Current loans	407,860	409,289
Loans and Leases Receivable, Net of Deferred Income, Total	413,835	410,871
Residential real estate | 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	3,089	579
Residential real estate | 60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	562	178
Residential real estate | Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	2,324	825
Multi-family and healthcare financing
Aging analysis of loan portfolio
Current loans	1,347,125	914,393
Loans and Leases Receivable, Net of Deferred Income, Total	1,347,125	914,393
Commercial and commercial real estate
Aging analysis of loan portfolio
Past due loans	4,291	550
Current loans	394,310	298,644
Loans and Leases Receivable, Net of Deferred Income, Total	398,601	299,194
Commercial and commercial real estate | 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	2,293	245
Commercial and commercial real estate | 60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	335	52
Commercial and commercial real estate | Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	1,663	253
Agricultural production and real estate
Aging analysis of loan portfolio
Past due loans	2,242	679
Current loans	82,968	78,576
Loans and Leases Receivable, Net of Deferred Income, Total	85,210	79,255
Agricultural production and real estate | 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	2,047	91
Agricultural production and real estate | Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	195	588
Consumer and margin loans
Aging analysis of loan portfolio
Past due loans	100	82
Current loans	18,288	17,000
Loans and Leases Receivable, Net of Deferred Income, Total	18,388	17,082
Consumer and margin loans | 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	50	2
Consumer and margin loans | 60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	31	52
Consumer and margin loans | Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	$ 19	$ 28

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses - Impaired Loans and Specific Valuation Allowance (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Impaired loans without a specific allowance:
Recorded investment	$ 9,806	$ 7,639
Unpaid principal balance	9,806	7,639
Impaired loans with a specific allowance:
Recorded investment	2,711	3,546
Unpaid principal balance	2,711	3,546
Specific allowance	681	645
Total impaired loans:
Recorded investments	12,517	11,185
Unpaid principal balance	12,517	11,185
Specific allowance	681	645
Mortgage warehouse lines of credit
Impaired loans without a specific allowance:
Recorded investment	233	251
Unpaid principal balance	233	251
Impaired loans with a specific allowance:
Recorded investment		324
Unpaid principal balance		324
Specific allowance		225
Total impaired loans:
Recorded investments	233	575
Unpaid principal balance	233	575
Specific allowance		225
Residential real estate
Impaired loans without a specific allowance:
Recorded investment	2,899	1,606
Unpaid principal balance	2,899	1,606
Impaired loans with a specific allowance:
Recorded investment	210
Unpaid principal balance	210
Specific allowance	23
Total impaired loans:
Recorded investments	3,109	1,606
Unpaid principal balance	3,109	1,606
Specific allowance	23
Commercial and commercial real estate
Impaired loans without a specific allowance:
Recorded investment	6,662	5,636
Unpaid principal balance	6,662	5,636
Impaired loans with a specific allowance:
Recorded investment	2,490	2,940
Unpaid principal balance	2,490	2,940
Specific allowance	650	400
Total impaired loans:
Recorded investments	9,152	8,576
Unpaid principal balance	9,152	8,576
Specific allowance	650	400
Agricultural production and real estate
Impaired loans without a specific allowance:
Recorded investment		88
Unpaid principal balance		88
Impaired loans with a specific allowance:
Recorded investment		282
Unpaid principal balance		282
Specific allowance		20
Total impaired loans:
Recorded investments		370
Unpaid principal balance		370
Specific allowance		20
Consumer and margin loans
Impaired loans without a specific allowance:
Recorded investment	12	58
Unpaid principal balance	12	58
Impaired loans with a specific allowance:
Recorded investment	11
Unpaid principal balance	11
Specific allowance	8
Total impaired loans:
Recorded investments	23	58
Unpaid principal balance	23	$ 58
Specific allowance	$ 8

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Impaired Loans
Average recorded investment in impaired loans	$ 12,117	$ 11,830	$ 4,338
Interest income recognized	534	528	183
Mortgage warehouse lines of credit
Impaired Loans
Average recorded investment in impaired loans	242	932
Interest income recognized		59
Residential real estate
Impaired Loans
Average recorded investment in impaired loans	3,175	1,485	156
Interest income recognized	71	50	1
Commercial and commercial real estate
Impaired Loans
Average recorded investment in impaired loans	8,675	8,872	3,703
Interest income recognized	463	375	182
Agricultural production and real estate
Impaired Loans
Average recorded investment in impaired loans		489	282
Interest income recognized		43
Consumer and margin loans
Impaired Loans
Average recorded investment in impaired loans	$ 25	52	$ 197
Interest income recognized		$ 1

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses - Non Accrual Loans and Loans Past Due 90 Days Or More and Still Accruing (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loan portfolio past due loans
Nonaccrual	$ 2,109	$ 1,904
Total Loans Greater than 90 Days & Accruing	2,569	507
Mortgage warehouse lines of credit
Loan portfolio past due loans
Nonaccrual	233	575
Residential real estate
Loan portfolio past due loans
Nonaccrual	740	893
Total Loans Greater than 90 Days & Accruing	1,851	74
Commercial and commercial real estate
Loan portfolio past due loans
Nonaccrual	1,118	136
Total Loans Greater than 90 Days & Accruing	486	117
Agricultural production and real estate
Loan portfolio past due loans
Nonaccrual		282
Total Loans Greater than 90 Days & Accruing	231	307
Consumer and margin loans
Loan portfolio past due loans
Nonaccrual	18	18
Total Loans Greater than 90 Days & Accruing	$ 1	$ 9

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses - Troubled Debt and Modifications (Details)	12 Months Ended
	Dec. 31, 2019USD ($)itemloan	Dec. 31, 2018USD ($)item	Dec. 31, 2017item
Troubled debt and modifications
Number of loans restructured during the last twelve months that defaulted during the period | item	0	0	0
Commercial and commercial real estate
Troubled debt and modifications
Number of troubled debt restructuring | item	0	1	1
Commercial and commercial real estate | Modification of terms
Troubled debt and modifications
Recorded investment, before modification	$ 2,000,000	$ 2,000,000
Recorded investment, after modification	$ 2,000,000	$ 2,000,000
Residential real estate
Troubled debt and modifications
Number of loans in the process of foreclosure	1	0
Value of residential loans in process of foreclosure	$ 725,000

