Merchants Bancorp (MBIN) 10-Q 4 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Document and Entity Information
Entity Registrant Name	MERCHANTS BANCORP
Entity Central Index Key	0001629019
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
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 Common Stock, Shares Outstanding		28,742,484
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 8,168	$ 13,909
Interest-earning demand accounts	559,914	492,800
Cash and cash equivalents	568,082	506,709
Securities purchased under agreements to resell	6,685	6,723
Trading securities	465,157	269,891
Available for sale securities	339,053	290,243
Federal Home Loan Bank (FHLB) stock	46,156	20,369
Loans held for sale (includes $18,938 and $19,592, respectively at fair value)	2,796,008	2,093,789
Loans receivable, net of allowance for loan losses of $18,883 and $15,842, respectively	3,501,770	3,012,468
Premises and equipment, net	29,415	29,274
Mortgage servicing rights	69,978	74,387
Interest receivable	18,139	18,359
Goodwill	15,845	15,845
Intangible assets, net	3,419	3,799
Other assets and receivables	48,691	30,072
Total assets	7,908,398	6,371,928
Deposits
Noninterest-bearing	327,805	272,037
Interest-bearing	6,394,900	5,206,038
Total deposits	6,722,705	5,478,075
Borrowings	444,567	181,439
Other liabilities	68,157	58,686
Total liabilities	7,235,429	5,718,200
Commitments and Contingencies
Shareholders' Equity
Common stock, without par value Authorized - 50,000,000 shares Issued and outstanding - 28,742,484 shares at March 31, 2020 and 28,706,438 shares at December 31, 2019	135,746	135,640
Preferred stock
Retained earnings	323,651	304,984
Accumulated other comprehensive income	926	458
Total shareholders' equity	672,969	653,728
Total liabilities and shareholders' equity	7,908,398	6,371,928
8% Preferred Stock
Shareholders' Equity
Preferred stock	41,581	41,581
7% Preferred Stock
Shareholders' Equity
Preferred stock	50,221	50,221
6% Preferred Stock
Shareholders' Equity
Preferred stock	$ 120,844	$ 120,844

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Loans held for sale at fair value	$ 18,938	$ 19,592
Allowance for loans losses	$ 18,883	$ 15,842
Stockholders' Equity:
Common stock, without par value (in dollars per share)
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	28,742,484	28,706,438
Common stock, shares outstanding	28,742,484	28,706,438
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%	7.00%
Preferred stock liquidation preference (in dollars per share)	$ 25	$ 25
Preferred stock, shares authorized	3,500,000	3,500,000
Preferred stock, shares issued	2,081,800	2,081,800
Preferred stock, shares outstanding	2,081,800	2,081,800
6% Preferred Stock
Stockholders' Equity:
Preferred stock, dividend rate (as a percent)	6.00%	6.00%
Preferred stock liquidation preference (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, shares authorized	125,000	125,000
Preferred stock, shares issued	125,000	125,000
Preferred stock, shares outstanding	125,000	125,000
Depositary shares	5,000,000	5,000,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest Income
Loans	$ 53,564,000	$ 34,455,000
Investment securities:
Trading	2,796,000	1,045,000
Available for sale - taxable	1,322,000	1,551,000
Available for sale - tax exempt	37,000	96,000
Federal Home Loan Bank stock	239,000	223,000
Other	2,459,000	2,304,000
Total interest income	60,417,000	39,674,000
Interest Expense
Deposits	20,630,000	14,227,000
Borrowed funds	1,434,000	1,316,000
Total interest expense	22,064,000	15,543,000
Net interest income	38,353,000	24,131,000
Provision for loan losses	2,998,000	649,000
Net Interest Income After Provision for Loan Losses	35,355,000	23,482,000
Noninterest Income
Gain on sale of loans	21,166,000	2,643,000
Loan servicing fees, net	(5,824,000)	(347,000)
Mortgage warehouse fees	2,746,000	753,000
Gains on sale of investments available for sale (includes $0 and $127, respectively, related to accumulated other comprehensive earnings reclassifications)		127,000
Other income	1,814,000	488,000
Total noninterest income	19,902,000	3,664,000
Noninterest Expense
Salaries and employee benefits	14,240,000	8,567,000
Loan expenses	1,164,000	934,000
Occupancy and equipment	1,492,000	876,000
Professional fees	569,000	539,000
Deposit insurance expense	1,786,000	277,000
Technology expense	610,000	472,000
Other expense	2,432,000	1,370,000
Total noninterest expense	22,293,000	13,035,000
Income Before Income Taxes	32,964,000	14,111,000
Provision for income taxes (includes $0 and $32, respectively, related to income tax expense for reclassification items)	8,381,000	3,541,000
Net Income	24,583,000	10,570,000
Dividends on preferred stock	(3,618,000)	(833,000)
Net Income Allocated to Common Shareholders	$ 20,965,000	$ 9,737,000
Basic Earnings Per Share (in dollar per share)	$ 0.73	$ 0.34
Diluted Earnings Per Share (in dollar per share)	$ 0.73	$ 0.34
Weighted-Average Shares Outstanding Basic (in Shares)	28,734,632	28,702,250
Weighted-Average Shares Outstanding Diluted (in Shares)	28,759,412	28,737,439

Consolidated Statements of In_2

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Income
Reclassifications included in gains on sale of investment available for sale	$ 0	$ 127
Provision for income taxes related to income tax expense for reclassification items	$ 0	$ 32

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Comprehensive Income
Net Income	$ 24,583	$ 10,570
Other Comprehensive Income (Loss):
Net change in unrealized gains on investment securities available for sale, net of tax expense of $152 and $192, respectively	468	559
Less: Reclassification adjustment for gains included in net income, net of tax expense of $0 and $32, respectively		95
Other comprehensive income for the period	468	464
Comprehensive Income	$ 25,051	$ 11,034

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Comprehensive Income
Net change in unrealized gains on investment securities available for sale, tax expense	$ 152	$ 192
Reclassification adjustment for gains included in net income, tax expense	$ 0	$ 32

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)	Total
Balance at beginning of the period at Dec. 31, 2018	$ 135,057	$ 41,581			$ 244,909	$ (310)	$ 421,237
Balance at beginning of the period (in shares) at Dec. 31, 2018	28,694,036	41,625
Condensed Consolidated Statements of Shareholders’ Equity
Net income					10,570		10,570
Shares issued for stock compensation plans	$ 133						133
Shares issued for stock compensation plans (in shares)	10,127
Issuance of shares			$ 48,269				48,269
Issuance of shares (in shares)			2,000,000
Dividends on 8% preferred stock, annually					(833)		(833)
Dividends on common stock, annually					(2,009)		(2,009)
Other comprehensive income						464	464
Balance at end of the period at Mar. 31, 2019	$ 135,190	$ 41,581	$ 48,269		252,637	154	477,831
Balance at end of the period (in shares) at Mar. 31, 2019	28,704,163	41,625	2,000,000
Balance at beginning of the period at Dec. 31, 2019	$ 135,640	$ 41,581	$ 50,221	$ 120,844	304,984	458	653,728
Balance at beginning of the period (in shares) at Dec. 31, 2019	28,706,438	41,625	2,081,800	125,000
Condensed Consolidated Statements of Shareholders’ Equity
Net income					24,583		24,583
Shares issued for stock compensation plans	$ 106						106
Shares issued for stock compensation plans (in shares)	36,046
Dividends on 8% preferred stock, annually					(833)		(833)
Dividends on 7% preferred stock, annually					(910)		(910)
Dividends on 6% preferred stock, annually					(1,875)		(1,875)
Dividends on common stock, annually					(2,298)		(2,298)
Other comprehensive income						468	468
Balance at end of the period at Mar. 31, 2020	$ 135,746	$ 41,581	$ 50,221	$ 120,844	$ 323,651	$ 926	$ 672,969
Balance at end of the period (in shares) at Mar. 31, 2020	28,742,484	41,625	2,081,800	125,000

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Dividends on common stock per share	$ 0.32	$ 0.28
8% Preferred Stock
Preferred stock, dividend rate (as a percent)	8.00%
Dividends on preferred stock per share	$ 80	$ 80
7% Preferred Stock
Preferred stock, dividend rate (as a percent)	7.00%
Dividends on preferred stock per share	$ 1.75
Offering expenses on issuance of stock		$ 1,731
6% Preferred Stock
Preferred stock, dividend rate (as a percent)	6.00%
Dividends on preferred stock per share	$ 60

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities:
Net income	$ 24,583	$ 10,570
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	453	137
Provision for loan losses	2,998	649
Gain on sale of securities		(127)
Gain on sale of loans	(21,166)	(2,643)
Proceeds from sales of loans	10,866,020	3,729,430
Loans and participations originated and purchased for sale	(11,551,090)	(3,776,827)
Change in mortgage servicing rights for paydowns and fair value adjustments	8,338	2,615
Net change in:
Trading securities	(195,266)	33,505
Other assets and receivables	(17,686)	2,699
Other liabilities	9,822	1,933
Other	1,379	798
Net cash provided by (used in) operating activities	(871,615)	2,739
Investing activities:
Net change in securities purchased under agreements to resell	38	37
Purchases of available-for-sale securities	(156,666)	(45,000)
Proceeds from the sale of available-for-sale securities	0	31,086
Proceeds from calls, maturities and paydowns of available-for-sale securities	107,995	49,055
Purchases of loans	(32,631)	(14,233)
Net change in loans receivable	(459,617)	(109,620)
Purchase of Federal Home Loan Bank stock	(25,787)	(11,860)
Proceeds from sale of Federal Home Loan Bank stock		1,190
Purchases of premises and equipment	(594)	(4,206)
Purchase of limited partnership interests	(1,090)
Net cash used in investing activities	(568,352)	(103,551)
Financing activities:
Net change in deposits	1,244,630	(110,031)
Proceeds from Federal Home Loan Bank borrowings	5,597,675	2,348,720
Repayment of Federal Home Loan Bank borrowings	(5,334,998)	(2,209,281)
Proceeds from issuance of preferred stock		48,269
Proceeds from notes payable	450	4,404
Payments on notes payable		(1,500)
Payments of contingent consideration	(501)
Dividends	(5,916)	(2,842)
Net cash provided by financing activities	1,501,340	77,739
Net Change in Cash and Cash Equivalents	61,373	(23,073)
Cash and Cash Equivalents, Beginning of Period	506,709	336,524
Cash and Cash Equivalents, End of Period	568,082	313,451
Additional Cash Flows Information:
Interest paid	23,782	14,745
Income taxes paid	$ 46	$ 64

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2020
Basis of Presentation
Basis of Presentation	Note 1: Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Merchants Bancorp, a registered bank holding company (the “Company”) and its wholly owned subsidiaries, Merchants Bank of Indiana (“Merchants Bank”) and Farmers-Merchants Bank of Illinois (“FMBI”). 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 acquisition of the assets of NattyMac, LLC (“NattyMac”), and OneTrust Funding, Inc. 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”. The accompanying unaudited condensed consolidated balance sheet of the Company as of December 31, 2019, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of March 31, 2020 and for the three months ended March 31, 2020 and 2019, were prepared in accordance with the instructions for Form 10‑Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the audited financial statements and notes thereto of the Company as of and for the year ended December 31, 2019 in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Financial Statements contained in the Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included to present fairly the financial position as of March 31, 2020 and the results of operations for the three months ended March 31, 2020 and 2019, and cash flows for the three months ended March 31, 2020 and 2019. All interim amounts have not been audited and the results of operations for the three months ended March 31, 2020, herein are not necessarily indicative of the results of operations to be expected for the entire year. Principles of Consolidation The unaudited condensed consolidated financial statements as of and for the period ended March 31, 2020 and 2019 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, and FMBI. Also included are Merchants Bank’s wholly owned subsidiaries, MCC, MCC’s wholly owned subsidiary, MCS, Ash Realty, NMF, MMW, and OneTrust Funding, Inc. The unaudited condensed consolidated financial statements as of and for the period ended March 31, 2020 also include PRMI, PRMIGP, and PRMIM, all of which are 99% owned by Merchants Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, loan servicing rights and fair values of financial instruments. The uncertainties related to the COVID-19 pandemic could cause significant changes to these estimates compared to what was known at the time these financial statements were prepared. Reclassifications Certain reclassifications have been made to the 2019 financial statements to conform to the financial statement presentation as of and for the three months ended March 31, 2020. These reclassifications had no effect on net income.

