Merchants Bancorp (MBIN) 10-Q10 May 212021 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2021	May 03, 2021
Document Information
Entity Registrant Name	MERCHANTS BANCORP
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-38258
Amendment Flag	false
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	20-5747400
Entity Address, Address Line One	410 Monon Blvd.
Entity Address, City or Town	Carmel
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46032
City Area Code	317
Local Phone Number	569-7420
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,782,139
Entity Central Index Key	0001629019
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Common Stock
Document Information
Title of 12(b) Security	Common Stock, without par value
Trading Symbol	MBIN
Security Exchange Name	NASDAQ
Series A Preferred Stock
Document Information
Title of 12(b) Security	Series A Preferred Stock, without par value
Trading Symbol	MBINP
Security Exchange Name	NASDAQ
Series B Preferred Stock
Document Information
Title of 12(b) Security	Depositary Shares, each representing a 1/40th interest in a share of Series B Preferred Stock, without par value
Trading Symbol	MBINO
Security Exchange Name	NASDAQ
Series C Preferred Stock
Document Information
Title of 12(b) Security	Depositary Shares, each representing a 1/40th interest in a share of Series C Preferred Stock, without par value
Trading Symbol	MBINN
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 12,003	$ 10,063
Interest-earning demand accounts	257,436	169,665
Cash and cash equivalents	269,439	179,728
Securities purchased under agreements to resell	6,544	6,580
Mortgage loans in process of securitization	432,063	338,733
Available for sale securities	241,691	269,802
Federal Home Loan Bank (FHLB) stock	70,656	70,656
Loans held for sale (includes $57,998 and $40,044, respectively at fair value)	2,749,662	3,070,154
Loans receivable, net of allowance for loan losses of $29,091 and $27,500, respectively	5,710,291	5,507,926
Premises and equipment, net	31,261	29,761
Mortgage servicing rights	96,215	82,604
Interest receivable	22,111	21,770
Goodwill	15,845	15,845
Intangible assets, net	2,136	2,283
Other assets and receivables	57,346	49,533
Total assets	9,705,260	9,645,375
Deposits
Noninterest-bearing	818,621	853,648
Interest-bearing	7,244,560	6,554,418
Total deposits	8,063,181	7,408,066
Borrowings	545,160	1,348,256
Deferred and current tax liabilities, net	41,610	20,405
Other liabilities	44,054	58,027
Total liabilities	8,694,005	8,834,754
Commitments and Contingencies
Shareholders' Equity
Common stock, without par value Authorized - 50,000,000 shares Issued and outstanding - 28,782,139 shares at March 31, 2021 and 28,747,083 shares at December 31, 2020	136,474	135,857
Preferred stock
Retained earnings	516,961	461,744
Accumulated other comprehensive income	249	374
Total shareholders' equity	1,011,255	810,621
Total liabilities and shareholders' equity	9,705,260	9,645,375
8% Preferred Stock
Shareholders' Equity
Preferred stock	41,581	41,581
7% Preferred Stock
Shareholders' Equity
Preferred stock	50,221	50,221
6% Series B Preferred Stock
Shareholders' Equity
Preferred stock	120,844	$ 120,844
6% Series C Preferred Stock
Shareholders' Equity
Preferred stock	$ 144,925

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Loans held for sale at fair value	$ 57,998	$ 40,044
Allowance for loans losses	$ 29,091	$ 27,500
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	28,782,139	28,747,083
Common stock, shares outstanding	28,782,139	28,747,083
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% Series B Preferred Stock
Stockholders' Equity:
Preferred stock, dividend rate (as a percent)	6.00%	6.00%
Preferred stock liquidation preference (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, shares authorized	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
6% Series C Preferred Stock
Stockholders' Equity:
Preferred stock, dividend rate (as a percent)	6.00%	6.00%
Preferred stock liquidation preference (in dollars per share)	$ 1,000
Preferred stock, shares authorized	200,000
Preferred stock, shares issued	150,000
Preferred stock, shares outstanding	150,000
Depositary shares	6,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Interest Income
Loans	$ 75,517	$ 53,564
Mortgage loans in process of securitization	3,136	2,796
Investment securities:
Available for sale - taxable	354	1,322
Available for sale - tax exempt	11	37
Federal Home Loan Bank stock	384	239
Other	147	2,459
Total interest income	79,549	60,417
Interest Expense
Deposits	6,100	20,630
Borrowed funds	1,486	1,434
Total interest expense	7,586	22,064
Net Interest Income	71,963	38,353
Provision for loan losses	1,663	2,998
Net Interest Income After Provision for Loan Losses	70,300	35,355
Noninterest Income
Gain on sale of loans	28,620	21,166
Loan servicing fees, net	7,951	(5,824)
Mortgage warehouse fees	4,116	2,746
Other income	3,249	1,814
Total noninterest income	43,936	19,902
Noninterest Expense
Salaries and employee benefits	21,274	14,240
Loan expenses	2,523	1,164
Occupancy and equipment	1,627	1,492
Professional fees	422	569
Deposit insurance expense	671	1,786
Technology expense	937	610
Other expense	2,630	2,432
Total noninterest expense	30,084	22,293
Income Before Income Taxes	84,152	32,964
Provision for income taxes	22,169	8,381
Net Income	61,983	24,583
Dividends on preferred stock	(3,757)	(3,618)
Net Income Allocated to Common Shareholders	$ 58,226	$ 20,965
Basic Earnings Per Share (in dollar per share)	$ 2.02	$ 0.73
Diluted Earnings Per Share (in dollar per share)	$ 2.02	$ 0.73
Weighted-Average Shares Outstanding Basic (in Shares)	28,772,092	28,734,632
Weighted-Average Shares Outstanding Diluted (in Shares)	28,850,414	28,759,412

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Consolidated Statements of Comprehensive Income
Net Income	$ 61,983	$ 24,583
Other Comprehensive Income (Loss):
Net change in unrealized gains/(losses) on investment securities available for sale, net of tax (expense)/benefits of $43 and $(152), respectively	(125)	468
Other comprehensive income (loss) for the period	(125)	468
Comprehensive Income	$ 61,858	$ 25,051