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Gross swap gains	$ 511,000
Gross swap losses	(511,000)
Net gains (losses)	63,000	$ 6,000
Pledged in collateral	590,000	0
Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	186,000	70,000
Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	27,000	9,000
Interest Rate Lock Commitments
Derivative Financial Instruments
Notional amount	17,826,000	8,812,000
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net gains (losses)	116,000	70,000
Interest Rate Lock Commitments | Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	186,000	70,000
Forward Contracts
Derivative Financial Instruments
Notional amount	34,268,000	19,640,000
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net gains (losses)	(53,000)	(64,000)
Forward Contracts | Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	27,000	$ 9,000
Interest rate swaps
Derivative Financial Instruments
Notional amount	58,067,000
Interest rate swaps | Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	511,000
Interest rate swaps | Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	$ 511,000

Loan Servicing (Details)

Loan Servicing (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loan Servicing
Balance, beginning of period	$ 77,844	$ 66,079	$ 53,670
Paydowns	(5,994)	(4,196)	(5,504)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model	(4,795)	1,848	2,950
Balance, end of period	74,387	77,844	66,079
Revenue from specified servicing fee	9,700	8,700	8,800
Escrow funds	459,300	412,400
Originated and purchased servicing
Loan Servicing
Additions	$ 7,332	14,113	10,993
MCS
Loan Servicing
Additions			$ 3,970
Mortgage Loans
Loan Servicing
Sliding scale to deter prepayments (in years)	10 years
Unpaid principal balances of mortgage and other loans serviced for others	$ 6,300,000	5,800,000
Unpaid principal balances of loans sub‑serviced for others	$ 3,800,000	$ 3,100,000

Goodwill and Intangibles - Good

Goodwill and Intangibles - Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill
Decrease in goodwill	$ 1,600,000
Changes in goodwill:
Balance, beginning of period	17,477,000	$ 3,902,000	$ 523,000
Goodwill acquired during the period		13,163,000	3,379,000
Post-acquisition adjustments	(1,632,000)	412,000
Balance, end of the period	15,845,000	17,477,000	3,902,000
NattyMac, LLC
Goodwill
Transfer to intangible assets	1,600,000	1,600,000
Changes in goodwill:
Balance, beginning of period	3,700,000
Post-acquisition adjustments	271,000
Balance, end of the period		3,700,000
Multifamily
Changes in goodwill:
Balance, beginning of period	3,791,000	3,379,000
Goodwill acquired during the period			3,379,000
Post-acquisition adjustments		412,000
Balance, end of the period	3,791,000	3,791,000	3,379,000
Banking
Changes in goodwill:
Balance, beginning of period	8,686,000	523,000	523,000
Goodwill acquired during the period		8,163,000
Post-acquisition adjustments	(333,000)
Balance, end of the period	8,353,000	8,686,000	$ 523,000
Mortgage Warehousing
Changes in goodwill:
Balance, beginning of period	5,000,000
Goodwill acquired during the period		5,000,000
Post-acquisition adjustments	(1,299,000)
Balance, end of the period	$ 3,701,000	5,000,000
Mortgage Warehousing | NattyMac, LLC
Changes in goodwill:
Goodwill acquired during the period		$ 3,700,000

Goodwill and Intangibles - Acqu

Goodwill and Intangibles - Acquisitions, Goodwill (Details) - USD ($)	Oct. 01, 2018	Jan. 02, 2018	Aug. 15, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill
Goodwill acquired during the period					$ 13,163,000	$ 3,379,000
Post-acquisition adjustments				$ (1,632,000)	412,000
Multifamily
Goodwill
Goodwill acquired during the period						$ 3,379,000
Post-acquisition adjustments					412,000
Banking
Goodwill
Goodwill acquired during the period					8,163,000
Post-acquisition adjustments				(333,000)
Mortgage Warehousing
Goodwill
Goodwill acquired during the period					5,000,000
Post-acquisition adjustments				(1,299,000)
NattyMac, LLC
Goodwill
Post-acquisition adjustments				271,000
Transfer to intangible assets				1,600,000	1,600,000
NattyMac, LLC | Mortgage Warehousing
Goodwill
Goodwill acquired during the period					$ 3,700,000
FMNBP | Banking
Goodwill
Goodwill acquired during the period	$ 6,900,000
Post-acquisition adjustments	$ 333,000
FMBI | Banking
Goodwill
Goodwill acquired during the period		$ 988,000
MCS | Multifamily
Goodwill
Goodwill acquired during the period			$ 3,800,000
Post-acquisition adjustments				$ 412,000

Goodwill and Intangibles - Inta

Goodwill and Intangibles - Intangible assets - (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Intangible assets
Amortization of intangible assets	$ 218,000	$ 218,000	$ 82,000
Summary
Gross Carrying Amount	5,581,000	4,011,000	1,594,000
Accumulated Amortization	(1,782,000)	(469,000)	(82,000)
Total	$ 3,799,000	3,542,000	1,512,000
Licenses
Intangible assets
Amortization period	84 months
Summary
Gross Carrying Amount	$ 1,370,000	1,370,000	1,370,000
Accumulated Amortization	(465,000)	(269,000)	(74,000)
Total	$ 905,000	1,101,000	1,296,000
Trade names
Intangible assets
Amortization period	120 months
Summary
Gross Carrying Amount	$ 224,000	224,000	224,000
Accumulated Amortization	(53,000)	(31,000)	(8,000)
Total	$ 171,000	193,000	$ 216,000
Core Deposits
Intangible assets
Amortization period	10 years
Summary
Gross Carrying Amount	$ 2,417,000	2,417,000
Accumulated Amortization	(591,000)	(169,000)
Total	1,826,000	$ 2,248,000
Customer Lists
Intangible assets
Amortization period		21 months
Summary
Gross Carrying Amount	1,570,000
Accumulated Amortization	(673,000)
Total	$ 897,000
NattyMac, LLC | Customer Lists
Intangible assets
Amortization period	21 months	21 months
Amortization of intangible assets	$ 673,000
Summary
Total	$ 1,600,000
FMNBP | Core Deposits
Intangible assets
Amortization period	10 years
Amortization of intangible assets	$ 339,000	$ 85,000
FMBI | Core Deposits
Intangible assets
Amortization period	10 years
Amortization of intangible assets	$ 82,000	$ 84,000