Securities Available For Sale

Securities Available For Sale	3 Months Ended
	Mar. 31, 2020
Securities Available For Sale
Securities Available For Sale	Note 2: Securities Available For Sale The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities were as follows: March 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available-for-sale securities: Treasury notes $ 1,994 $ 49 $ — $ 2,043 Federal agencies 306,152 423 — 306,575 Municipals 5,566 385 — 5,951 Mortgage-backed - Government-sponsored entity (GSE) - residential 24,142 343 1 24,484 Total available-for-sale securities $ 337,854 $ 1,200 $ 1 $ 339,053 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available-for-sale securities: Treasury notes $ 4,744 $ 21 $ — $ 4,765 Federal agencies 244,986 24 37 244,973 Municipals 5,577 360 — 5,937 Mortgage-backed - Government-sponsored entity (GSE) - residential 34,357 213 2 34,568 Total available-for-sale securities $ 289,664 $ 618 $ 39 $ 290,243 The amortized cost and fair value of available-for-sale securities at March 31, 2020 and 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. March 31, 2020 December 31, 2019 Amortized Fair Amortized Fair Cost Value Cost Value Contractual Maturity (In thousands) Within one year $ 20,500 $ 20,563 $ 23,250 $ 23,233 After one through five years 287,914 288,337 226,748 226,783 After five through ten years — — — — After ten years 5,298 5,669 5,309 5,659 313,712 314,569 255,307 255,675 Mortgage-backed - Government-sponsored entity (GSE) - residential 24,142 24,484 34,357 34,568 $ 337,854 $ 339,053 $ 289,664 $ 290,243 During the three months ended March 31, 2020, no securities available-for-sale were sold. During the three months ended March 31, 2019, $31.1 million of securities available-for-sale were sold, and a net gain of $127,000 was recognized, consisting of $361,000 in gains and $234,000 of losses. The following tables show the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2020 and December 31, 2019: March 31, 2020 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available-for-sale securities: Treasury notes $ — $ — $ — $ — $ — $ — Federal agencies — — — — — — Mortgage-backed - Government-sponsored entity (GSE) - residential 1,113 1 — — 1,113 1 $ 1,113 $ 1 $ — $ — $ 1,113 $ 1 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 Other-than-temporary Impairment 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 securities approach the maturity date.

Trading Securities

Trading Securities	3 Months Ended
	Mar. 31, 2020
Trading Securities.
Trading Securities	Note 3: Trading Securities Trading securities are recorded at fair value with changes in fair value recorded in earnings. These include multi-family rental real estate loan originations, primarily in Government National Mortgage Association (“GNMA”) mortgage backed securities, as well as FHA and conventional Fannie Mae and Freddie Mac participation certificates pending settlements that typically occur within 30 days. The unrealized gains included in trading securities totaled $2.2 million and $545,000 at March 31, 2020 and 2019, respectively.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	3 Months Ended
	Mar. 31, 2020
Loans and Allowance for Loan Losses
Loans and Allowance for Loan Losses	Note 4: Loans and Allowance for Loan Losses 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 at amortized cost, interest income is accrued based on the unpaid principal balance. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest 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. Loans receivable at March 31, 2020 and December 31, 2019 include: March 31, December 31, 2020 2019 (In thousands) Mortgage warehouse lines of credit $ 1,083,776 $ 765,151 Residential real estate 421,978 413,835 Multi-family and healthcare financing 1,435,206 1,347,125 Commercial and commercial real estate 468,668 398,601 Agricultural production and real estate 92,498 85,210 Consumer and margin loans 18,527 18,388 3,520,653 3,028,310 Less Allowance for loan losses 18,883 15,842 Loans Receivable $ 3,501,770 $ 3,012,468 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. 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 and loan sale proceeds of mortgage warehouse customers. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations. 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. 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 either the 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 loan portfolio segment within troubled debt restructurings is the same as detailed previously above. The following tables present, by loan portfolio segment, the activity in the allowance for loan losses for the three months ended March 31, 2020 and 2019 and the recorded investment in loans and impairment method as of March 31, 2020: At or For the Three Months Ended March 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 1,913 $ 2,042 $ 7,018 $ 4,173 $ 523 $ 173 $ 15,842 Provision (credit) for loan losses 796 20 676 1,445 38 23 2,998 Loans charged to the allowance — — — — — (1) (1) Recoveries of loans previously charged off — — — 44 — — 44 Balance, end of period $ 2,709 $ 2,062 $ 7,694 $ 5,662 $ 561 $ 195 $ 18,883 Ending balance: individually evaluated for impairment $ — 29 — 1,167 — 6 $ 1,202 Ending balance: collectively evaluated for impairment $ 2,709 $ 2,033 $ 7,694 $ 4,495 $ 561 $ 189 $ 17,681 Loans Ending balance $ 1,083,776 $ 421,978 $ 1,435,206 $ 468,668 $ 92,498 $ 18,527 $ 3,520,653 Ending balance individually evaluated for impairment $ 230 $ 2,410 $ — $ 9,425 $ 2,043 $ 16 $ 14,124 Ending balance collectively evaluated for impairment $ 1,083,546 $ 419,568 $ 1,435,206 $ 459,243 $ 90,455 $ 18,511 $ 3,506,529 For the Three Months Ended March 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 (credit) for loan losses 186 4 347 71 34 7 649 Loans charged to the allowance — — — — — — — Recoveries of loans previously charged off — — — — 3 — 3 Balance, end of period $ 1,254 $ 1,990 $ 6,377 $ 3,122 $ 466 $ 147 $ 13,356 The following table presents the allowance for loan losses and the recorded investment in loans and impairment method as of December 31, 2019: December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, December 31, 2019 $ 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 Balance, December 31, 2019 $ 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 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 March 31, 2020 and December 31, 2019: March 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 2,413 $ 30,930 $ 12,961 $ 2,006 $ 30 $ 48,340 Substandard 230 2,410 — 9,425 2,043 16 14,124 Doubtful — — — — — — — Acceptable and Above 1,083,546 417,155 1,404,276 446,282 88,449 18,481 3,458,189 Total $ 1,083,776 $ 421,978 $ 1,435,206 $ 468,668 $ 92,498 $ 18,527 $ 3,520,653 December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 2,472 $ 41,882 $ 13,806 $ 2,114 $ 31 $ 60,305 Substandard 233 3,109 — 9,152 — 23 12,517 Doubtful — — — — — — — Acceptable and Above 764,918 408,254 1,305,243 375,643 83,096 18,334 2,955,488 Total $ 765,151 $ 413,835 $ 1,347,125 $ 398,601 $ 85,210 $ 18,388 $ 3,028,310 The Company evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. No significant changes were made to either during the past year. The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of March 31, 2020 and December 31, 2019: March 31, 2020 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 1,083,776 $ 1,083,776 RES RE 1,002 289 1,972 3,263 418,715 421,978 MF RE — — — — 1,435,206 1,435,206 CML & CRE 274 622 2,180 3,076 465,592 468,668 AG & AGRE 429 152 1,908 2,489 90,009 92,498 CON & MAR 610 36 42 688 17,839 18,527 $ 2,315 $ 1,099 $ 6,102 $ 9,516 $ 3,511,137 $ 3,520,653 December 31, 2019 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 765,151 $ 765,151 RES RE 3,089 562 2,324 5,975 407,860 413,835 MF RE — — — — 1,347,125 1,347,125 CML & CRE 2,293 335 1,663 4,291 394,310 398,601 AG & AGRE 2,047 — 195 2,242 82,968 85,210 CON & MAR 50 31 19 100 18,288 18,388 $ 7,479 $ 928 $ 4,201 $ 12,608 $ 3,015,702 $ 3,028,310 A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in TDRs. The following tables present impaired loans and specific valuation allowance information based on class level as of March 31, 2020 and December 31, 2019: March 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ 230 $ 2,179 $ — $ 7,028 $ 2,043 $ 7 $ 11,487 Unpaid principal balance 230 2,179 — 7,028 2,043 7 11,487 Impaired loans with a specific allowance: Recorded investment — 231 — 2,397 — 9 2,637 Unpaid principal balance — 231 — 2,397 — 9 2,637 Specific allowance — 29 — 1,167 — 6 1,202 Total impaired loans: Recorded investment 230 2,410 — 9,425 2,043 16 14,124 Unpaid principal balance 230 2,410 — 9,425 2,043 16 14,124 Specific allowance — 29 — 1,167 — 6 1,202 December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ 233 $ 2,899 $ — $ 6,662 $ — $ 12 $ 9,806 Unpaid principal balance 233 2,899 — 6,662 — 12 9,806 Impaired loans with a specific allowance: Recorded investment — 210 — 2,490 — 11 2,711 Unpaid principal balance — 210 — 2,490 — 11 2,711 Specific allowance — 23 — 650 — 8 681 Total impaired loans: Recorded investment 233 3,109 — 9,152 — 23 12,517 Unpaid principal balance 233 3,109 — 9,152 — 23 12,517 Specific allowance — 23 — 650 — 8 681 The following tables present by portfolio class, information related to the average recorded investment and interest income recognized on impaired loans for the three months ended March 31, 2020 and 2019: MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Three Months Ended March 31, 2020 Average recorded investment in impaired loans $ 231 $ 3,088 $ — $ 9,502 $ 2,043 $ 20 $ 14,884 Interest income recognized — 16 — 131 — — 147 Three Months Ended March 31, 2019 Average recorded investment in impaired loans $ 574 $ 2,806 $ — $ 8,468 $ 364 $ 48 $ 12,260 Interest income recognized — 15 — 140 — — 155 The following table presents the Company’s nonaccrual loans and loans past due 90 days or more and still accruing at March 31, 2020 and December 31, 2019. March 31, December 31, 2020 2019 Total Loans > Total Loans > 90 Days & 90 Days & Nonaccrual Accruing Nonaccrual Accruing (In thousands) MTG WHLOC $ 230 $ — $ 233 $ — RES RE 664 1,551 740 1,851 MF RE — — — — CML & CRE 1,766 396 1,118 486 AG & AGRE — 1,908 — 231 CON & MAR 16 26 18 1 $ 2,676 $ 3,881 $ 2,109 $ 2,569 No troubled loans were restructured during the three months ended March 31, 2020 or 2019. No restructured loans defaulted during the three months ended March 31, 2020 or 2019. Loan modifications or forbearances related to the COVID-19 pandemic will generally not be considered TDRs. There was one customer with a residential loan balance of $725,000 in the process of foreclosure at December 31, 2019 that was paid in full at March 31, 2020 and there were no residential loans in process of foreclosure as of March 31, 2020.