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Consolidated Statements of Comprehensive Income
Net change in unrealized gains/(losses) on investment securities available for sale, net of tax (expense)/benefits of $43 and $(152), respectively	$ 43	$ (152)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Preferred Stock8% Preferred Stock	Preferred Stock7% Preferred Stock	Preferred Stock6% Series B Preferred Stock	Preferred Stock6% Series C Preferred Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Condensed Consolidated Statements of Shareholders' Equity
Balance at end of the period	$ 135,640	$ 41,581	$ 50,221	$ 120,844		$ 304,984	$ 458
Balance at end of the period (in shares)	28,706,438	41,625	2,081,800	125,000
Net income						24,583		$ 24,583
Shares issued for stock compensation plans, net of taxes	$ 106
Shares issued for stock compensation plans, net of taxes (in shares)	36,046
Issuance of shares, net of offering expenses
Issuance of shares, net of offering expenses (in shares)
Dividends on 8% preferred stock, annually						(833)
Dividends on 7% preferred stock, annually						(910)
Dividends on 6% preferred stock, annually						(1,875)
Dividends on common stock, annually						(2,298)
Other comprehensive income (loss)							468	468
Balance at end of the period	$ 135,746	$ 41,581	$ 50,221	$ 120,844		323,651	926	672,969
Balance at end of the period (in shares)	28,742,484	41,625	2,081,800	125,000
Balance at end of the period	$ 135,857	$ 41,581	$ 50,221	$ 120,844		461,744	374	810,621
Balance at end of the period (in shares)	28,747,083	41,625	2,081,800	125,000
Net income						61,983		61,983
Distribution to employee stock ownership plan	$ 537
Distribution to employee stock ownership plan (in shares)	19,433
Shares issued for stock compensation plans, net of taxes	$ 80
Shares issued for stock compensation plans, net of taxes (in shares)	15,623
Issuance of shares, net of offering expenses					$ 144,925
Issuance of shares, net of offering expenses (in shares)					150,000
Dividends on 8% preferred stock, annually						(833)
Final dividend for redemption of 8% preferred stock						(139)
Dividends on 7% preferred stock, annually						(910)
Dividends on 6% preferred stock, annually						(1,875)
Dividends on common stock, annually						(2,590)
Deconsolidation of entities						(419)
Other comprehensive income (loss)							(125)	(125)
Balance at end of the period	$ 136,474	$ 41,581	$ 50,221	$ 120,844	$ 144,925	$ 516,961	$ 249	$ 1,011,255
Balance at end of the period (in shares)	28,782,139	41,625	2,081,800	125,000	150,000

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Dividends on common stock per share	$ 0.36	$ 0.36
8% Preferred Stock
Preferred stock, dividend rate (as a percent)	8.00%
8% Preferred Stock \| Preferred Stock
Preferred stock, dividend rate (as a percent)	8.00%	8.00%
Dividends on preferred stock per share	$ 80	$ 80
Final dividend for redemption of preferred stock per share	$ 3.33
7% Preferred Stock
Preferred stock, dividend rate (as a percent)	7.00%
7% Preferred Stock \| Preferred Stock
Preferred stock, dividend rate (as a percent)	7.00%	7.00%
Dividends on preferred stock per share	$ 1.75	$ 1.75
6% Series B Preferred Stock
Preferred stock, dividend rate (as a percent)	6.00%
6% Series B Preferred Stock \| Preferred Stock
Preferred stock, dividend rate (as a percent)	6.00%	6.00%
Dividends on preferred stock per share	$ 60	$ 60
6% Series C Preferred Stock
Preferred stock, dividend rate (as a percent)	6.00%
6% Series C Preferred Stock \| Preferred Stock
Preferred stock, dividend rate (as a percent)	6.00%
Offering expenses on issuance of stock	$ 5.1

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities:
Net income	$ 61,983	$ 24,583
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	504	453
Provision for loan losses	1,663	2,998
Gain on sale of loans	(28,620)	(21,166)
Proceeds from sales of loans	16,974,055	10,866,020
Loans and participations originated and purchased for sale	(16,636,332)	(11,551,090)
Change in mortgage servicing rights for paydowns and fair value adjustments	(3,430)	8,338
Net change in:
Mortgage loans in process of securitization	(93,330)	(195,266)
Other assets and receivables	4,065	(17,686)
Other liabilities	15,644	9,822
Other	(409)	1,379
Net cash provided by (used in) operating activities	295,793	(871,615)
Investing activities:
Net change in securities purchased under agreements to resell	36	38
Purchases of available for sale securities	(3)	(156,666)
Proceeds from calls, maturities and paydowns of available for sale securities	27,917	107,995
Purchases of loans	(137,548)	(32,631)
Net change in loans receivable	(79,162)	(459,617)
Purchase of FHLB stock		(25,787)
Purchases of premises and equipment	(2,004)	(594)
Purchase of limited partnership interests and other tax credits	(3,486)	(1,090)
Other investing activities	(464)
Net cash (used in) investing activities	(194,714)	(568,352)
Financing activities:
Net change in deposits	653,011	1,244,630
Proceeds from borrowings	17,754,346	5,597,675
Repayment of borrowings	(18,557,442)	(5,334,998)
Proceeds from notes payable		450
Proceeds from issuance of preferred stock	144,925
Payments of contingent consideration		(501)
Dividends	(6,208)	(5,916)
Net cash (used in) provided by financing activities	(11,368)	1,501,340
Net Change in Cash and Cash Equivalents	89,711	61,373
Cash and Cash Equivalents, Beginning of Period	179,728	506,709
Cash and Cash Equivalents, End of Period	269,439	568,082
Additional Cash Flows Information:
Interest paid	6,972	23,782
Income taxes paid	563	$ 46
Dividends payable	$ 139