Goodwill and Intangibles - Esti

Goodwill and Intangibles - Estimated amortization expense (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Estimated amortization expense
2020	$ 1,516
2021	577
2022	521
2023	462
2024	335
Thereafter	388
Total	$ 3,799	$ 3,542	$ 1,512

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Premises and Equipment
Total cost	$ 32,345	$ 17,949
Accumulated depreciation	(3,071)	(2,813)
Property, Plant and Equipment, Net, Total	29,274	15,136
Land
Premises and Equipment
Total cost	3,072	3,072
Buildings
Premises and Equipment
Total cost	22,775	4,095
Building in progress
Premises and Equipment
Total cost		8,272
Leasehold improvements
Premises and Equipment
Total cost	53	83
Furniture, fixtures and equipment
Premises and Equipment
Total cost	$ 6,445	$ 2,427

Other Assets and Receivables (D

Other Assets and Receivables (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Investment in Qualified Affordable Housing Limited Partnerships
Investments for qualified affordable housing limited partnerships	$ 14.9	$ 17.2
Amortization expense	2.3	1.2
Tax credit	$ 2.5	$ 1.5

Deposits - Components (Details)

Deposits - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits
Demand deposits	$ 2,099,373	$ 1,548,969
Savings deposits	1,204,363	1,001,663
Certificates of deposit	2,174,339	680,454
Total deposits	$ 5,478,075	$ 3,231,086

Deposits - Maturities of deposi

Deposits - Maturities of deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits
Due within one year	$ 2,084,369
Due in one year to two years	57,085
Due in two years to three years	25,038
Due in three years to four years	6,284
Due in four years to five years	1,563
Total time deposits	2,174,339	$ 680,454
Certificates of deposit of 250,000 or more	$ 128,900	$ 46,700

Deposits - Brokered deposits (D

Deposits - Brokered deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits
Brokered certificates of deposit	$ 1,962,389	$ 578,471
Brokered savings deposits	184,603	109,607
Brokered deposit on demand accounts	10,001	300,134
Total brokered deposits	$ 2,156,993	$ 988,212

Borrowings - Components (Detail

Borrowings - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Borrowings
Total borrowings	$ 181,439	$ 195,453
Lines of credit
Borrowings
Total borrowings	6,540	33,150
Short-term subordinated debt
Borrowings
Total borrowings	12,200	10,582
FHLB advances
Borrowings
Total borrowings	$ 162,699	$ 151,721

Borrowings - Other (Details)

Borrowings - Other (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Apr. 24, 2019
Borrowings
Amount outstanding	$ 181,439	$ 195,453
Mortgage loans pledged as collateral	1,400	88,100
Available for sale securities and securities purchased under agreements to resell pledged as collateral	276,700	269,300
Excess borrowing capacity with the FHLB based on FHLB Stock	425,000
Excess borrowing capacity with the FHLB based on current collateral	$ 1,500
Merchants Bank
Borrowings
Ownership in subsidiary (as a percent)	100.00%
Lines of credit
Borrowings
Amount outstanding	$ 6,540	33,150
Short-term subordinated debt
Borrowings
Amount outstanding	$ 12,200	10,582
Short-term subordinated debt | Home point | LIBOR
Borrowings
Basis spread on variable rate (as a percent)	3.50%
Short-term subordinated debt | Customer
Borrowings
Amount outstanding	$ 12,200	10,600
Additional interest as a percentage of earnings	50.00%
Notice period of Non-renewal	180 days
Maximum investment by counterparty in Company's subordinated debt			$ 30,000
FHLB advances
Borrowings
Amount outstanding	$ 162,699	$ 151,721
FHLB advances | Minimum
Borrowings
FHLB advances interest rate	1.58%	1.79%
FHLB advances | Maximum
Borrowings
FHLB advances interest rate	4.74%	4.74%
Bank | Lines of credit
Borrowings
Maximum borrowing capacity	$ 25,000
Amount outstanding		$ 25,000
Tier 1 Leverage Ratio (as a percent)	8.00%
Bank | Lines of credit | Minimum | LIBOR
Borrowings
Basis spread on variable rate (as a percent)	1.85%
Bank | Lines of credit | Maximum | LIBOR
Borrowings
Basis spread on variable rate (as a percent)		4.20%
Federal Home Loan Bank | Lines of credit
Borrowings
Maximum borrowing capacity	$ 6,500	$ 8,200
Interest rate of preferred stock	1.77%	2.61%

Borrowings - Maturities of FHLB

Borrowings - Maturities of FHLB advances (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Maturities of FHLB advances
Total	$ 181,439	$ 195,453
FHLB advances
Maturities of FHLB advances
Due within one year	145,589
Due in one year to two years	15,077
Due in two years to three years	59
Due in three years to four years	342
Due in four years to five years	61
Thereafter	1,571
Total	$ 162,699	$ 151,721

Income Taxes - Components (Deta

Income Taxes - Components (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current tax payable
Federal									$ 21,396	$ 13,312	$ 21,413
State									4,387	5,528	3,479
Deferred tax payable
Federal									(375)	1,583	(2,627)
State									(603)	730	212
Income tax expense	$ 9,434	$ 6,502	$ 5,328	$ 3,541	$ 5,699	$ 5,584	$ 5,186	$ 4,684	$ 24,805	$ 21,153	$ 22,477
Effective tax rate									24.30%	29.10%	29.10%

Income Taxes - Reconciliation (

Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Statutory tax rate (as a percent)									21.00%	21.00%	35.00%
Computed at the statutory rate (21% for 2019 and 2018, and 35% for 2017)									$ 21,448	$ 17,646	$ 27,006
Increase resulting from
State income taxes									2,989	4,944	2,399
Effect of Tax Cuts and Jobs Act											(6,928)
Tax Credits net of related amortization									(190)	(1,533)
Other									558	96
Income tax expense	$ 9,434	$ 6,502	$ 5,328	$ 3,541	$ 5,699	$ 5,584	$ 5,186	$ 4,684	$ 24,805	$ 21,153	$ 22,477