Regulatory Matters

Regulatory Matters	3 Months Ended
	Mar. 31, 2020
Regulatory Matters
Regulatory Matters	Note 5: Regulatory Matters The Company, Merchants Bank, and FMBI are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by federal and state banking regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company, Merchants Bank, and FMBI must meet specific capital guidelines that involve quantitative measures of the Company’s, Merchants Bank’s, and FMBI’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s, Merchants Bank’s, and FMBI’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, and other factors. Furthermore, the Company’s, Merchants Bank’s, and FMBI’s regulators could require adjustments to regulatory capital not reflected in these financial statements. 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 March 31, 2020 and December 31, 2019, that the Company, Merchants Bank, and FMBI met all capital adequacy requirements to which they were subject. As of March 31, 2020 and December 31, 2019, the most recent notifications from the Board of Governors of the Federal Reserve System (“Federal Reserve”) categorized the Company as well capitalized and most recent notifications from the Federal Deposit Insurance Corporation (“FDIC”) categorized Merchants Bank and FMBI as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Company’s, Merchants Bank’s, or FMBI’s category. On November 13, 2019, the federal regulators finalized and adopted a regulatory capital rule establishing a new community bank leverage ratio (“CBLR”), which became effective on January 1, 2020. The intent of CBLR is to provide a simple alternative measure of capital adequacy for electing qualifying depository institutions and depository institution holding companies, as directed under the Economic Growth, Regulatory Relief, and Consumer Protection Act. Under CBLR, if a qualifying depository institution or depository institution holding company elects to use such measure, such institution or holding company will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds 9%, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios. In April 2020, under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act”), the 9% leverage ratio threshold was temporarily reduced to 8% in response to the COVID-19 pandemic. The threshold will increase to 8.5% in 2021 and return to 9% in 2022. The Company, Merchants Bank, and FMBI elected to begin using CBLR for the first quarter of 2020. The Company’s, Merchants Bank’s, and FMBI’s actual capital amounts and ratios are presented in the following tables. Minimum Amount To Be Well Actual Capitalized (1) Amount Ratio Amount Ratio (Dollars in thousands) March 31, 2020 Tier 1 capital (1) (to average assets) (i.e., leverage ratio) Company $ 652,781 9.9 % $ 592,662 > 9 % Merchants Bank 642,891 10.1 % 574,263 > 9 % FMBI 21,969 10.7 % 18,397 > 9 % Minimum Minimum Amount Required Amount To Be for Adequately Well Actual Capitalized (1) Capitalized (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2019 Total capital (1) (to risk-weighted assets) Company $ 637,472 11.6 % $ 440,063 8.0 % $ — N/A Merchants Bank 639,104 12.0 % 426,748 8.0 % 533,435 10.0 % FMBI 21,726 13.1 % 13,306 8.0 % 16,632 10.0 % Tier 1 capital (1) (to risk-weighted assets) Company 621,630 11.3 % 330,047 6.0 % — N/A Merchants Bank 623,716 11.7 % 320,061 6.0 % 426,748 8.0 % FMBI 21,272 12.8 % 9,979 6.0 % 13,306 8.0 % Common Equity Tier 1 capital (1) (to risk-weighted assets) Company 408,984 7.4 % 247,536 4.5 % — N/A Merchants Bank 623,716 11.7 % 240,046 4.5 % 346,733 6.5 % FMBI 21,272 12.8 % 7,484 4.5 % 10,811 6.5 % Tier 1 capital (1) (to average assets) Company 621,630 9.4 % 264,324 4.0 % — N/A Merchants Bank 623,716 9.7 % 257,487 4.0 % 321,859 5.0 % FMBI 21,272 11.7 % 7,302 4.0 % 9,128 5.0 % 1 As defined by regulatory agencies. Failure to exceed the leverage ratio thresholds required under CBLR in the future, subject to any applicable grace period, would require the Company, Merchants Bank, and/or FMBI to return to the risk-based capital ratio thresholds previously utilized under the fully phased-in Basel III Capital Rules to determine capital adequacy.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2020
Derivative Financial Instruments
Derivative Financial Instruments	Note 6: Derivative Financial Instruments The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. Forward Sales Commitments and Interest Rate Lock Commitments The Company enters into forward contracts for the future delivery of mortgage loans to third party investors and enters into interest rate lock commitments with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts are entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans. Each of these items are considered derivatives, but are not designated as accounting hedges, and are recorded at fair value with changes in fair value reflected in noninterest income on the condensed consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in other assets in the condensed consolidated balance sheets while derivative instruments with a negative fair value are reported in other liabilities in the condensed 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 March 31, 2020 and December 31, 2019. Notional Fair Value Amount Balance Sheet Location Asset Liability March 31, 2020 (In thousands) (In thousands) Interest rate lock commitments $ 162,228 Other assets/liabilities $ 2,079 $ 80 Forward contracts 122,706 Other assets/liabilities 96 1,273 $ 2,175 $ 1,353 Notional Fair Value Amount Balance Sheet Location Asset Liability December 31, 2019 (In thousands) (In thousands) Interest rate lock commitments $ 17,826 Other assets/liabilities $ 186 $ — Forward contracts 34,268 Other assets/liabilities — 27 $ 186 $ 27 Fair values of these 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 table summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income for the three months ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 2019 (In thousands) Interest rate lock commitments $ 1,813 $ — Forward contracts (includes pair-off settlements) (1,844) (5) Net derivative gains (losses) $ (31) $ (5) Derivatives on Behalf of Customers The Company offers derivative contracts to some customers in connection with their risk management needs. These derivatives include interest rate swaps. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party dealer. These derivatives generally work together as an economic interest rate hedge, but the Company does not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred, typically resulting in no net earnings impact. The fair values of derivative assets and liabilities related to derivatives for customers with interest rate swaps were recorded in the condensed consolidated balance sheets as follows: Notional Fair Value Amount Balance Sheet Location Asset Liability (In thousands) (In thousands) March 31, 2020 $ 62,470 Other assets/liabilities $ 3,214 $ 3,214 December 31, 2019 58,067 Other assets/liabilities $ 511 $ 511 The gross gains and losses on these derivative assets and liabilities were recorded in Other Noninterest income and Other Noninterest expense in the condensed consolidated statements of income as follows: Three Months Ended March 31, 2020 2019 (In thousands) Gross swap gains $ 2,703 $ — Gross swap losses (2,703) — Net swap gains (losses) — $ — The Company pledged $3.1 million and $590,000 in collateral to secure its obligations under swap contracts at March 31, 2020 and December 31, 2019, respectively.

Disclosures about Fair Value of

Disclosures about Fair Value of Assets and Liabilities	3 Months Ended
	Mar. 31, 2020
Disclosures about Fair Value of Assets and Liabilities
Disclosures about Fair Value of Assets and Liabilities	Note 7: 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 March 31, 2020 and December 31, 2019: Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Assets Value (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2020 Trading securities $ 465,157 $ — $ 465,157 $ — Available-for-sale securities: Treasury notes 2,043 2,043 — — Federal agencies 306,575 — 306,575 — Municipals 5,951 — 5,951 — Mortgage-backed - Government-sponsored entity (GSE) - residential 24,484 — 24,484 — Loans held for sale 18,938 — 18,938 — Mortgage servicing rights 69,978 — — 69,978 Derivative assets - interest rate lock commitments 2,079 — — 2,079 Derivative assets - forward contracts 96 — 96 — Derivative assets - interest rate swaps 3,214 — 3,214 — Derivative liabilities - interest rate lock commitments 80 — — 80 Derivative liabilities - forward contracts 1,273 — 1,273 — Derivative liabilities - interest rate swaps 3,214 — 3,214 — 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 — 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 three months ended March 31, 2020 and the year ended December 31, 2019. 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, U.S. Treasuries, and Federal Housing Administration participation certificates. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Loans Held for Sale Certain loans held for sale at fair value are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices, or market price equivalents, which would be used by other market participants. These saleable loans are considered Level 2. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed, 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 expenses 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: Three Months Ended March 31, 2020 2019 (In thousands) Mortgage servicing rights Balance, beginning of period $ 74,387 $ 77,844 Additions Originated and purchased servicing 3,929 1,020 Subtractions Paydowns (1,858) (1,110) Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model (6,480) (1,505) Balance, end of period $ 69,978 $ 76,249 Derivative Assets - interest rate lock commitments Balance, beginning of period $ 186 $ 70 Changes in fair value 1,893 1 Balance, end of period $ 2,079 $ 71 Derivative Liabilities - interest rate lock commitments Balance, beginning of period $ — $ — Changes in fair value 80 1 Balance, end of period $ 80 $ 1 Nonrecurring Measurements The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2020 and December 31, 2019. Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Assets Value (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2020 Impaired loans (collateral-dependent) $ 1,306 $ — $ — $ 1,306 December 31, 2019 Impaired loans (collateral-dependent) $ 1,570 $ — $ — $ 1,570 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Collateral-Dependent Impaired Loans, Net of Allowance for Loan Losses The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Credit Officer’s (CCO) office. Appraisals 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 March 31, 2020: Collateral-dependent impaired loans $ 1,306 Market comparable properties Marketability discount 44% - 75% Mortgage servicing rights $ 69,978 Discounted cash flow Discount rate 8% - 13% Constant prepayment rate 2% - 43% Derivative assets - interest rate lock commitments $ 2,079 Discounted cash flow loan closing rates 56-99% Derivative liabilities - interest rate lock commitments $ 80 Discounted cash flow loan closing rates 56-99% 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% 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 March 31, 2020 and December 31, 2019. Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Assets Value Value (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2020 Financial assets: Cash and cash equivalents $ 568,082 $ 568,082 $ 568,082 $ — $ — Securities purchased under agreements to resell 6,685 6,685 — 6,685 — FHLB stock 46,156 46,156 — 46,156 — Loans held for sale 2,777,070 2,777,070 — 2,777,070 — Loans, net 3,501,770 3,475,393 — — 3,475,393 Interest receivable 18,139 18,139 — 18,139 — Financial liabilities: Deposits 6,722,705 6,730,101 3,967,232 2,762,869 — Lines of credit — — — — — Short-term subordinated debt 12,650 12,650 — 12,650 — FHLB advances 431,917 431,283 — 431,283 — Interest payable 10,219 10,219 — 10,219 — 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 —