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2021
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 primary operating subsidiaries include Merchants Capital Corp. (“MCC”) and Merchants Capital Servicing, LLC (“MCS”). All direct and indirectly owned subsidiaries owned by Merchants Bancorp are collectively referred to as the “Company”. The accompanying unaudited condensed consolidated balance sheet of the Company as of December 31, 2020, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of March 31, 2021 and for the three months ended March 31, 2021 and 2020, 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, 2020 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, 2021 Principles of Consolidation The unaudited condensed consolidated financial statements as of and for the period ended March 31, 2021 and 2020 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, and FMBI. Also included are Merchants Bank’s primary operating subsidiaries, MCC and MCS, as well as all direct and indirectly owned subsidiaries owned by Merchants Bancorp. On February 1, 2021, the Company’s debt fund entities were restructured in such a way that its ownership and participation was significantly reduced with the inclusion of additional, unrelated investors and the Company was no longer classified as a primary beneficiary. Accordingly, results from these entities were no longer consolidated after this date, in accordance with the consolidation guidelines of the Accounting Standards Update of Topic 810. Following the deconsolidation, the carrying value of assets and liabilities of these entities were removed from the consolidated balance sheet, and the continuing investments were recorded at fair value at the date of deconsolidation. The total amount deconsolidated from the balance sheet included net assets of approximately $10 million, consisting primarily of $66.6 million in loans receivable, and $52.7 million in borrowings with Merchants Bank that was previously eliminated in consolidation. The fair value of its continuing investments was approximately $10 million and has been reported in Other Assets after deconsolidation. The estimated fair value was determined based on third-party evaluations of similar assets in the underlying business. The difference between the fair value of these deconsolidated entities and their carrying value was deemed to be immaterial, resulting in no gain or loss on deconsolidation. The maximum loss exposure that would be absorbed by the Company in the event that these unconsolidated investments were deemed worthless is approximately $10.0 million at March 31, 2021. These continuing investments after deconsolidation are expected to be classified as variable interest entities, will not be consolidated, and will be accounted for under the equity method of accounting. The Company will analyze whether its entities are the primary beneficiary on an ongoing basis. Changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment. 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 may have been made to the 2020 financial statements to conform to the financial statement presentation as of and for the three months ended March 31, 2021. These reclassifications had no effect on net income.

Securities Available For Sale

Securities Available For Sale	3 Months Ended
Securities Available For Sale	Mar. 31, 2021
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, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: Treasury notes $ 4,025 $ 17 $ — $ 4,042 Federal agencies 209,958 29 102 209,885 Municipals 5,933 101 — 6,034 Mortgage-backed - Government-sponsored entity (GSE) - residential 21,464 266 — 21,730 Total available for sale securities $ 241,380 $ 413 $ 102 $ 241,691 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: Treasury notes $ 6,535 $ 24 $ — $ 6,559 Federal agencies 234,954 103 17 235,040 Municipals 5,935 90 — 6,025 Mortgage-backed - Government-sponsored entity (GSE) - residential 21,899 279 — 22,178 Total available for sale securities $ 269,323 $ 496 $ 17 $ 269,802 The amortized cost and fair value of available for sale securities at March 31, 2021 and December 31, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. March 31, 2021 December 31, 2020 Amortized Fair Amortized Fair Cost Value Cost Value Contractual Maturity (In thousands) Within one year $ 8,077 $ 8,086 $ 6,288 $ 6,302 After one through five years 210,979 210,952 239,770 239,877 After five through ten years 514 549 515 549 After ten years 346 374 851 896 219,916 219,961 247,424 247,624 Mortgage-backed - Government-sponsored entity (GSE) - residential 21,464 21,730 21,899 22,178 $ 241,380 $ 241,691 $ 269,323 $ 269,802 During the three months ended March 31, 2021 and 2020, no securities available for sale were sold. 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, 2021 and December 31, 2020: March 31, 2021 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available for sale securities: Federal agencies $ 139,857 $ 102 $ — $ — $ 139,857 $ 102 December 31, 2020 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available for sale securities: Federal agencies $ 69,939 $ 17 $ — $ — $ 69,939 $ 17 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.