Income Taxes - Temporary differ

Income Taxes - Temporary differences (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets
Allowance for loan losses	$ 4,069	$ 3,366
Unrealized loss on available-for-sale securities		148
Fair value adjustments on acquisitions	228
Other	1,309	854
Total assets	5,606	4,368
Deferred tax liabilities
Depreciation	(1,374)	(466)
Intangible assets	(466)	(618)
Mortgage-servicing rights	(17,035)	(17,477)
Limited partnership investments	(1,791)	(2,212)
Unrealized loss on available for sale securities	(121)
Fair value adjustments on acquisition		(3)
Total liabilities	(20,787)	(20,776)
Net deferred tax liability	$ (15,181)	$ (16,408)

Income Taxes - Tax Cuts and Job

Income Taxes - Tax Cuts and Jobs Act (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Statutory tax rate (as a percent)		21.00%	21.00%	35.00%
Additional one-time income tax benefit related to remeasurement of certain deferred tax assets and liabilities	$ 6,900,000
Adjustment of deferred tax assets on unrealized losses on available for sale securities	$ 243,000

Regulatory Matters (Details)

Regulatory Matters (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Tier 1 Capital (to average assets)
Amount available without prior regulatory approval for dividends	$ 117,700
Company
Total Capital (to risk-weighted assets)
Total Capital (to risk-weighted assets), Actual, Capital Amount	$ 637,472	$ 393,654
Total Capital (to risk weighted assets), Actual, Ratio (as a percent)	11.60%	12.30%
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 440,063	$ 255,884
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	8.00%	8.00%
Tier I Capital (to risk-weighted assets)
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount	$ 621,630	$ 380,950
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)	11.30%	11.90%
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 330,047	$ 191,913
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	6.00%	6.00%
Common Equity Tier I Capital 1 (to risk-weighted assets)
Common Equity Tier I Capital 1, Actual, Capital Amount	$ 408,984	$ 339,369
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)	7.40%	10.60%
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 247,536	$ 143,935
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	4.50%	4.50%
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 621,630	$ 380,950
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	9.40%	10.00%
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 264,324	$ 152,081
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	4.00%	4.00%
Federal Deposit Corporation And Federal Reserve Board | Rules Effective January 1, 2015
Tier 1 Capital (to average assets)
Basel III Capital Rules related to CET1, period (in years)	4 years
Additional capital conservation buffer requirement subsequent years Ratio	2.50%
Merchants Bank
Total Capital (to risk-weighted assets)
Total Capital (to risk-weighted assets), Actual, Capital Amount	$ 639,104	$ 412,386
Total Capital (to risk weighted assets), Actual, Ratio (as a percent)	12.00%	13.30%
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 426,748	$ 248,290
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	8.00%	8.00%
Total capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 533,435	$ 310,363
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	10.00%	10.00%
Tier I Capital (to risk-weighted assets)
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount	$ 623,716	$ 399,815
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)	11.70%	12.90%
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 320,061	$ 186,218
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	6.00%	6.00%
Tier I Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 426,748	$ 248,290
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	8.00%	8.00%
Common Equity Tier I Capital 1 (to risk-weighted assets)
Common Equity Tier I Capital 1, Actual, Capital Amount	$ 623,716	$ 399,815
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)	11.70%	12.90%
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 240,046	$ 139,663
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	4.50%	4.50%
Common Equity Tier I Capital 1, Minimum Amount To Be Well Capitalized, Capital Amount	$ 346,733	$ 201,736
Common Equity Tier I Capital 1 (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	6.50%	6.50%
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 623,716	$ 399,815
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	9.70%	11.00%
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 257,487	$ 145,723
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	4.00%	4.00%
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 321,859	$ 182,154
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	5.00%	5.00%
FMBI
Total Capital (to risk-weighted assets)
Total Capital (to risk-weighted assets), Actual, Capital Amount	$ 21,726	$ 17,537
Total Capital (to risk weighted assets), Actual, Ratio (as a percent)	13.10%	18.60%
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 13,306	$ 7,559
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	8.00%	8.00%
Total capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 16,632	$ 9,448
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	10.00%	10.00%
Tier I Capital (to risk-weighted assets)
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount	$ 21,272	$ 17,404
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)	12.80%	18.40%
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 9,979	$ 5,669
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	6.00%	6.00%
Tier I Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 13,306	$ 7,559
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	8.00%	8.00%
Common Equity Tier I Capital 1 (to risk-weighted assets)
Common Equity Tier I Capital 1, Actual, Capital Amount	$ 21,272	$ 17,404
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)	12.80%	18.40%
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 7,484	$ 4,252
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	4.50%	4.50%
Common Equity Tier I Capital 1, Minimum Amount To Be Well Capitalized, Capital Amount	$ 10,811	$ 6,141
Common Equity Tier I Capital 1 (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	6.50%	6.50%
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 21,272	$ 17,404
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	11.70%	10.80%
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 7,302	$ 6,453
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	4.00%	4.00%
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 9,128	$ 8,066
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	5.00%	5.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net Income
Net income	$ 30,061	$ 20,259	$ 16,439	$ 10,570	$ 15,422	$ 16,739	$ 15,652	$ 15,061	$ 77,329	$ 62,874	$ 54,684
Dividends on preferred stock	(3,618)	(3,022)	(1,743)	(833)	(832)	(833)	(832)	(833)	(9,216)	(3,330)	(3,330)
Net Income Allocated to Common Shareholders	$ 26,443	$ 17,237	$ 14,696	$ 9,737	$ 14,590	$ 15,906	$ 14,820	$ 14,228	$ 68,113	$ 59,544	$ 51,354
Weighted-Average Shares
Weighted average shares - Basic									28,705,125	28,692,955	22,551,452
Effect of dilutive securities—restricted stock awards									40,582	31,464	16,702
Weighted average shares - diluted									28,745,707	28,724,419	22,568,154
Per Share Amount
Basic earnings per share	$ 0.92	$ 0.60	$ 0.51	$ 0.34	$ 0.51	$ 0.55	$ 0.52	$ 0.50	$ 2.37	$ 2.08	$ 2.28
Diluted earnings per share	$ 0.92	$ 0.60	$ 0.51	$ 0.34	$ 0.51	$ 0.55	$ 0.52	$ 0.50	$ 2.37	$ 2.07	$ 2.28

Stock Splits (Details)