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share
Earnings Per Share	Note 8: Earnings Per Share Earnings per share were computed as follows: Three Month Periods Ended March 31, 2020 2019 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 24,583 $ 10,570 Dividends on preferred stock (3,618) (833) Net income allocated to common shareholders $ 20,965 $ 9,737 Basic earnings per share 28,734,632 $ 0.73 28,702,250 $ 0.34 Effect of dilutive securities-restricted stock awards 24,780 35,189 Diluted earnings per share 28,759,412 $ 0.73 28,737,439 $ 0.34

Share-Based Payment Plan

Share-Based Payment Plan	3 Months Ended
	Mar. 31, 2020
Share-Based Payment Plan
Share-Based Payment Plan	Note 9: Share-Based Payment Plans Equity-based incentive awards are currently issued pursuant to the 2017 Equity Incentive Plan (the “2017 Incentive Plan”). Prior to the adoption of the 2017 Incentive Plan, the equity awards issued historically consisted of restricted stock awards issued pursuant to the Incentive Plan for Merchants Bank Executive Officers (the “Prior Incentive Plan”). As of the effective date of the 2017 Equity Incentive Plan, no further awards will be granted under the Prior Incentive Plan. However, any previously outstanding incentive award granted under the Prior Incentive Plan remains subject to the terms of such plan until the time it is no longer outstanding. During the three months ended March 31, 2020 and March 31, 2019, the Company issued 36,046 and 10,127 shares, respectively, pursuant to these plans . During 2018, the Compensation Committee of the Board of Directors approved a plan for non-executive directors to receive a portion of their annual retainer fees in the form of shares of common stock equal to $10,000, rounded up to the nearest whole share. There were no shares issued to non-executive directors during the three months ended March 31, 2020 or March 31, 2019.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2020
Segment Information
Segment Information	Note 10: Segment Information Our 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, and 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 three months ended March 31, 2020 and 2019. Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Three Months Ended March 31, 2020 Interest income $ 420 $ 30,099 $ 29,230 $ 668 $ 60,417 Interest expense — 12,085 11,807 (1,828) 22,064 Net interest income 420 18,014 17,423 2,496 38,353 Provision for loan losses — 1,180 1,818 — 2,998 Net interest income after provision for loan losses 420 16,834 15,605 2,496 35,355 Noninterest income 17,364 2,776 683 (921) 19,902 Noninterest expense 10,348 3,019 5,688 3,238 22,293 Income before income taxes 7,436 16,591 10,600 (1,663) 32,964 Income taxes 2,037 4,154 2,650 (460) 8,381 Net income (loss) $ 5,399 $ 12,437 $ 7,950 $ (1,203) $ 24,583 Total assets $ 180,772 $ 4,362,423 $ 3,323,750 $ 41,453 $ 7,908,398 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Three Months Ended March 31, 2019 Interest income $ 331 $ 14,380 $ 24,492 $ 471 $ 39,674 Interest expense — 7,529 8,982 (968) 15,543 Net interest income 331 6,851 15,510 1,439 24,131 Provision for loan losses — 133 516 — 649 Net interest income after provision for loan losses 331 6,718 14,994 1,439 23,482 Noninterest income 2,691 753 883 (663) 3,664 Noninterest expense 3,977 2,336 4,120 2,602 13,035 Income before income taxes (955) 5,135 11,757 (1,826) 14,111 Income taxes (243) 1,303 2,988 (507) 3,541 Net income (loss) $ (712) $ 3,832 $ 8,769 $ (1,319) $ 10,570 Total assets $ 160,609 $ 1,554,233 $ 2,223,890 37,993 $ 3,976,725

Preferred Stock Offerings

Preferred Stock Offerings	3 Months Ended
	Mar. 31, 2020
Preferred Stock Offerings
Preferred Stock Offerings	Note 11: Preferred Stock Offerings 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 in 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.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2020
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 12: Recent Accounting Pronouncements The Company is an emerging growth company and as such will be subject to the effective dates noted for private companies if they differ from the effective dates noted for public companies. FASB ASU 2016‑02, Leases In February 2016, the Financial Accounting Standards Board (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 with 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.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
Basis of Presentation
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements include the accounts of Merchants Bancorp, a registered bank holding company (the “Company”) and its wholly owned subsidiaries, Merchants Bank of Indiana (“Merchants Bank”) and Farmers-Merchants Bank of Illinois (“FMBI”). 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 acquisition of the assets of NattyMac, LLC (“NattyMac”), and OneTrust Funding, Inc. 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”. The accompanying unaudited condensed consolidated balance sheet of the Company as of December 31, 2019, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of March 31, 2020 and for the three months ended March 31, 2020 and 2019, were prepared in accordance with the instructions for Form 10‑Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the audited financial statements and notes thereto of the Company as of and for the year ended December 31, 2019 in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Financial Statements contained in the Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included to present fairly the financial position as of March 31, 2020 and the results of operations for the three months ended March 31, 2020 and 2019, and cash flows for the three months ended March 31, 2020 and 2019. All interim amounts have not been audited and the results of operations for the three months ended March 31, 2020, herein are not necessarily indicative of the results of operations to be expected for the entire year.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements as of and for the period ended March 31, 2020 and 2019 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, and FMBI. Also included are Merchants Bank’s wholly owned subsidiaries, MCC, MCC’s wholly owned subsidiary, MCS, Ash Realty, NMF, MMW, and OneTrust Funding, Inc. The unaudited condensed consolidated financial statements as of and for the period ended March 31, 2020 also include PRMI, PRMIGP, and PRMIM, all of which are 99% owned by Merchants Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, loan servicing rights and fair values of financial instruments. The uncertainties related to the COVID-19 pandemic could cause significant changes to these estimates compared to what was known at the time these financial statements were prepared.
Reclassifications	Reclassifications Certain reclassifications have been made to the 2019 financial statements to conform to the financial statement presentation as of and for the three months ended March 31, 2020. These reclassifications had no effect on net income.

Securities Available For Sale (

Securities Available For Sale (Tables)	3 Months Ended
	Mar. 31, 2020
Securities Available For Sale
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses	March 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available-for-sale securities: Treasury notes $ 1,994 $ 49 $ — $ 2,043 Federal agencies 306,152 423 — 306,575 Municipals 5,566 385 — 5,951 Mortgage-backed - Government-sponsored entity (GSE) - residential 24,142 343 1 24,484 Total available-for-sale securities $ 337,854 $ 1,200 $ 1 $ 339,053 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available-for-sale securities: Treasury notes $ 4,744 $ 21 $ — $ 4,765 Federal agencies 244,986 24 37 244,973 Municipals 5,577 360 — 5,937 Mortgage-backed - Government-sponsored entity (GSE) - residential 34,357 213 2 34,568 Total available-for-sale securities $ 289,664 $ 618 $ 39 $ 290,243
Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity	March 31, 2020 December 31, 2019 Amortized Fair Amortized Fair Cost Value Cost Value Contractual Maturity (In thousands) Within one year $ 20,500 $ 20,563 $ 23,250 $ 23,233 After one through five years 287,914 288,337 226,748 226,783 After five through ten years — — — — After ten years 5,298 5,669 5,309 5,659 313,712 314,569 255,307 255,675 Mortgage-backed - Government-sponsored entity (GSE) - residential 24,142 24,484 34,357 34,568 $ 337,854 $ 339,053 $ 289,664 $ 290,243
Schedule of gross unrealized losses and fair value of investments with unrealized losses have been in continuous	March 31, 2020 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available-for-sale securities: Treasury notes $ — $ — $ — $ — $ — $ — Federal agencies — — — — — — Mortgage-backed - Government-sponsored entity (GSE) - residential 1,113 1 — — 1,113 1 $ 1,113 $ 1 $ — $ — $ 1,113 $ 1 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