Mortgage Loans in Process of Se

Mortgage Loans in Process of Securitization	3 Months Ended
Mortgage Loans in Process of Securitization	Mar. 31, 2021
Mortgage Loans in Process of Securitization
Mortgage Loans in Process of Securitization	Note 3: Mortgage Loans in Process of Securitization Mortgage loans in process of securitization are recorded at fair value with changes in fair value recorded in earnings. These include multi-family rental real estate loan originations to be sold as Government National Mortgage Association (“Ginnie Mae”) mortgage backed securities and Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) participation certificates, all of which are pending settlements with firm investor commitments to purchase the securities, typically occurring within 30 days. The fair value increases recorded in earnings for mortgage loans in process of securitization totaled $1.0 million and $2.2 million at March 31, 2021 and 2020, respectively.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	3 Months Ended
Loans and Allowance for Loan Losses	Mar. 31, 2021
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 collected on these loans is applied to the principal balance until the loan can be returned to an accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. For all loan portfolio segments, the Company promptly charges off loans, or portions thereof, when available information confirms that specific loans are uncollectable based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. When cash payments for accrued interest are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms. The Company offers warehouse loans or credit to fund mortgage loans held for sale from closing until sale to an investor. Under a warehousing arrangement the Company funds a mortgage loan as secured financing. The warehousing arrangement is secured by the underlying mortgages and a combination of deposits, personal guarantees and advance rates. The Company typically holds the collateral until it is sent under a bailee arrangement instructing the investor to send proceeds to the Company. Typical investors are large financial institutions or government agencies. Interest earned from the time of funding to the time of sale is recognized as interest income as accrued. Fees earned agreements are recognized when collected as noninterest income. Loans receivable at March 31, 2021 and December 31, 2020 include: March 31, December 31, 2021 2020 (In thousands) Mortgage warehouse lines of credit $ 1,334,548 $ 1,605,745 Residential real estate 731,334 678,848 Multi-family and healthcare financing 3,206,633 2,749,020 Commercial and commercial real estate 357,682 387,294 Agricultural production and real estate 96,108 101,268 Consumer and margin loans 13,077 13,251 5,739,382 5,535,426 Less Allowance for loan losses 29,091 27,500 Loans Receivable $ 5,710,291 $ 5,507,926 In response to the COVID-19 global pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) established the Paycheck Protection Program (“PPP”) to provide loans for eligible business/not-for-profits. These loans qualify for forgiveness when used for qualifying expenses during the appropriate period. Loans funded through the PPP are fully guaranteed by the U.S. government. Commercial and commercial real estate loans at March 31, 2021 and December 31, 2020 include PPP loans with principal balances of $65.9 million and $60.2 million, respectively, that had not yet been forgiven. Risk characteristics applicable to each segment of the loan portfolio are described as follows. Mortgage Warehouse Lines of Credit (MTG WHLOC): Under its warehouse program, the Company provides warehouse financing arrangements to approved mortgage companies for the origination and sale of residential mortgage loans and to a lesser extent multi-family loans. Agency eligible, governmental and jumbo residential mortgage loans that are secured by mortgages placed on existing one-to-four family dwellings may be originated or purchased and placed on each mortgage warehouse line. As a secured repurchase agreement, collateral pledged to the Company secures each individual mortgage until the lender sells the loan in the secondary market. A traditional secured warehouse line of credit typically carries a base interest rate of 30-day LIBOR, or mortgage note rate plus or minus a margin. Risk is evident if there is a change in the fair value of mortgage loans originated by mortgage bankers in warehouse, the sale of which is the expected source of repayment of the borrowings under a warehouse line of credit. Residential Real Estate Loans (RES RE): Real estate loans are secured by owner-occupied 1-4 family residences. Repayment of residential real estate loans is primarily dependent on the personal income and credit rating of the borrowers. First-lien HELOC mortgages included in this segment typically carry a base rate of 30-day LIBOR, plus a margin. Multi-Family and Healthcare Financing (MF RE): 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. PPP loans and Small Business Administration (“SBA”) loans are included in this category. 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 evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience and expected loss from default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due 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 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 a provision for loan loss. 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, 2021 and 2020 and the recorded investment in loans and impairment method as of March 31, 2021: At or For the Three Months Ended March 31, 2021 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 4,018 $ 3,334 $ 14,731 $ 4,641 $ 636 $ 140 $ 27,500 Provision (credit) for loan losses (697) 266 2,405 (309) (4) 2 1,663 Loans charged to the allowance — — — (68) — (6) (74) Recoveries of loans previously charged off — — — — — 2 2 Balance, end of period $ 3,321 $ 3,600 $ 17,136 $ 4,264 $ 632 $ 138 $ 29,091 Ending balance: individually evaluated for impairment $ — $ 3 $ — $ 1,518 $ — $ — $ 1,521 Ending balance: collectively evaluated for impairment $ 3,321 $ 3,597 $ 17,136 $ 2,746 $ 632 $ 138 $ 27,570 Loans Ending balance $ 1,334,548 $ 731,334 $ 3,206,633 $ 357,682 $ 96,108 $ 13,077 $ 5,739,382 Ending balance individually evaluated for impairment $ — $ 2,757 $ — $ 6,042 $ 180 $ 6 $ 8,985 Ending balance collectively evaluated for