Stock Splits (Details)	Jul. 06, 2017	Dec. 31, 2019shares	Dec. 31, 2018shares	Jul. 05, 2017shares
Stock Splits
Authorized common shares		50,000,000	50,000,000	50,000,000
Stock split ratio	2.5

Initial Public Offering of Co_2

Initial Public Offering of Common Stock (Details) - USD ($) $ in Thousands	Nov. 02, 2017	Oct. 26, 2017	Dec. 31, 2017
Initial Public Offering of Common Stock
Gross proceeds from offering	$ 115,000
Proceeds from common stock offerings, net	106,200		$ 106,245
Offering costs	$ 8,800
IPO
Initial Public Offering of Common Stock
Shares issued (in shares)		6,250,000
Over-Allotment Option
Initial Public Offering of Common Stock
Shares issued (in shares)	937,500

Preferred Stock (Details)

Preferred Stock (Details)	Sep. 23, 2019USD ($)$ / sharesshares	Aug. 19, 2019USD ($)$ / sharesshares	Jun. 27, 2019USD ($)$ / sharesshares	Apr. 12, 2019USD ($)shares	Mar. 28, 2019USD ($)$ / sharesshares	Nov. 02, 2017USD ($)	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2018$ / shares	Dec. 31, 2016$ / shares	Dec. 31, 2015$ / shares	Dec. 31, 2016$ / sharesshares
Public Offering of Preferred Stock
Offering costs						$ 8,800,000
Net proceeds							$ 192,915,000
8% Preferred Stock
Public Offering of Preferred Stock
Preferred stock, dividend rate (as a percent)							8.00%	8.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares							$ 1,000	$ 1,000
8% Preferred Stock | Private Placement
Public Offering of Preferred Stock
Shares issued (in shares) | shares											41,625
Preferred stock, dividend rate (as a percent)									8.00%	8.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares									$ 1,000	$ 1,000	$ 1,000
Series A preferred stock | Public Offering
Public Offering of Preferred Stock
Shares issued (in shares) | shares				81,800
Net proceeds				$ 2,000,000
Underwriting discounts				$ 41,000
7% Preferred Stock
Public Offering of Preferred Stock
Shares redeemed (in shares) | shares	874,000
Preferred stock, dividend rate (as a percent)	7.00%						7.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares	$ 25						$ 25
Aggregate cost	$ 21,850,000
Offering costs							$ 1,824,000
Brokerage fees	$ 0
7% Preferred Stock | Public Offering
Public Offering of Preferred Stock
Shares issued (in shares) | shares					2,000,000
Preferred stock, dividend rate (as a percent)					7.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares					$ 25
Aggregate gross offering proceeds for the shares issued					$ 50,000,000
Offering costs					1,700,000
Net proceeds					$ 48,300,000
7% Preferred Stock | Private Placement
Public Offering of Preferred Stock
Shares issued (in shares) | shares			874,000
Preferred stock, dividend rate (as a percent)			7.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares			$ 25
Aggregate gross offering proceeds for the shares issued			$ 21,850,000
6% Preferred Stock
Public Offering of Preferred Stock
Preferred stock, dividend rate (as a percent)							6.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares							$ 1,000
Offering costs							$ 4,156,000
6% Preferred Stock | Public Offering
Public Offering of Preferred Stock
Depositary shares issued (in shares) | shares		5,000,000
Depositary shares equivalent preferred stock interest per share		0.025
Preferred stock, dividend rate (as a percent)		6.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares		$ 1,000
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares		$ 25
Offering costs		$ 125,000,000
Net proceeds		120,800,000
Underwriting discounts		$ 4,200,000
Preferred Stock | 7% Preferred Stock
Public Offering of Preferred Stock
Shares issued (in shares) | shares							2,955,800
Preferred Stock | 6% Preferred Stock
Public Offering of Preferred Stock
Shares issued (in shares) | shares							125,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	Jan. 02, 2018	May 08, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related Party Transactions
Percentage of purchase price equal to the price paid by Company’s directors and executive officers, plus expenses and a cost of funds		3.75%
Total assets			$ 6,371,928,000	$ 3,884,163,000	$ 3,393,133,000
Total deposits			$ 5,478,075,000	3,231,086,000
Key loan processing vendors
Related Party Transactions
Ownership interest as a percentage			44.23%			30.00%
Fees paid to related party			$ 3,100,000	3,400,000	3,700,000
Amount accrued for services received			214,000	226,000	253,000
Law firm
Related Party Transactions
Fees paid to related party			3,600,000	3,700,000	3,000,000
Company owned by Board Member
Related Party Transactions
Fees paid to related party			$ 641,000	$ 0	0
Messrs. Petrie and Rogers | Purchase Agreement | FMBI
Related Party Transactions
Purchase price excluding cost of funds		$ 5,400,000
Amount of cost of funds to be paid for each thirty days after June 30, 2017, proprated to the closing date		$ 16,000
Period for which cost of fund to be raised by company		30 days
Purchase price	$ 5,500,000
FMBI
Related Party Transactions
Total assets					43,000,000
Total deposits					$ 36,900,000

Employee Benefits (Details)

Employee Benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee benefits
Matching contribution equals to employees deferrals	100.00%
Employer contributions to contribution plans	$ 629,000	$ 464,000	$ 294,000
Maximum
Employee benefits
Matching contribution as a percentage of employees compensation	3.00%

Share-Based Payment Plan (Detai

Share-Based Payment Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Non executive directors
Plan disclosures
Shares issued	2,275	1,830
Value of shares available for issuance for compensation related to annual fees		$ 10,000
Expense recognized	$ 50,000	$ 50,000
Restricted stock
Plan disclosures
Shares issued	10,127	7,039
Expense recognized	$ 533,000	$ 171,000	$ 458,000
Prior Equity Incentive Plan | Restricted stock
Plan disclosures
Awards granted	0
2017 Plan | Restricted stock
Plan disclosures
Unvested shares awarded	91,266	83,708
Unrecognized compensation cost	$ 1,300,000	$ 1,100,000