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2020
Loans and Allowance for Loan Losses
Summary of loans	March 31, December 31, 2020 2019 (In thousands) Mortgage warehouse lines of credit $ 1,083,776 $ 765,151 Residential real estate 421,978 413,835 Multi-family and healthcare financing 1,435,206 1,347,125 Commercial and commercial real estate 468,668 398,601 Agricultural production and real estate 92,498 85,210 Consumer and margin loans 18,527 18,388 3,520,653 3,028,310 Less Allowance for loan losses 18,883 15,842 Loans Receivable $ 3,501,770 $ 3,012,468
Summary of activity in the allowance for loans and recorded investment by loan portfolio	At or For the Three Months Ended March 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 1,913 $ 2,042 $ 7,018 $ 4,173 $ 523 $ 173 $ 15,842 Provision (credit) for loan losses 796 20 676 1,445 38 23 2,998 Loans charged to the allowance — — — — — (1) (1) Recoveries of loans previously charged off — — — 44 — — 44 Balance, end of period $ 2,709 $ 2,062 $ 7,694 $ 5,662 $ 561 $ 195 $ 18,883 Ending balance: individually evaluated for impairment $ — 29 — 1,167 — 6 $ 1,202 Ending balance: collectively evaluated for impairment $ 2,709 $ 2,033 $ 7,694 $ 4,495 $ 561 $ 189 $ 17,681 Loans Ending balance $ 1,083,776 $ 421,978 $ 1,435,206 $ 468,668 $ 92,498 $ 18,527 $ 3,520,653 Ending balance individually evaluated for impairment $ 230 $ 2,410 $ — $ 9,425 $ 2,043 $ 16 $ 14,124 Ending balance collectively evaluated for impairment $ 1,083,546 $ 419,568 $ 1,435,206 $ 459,243 $ 90,455 $ 18,511 $ 3,506,529 For the Three Months Ended March 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 (credit) for loan losses 186 4 347 71 34 7 649 Loans charged to the allowance — — — — — — — Recoveries of loans previously charged off — — — — 3 — 3 Balance, end of period $ 1,254 $ 1,990 $ 6,377 $ 3,122 $ 466 $ 147 $ 13,356
Summary of activity in the allowance for loan losses	December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, December 31, 2019 $ 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 Balance, December 31, 2019 $ 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
Schedule of credit risk profile of loan portfolio	March 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 2,413 $ 30,930 $ 12,961 $ 2,006 $ 30 $ 48,340 Substandard 230 2,410 — 9,425 2,043 16 14,124 Doubtful — — — — — — — Acceptable and Above 1,083,546 417,155 1,404,276 446,282 88,449 18,481 3,458,189 Total $ 1,083,776 $ 421,978 $ 1,435,206 $ 468,668 $ 92,498 $ 18,527 $ 3,520,653 December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 2,472 $ 41,882 $ 13,806 $ 2,114 $ 31 $ 60,305 Substandard 233 3,109 — 9,152 — 23 12,517 Doubtful — — — — — — — Acceptable and Above 764,918 408,254 1,305,243 375,643 83,096 18,334 2,955,488 Total $ 765,151 $ 413,835 $ 1,347,125 $ 398,601 $ 85,210 $ 18,388 $ 3,028,310
Schedule of aging analysis of the recorded investment in loans	March 31, 2020 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 1,083,776 $ 1,083,776 RES RE 1,002 289 1,972 3,263 418,715 421,978 MF RE — — — — 1,435,206 1,435,206 CML & CRE 274 622 2,180 3,076 465,592 468,668 AG & AGRE 429 152 1,908 2,489 90,009 92,498 CON & MAR 610 36 42 688 17,839 18,527 $ 2,315 $ 1,099 $ 6,102 $ 9,516 $ 3,511,137 $ 3,520,653 December 31, 2019 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 765,151 $ 765,151 RES RE 3,089 562 2,324 5,975 407,860 413,835 MF RE — — — — 1,347,125 1,347,125 CML & CRE 2,293 335 1,663 4,291 394,310 398,601 AG & AGRE 2,047 — 195 2,242 82,968 85,210 CON & MAR 50 31 19 100 18,288 18,388 $ 7,479 $ 928 $ 4,201 $ 12,608 $ 3,015,702 $ 3,028,310
Schedule of components of impaired loans and specific valuation allowance	March 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ 230 $ 2,179 $ — $ 7,028 $ 2,043 $ 7 $ 11,487 Unpaid principal balance 230 2,179 — 7,028 2,043 7 11,487 Impaired loans with a specific allowance: Recorded investment — 231 — 2,397 — 9 2,637 Unpaid principal balance — 231 — 2,397 — 9 2,637 Specific allowance — 29 — 1,167 — 6 1,202 Total impaired loans: Recorded investment 230 2,410 — 9,425 2,043 16 14,124 Unpaid principal balance 230 2,410 — 9,425 2,043 16 14,124 Specific allowance — 29 — 1,167 — 6 1,202 December 31, 2019 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ 233 $ 2,899 $ — $ 6,662 $ — $ 12 $ 9,806 Unpaid principal balance 233 2,899 — 6,662 — 12 9,806 Impaired loans with a specific allowance: Recorded investment — 210 — 2,490 — 11 2,711 Unpaid principal balance — 210 — 2,490 — 11 2,711 Specific allowance — 23 — 650 — 8 681 Total impaired loans: Recorded investment 233 3,109 — 9,152 — 23 12,517 Unpaid principal balance 233 3,109 — 9,152 — 23 12,517 Specific allowance — 23 — 650 — 8 681
Schedule of average recorded investment and interest income recognized in impaired loans	MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Three Months Ended March 31, 2020 Average recorded investment in impaired loans $ 231 $ 3,088 $ — $ 9,502 $ 2,043 $ 20 $ 14,884 Interest income recognized — 16 — 131 — — 147 Three Months Ended March 31, 2019 Average recorded investment in impaired loans $ 574 $ 2,806 $ — $ 8,468 $ 364 $ 48 $ 12,260 Interest income recognized — 15 — 140 — — 155
Schedule of nonaccrual loans and loans past due 90 days or more and still accruing	March 31, December 31, 2020 2019 Total Loans > Total Loans > 90 Days & 90 Days & Nonaccrual Accruing Nonaccrual Accruing (In thousands) MTG WHLOC $ 230 $ — $ 233 $ — RES RE 664 1,551 740 1,851 MF RE — — — — CML & CRE 1,766 396 1,118 486 AG & AGRE — 1,908 — 231 CON & MAR 16 26 18 1 $ 2,676 $ 3,881 $ 2,109 $ 2,569

Regulatory Matters (Tables)

Regulatory Matters (Tables)	3 Months Ended
	Mar. 31, 2020
Regulatory Matters
Summary of bank's actual capital amounts and ratios	The Company’s, Merchants Bank’s, and FMBI’s actual capital amounts and ratios are presented in the following tables. Minimum Amount To Be Well Actual Capitalized (1) Amount Ratio Amount Ratio (Dollars in thousands) March 31, 2020 Tier 1 capital (1) (to average assets) (i.e., leverage ratio) Company $ 652,781 9.9 % $ 592,662 > 9 % Merchants Bank 642,891 10.1 % 574,263 > 9 % FMBI 21,969 10.7 % 18,397 > 9 % Minimum Minimum Amount Required Amount To Be for Adequately Well Actual Capitalized (1) Capitalized (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2019 Total capital (1) (to risk-weighted assets) Company $ 637,472 11.6 % $ 440,063 8.0 % $ — N/A Merchants Bank 639,104 12.0 % 426,748 8.0 % 533,435 10.0 % FMBI 21,726 13.1 % 13,306 8.0 % 16,632 10.0 % Tier 1 capital (1) (to risk-weighted assets) Company 621,630 11.3 % 330,047 6.0 % — N/A Merchants Bank 623,716 11.7 % 320,061 6.0 % 426,748 8.0 % FMBI 21,272 12.8 % 9,979 6.0 % 13,306 8.0 % Common Equity Tier 1 capital (1) (to risk-weighted assets) Company 408,984 7.4 % 247,536 4.5 % — N/A Merchants Bank 623,716 11.7 % 240,046 4.5 % 346,733 6.5 % FMBI 21,272 12.8 % 7,484 4.5 % 10,811 6.5 % Tier 1 capital (1) (to average assets) Company 621,630 9.4 % 264,324 4.0 % — N/A Merchants Bank 623,716 9.7 % 257,487 4.0 % 321,859 5.0 % FMBI 21,272 11.7 % 7,302 4.0 % 9,128 5.0 % 1 As defined by regulatory agencies.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2020
Derivative Financial Instruments
Summary of notional amount and fair value of derivative assets and liabilities	Notional Fair Value Amount Balance Sheet Location Asset Liability March 31, 2020 (In thousands) (In thousands) Interest rate lock commitments $ 162,228 Other assets/liabilities $ 2,079 $ 80 Forward contracts 122,706 Other assets/liabilities 96 1,273 $ 2,175 $ 1,353 Notional Fair Value Amount Balance Sheet Location Asset Liability December 31, 2019 (In thousands) (In thousands) Interest rate lock commitments $ 17,826 Other assets/liabilities $ 186 $ — Forward contracts 34,268 Other assets/liabilities — 27 $ 186 $ 27
Summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income	Three Months Ended March 31, 2020 2019 (In thousands) Interest rate lock commitments $ 1,813 $ — Forward contracts (includes pair-off settlements) (1,844) (5) Net derivative gains (losses) $ (31) $ (5)
Interest rate swaps
Derivative Financial Instruments
Summary of notional amount and fair value of derivative assets and liabilities	Notional Fair Value Amount Balance Sheet Location Asset Liability (In thousands) (In thousands) March 31, 2020 $ 62,470 Other assets/liabilities $ 3,214 $ 3,214 December 31, 2019 58,067 Other assets/liabilities $ 511 $ 511
Summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income	Three Months Ended March 31, 2020 2019 (In thousands) Gross swap gains $ 2,703 $ — Gross swap losses (2,703) — Net swap gains (losses) — $ —

Disclosures about Fair Value _2

Disclosures about Fair Value of Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Disclosures about Fair Value of Assets and Liabilities
Schedule of fair value measurement of assets measured at fair value on recurring basis	Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Assets Value (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2020 Trading securities $ 465,157 $ — $ 465,157 $ — Available-for-sale securities: Treasury notes 2,043 2,043 — — Federal agencies 306,575 — 306,575 — Municipals 5,951 — 5,951 — Mortgage-backed - Government-sponsored entity (GSE) - residential 24,484 — 24,484 — Loans held for sale 18,938 — 18,938 — Mortgage servicing rights 69,978 — — 69,978 Derivative assets - interest rate lock commitments 2,079 — — 2,079 Derivative assets - forward contracts 96 — 96 — Derivative assets - interest rate swaps 3,214 — 3,214 — Derivative liabilities - interest rate lock commitments 80 — — 80 Derivative liabilities - forward contracts 1,273 — 1,273 — Derivative liabilities - interest rate swaps 3,214 — 3,214 — 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 —
Schedule of Level 3 reconciliation of recurring fair value measurements	Three Months Ended March 31, 2020 2019 (In thousands) Mortgage servicing rights Balance, beginning of period $ 74,387 $ 77,844 Additions Originated and purchased servicing 3,929 1,020 Subtractions Paydowns (1,858) (1,110) Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model (6,480) (1,505) Balance, end of period $ 69,978 $ 76,249 Derivative Assets - interest rate lock commitments Balance, beginning of period $ 186 $ 70 Changes in fair value 1,893 1 Balance, end of period $ 2,079 $ 71 Derivative Liabilities - interest rate lock commitments Balance, beginning of period $ — $ — Changes in fair value 80 1 Balance, end of period $ 80 $ 1
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) March 31, 2020 Impaired loans (collateral-dependent) $ 1,306 $ — $ — $ 1,306 December 31, 2019 Impaired loans (collateral-dependent) $ 1,570 $ — $ — $ 1,570
Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill	Valuation Fair Value Technique Unobservable Inputs Range (In thousands) At March 31, 2020: Collateral-dependent impaired loans $ 1,306 Market comparable properties Marketability discount 44% - 75% Mortgage servicing rights $ 69,978 Discounted cash flow Discount rate 8% - 13% Constant prepayment rate 2% - 43% Derivative assets - interest rate lock commitments $ 2,079 Discounted cash flow loan closing rates 56-99% Derivative liabilities - interest rate lock commitments $ 80 Discounted cash flow loan closing rates 56-99% 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%
Schedule of carrying amount and estimated fair value of financial instruments	Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Assets Value Value (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2020 Financial assets: Cash and cash equivalents $ 568,082 $ 568,082 $ 568,082 $ — $ — Securities purchased under agreements to resell 6,685 6,685 — 6,685 — FHLB stock 46,156 46,156 — 46,156 — Loans held for sale 2,777,070 2,777,070 — 2,777,070 — Loans, net 3,501,770 3,475,393 — — 3,475,393 Interest receivable 18,139 18,139 — 18,139 — Financial liabilities: Deposits 6,722,705 6,730,101 3,967,232 2,762,869 — Lines of credit — — — — — Short-term subordinated debt 12,650 12,650 — 12,650 — FHLB advances 431,917 431,283 — 431,283 — Interest payable 10,219 10,219 — 10,219 — 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 —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share
Schedule of computation of earnings per share	Three Month Periods Ended March 31, 2020 2019 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 24,583 $ 10,570 Dividends on preferred stock (3,618) (833) Net income allocated to common shareholders $ 20,965 $ 9,737 Basic earnings per share 28,734,632 $ 0.73 28,702,250 $ 0.34 Effect of dilutive securities-restricted stock awards 24,780 35,189 Diluted earnings per share 28,759,412 $ 0.73 28,737,439 $ 0.34