impairment $ 1,334,548 $ 728,577 $ 3,206,633 $ 351,640 $ 95,928 $ 13,071 $ 5,730,397 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 The following table presents the allowance for loan losses and the recorded investment in loans and impairment method as of December 31, 2020: December 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, December 31, 2020 $ 4,018 $ 3,334 $ 14,731 $ 4,641 $ 636 $ 140 $ 27,500 Ending balance: individually evaluated for impairment $ — $ 7 $ — $ 1,606 $ — $ — $ 1,613 Ending balance: collectively evaluated for impairment $ 4,018 $ 3,327 $ 14,731 $ 3,035 $ 636 $ 140 $ 25,887 Loans Balance, December 31, 2020 $ 1,605,745 $ 678,848 $ 2,749,020 $ 387,294 $ 101,268 $ 13,251 $ 5,535,426 Ending balance individually evaluated for impairment $ — $ 2,761 $ — $ 9,591 $ 2,100 $ 12 $ 14,464 Ending balance collectively evaluated for impairment $ 1,605,745 $ 676,087 $ 2,749,020 $ 377,703 $ 99,168 $ 13,239 $ 5,520,962 Internal Risk Categories In adherence with policy, the Company uses the following internal risk grading categories and definitions for loans: Average or above 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 – Special Mention (Watch) Special Mention (Watch) – COVID-19 Deferrals – This is a loan that is sound and collectable but contains potential risk because the borrower has requested to defer payments, typically for 90 days, in response to COVID-related hardships. Interest is still accruing on these loans and they were not more than 30 days late at the time the deferral was granted. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. This category includes only those loans that were not already in the Traditional Special Mention (Watch) or Substandard categories. Substandard Doubtful 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, 2021 and December 31, 2020: March 31, 2021 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 833 $ 128,037 $ 2,403 $ 3,923 $ 32 $ 135,228 Special Mention (Watch) - COVID-19 Deferrals — 121 186 83 — — 390 Substandard — 2,757 — 6,042 180 6 8,985 Acceptable and Above 1,334,548 727,623 3,078,410 349,154 92,005 13,039 5,594,779 Total $ 1,334,548 $ 731,334 $ 3,206,633 $ 357,682 $ 96,108 $ 13,077 $ 5,739,382 December 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ 222 $ 853 $ 145,050 $ 2,620 $ 4,160 $ 34 $ 152,939 Special Mention (Watch) - COVID-19 Deferrals — 383 185 110 — — 678 Substandard — 2,761 — 9,591 2,100 12 14,464 Acceptable and Above 1,605,523 674,851 2,603,785 374,973 95,008 13,205 5,367,345 Total $ 1,605,745 $ 678,848 $ 2,749,020 $ 387,294 $ 101,268 $ 13,251 $ 5,535,426 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, 2021 and December 31, 2020. There were 9 loans totaling $37.2 million at March 31, 2021 that have been modified in accordance with the CARES Act and therefore not classified as delinquent. These loans have been granted extended dates to make payments and no payments were due as of March 31, 2021. March 31, 2021 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 1,334,548 $ 1,334,548 RES RE 316 76 656 1,048 730,286 731,334 MF RE — — — — 3,206,633 3,206,633 CML & CRE 1,004 182 1,935 3,121 354,561 357,682 AG & AGRE 415 — 1,955 2,370 93,738 96,108 CON & MAR 35 — 14 49 13,028 13,077 $ 1,770 $ 258 $ 4,560 $ 6,588 $ 5,732,794 $ 5,739,382 December 31, 2020 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 1,605,745 $ 1,605,745 RES RE 364 80 630 1,074 677,774 678,848 MF RE — 36,760 — 36,760 2,712,260 2,749,020 CML & CRE 608 76 3,582 4,266 383,028 387,294 AG & AGRE 3,769 — 1,934 5,703 95,565 101,268 CON & MAR 7 — 19 26 13,225 13,251 $ 4,748 $ 36,916 $ 6,165 $ 47,829 $ 5,487,597 $ 5,535,426 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, 2021 and December 31, 2020: March 31, 2021 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ — $ 2,703 $ — $ 436 $ 180 $ 6 $ 3,325 Unpaid principal balance — 2,703 — 436 180 6 3,325 Impaired loans with a specific allowance: Recorded investment — 54 — 5,606 — — 5,660 Unpaid principal balance — 54 — 5,606 — — 5,660 Specific allowance — 3 — 1,518 — — 1,521 Total impaired loans: Recorded investment — 2,757 — 6,042 180 6 8,985 Unpaid principal balance — 2,757 — 6,042 180 6 8,985 Specific allowance — 3 — 1,518 — — 1,521 December 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ — $ 2,704 $ — $ 3,319 $ 2,100 $ 7 $ 8,130 Unpaid principal balance — 2,704 — 3,319 2,100 7 8,130 Impaired loans with a specific allowance: — Recorded investment — 57 — 6,272 — 5 6,334 Unpaid principal balance — 57 — 6,272 — 5 6,334 Specific allowance — 7 — 1,606 — — 1,613 Total impaired loans: Recorded investment — 2,761 — 9,591 2,100 12 14,464 Unpaid principal balance — 2,761 — 9,591 2,100 12 14,464 Specific allowance — 7 — 1,606 — — 1,613 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, 2021 and 2020: MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Three Months Ended March 31, 2021 Average recorded investment in impaired loans $ — $ 2,761 $ — $ 8,018 $ 1,620 $ 8 $ 12,407 Interest income recognized — 10 — 205 — — 215 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 March 31, December 31, 2021 2020 Total Loans > Total Loans > 90 Days & 90 Days & Nonaccrual Accruing Nonaccrual Accruing (In thousands) RES RE $ 583 $ 40 $ 578 $ 69 CML & CRE 1,636 25 2,052 1,240 AG & AGRE 180 2,197 181 2,181 CON & MAR 6 7 12 8 $ 2,405 $ 2,269 $ 2,823 $ 3,498 No troubled loans were restructured during the three months ended March 31, 2021 or 2020. No restructured loans defaulted during the three months ended March 31, 2021 or 2020. Loan modifications or forbearances related to the COVID-19 pandemic will generally not be considered TDRs. The CARES Act included several provisions designed to help financial institutions like the Company in working with their customers. Section 4013 of the CARES Act, as extended, allows a financial institution to elect to suspend generally accepted accounting principles and regulatory determinations with respect to qualifying loan modifications related to COVID-19 that would otherwise be categorized as a TDR until January 1, 2022. The Company has taken advantage of this provision to extend certain payment modifications to loan customers in need. As of March 31, 2021, the Company has There were two customers with a combined residential loan balance of $692,000 in the process of foreclosure as of March 31, 2021, and there were no residential loans in process of foreclosure as of March 31, 2020.