Disclosures about Fair Value _3

Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosures about Fair Value of Assets and Liabilities
Trading securities	$ 269,891	$ 163,419
Available for sale securities	290,243	331,071
Loans held for sale	19,592	11,886
Mortgage servicing rights	74,387	77,844	$ 66,079	$ 53,670
Recurring
Disclosures about Fair Value of Assets and Liabilities
Trading securities	269,891	163,419
Loans held for sale	19,592	11,886
Mortgage servicing rights	74,387	77,844
Recurring | Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	186	70
Recurring | Forward Contracts
Disclosures about Fair Value of Assets and Liabilities
Derivative liabilities	27	9
Recurring | Interest rate swaps
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	511
Derivative liabilities	511
Level 2 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Trading securities	269,891	163,419
Loans held for sale	19,592	11,886
Level 2 | Recurring | Forward Contracts
Disclosures about Fair Value of Assets and Liabilities
Derivative liabilities	27	9
Level 2 | Recurring | Interest rate swaps
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	511
Derivative liabilities	511
Level 3 | Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	186	70
Level 3 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage servicing rights	74,387	77,844
Level 3 | Recurring | Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	186	70
Treasury notes | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	4,765	11,941
Treasury notes | Level 1 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	4,765	11,941
Federal agencies
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	244,973	236,930
Federal agencies | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	244,973	236,930
Federal agencies | Level 2 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	244,973	236,930
Municipals | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	5,937	21,332
Municipals | Level 2 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	5,937	21,332
Mortgage-backed - Government-sponsored entity (GSE) - residential
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	34,568	60,868
Mortgage-backed - Government-sponsored entity (GSE) - residential | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	34,568	60,868
Mortgage-backed - Government-sponsored entity (GSE) - residential | Level 2 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	$ 34,568	$ 60,868

Disclosures about Fair Value _4

Disclosures about Fair Value of Assets and Liabilities - Reconciliation of Unobservable Inputs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Mortgage servicing rights.
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	$ 77,844	$ 66,079	$ 53,670
Additions
Originated and purchased servicing	7,332	14,113	10,993
Acquisition of MCS			3,970
Subtractions
Paydowns	(5,994)	(4,196)	(5,504)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model	(4,795)	1,848	2,950
Balance, end of period	74,387	77,844	66,079
Available-for-sale Securities. | Municipals
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	6,688	6,688
Additions
Purchased securities			6,688
Subtractions
Paydowns		(257)
Sales		(6,431)
Balance, end of period		6,688	$ 6,688
Derivative assets | Interest Rate Lock Commitments
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	70
Subtractions
Changes in fair value	116	70
Balance, end of period	$ 186	$ 70

Disclosures about Fair Value _5

Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Disclosures about Fair Value of Assets and Liabilities
Impaired loans (collateral dependent)	$ 1,570	$ 2,639
Level 3
Disclosures about Fair Value of Assets and Liabilities
Impaired loans (collateral dependent)	$ 1,570	$ 2,639

Disclosures about Fair Value _6

Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs (Details) $ in Thousands	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Quantitative information about unobservable inputs
Mortgage servicing rights	$ 74,387	$ 77,844	$ 66,079	$ 53,670
Available for sale securities	290,243	331,071
Mortgage servicing rights | Level 3
Quantitative information about unobservable inputs
Mortgage servicing rights	74,387	77,844
Collateral-dependent impaired loans | Level 3
Quantitative information about unobservable inputs
Collateral-dependent impaired loans	$ 1,570	$ 2,639
Collateral-dependent impaired loans | Level 3 | Minimum
Quantitative information about unobservable inputs
Marketability discount (as a percent)	0.37	0.05
Collateral-dependent impaired loans | Level 3 | Maximum
Quantitative information about unobservable inputs
Marketability discount (as a percent)	55	0.47
Municipals
Quantitative information about unobservable inputs
Available for sale securities	$ 5,937	$ 21,332
Municipals | Level 3
Quantitative information about unobservable inputs
Available for sale securities			$ 6,700
Discount Rate | Mortgage servicing rights | Level 3 | Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.08	0.08
Discount Rate | Mortgage servicing rights | Level 3 | Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.13	0.13
Constant Prepayment Rate | Mortgage servicing rights | Level 3 | Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.01	0.01
Constant Prepayment Rate | Mortgage servicing rights | Level 3 | Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.39	0.36
Interest Rate Lock Commitments | Level 3
Quantitative information about unobservable inputs
Derivative assets	$ 186	$ 70
Interest Rate Lock Commitments | Measurement Input, Maturity | Level 3 | Minimum
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	0.73	0.95
Interest Rate Lock Commitments | Measurement Input, Maturity | Level 3 | Maximum
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	99	100

Disclosures about Fair Value _7

Disclosures about Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial assets:
Loans held for sale	$ 19,592	$ 11,886
Carrying Value
Financial assets:
Cash and cash equivalents	506,709	336,524
Securities purchased under agreements to resell	6,723	6,875
FHLB stock	20,369	7,974
Loans held for sale	2,074,197	820,569
Loans, net	3,012,468	2,045,423
Interest receivable	18,359	13,827
Financial liabilities:
Deposits	5,478,075	3,231,086
Lines of credit	6,540	33,150
Short-term subordinated debt	12,200	10,582
FHLB advances	162,699	151,721
Interest payable	11,938	4,132
Fair Value
Financial assets:
Cash and cash equivalents	506,709	336,524
Securities purchased under agreements to resell	6,723	6,875
FHLB stock	20,369	7,974
Loans held for sale	2,074,197	820,569
Loans, net	2,999,580	2,041,772
Interest receivable	18,359	13,827
Financial liabilities:
Deposits	5,478,682	3,230,397
Lines of credit	6,540	33,150
Short-term subordinated debt	12,200	10,582
FHLB advances	162,803	151,723
Interest payable	11,938	4,132
Level 1 | Fair Value
Financial assets:
Cash and cash equivalents	506,709	336,524
Financial liabilities:
Deposits	3,303,736	2,550,632
Level 2 | Fair Value
Financial assets:
Securities purchased under agreements to resell	6,723	6,875
FHLB stock	20,369	7,974
Loans held for sale	2,074,197	820,569
Interest receivable	18,359	13,827
Financial liabilities:
Deposits	2,174,946	679,765
Lines of credit	6,540	33,150
Short-term subordinated debt	12,200	10,582
FHLB advances	162,803	151,723
Interest payable	11,938	4,132
Level 3 | Fair Value
Financial assets:
Loans, net	$ 2,999,580	$ 2,041,772