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Information
Schedule of business segment financial information	Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Three Months Ended March 31, 2020 Interest income $ 420 $ 30,099 $ 29,230 $ 668 $ 60,417 Interest expense — 12,085 11,807 (1,828) 22,064 Net interest income 420 18,014 17,423 2,496 38,353 Provision for loan losses — 1,180 1,818 — 2,998 Net interest income after provision for loan losses 420 16,834 15,605 2,496 35,355 Noninterest income 17,364 2,776 683 (921) 19,902 Noninterest expense 10,348 3,019 5,688 3,238 22,293 Income before income taxes 7,436 16,591 10,600 (1,663) 32,964 Income taxes 2,037 4,154 2,650 (460) 8,381 Net income (loss) $ 5,399 $ 12,437 $ 7,950 $ (1,203) $ 24,583 Total assets $ 180,772 $ 4,362,423 $ 3,323,750 $ 41,453 $ 7,908,398 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Three Months Ended March 31, 2019 Interest income $ 331 $ 14,380 $ 24,492 $ 471 $ 39,674 Interest expense — 7,529 8,982 (968) 15,543 Net interest income 331 6,851 15,510 1,439 24,131 Provision for loan losses — 133 516 — 649 Net interest income after provision for loan losses 331 6,718 14,994 1,439 23,482 Noninterest income 2,691 753 883 (663) 3,664 Noninterest expense 3,977 2,336 4,120 2,602 13,035 Income before income taxes (955) 5,135 11,757 (1,826) 14,111 Income taxes (243) 1,303 2,988 (507) 3,541 Net income (loss) $ (712) $ 3,832 $ 8,769 $ (1,319) $ 10,570 Total assets $ 160,609 $ 1,554,233 $ 2,223,890 37,993 $ 3,976,725

Securities Available For Sale -

Securities Available For Sale - Amortized Cost to Approximate Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale securities:
Amortized Cost	$ 337,854	$ 289,664
Gross Unrealized Gains	1,200	618
Gross Unrealized Losses	1	39
Fair Value of available for sale securities	339,053	290,243
Treasury notes.
Available-for-sale securities:
Amortized Cost	1,994	4,744
Gross Unrealized Gains	49	21
Fair Value of available for sale securities	2,043	4,765
Federal agencies
Available-for-sale securities:
Amortized Cost	306,152	244,986
Gross Unrealized Gains	423	24
Gross Unrealized Losses		37
Fair Value of available for sale securities	306,575	244,973
Municipals
Available-for-sale securities:
Amortized Cost	5,566	5,577
Gross Unrealized Gains	385	360
Fair Value of available for sale securities	5,951	5,937
Mortgage-backed - Government-sponsored entity (GSE) - residential
Available-for-sale securities:
Amortized Cost	24,142	34,357
Gross Unrealized Gains	343	213
Gross Unrealized Losses	1	2
Fair Value of available for sale securities	$ 24,484	$ 34,568

Securities Available For Sale_2

Securities Available For Sale - Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Contractual Maturities, Amortized Cost
Within one year	$ 20,500	$ 23,250
After one through five years	287,914	226,748
After ten years	5,298	5,309
Amortized Costs, Gross	313,712	255,307
Amortized Costs, Net	337,854	289,664
Contractual Maturities, Fair Value
Within one year	20,563	23,233
After one through five years	288,337	226,783
After ten years	5,669	5,659
Fair Value, Gross	314,569	255,675
Available-for-sale Securities, Debt Securities, Total	339,053	290,243
Mortgage-backed - Government-sponsored entity (GSE) - residential
Contractual Maturities, Amortized Cost
Amortized Costs, Mortgage-backed - Government-sponsored entity (GSE) - residential	24,142	34,357
Amortized Costs, Net	24,142	34,357
Contractual Maturities, Fair Value
Fair Value, Mortgage-backed - Government-sponsored entity (GSE) - residential	24,484	34,568
Available-for-sale Securities, Debt Securities, Total	$ 24,484	$ 34,568

Securities Available For Sale_3

Securities Available For Sale - Sale of securities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Securities Available For Sale
Proceeds from the sale of available-for-sale securities	$ 0	$ 31,086,000
Net gain on sale of securities available for sale		127,000
Gains on sale of securities available for sale		361,000
Losses on sale of securities available for sale		$ 234,000

Securities - Continuous Unreali

Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	$ 1,113	$ 95,772
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	1,113	95,772
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	1	39
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	1	39
Federal agencies
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months		94,963
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total		94,963
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months		37
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total		37
Mortgage-backed - Government-sponsored entity (GSE) - residential
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	1,113	809
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	1,113	809
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	1	2
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	$ 1	$ 2

Trading Securities (Details)

Trading Securities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Trading Securities.
Unrealized gains included in trading securities	$ 2,200,000	$ 545,000

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses - Summary of Loans By Classification (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Loans and Allowance for Loan Losses
Loans	$ 3,520,653	$ 3,028,310
Allowance for loan losses	18,883	15,842	$ 13,356	$ 12,704
Loans and Leases Receivable, Net Amount, Total	3,501,770	3,012,468
Mortgage warehouse lines of credit
Loans and Allowance for Loan Losses
Loans	1,083,776	765,151
Allowance for loan losses	2,709	1,913	1,254	1,068
Residential real estate
Loans and Allowance for Loan Losses
Loans	421,978	413,835
Allowance for loan losses	2,062	2,042	1,990	1,986
Multi-family and healthcare financing
Loans and Allowance for Loan Losses
Loans	1,435,206	1,347,125
Allowance for loan losses	7,694	7,018	6,377	6,030
Commercial and commercial real estate
Loans and Allowance for Loan Losses
Loans	468,668	398,601
Allowance for loan losses	5,662	4,173	3,122	3,051
Agricultural production and real estate
Loans and Allowance for Loan Losses
Loans	92,498	85,210
Allowance for loan losses	561	523	466	429
Consumer and margin loans
Loans and Allowance for Loan Losses
Loans	18,527	18,388
Allowance for loan losses	$ 195	$ 173	$ 147	$ 140

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Allowance For Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Allowance for loan losses
Balance, beginning of period	$ 15,842	$ 12,704
Provision (credit) for loan losses	2,998	649
Loans charged to the allowance	(1)
Recoveries of loans previously charged off	44	3
Balance, end of period	18,883	13,356
Ending balance: individually evaluated for impairment	1,202		$ 681
Ending balance: collectively evaluated for impairment	17,681		15,161
Loans
Ending balance	3,520,653		3,028,310
Ending balance individually evaluated for impairment	14,124		12,517
Ending balance: collectively evaluated for impairment	3,506,529		3,015,793
Mortgage warehouse lines of credit
Allowance for loan losses
Balance, beginning of period	1,913	1,068
Provision (credit) for loan losses	796	186
Balance, end of period	2,709	1,254
Ending balance: collectively evaluated for impairment	2,709		1,913
Loans
Ending balance	1,083,776		765,151
Ending balance individually evaluated for impairment	230		233
Ending balance: collectively evaluated for impairment	1,083,546		764,918
Residential real estate
Allowance for loan losses
Balance, beginning of period	2,042	1,986
Provision (credit) for loan losses	20	4
Balance, end of period	2,062	1,990
Ending balance: individually evaluated for impairment	29		23
Ending balance: collectively evaluated for impairment	2,033		2,019
Loans
Ending balance	421,978		413,835
Ending balance individually evaluated for impairment	2,410		3,109
Ending balance: collectively evaluated for impairment	419,568		410,726
Multi-family and healthcare financing
Allowance for loan losses
Balance, beginning of period	7,018	6,030
Provision (credit) for loan losses	676	347
Balance, end of period	7,694	6,377
Ending balance: collectively evaluated for impairment	7,694		7,018
Loans
Ending balance	1,435,206		1,347,125
Ending balance: collectively evaluated for impairment	1,435,206		1,347,125
Commercial and commercial real estate
Allowance for loan losses
Balance, beginning of period	4,173	3,051
Provision (credit) for loan losses	1,445	71
Recoveries of loans previously charged off	44
Balance, end of period	5,662	3,122
Ending balance: individually evaluated for impairment	1,167		650
Ending balance: collectively evaluated for impairment	4,495		3,523
Loans
Ending balance	468,668		398,601
Ending balance individually evaluated for impairment	9,425		9,152
Ending balance: collectively evaluated for impairment	459,243		389,449
Agricultural production and real estate
Allowance for loan losses
Balance, beginning of period	523	429
Provision (credit) for loan losses	38	34
Recoveries of loans previously charged off		3
Balance, end of period	561	466
Ending balance: collectively evaluated for impairment	561		523
Loans
Ending balance	92,498		85,210
Ending balance individually evaluated for impairment	2,043
Ending balance: collectively evaluated for impairment	90,455		85,210
Consumer and margin loans
Allowance for loan losses
Balance, beginning of period	173	140
Provision (credit) for loan losses	23	7
Loans charged to the allowance	(1)
Balance, end of period	195	$ 147
Ending balance: individually evaluated for impairment	6		8
Ending balance: collectively evaluated for impairment	189		165
Loans
Ending balance	18,527		18,388
Ending balance individually evaluated for impairment	16		23
Ending balance: collectively evaluated for impairment	$ 18,511		$ 18,365

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses - Credit Risk Profile of Loan Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Credit risk profile of portfolio
Loans	$ 3,520,653	$ 3,028,310
Special Mention (Watch)
Credit risk profile of portfolio
Loans	48,340	60,305
Substandard
Credit risk profile of portfolio
Loans	14,124	12,517
Acceptable and Above
Credit risk profile of portfolio
Loans	3,458,189	2,955,488
Mortgage warehouse lines of credit
Credit risk profile of portfolio
Loans	1,083,776	765,151
Mortgage warehouse lines of credit | Substandard
Credit risk profile of portfolio
Loans	230	233
Mortgage warehouse lines of credit | Acceptable and Above
Credit risk profile of portfolio
Loans	1,083,546	764,918
Residential real estate
Credit risk profile of portfolio
Loans	421,978	413,835
Residential real estate | Special Mention (Watch)
Credit risk profile of portfolio
Loans	2,413	2,472
Residential real estate | Substandard
Credit risk profile of portfolio
Loans	2,410	3,109
Residential real estate | Acceptable and Above
Credit risk profile of portfolio
Loans	417,155	408,254
Multi-family and healthcare financing
Credit risk profile of portfolio
Loans	1,435,206	1,347,125
Multi-family and healthcare financing | Special Mention (Watch)
Credit risk profile of portfolio
Loans	30,930	41,882
Multi-family and healthcare financing | Acceptable and Above
Credit risk profile of portfolio
Loans	1,404,276	1,305,243
Commercial and commercial real estate
Credit risk profile of portfolio
Loans	468,668	398,601
Commercial and commercial real estate | Special Mention (Watch)
Credit risk profile of portfolio
Loans	12,961	13,806
Commercial and commercial real estate | Substandard
Credit risk profile of portfolio
Loans	9,425	9,152
Commercial and commercial real estate | Acceptable and Above
Credit risk profile of portfolio
Loans	446,282	375,643
Agricultural production and real estate
Credit risk profile of portfolio
Loans	92,498	85,210
Agricultural production and real estate | Special Mention (Watch)
Credit risk profile of portfolio
Loans	2,006	2,114
Agricultural production and real estate | Substandard
Credit risk profile of portfolio
Loans	2,043
Agricultural production and real estate | Acceptable and Above
Credit risk profile of portfolio
Loans	88,449	83,096
Consumer and margin loans
Credit risk profile of portfolio
Loans	18,527	18,388
Consumer and margin loans | Special Mention (Watch)
Credit risk profile of portfolio
Loans	30	31
Consumer and margin loans | Substandard
Credit risk profile of portfolio
Loans	16	23
Consumer and margin loans | Acceptable and Above
Credit risk profile of portfolio
Loans	$ 18,481	$ 18,334