Borrowings

Borrowings	3 Months Ended
Borrowings	Mar. 31, 2021
Borrowings
Borrowings	Note 5: Borrowings The Company joined the American Financial Exchange (“AFX”) in January of 2021. During the three months ended March 31, 2021, the Company utilized unsecured overnight lending arrangements to borrow from other AFX members through extensions of credit. At March 31, 2021, members of the AFX offered a combined borrowing limit of $275.0 million, but availability fluctuates daily. As of March 31, 2021, the outstanding balance was $25.0 million with a rate of 0.06%. Rates are set daily by participating members and may vary by lending member.

Regulatory Matters

Regulatory Matters	3 Months Ended
Regulatory Matters	Mar. 31, 2021
Regulatory Matters
Regulatory Matters	Note 6: Regulatory Matters The Company, Merchants Bank, and FMBI are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by federal and state banking regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company, Merchants Bank, and FMBI must meet specific capital guidelines that involve quantitative measures of the Company’s, Merchants Bank’s, and FMBI’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s, Merchants Bank’s, and FMBI’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, and other factors. Furthermore, the Company’s, Merchants Bank’s, and FMBI’s regulators could require adjustments to regulatory capital not reflected in these financial statements. On November 13, 2019, the federal regulators finalized and adopted a regulatory capital rule establishing 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 a 9% threshold, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios. Eligibility criteria to utilize CBLR includes the following: ● Total assets of less than $10 billion, ● Total trading assets plus liabilities of 5% or less of consolidated assets, ● Total off-balance sheet exposures of 25% or less of consolidated assets, ● Cannot be an advanced approaches banking organization, and ● Leverage ratio greater than 9%, or temporarily reduced threshold established in response to COVID-19. In April 2020, under the CARES Act, the 9% leverage ratio threshold was temporarily reduced to 8% in response to the COVID-19 pandemic. The threshold increased to 8.5% in 2021 and will return to 9% in 2022. The Company, Merchants Bank, and FMBI elected to begin using CBLR in the first quarter of 2020 and all intend to utilize this measure for the foreseeable future and thus will not calculate or report risk-based capital ratios. On December 2, 2020 the Federal Deposit Insurance Corporation (“FDIC”) issued an interim final rule related to COVID-19 as it pertains to eligibility to utilize CBLR. The rule allows organizations with less than $10 billion in total assets as of December 31, 2019, to use the assets on that date to determine the applicability of various regulatory asset thresholds during 2020 and 2021. Management believes, as of March 31, 2021 and December 31, 2020, that the Company, Merchants Bank, and FMBI met all the regulatory capital adequacy requirements with CBLR to be classified as well-capitalized, and management is not aware of any conditions or events since the most recent regulatory notification that would change the Company’s, Merchants Bank’s, or FMBI’s category. As of March 31, 2021 and December 31, 2020, the most recent notifications from the Board of Governors of the Federal Reserve System (“Federal Reserve”) categorized the Company as well capitalized and most recent notifications from the FDIC categorized Merchants Bank and FMBI as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Company’s, Merchants Bank’s, or FMBI’s category. The Company’s, Merchants Bank’s, and FMBI’s actual capital amounts and ratios are presented in the following tables. Minimum Amount To Be Well Actual Capitalized (1) Amount Ratio Amount Ratio (Dollars in thousands) March 31, 2021 CBLR (Tier 1) capital (1) (i.e., CBLR - leverage ratio) Company $ 993,392 10.1 % $ 839,158 > 8.5 % Merchants Bank 913,718 9.5 % 816,735 > 8.5 % FMBI 25,492 9.6 % 22,537 > 8.5 % (1) As defined by regulatory agencies. Minimum Amount To Be Well Actual Capitalized (1) Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2020 CBLR (Tier 1) capital (1) (i.e., CBLR - leverage ratio) Company $ 792,456 8.6 % $ 738,019 > 8 % Merchants Bank 781,221 8.7 % 718,120 > 8 % FMBI 24,456 9.8 % 19,979 > 8 % (1) As defined by regulatory agencies. 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
Derivative Financial Instruments	Mar. 31, 2021
Derivative Financial Instruments
Derivative Financial Instruments	Note 7: 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, 2021 and December 31, 2020. Notional Fair Value Amount Balance Sheet Location Asset Liability March 31, 2021 (In thousands) (In thousands) Interest rate lock commitments $ 201,344 Other assets/liabilities $ 467 $ 1,080 Forward contracts $ 212,608 Other assets/liabilities 1,616 21 $ 2,083 $ 1,101 Notional Fair Value Amount Balance Sheet Location Asset Liability December 31, 2020 (In thousands) (In thousands) Interest rate lock commitments $ 412,043 Other assets/liabilities $ 6,131 $ — Forward contracts $ 304,024 Other assets/liabilities — 2,682 $ 6,131 $ 2,682 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, 2021 and 2020. Three Months Ended March 31, 2021 2020 (In thousands) Interest rate lock commitments $ (6,744) $ 1,813 Forward contracts (includes pair-off settlements) 8,396 (1,844) Net derivative gains (loss) $ 1,652 $ (31) 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, 2021 $ 88,384 Other assets/liabilities $ 2,284 $ 2,284 December 31, 2020 $ 82,726 Other assets/liabilities $ 3,170 $ 3,170 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, 2021 2020 (In thousands) Gross swap gains $ 886 $ 2,703 Gross swap losses (886) (2,703) Net swap gains (losses) $ — $ — The Company pledged $3.9 million in collateral to secure its obligations under swap contracts at March 31, 2021 and December 31, 2020.