Significant Estimates and Con_2

Significant Estimates and Concentrations (Details) - Revenue - Customer concentration - Major Customer - Mortgage Warehousing $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)
Major Customer
Total revenue	$ 14.3
Concentration risk (as a percent)	10.00%

Commitments, Credit Risk, and_3

Commitments, Credit Risk, and Contingencies - Financial Instrument (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Total commitments subject to credit risk
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instrument whose contract amount represents credit risk	$ 788,012	$ 700,017
Total commitments subject to certain performance criteria and cancellation
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instrument whose contract amount represents credit risk	1,948,100	1,747,409
Commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instrument whose contract amount represents credit risk	761,068	676,987
Standby letters of credit issued by another party on Merchants' behalf
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instrument whose contract amount represents credit risk	26,944	23,030
Outstanding commitments to originate loans
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instrument whose contract amount represents credit risk	886,017	507,216
Unfunded construction draws
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instrument whose contract amount represents credit risk	287,659	457,762
Unfunded lines of warehouse credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instrument whose contract amount represents credit risk	$ 774,424	$ 782,431

Commitments, Credit Risk, and_4

Commitments, Credit Risk, and Contingencies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Commitments and Credit Risk
Rental expenses	$ 1,800,000	$ 1,100,000	$ 764,000
Due within one year	1,564,000
Due in one year to two years	1,383,000
Due in two years to three years	1,208,000
Due in three years to four years	1,208,000
Due in four years to five years	1,003,000
Thereafter	1,551,000
Total minimum lease payments	$ 7,917,000
Minimum
Commitments and Credit Risk
Lease period	1 year
Maximum
Commitments and Credit Risk
Lease period	10 years

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Information
Interest income	$ 63,799	$ 59,761	$ 48,761	$ 39,674	$ 39,825	$ 37,577	$ 34,123	$ 29,038	$ 211,995	$ 140,563	$ 94,387
Interest expense	26,178	27,137	20,839	15,543	15,650	14,095	11,917	8,930	89,697	50,592	27,790
Net interest income	37,621	32,624	27,922	24,131	24,175	23,482	22,206	20,108	122,298	89,971	66,597
Provision for loan losses	1,993	1,193	105	649	1,608	617	998	1,406	3,940	4,629	2,472
Net Interest Income After Provision for Loan Losses	35,628	31,431	27,817	23,482	22,567	22,865	21,208	18,702	118,358	85,342	64,125
Noninterest income	22,703	10,852	9,870	3,664	14,735	11,907	11,630	11,313	47,089	49,585	47,680
Noninterest expense	18,836	15,522	15,920	13,035	16,181	12,449	12,000	10,270	63,313	50,900	34,644
Income Before Income Taxes	39,495	26,761	21,767	14,111	21,121	22,323	20,838	19,745	102,134	84,027	77,161
Income taxes	9,434	6,502	5,328	3,541	5,699	5,584	5,186	4,684	24,805	21,153	22,477
Net Income	30,061	$ 20,259	$ 16,439	$ 10,570	15,422	$ 16,739	$ 15,652	$ 15,061	77,329	62,874	54,684
Total assets	6,371,928				3,884,163				6,371,928	3,884,163	3,393,133
Other
Segment Information
Interest income									2,067	1,735	721
Interest expense									(6,864)	(3,285)	(736)
Net interest income									8,931	5,020	1,457
Net Interest Income After Provision for Loan Losses									8,931	5,020	1,457
Noninterest income									(2,776)	(1,946)	(814)
Noninterest expense									11,622	9,098	6,188
Income Before Income Taxes									(5,467)	(6,024)	(5,545)
Income taxes									(1,413)	(1,819)	(1,917)
Net Income									(4,054)	(4,205)	(3,628)
Total assets	39,810				30,598				39,810	30,598	16,855
Multifamily | Operating Segments
Segment Information
Interest income									1,328	712	414
Net interest income									1,328	712	414
Net Interest Income After Provision for Loan Losses									1,328	712	414
Noninterest income									41,682	45,831	43,715
Noninterest expense									22,556	19,205	10,911
Income Before Income Taxes									20,454	27,338	33,218
Income taxes									5,691	7,528	4,557
Net Income									14,763	19,810	28,661
Total assets	188,866				166,102				188,866	166,102	134,390
Mortgage Warehousing | Operating Segments
Segment Information
Interest income									102,157	58,784	48,798
Interest expense									50,880	24,369	13,673
Net interest income									51,277	34,415	35,125
Provision for loan losses									1,358	1,372	452
Net Interest Income After Provision for Loan Losses									49,919	33,043	34,673
Noninterest income									7,178	2,550	2,836
Noninterest expense									11,397	7,721	7,710
Income Before Income Taxes									45,700	27,872	29,799
Income taxes									10,934	6,872	11,558
Net Income									34,766	21,000	18,241
Total assets	3,124,684				1,430,776				3,124,684	1,430,776	1,352,748
Banking | Operating Segments
Segment Information
Interest income									106,443	79,332	44,454
Interest expense									45,681	29,508	14,853
Net interest income									60,762	49,824	29,601
Provision for loan losses									2,582	3,257	2,020
Net Interest Income After Provision for Loan Losses									58,180	46,567	27,581
Noninterest income									1,005	3,150	1,943
Noninterest expense									17,738	14,876	9,835
Income Before Income Taxes									41,447	34,841	19,689
Income taxes									9,593	8,572	8,279
Net Income									31,854	26,269	11,410
Total assets	$ 3,018,568				$ 2,256,687				$ 3,018,568	$ 2,256,687	$ 1,889,140

Condensed Financial Informati_3

Condensed Financial Information (Parent Company Only) (Balance sheets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 13,909	$ 25,855
Total assets	6,371,928	3,884,163	$ 3,393,133
Liabilities
Other liabilities	41,769	20,943
Total liabilities	5,718,200	3,462,926
Total shareholders' equity	653,728	421,237	$ 367,474	$ 206,288
Total liabilities and shareholders' equity	6,371,928	3,884,163
Reportable Legal Entities | Company
Assets
Cash and cash equivalents	463	2,224
Investment in subsidiaries	664,878	453,028
Other assets	2,213	2,104
Total assets	667,554	457,356
Liabilities
Lines of credit		25,000
Short-term subordinated debt	12,200	10,582
Other liabilities	1,626	537
Total liabilities	13,826	36,119
Total shareholders' equity	653,728	421,237
Total liabilities and shareholders' equity	$ 667,554	$ 457,356