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Aging Analysis Of The Recorded Investment In Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Aging analysis of loan portfolio
Past due loans	$ 9,516	$ 12,608
Current loans	3,511,137	3,015,702
Loans and Leases Receivable, Net of Deferred Income, Total	3,520,653	3,028,310
30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	2,315	7,479
60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	1,099	928
Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	6,102	4,201
Mortgage warehouse lines of credit
Aging analysis of loan portfolio
Current loans	1,083,776	765,151
Loans and Leases Receivable, Net of Deferred Income, Total	1,083,776	765,151
Residential real estate
Aging analysis of loan portfolio
Past due loans	3,263	5,975
Current loans	418,715	407,860
Loans and Leases Receivable, Net of Deferred Income, Total	421,978	413,835
Residential real estate | 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	1,002	3,089
Residential real estate | 60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	289	562
Residential real estate | Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	1,972	2,324
Multi-family and healthcare financing
Aging analysis of loan portfolio
Current loans	1,435,206	1,347,125
Loans and Leases Receivable, Net of Deferred Income, Total	1,435,206	1,347,125
Commercial and commercial real estate
Aging analysis of loan portfolio
Past due loans	3,076	4,291
Current loans	465,592	394,310
Loans and Leases Receivable, Net of Deferred Income, Total	468,668	398,601
Commercial and commercial real estate | 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	274	2,293
Commercial and commercial real estate | 60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	622	335
Commercial and commercial real estate | Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	2,180	1,663
Agricultural production and real estate
Aging analysis of loan portfolio
Past due loans	2,489	2,242
Current loans	90,009	82,968
Loans and Leases Receivable, Net of Deferred Income, Total	92,498	85,210
Agricultural production and real estate | 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	429	2,047
Agricultural production and real estate | 60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	152
Agricultural production and real estate | Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	1,908	195
Consumer and margin loans
Aging analysis of loan portfolio
Past due loans	688	100
Current loans	17,839	18,288
Loans and Leases Receivable, Net of Deferred Income, Total	18,527	18,388
Consumer and margin loans | 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	610	50
Consumer and margin loans | 60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	36	31
Consumer and margin loans | Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	$ 42	$ 19

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses - Impaired Loans and Specific Valuation Allowance (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Impaired loans without a specific allowance:
Recorded investment	$ 11,487	$ 9,806
Unpaid principal balance	11,487	9,806
Impaired loans with a specific allowance:
Recorded investment	2,637	2,711
Unpaid principal balance	2,637	2,711
Specific allowance	1,202	681
Total impaired loans:
Recorded investments	14,124	12,517
Unpaid principal balance	14,124	12,517
Specific allowance	1,202	681
Mortgage warehouse lines of credit
Impaired loans without a specific allowance:
Recorded investment	230	233
Unpaid principal balance	230	233
Total impaired loans:
Recorded investments	230	233
Unpaid principal balance	230	233
Residential real estate
Impaired loans without a specific allowance:
Recorded investment	2,179	2,899
Unpaid principal balance	2,179	2,899
Impaired loans with a specific allowance:
Recorded investment	231	210
Unpaid principal balance	231	210
Specific allowance	29	23
Total impaired loans:
Recorded investments	2,410	3,109
Unpaid principal balance	2,410	3,109
Specific allowance	29	23
Commercial and commercial real estate
Impaired loans without a specific allowance:
Recorded investment	7,028	6,662
Unpaid principal balance	7,028	6,662
Impaired loans with a specific allowance:
Recorded investment	2,397	2,490
Unpaid principal balance	2,397	2,490
Specific allowance	1,167	650
Total impaired loans:
Recorded investments	9,425	9,152
Unpaid principal balance	9,425	9,152
Specific allowance	1,167	650
Agricultural production and real estate
Impaired loans without a specific allowance:
Recorded investment	2,043
Unpaid principal balance	2,043
Total impaired loans:
Recorded investments	2,043
Unpaid principal balance	2,043
Consumer and margin loans
Impaired loans without a specific allowance:
Recorded investment	7	12
Unpaid principal balance	7	12
Impaired loans with a specific allowance:
Recorded investment	9	11
Unpaid principal balance	9	11
Specific allowance	6	8
Total impaired loans:
Recorded investments	16	23
Unpaid principal balance	16	23
Specific allowance	$ 6	$ 8

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Impaired Loans
Average recorded investment in impaired loans	$ 14,884	$ 12,260
Interest income recognized	147
Interest income recognized		155
Mortgage warehouse lines of credit
Impaired Loans
Average recorded investment in impaired loans	231	574
Residential real estate
Impaired Loans
Average recorded investment in impaired loans	3,088	2,806
Interest income recognized	16
Interest income recognized		15
Commercial and commercial real estate
Impaired Loans
Average recorded investment in impaired loans	9,502	8,468
Interest income recognized	131
Interest income recognized		140
Agricultural production and real estate
Impaired Loans
Average recorded investment in impaired loans	2,043	364
Consumer and margin loans
Impaired Loans
Average recorded investment in impaired loans	$ 20	$ 48

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	Mar. 31, 2020	Dec. 31, 2019
Loan portfolio past due loans
Nonaccrual	$ 2,676	$ 2,109
Total Loans Greater than 90 Days & Accruing	3,881	2,569
Mortgage warehouse lines of credit
Loan portfolio past due loans
Nonaccrual	230	233
Residential real estate
Loan portfolio past due loans
Nonaccrual	664	740
Total Loans Greater than 90 Days & Accruing	1,551	1,851
Commercial and commercial real estate
Loan portfolio past due loans
Nonaccrual	1,766	1,118
Total Loans Greater than 90 Days & Accruing	396	486
Agricultural production and real estate
Loan portfolio past due loans
Total Loans Greater than 90 Days & Accruing	1,908	231
Consumer and margin loans
Loan portfolio past due loans
Nonaccrual	16	18
Total Loans Greater than 90 Days & Accruing	$ 26	$ 1

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses - Troubled Debt and Modifications (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2020itemloan	Mar. 31, 2019item	Dec. 31, 2019USD ($)loan
Troubled debt and modifications
Number of troubled debt restructuring	0	0
Number of loans restructured during the last twelve months that defaulted during the period	0	0
Residential real estate
Troubled debt and modifications
Number of loans in the process of foreclosure | loan	0		1
Value of residential loans in process of foreclosure | $			$ 725,000

Regulatory Matters (Details)

Regulatory Matters (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Company
Total Capital (to risk-weighted assets)
Total Capital (to risk-weighted assets), Actual, Capital Amount		$ 637,472
Total Capital (to risk weighted assets), Actual, Ratio (as a percent)		11.60%
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 440,063
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		8.00%
Tier I Capital (to risk-weighted assets)
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount		$ 621,630
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)		11.30%
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 330,047
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		6.00%
Common Equity Tier I Capital 1 (to risk-weighted assets)
Common Equity Tier I Capital 1, Actual, Capital Amount		$ 408,984
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)		7.40%
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 247,536
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		4.50%
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 652,781	$ 621,630
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	9.90%	9.40%
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 264,324
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		4.00%
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 592,662
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	9.00%
Merchants Bank
Total Capital (to risk-weighted assets)
Total Capital (to risk-weighted assets), Actual, Capital Amount		$ 639,104
Total Capital (to risk weighted assets), Actual, Ratio (as a percent)		12.00%
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 426,748
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		8.00%
Total capital, Minimum Amount To Be Well Capitalized, Capital Amount		$ 533,435
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)		10.00%
Tier I Capital (to risk-weighted assets)
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount		$ 623,716
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)		11.70%
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 320,061
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		6.00%
Tier I Capital, Minimum Amount To Be Well Capitalized, Capital Amount		$ 426,748
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)		8.00%
Common Equity Tier I Capital 1 (to risk-weighted assets)
Common Equity Tier I Capital 1, Actual, Capital Amount		$ 623,716
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)		11.70%
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 240,046
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		4.50%
Common Equity Tier I Capital 1, Minimum Amount To Be Well Capitalized, Capital Amount		$ 346,733
Common Equity Tier I Capital 1 (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)		6.50%
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 642,891	$ 623,716
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	10.10%	9.70%
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 257,487
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		4.00%
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 574,263	$ 321,859
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	9.00%	5.00%
FMBI
Total Capital (to risk-weighted assets)
Total Capital (to risk-weighted assets), Actual, Capital Amount		$ 21,726
Total Capital (to risk weighted assets), Actual, Ratio (as a percent)		13.10%
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 13,306
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		8.00%
Total capital, Minimum Amount To Be Well Capitalized, Capital Amount		$ 16,632
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)		10.00%
Tier I Capital (to risk-weighted assets)
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount		$ 21,272
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)		12.80%
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 9,979
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		6.00%
Tier I Capital, Minimum Amount To Be Well Capitalized, Capital Amount		$ 13,306
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)		8.00%
Common Equity Tier I Capital 1 (to risk-weighted assets)
Common Equity Tier I Capital 1, Actual, Capital Amount		$ 21,272
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)		12.80%
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 7,484
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		4.50%
Common Equity Tier I Capital 1, Minimum Amount To Be Well Capitalized, Capital Amount		$ 10,811
Common Equity Tier I Capital 1 (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)		6.50%
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 21,969	$ 21,272
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	10.70%	11.70%
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount		$ 7,302
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)		4.00%
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 18,397	$ 9,128
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	9.00%	5.00%

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net gains (losses)	$ (31,000)	$ (5,000)
Pledged in collateral	3,100,000		$ 590,000
Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	2,175,000		186,000
Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	1,353,000		27,000
Interest Rate Lock Commitments
Derivative Financial Instruments
Notional amount	162,228,000		17,826,000
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net gains (losses)	1,813,000
Interest Rate Lock Commitments | Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	2,079,000		186,000
Interest Rate Lock Commitments | Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	80,000
Forward Contracts
Derivative Financial Instruments
Notional amount	122,706,000		34,268,000
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net gains (losses)	(1,844,000)	$ (5,000)
Forward Contracts | Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	96,000
Forward Contracts | Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	1,273,000		27,000
Interest rate swaps
Derivative Financial Instruments
Notional amount	62,470,000		58,067,000
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Gross swap gains	2,703,000
Gross swap losses	(2,703,000)
Interest rate swaps | Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	3,214,000		511,000
Interest rate swaps | Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	$ 3,214,000		$ 511,000