Disclosures about Fair Value of

Disclosures about Fair Value of Assets and Liabilities	3 Months Ended
Disclosures about Fair Value of Assets and Liabilities	Mar. 31, 2021
Disclosures about Fair Value of Assets and Liabilities
Disclosures about Fair Value of Assets and Liabilities	Note 8: 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 Level 2 Level 3 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, 2021 and December 31, 2020: 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, 2021 Mortgage loans in process of securitization $ 432,063 $ — $ 432,063 $ — Available for sale securities: Treasury notes 4,042 4,042 — — Federal agencies 209,885 — 209,885 — Municipals 6,034 — 6,034 — Mortgage-backed - Government-sponsored entity (GSE) - residential 21,730 — 21,730 — Loans held for sale 57,998 — 57,998 — Mortgage servicing rights 96,215 — — 96,215 Derivative assets - interest rate lock commitments 467 — — 467 Derivative assets - forward contracts 1,616 — 1,616 — Derivative assets - interest rate swaps 2,284 — 2,284 — Derivative liabilities - interest rate lock commitments 1,080 — — 1,080 Derivative liabilities - forward contracts 21 — 21 — Derivative liabilities - interest rate swaps 2,284 — 2,284 — December 31, 2020 Mortgage loans in process of securitization $ 338,733 $ — $ 338,733 $ — Available for sale securities: Treasury notes 6,559 6,559 — — Federal agencies 235,040 — 235,040 — Municipals 6,025 — 6,025 — Mortgage-backed - Government-sponsored entity (GSE) - residential 22,178 — 22,178 — Loans held for sale 40,044 — 40,044 — Mortgage servicing rights 82,604 — — 82,604 Derivative assets - interest rate lock commitments 6,131 — — 6,131 Derivative asset - interest rate swap 3,170 — 3,170 — Derivative liabilities - forward contracts 2,682 — 2,682 — Derivative liabilities - interest rate swap 3,170 — 3,170 — 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, 2021 and the year ended December 31, 2020. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Mortgage Loans in Process of Securitization and Available for Sale Securities Where quoted market prices are available in an active market, securities such as U.S. Treasuries are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy including federal agencies, mortgage-backed securities, municipal securities and Federal Housing Administration participation certificates. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Loans Held for Sale Certain loans held for sale at fair value are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices, or market price equivalents, which would be used by other market participants. These saleable loans are considered Level 2. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed, 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, 2021 2020 (In thousands) Mortgage servicing rights Balance, beginning of period $ 82,604 $ 74,387 Additions Originated and purchased servicing 10,181 3,929 Subtractions Paydowns (3,448) (1,858) Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model 6,878 (6,480) Balance, end of period $ 96,215 $ 69,978 Derivative Assets - interest rate lock commitments Balance, beginning of period $ 6,131 $ 186 Changes in fair value (5,664) 1,893 Balance, end of period $ 467 $ 2,079 Derivative Liabilities - interest rate lock commitments Balance, beginning of period $ — $ — Changes in fair value 1,080 80 Balance, end of period $ 1,080 80 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, 2021 and December 31, 2020. 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, 2021 Impaired loans (collateral-dependent) $ — $ — $ — $ — December 31, 2020 Impaired loans (collateral-dependent) $ 4,059 $ — $ — $ 4,059 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 Weighted Fair Value Technique Unobservable Inputs Range Average (In thousands) At March 31, 2021: Collateral-dependent impaired loans $ — Market comparable properties Marketability discount - - Mortgage servicing rights - Multi-family $ 78,895 Discounted cash flow Discount rate 8% - 13% 8% Constant prepayment rate 1% - 41% 3% Mortgage servicing rights - Single-family $ 17,320 Discounted cash flow Mortgage yield 10% 10% Constant prepayment rate 10% - 11% 10% Derivative assets - interest rate lock commitments $ 467 Discounted cash flow Loan closing rates 60%-99% 78% Derivative liabilities - interest rate lock commitments $ 1,080 Discounted cash flow Loan closing rates 60%-99% 78% At December 31, 2020: Collateral-dependent impaired loans $ 4,059 Market comparable properties Marketability discount 43% 43% Mortgage servicing rights - Multi-family $ 73,569 Discounted cash flow Discount rate 8% - 13% 9% Constant prepayment rate 2% - 43% 4% Mortgage servicing rights - Single-family $ 9,035 Discounted cash flow Discount rate 11% 11% Constant prepayment rate 8% - 35% 16% Derivative assets - interest rate lock commitments $ 6,131 Discounted cash flow Loan closing rates 55% - 99% 75% 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. These two inputs can drive a significant amount of a market participant’s valuation of mortgage servicing rights. Significant increases (decreases) in the discount rate or assumed constant prepayment rates used to value mortgage servicing rights would decrease (increase) the value derived. Fair Value of Financial Instruments The following table presents the carrying amount and estimated fair values of the Company’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2021 and December 31, 2020. 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, 2021 Financial assets: Cash and cash equivalents $ 269,439 $ 269,439 $ 269,439 $ — $ — Securities purchased under agreements to resell 6,544 6,544 — 6,544 — FHLB stock 70,656 70,656 — 70,656 — Loans held for sale 2,691,664 2,691,664 — 2,691,664 — Loans, net 5,710,291 5,663,060 — — 5,663,060 Interest receivable 22,111 22,111 — 22,111 — Financial liabilities: Deposits 8,063,181 8,065,318 7,570,841 494,477 — Short-term subordinated debt 14,960 14,960 — 14,960 — FHLB advances 406,027 406,163 — 406,163 — Other borrowing 124,173 124,173 — 124,173 — Interest payable 2,090 2,090 — 2,090 — December 31, 2020 Financial assets: Cash and cash equivalents $ 179,728 $ 179,728 $ 179,728 $ — $ — Securities purchased under agreements to resell 6,580 6,580 — 6,580 — FHLB stock 70,656 70,656 — 70,656 — Loans held for sale 3,030,110 3,030,110 — 3,030,110 — Loans, net 5,507,926 5,484,824 — — 5,484,824 Interest receivable 21,770 21,770 — 21,770 — Financial liabilities: Deposits 7,408,066 7,410,759 7,051,413 359,346 — Short-term subordinated debt 14,960 14,960 — 14,960 — FHLB advances 1,221,071 1,221,870 — 1,221,870 — Federal Reserve discount window/PPPLF advances 112,225 112,225 — 112,225 — Interest payable 1,476 1,476 — 1,476 —

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Mar. 31, 2021
Earnings Per Share
Earnings Per Share	Note 9: Earnings Per Share Earnings per share were computed as follows: Three Month Periods Ended March 31, 2021 2020 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 61,983 $ 24,583 Dividends on preferred stock (3,757) (3,618) Net income allocated to common shareholders $ 58,226 $ 20,965 Basic earnings per share 28,772,092 $ 2.02 28,734,632 $ 0.73 Effect of dilutive securities-restricted stock awards 78,322 24,780 Diluted earnings per share 28,850,414 $ 2.02 28,759,412 $ 0.73

Share-Based Payment Plan

Share-Based Payment Plan	3 Months Ended
Share-Based Payment Plan	Mar. 31, 2021
Share-Based Payment Plan
Share-Based Payment Plan	Note 10: 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, 2021 and March 31, 2020, the Company issued 35,056 and 36,046 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, 2021 or March 31, 2020. In January 2021, the Board of Directors amended the plan for nonexecutive directors to receive a portion of their annual fees, issued quarterly, in the form of restricted common stock equal to $50,000 per member, rounded up to the nearest whole share, to be effective after the Company’s next annual meeting of shareholders.