Condensed Financial Informati_4

Condensed Financial Information (Parent Company Only) (Income statement) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Expenses
Interest expense	$ 26,178	$ 27,137	$ 20,839	$ 15,543	$ 15,650	$ 14,095	$ 11,917	$ 8,930	$ 89,697	$ 50,592	$ 27,790
Salaries and employee benefits									38,093	32,240	21,472
Professional fees									2,326	2,585	1,516
Income taxes	9,434	6,502	5,328	3,541	5,699	5,584	5,186	4,684	24,805	21,153	22,477
Net Income	$ 30,061	$ 20,259	$ 16,439	$ 10,570	$ 15,422	$ 16,739	$ 15,652	$ 15,061	77,329	62,874	54,684
Comprehensive Income									78,097	63,813	54,306
Reportable Legal Entities | Company
Income
Dividends and return of capital from subsidiaries									43,903	37,816	13,632
Other Income										195	208
Total income									43,903	38,011	13,840
Expenses
Interest expense									3,641	8,055	7,603
Salaries and employee benefits									1,611	1,216	1,617
Professional fees									335	707	341
Other									423	420	251
Total expense									6,010	10,398	9,812
Income Before Income Tax and Equity in Undistributed Income of Subsidiaries									37,893	27,613	4,028
Income taxes									(1,433)	(2,542)	(3,670)
Income Before Equity in Undistributed Income of Subsidiaries									39,326	30,155	7,698
Equity in Undistributed Income of Subsidiaries									38,003	32,719	46,986
Net Income									77,329	62,874	54,684
Comprehensive Income									$ 78,097	$ 63,813	$ 54,306

Condensed Financial Informati_5

Condensed Financial Information (Parent Company Only) (Cash flows) (Details) - USD ($) $ in Thousands	Nov. 02, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Activities
Net income		$ 77,329	$ 62,874	$ 54,684
Net cash provided by (used in) operating activities		(1,257,003)	204,335	(175,886)
Investing Activities
Other investing activities		126	74	189
Net cash used in investing activities		(957,675)	(509,066)	(523,137)
Financing Activities
Dividends paid		(17,254)	(10,216)	(7,950)
Proceeds from issuance of common stock	$ 106,200			106,245
Proceeds from issuance of preferred stock		192,915
Repurchase of preferred stock		(21,850)
Net cash provided by financing activities		2,384,863	281,736	612,841
Net Change in Cash and Cash Equivalents		170,185	(22,995)	(86,182)
Cash and Cash Equivalents, Beginning of Period		336,524	359,519	445,701
Cash and Cash Equivalents, End of Period		506,709	336,524	359,519
Reportable Legal Entities | Company
Operating Activities
Net income		77,329	62,874	54,684
Adjustments to reconcile net income to net cash used in operating activities		(36,567)	(30,522)	(44,185)
Net cash provided by (used in) operating activities		40,762	32,352	10,499
Investing Activities
Return of capital from/(contributed capital to) subsidiaries		(173,078)	19,368	(101,868)
Net cash paid for acquisitions			(27,209)
Other investing activities		126	74	189
Net cash used in investing activities		(172,952)	(7,767)	(101,679)
Financing Activities
Net change in short-term subordinated debt		23,382	19,418
Dividends paid		(17,254)	(10,216)	(7,950)
Proceeds from issuance of common stock				106,245
Proceeds from issuance of preferred stock		(192,915)
Repurchase of preferred stock		(21,850)
Net cash provided by financing activities		130,429	(29,634)	98,295
Net Change in Cash and Cash Equivalents		(1,761)	(5,049)	7,115
Cash and Cash Equivalents, Beginning of Period		2,224	7,273	158
Cash and Cash Equivalents, End of Period		$ 463	$ 2,224	$ 7,273

Quarterly Condensed Financial_3

Quarterly Condensed Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Condensed Financial Information (Unaudited)
Interest income	$ 63,799	$ 59,761	$ 48,761	$ 39,674	$ 39,825	$ 37,577	$ 34,123	$ 29,038	$ 211,995	$ 140,563	$ 94,387
Interest expense	26,178	27,137	20,839	15,543	15,650	14,095	11,917	8,930	89,697	50,592	27,790
Net interest income	37,621	32,624	27,922	24,131	24,175	23,482	22,206	20,108	122,298	89,971	66,597
Provision for loan losses	1,993	1,193	105	649	1,608	617	998	1,406	3,940	4,629	2,472
Net Interest Income After Provision for Loan Losses	35,628	31,431	27,817	23,482	22,567	22,865	21,208	18,702	118,358	85,342	64,125
Noninterest income	22,703	10,852	9,870	3,664	14,735	11,907	11,630	11,313	47,089	49,585	47,680
Noninterest expense	18,836	15,522	15,920	13,035	16,181	12,449	12,000	10,270	63,313	50,900	34,644
Income Before Income Taxes	39,495	26,761	21,767	14,111	21,121	22,323	20,838	19,745	102,134	84,027	77,161
Income taxes	9,434	6,502	5,328	3,541	5,699	5,584	5,186	4,684	24,805	21,153	22,477
Net Income	30,061	20,259	16,439	10,570	15,422	16,739	15,652	15,061	77,329	62,874	54,684
Less: preferred stock dividends	3,618	3,022	1,743	833	832	833	832	833	9,216	3,330	3,330
Net Income Allocated to Common Shareholders	$ 26,443	$ 17,237	$ 14,696	$ 9,737	$ 14,590	$ 15,906	$ 14,820	$ 14,228	$ 68,113	$ 59,544	$ 51,354
Per common share data:
Basic Earnings Per Share (in dollar per share)	$ 0.92	$ 0.60	$ 0.51	$ 0.34	$ 0.51	$ 0.55	$ 0.52	$ 0.50	$ 2.37	$ 2.08	$ 2.28
Diluted Earnings Per Share (in dollar per share)	$ 0.92	$ 0.60	$ 0.51	$ 0.34	$ 0.51	$ 0.55	$ 0.52	$ 0.50	$ 2.37	$ 2.07	$ 2.28