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	Mar. 31, 2020	Dec. 31, 2019
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	$ 465,157	$ 269,891
Available for sale securities	339,053	290,243
Loans held for sale	18,938	19,592
Mortgage servicing rights	69,978	74,387
Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	465,157	269,891
Loans held for sale	18,938	19,592
Mortgage servicing rights	69,978	74,387
Recurring | Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	2,079	186
Derivative liabilities	80
Recurring | Forward Contracts
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	96
Derivative liabilities	1,273	27
Recurring | Interest rate swaps
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	3,214	511
Derivative liabilities	3,214	511
Level 2 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	465,157	269,891
Loans held for sale	18,938	19,592
Level 2 | Recurring | Forward Contracts
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	96
Derivative liabilities	1,273	27
Level 2 | Recurring | Interest rate swaps
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	3,214	511
Derivative liabilities	3,214	511
Level 3 | Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	2,079	186
Derivative liabilities	80
Level 3 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage servicing rights	69,978	74,387
Level 3 | Recurring | Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	2,079	186
Derivative liabilities	80
Treasury notes | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	2,043	4,765
Treasury notes | Level 1 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	2,043	4,765
Federal agencies
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	306,575	244,973
Federal agencies | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	306,575	244,973
Federal agencies | Level 2 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	306,575	244,973
Municipals | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	5,951	5,937
Municipals | Level 2 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	5,951	5,937
Mortgage-backed - Government-sponsored entity (GSE) - residential
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	24,484	34,568
Mortgage-backed - Government-sponsored entity (GSE) - residential | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	24,484	34,568
Mortgage-backed - Government-sponsored entity (GSE) - residential | Level 2 | Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	$ 24,484	$ 34,568

Disclosures about Fair Value _4

Disclosures about Fair Value of Assets and Liabilities - Reconciliation of Unobservable Inputs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative liabilities | Interest Rate Lock Commitments
Reconciliation of significant unobservable inputs, liabilities:
Changes in fair value	$ 80	$ 1
Balance, end of period	80	1
Mortgage servicing rights.
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	74,387	77,844
Additions
Originated and purchased servicing	3,929	1,020
Subtractions
Paydowns	(1,858)	(1,110)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model	(6,480)	(1,505)
Balance, end of period	69,978	76,249
Derivative assets | Interest Rate Lock Commitments
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	186	70
Subtractions
Changes in fair value	1,893	1
Balance, end of period	$ 2,079	$ 71

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	Mar. 31, 2020	Dec. 31, 2019
Disclosures about Fair Value of Assets and Liabilities
Impaired loans (collateral dependent)	$ 1,306	$ 1,570
Level 3
Disclosures about Fair Value of Assets and Liabilities
Impaired loans (collateral dependent)	$ 1,306	$ 1,570

Disclosures about Fair Value _6

Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs (Details)	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Quantitative information about unobservable inputs
Mortgage servicing rights	$ 69,978,000	$ 74,387,000
Available for sale securities	339,053,000	290,243,000
Mortgage servicing rights | Level 3
Quantitative information about unobservable inputs
Mortgage servicing rights	69,978,000	74,387,000
Collateral-dependent impaired loans | Level 3
Quantitative information about unobservable inputs
Collateral-dependent impaired loans	$ 1,306,000	$ 1,570,000
Collateral-dependent impaired loans | Level 3 | Minimum
Quantitative information about unobservable inputs
Marketability discount (as a percent)	0.44	0.37
Collateral-dependent impaired loans | Level 3 | Maximum
Quantitative information about unobservable inputs
Marketability discount (as a percent)	0.75	0.55
Municipals
Quantitative information about unobservable inputs
Available for sale securities	$ 5,951,000	$ 5,937,000
Discount Rate | Mortgage servicing rights | Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.08
Discount Rate | Mortgage servicing rights | Level 3 | Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input		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	0.02	0.01
Constant Prepayment Rate | Mortgage servicing rights | Level 3 | Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.43	0.39
Interest Rate Lock Commitments | Level 3
Quantitative information about unobservable inputs
Derivative assets	$ 2,079,000	$ 186,000
Interest Rate Lock Commitments | Measurement Input, Maturity | Level 3 | Minimum
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	0.56	0.73
Loan closing rates (as a percent)	0.56
Interest Rate Lock Commitments | Measurement Input, Maturity | Level 3 | Maximum
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	0.99	0.99
Loan closing rates (as a percent)	0.99

Disclosures about Fair Value _7

Disclosures about Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial assets:
Loans held for sale	$ 18,938	$ 19,592
Carrying Value
Financial assets:
Cash and cash equivalents	568,082	506,709
Securities purchased under agreements to resell	6,685	6,723
FHLB stock	46,156	20,369
Loans held for sale	2,777,070	2,074,197
Loans, net	3,501,770	3,012,468
Interest receivable	18,139	18,359
Financial liabilities:
Deposits	6,722,705	5,478,075
Lines of credit		6,540
Short-term subordinated debt	12,650	12,200
FHLB advances	431,917	162,699
Interest payable	10,219	11,938
Fair Value
Financial assets:
Cash and cash equivalents	568,082	506,709
Securities purchased under agreements to resell	6,685	6,723
FHLB stock	46,156	20,369
Loans held for sale	2,777,070	2,074,197
Loans, net	3,475,393	2,999,580
Interest receivable	18,139	18,359
Financial liabilities:
Deposits	6,730,101	5,478,682
Lines of credit		6,540
Short-term subordinated debt	12,650	12,200
FHLB advances	431,283	162,803
Interest payable	10,219	11,938
Level 1 | Fair Value
Financial assets:
Cash and cash equivalents	568,082	506,709
Financial liabilities:
Deposits	3,967,232	3,303,736
Level 2 | Fair Value
Financial assets:
Securities purchased under agreements to resell	6,685	6,723
FHLB stock	46,156	20,369
Loans held for sale	2,777,070	2,074,197
Interest receivable	18,139	18,359
Financial liabilities:
Deposits	2,762,869	2,174,946
Lines of credit		6,540
Short-term subordinated debt	12,650	12,200
FHLB advances	431,283	162,803
Interest payable	10,219	11,938
Level 3 | Fair Value
Financial assets:
Loans, net	$ 3,475,393	$ 2,999,580

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net Income
Net income	$ 24,583	$ 10,570
Dividends on preferred stock	(3,618)	(833)
Net Income Allocated to Common Shareholders	$ 20,965	$ 9,737
Weighted-Average Shares
Weighted average shares - Basic	28,734,632	28,702,250
Effect of dilutive securities—restricted stock awards	24,780	35,189
Weighted average shares - diluted	28,759,412	28,737,439
Per Share Amount
Basic earnings per share	$ 0.73	$ 0.34
Diluted earnings per share	$ 0.73	$ 0.34

Share-Based Payment Plan (Detai

Share-Based Payment Plan (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Non executive directors
Plan disclosures
Shares issued	0	0
Value of shares available for issuance for compensation related to annual fees			$ 10,000
2016 Plan | Restricted stock
Plan disclosures
Shares issued	36,046	10,127

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Segment Information
Interest income	$ 60,417	$ 39,674
Interest expense	22,064	15,543
Net interest income	38,353	24,131
Provision for loan losses	2,998	649
Net Interest Income After Provision for Loan Losses	35,355	23,482
Noninterest income	19,902	3,664
Noninterest expense	22,293	13,035
Income Before Income Taxes	32,964	14,111
Income taxes	8,381	3,541
Net Income	24,583	10,570
Total assets	7,908,398	3,976,725	$ 6,371,928
Other
Segment Information
Interest income	668	471
Interest expense	(1,828)	(968)
Net interest income	2,496	1,439
Net Interest Income After Provision for Loan Losses	2,496	1,439
Noninterest income	(921)	(663)
Noninterest expense	3,238	2,602
Income Before Income Taxes	(1,663)	(1,826)
Income taxes	(460)	(507)
Net Income	(1,203)	(1,319)
Total assets	41,453	37,993
Multifamily | Operating Segments
Segment Information
Interest income	420	331
Net interest income	420	331
Net Interest Income After Provision for Loan Losses	420	331
Noninterest income	17,364	2,691
Noninterest expense	10,348	3,977
Income Before Income Taxes	7,436	(955)
Income taxes	2,037	(243)
Net Income	5,399	(712)
Total assets	180,772	160,609
Mortgage Warehousing | Operating Segments
Segment Information
Interest income	30,099	14,380
Interest expense	12,085	7,529
Net interest income	18,014	6,851
Provision for loan losses	1,180	133
Net Interest Income After Provision for Loan Losses	16,834	6,718
Noninterest income	2,776	753
Noninterest expense	3,019	2,336
Income Before Income Taxes	16,591	5,135
Income taxes	4,154	1,303
Net Income	12,437	3,832
Total assets	4,362,423	1,554,233
Banking | Operating Segments
Segment Information
Interest income	29,230	24,492
Interest expense	11,807	8,982
Net interest income	17,423	15,510
Provision for loan losses	1,818	516
Net Interest Income After Provision for Loan Losses	15,605	14,994
Noninterest income	683	883
Noninterest expense	5,688	4,120
Income Before Income Taxes	10,600	11,757
Income taxes	2,650	2,988
Net Income	7,950	8,769
Total assets	$ 3,323,750	$ 2,223,890

Preferred Stock Offerings (Deta

Preferred Stock Offerings (Details)	Sep. 23, 2019USD ($)$ / sharesshares	Aug. 19, 2019USD ($)$ / sharesshares	Jun. 27, 2019USD ($)$ / sharesshares	Apr. 12, 2019USD ($)shares	Mar. 28, 2019USD ($)$ / sharesshares	Mar. 31, 2020$ / shares	Mar. 31, 2019USD ($)shares	Dec. 31, 2019$ / shares	Dec. 31, 2016$ / shares	Dec. 31, 2015$ / shares	Dec. 31, 2016$ / sharesshares
Public Offering of Preferred Stock
Net proceeds							$ 48,269,000
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
7% Preferred Stock
Public Offering of Preferred Stock
Shares redeemed (in shares) | shares	874,000
Preferred stock, dividend rate (as a percent)	7.00%					7.00%		7.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares	$ 25					$ 25		$ 25
Aggregate cost	$ 21,850,000
Offering costs							$ 1,731,000
Brokerage fees	$ 0
7% Preferred Stock | Public Offering
Public Offering of Preferred Stock
Shares issued (in shares) | shares				81,800	2,000,000
Preferred stock, dividend rate (as a percent)					7.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares					$ 25
Aggregate gross offering proceeds for the shares issued					$ 50,000,000
Offering costs					1,700,000
Net proceeds				$ 2,000,000	$ 48,300,000
Underwriting discounts				$ 41,000
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%		6.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares						$ 1,000		$ 1,000
6% Preferred Stock | Public Offering
Public Offering of Preferred Stock
Depositary shares issued (in shares) | shares		5,000,000
Depositary shares equivalent preferred stock interest per share		0.025
Preferred stock, dividend rate (as a percent)		6.00%
Preferred stock liquidation preference (in dollars per share) | $ / shares		$ 1,000
Depositary share, preferred stock liquidation preference (in dollars per share) | $ / shares		$ 25
Aggregate gross offering proceeds for the shares issued		$ 125,000,000
Offering costs		4,200,000
Net proceeds		$ 120,800,000
Preferred Stock | 7% Preferred Stock
Public Offering of Preferred Stock
Shares issued (in shares) | shares							2,000,000