Segment Information

Segment Information	3 Months Ended
Segment Information	Mar. 31, 2021
Segment Information
Segment Information	Note 11: Segment Information The Company’s business segments are defined as Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The reportable business segments are consistent with the internal reporting and evaluation of the principal lines of business of the Company. The Multi-family Mortgage Banking segment originates and services government sponsored mortgages for multi-family and healthcare facilities. The Mortgage Warehousing segment funds agency eligible residential loans from the date of origination or purchase, until the date of sale in the secondary market, as well as commercial loans to non-depository financial institutions. The Banking segment provides a wide range of financial products and services to consumers and businesses, including retail banking, commercial lending, agricultural lending, retail and correspondent residential mortgage banking, and Small Business Administration (“SBA”) lending. Other includes general and administrative expenses that provide services to all segments, internal funds transfer pricing offsets resulting from allocations to/from the other segments; certain elimination entries and investments in qualified affordable housing limited partnerships. All operations are domestic. The tables below present selected business segment financial information for the three months ended March 31, 2021 and 2020. Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Three Months Ended March 31, 2021 Interest income $ 207 $ 38,587 $ 39,540 $ 1,215 $ 79,549 Interest expense — 1,724 6,439 (577) 7,586 Net interest income 207 36,863 33,101 1,792 71,963 Provision for loan losses — (1,084) 2,747 — 1,663 Net interest income after provision for loan losses 207 37,947 30,354 1,792 70,300 Noninterest income 33,234 4,117 7,678 (1,093) 43,936 Noninterest expense 16,444 2,896 7,125 3,619 30,084 Income before income taxes 16,997 39,168 30,907 (2,920) 84,152 Income taxes 5,036 9,985 7,882 (734) 22,169 Net income (loss) $ 11,961 $ 29,183 $ 23,025 $ (2,186) $ 61,983 Total assets $ 219,954 $ 4,383,759 $ 5,010,799 $ 90,748 $ 9,705,260 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

Preferred Stock Offerings

Preferred Stock Offerings	3 Months Ended
Preferred Stock Offerings	Mar. 31, 2021
Preferred Stock Offerings
Preferred Stock Offerings	Note 12: 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. On August 19, 2019, the Company issued 5,000,000 depositary shares, each representing a 1/40 th On March 23, 2021, the Company issued 6,000,000 depositary shares, each representing a 1/40 th per depositary share). The aggregate gross offering proceeds for the shares issued by the Company was million. The Series C Preferred Stock have no voting rights with respect to matters that generally require the approval of our common shareholders. Dividends on the Series C Preferred Stock, to the extent declared by the Company’s board, are payable quarterly. The Company may redeem the Series C Preferred Stock, in whole or in part, at our option, on any dividend payment date on or after April 1, 2026, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption. 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 was able to 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. On April 15, 2021, all 41,625 shares of the Company’s 8% preferred stock were redeemed for $41.6 million, plus unpaid dividends of $139,000. On May 6, 2021 these 8% preferred shareholders participated in a private offering to replace their redeemed shares with the Company’s 6% Series C preferred stock. Accordingly, 46,181 shares (1,847,233 depositary shares) of the Company’s 6% Series C preferred stock were issued at a price of $25 per depositary share. The total capital raised from the private offering was $46.1 million, net of $50,000 in expenses. 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
Recent Accounting Pronouncements	Mar. 31, 2021
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 13: 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, 2021, and for interim periods for years beginning after January 1, 2022. The Company is continuing to evaluate the impact of adopting this new guidance, but it does not expect the adoption to have a material impact on the Company’s financial position or results of operations. FASB ASU 2016-13, Financial Instruments—Credit Losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses”, commonly referred to as “CECL”. The amendments in this ASU replace the incurred loss model with a methodology that reflects the “current expected credit losses” over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. ASU 2016-13 replaces the incurred loss impairment methodology with a new methodology that reflects expected credit losses over the lives of the loans and requires consideration of a broader range of information to form credit loss estimates. The ASU requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. Additional disclosures are required. As an emerging growth company, the amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Because the Company’s status as an emerging growth company 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. FASB ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12. This ASU removes specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: (1) exception to the incremental approach for intraperiod tax allocation; (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments; and (3) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: (1) franchise taxes that are partially based on income; (2) transactions with a government that result in a step up in the tax basis of goodwill; (3) separate financial statements of legal entities that are not subject to tax; and (4) enacted changes in tax laws in interim periods. As an emerging growth company, the amendments in this update become effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance but does not expect it to have a material impact on the consolidated financial statements. FASB ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ● A change in a contract’s reference interest rate would be accounted for as a continuation of that contract rather than as the creation of a new one for contracts, including loans, debt, leases, and other arrangements, that meet specific criteria. ● When updating its hedging strategies in response to reference rate reform, an entity would be allowed to preserve its hedge accounting. Entities may apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022. The Company is in the process of implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company believes the adoption of this guidance on activities subsequent to December 31, 2020 through December 31, 2022 would not have a material impact on the consolidated financial statements.

Subsequent Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2021
Subsequent Events
Subsequent Events	Note 14: Subsequent Events On April 15, 2021, all 41,625 shares of the Company’s 8% preferred stock were redeemed for $41.6 million, plus unpaid dividends of $139,000 . On May 6, 2021 these 8% preferred shareholders participated in a private offering to replace their redeemed shares with the Company’s 6% Series C preferred stock. Accordingly, 46,181 shares ( 1,847,233 depositary shares) of the Company’s 6% Series C preferred stock were issued at a price of $25 per depositary share. The total capital raised from the private offering was $46.1 million, net of $50,000 in expenses.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2021
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 primary operating subsidiaries include Merchants Capital Corp. (“MCC”) and Merchants Capital Servicing, LLC (“MCS”). All direct and indirectly owned subsidiaries owned by Merchants Bancorp are collectively referred to as the “Company”. The accompanying unaudited condensed consolidated balance sheet of the Company as of December 31, 2020, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of March 31, 2021 and for the three months ended March 31, 2021 and 2020, 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, 2020 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, 2021
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements as of and for the period ended March 31, 2021 and 2020 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, and FMBI. Also included are Merchants Bank’s primary operating subsidiaries, MCC and MCS, as well as all direct and indirectly owned subsidiaries owned by Merchants Bancorp. On February 1, 2021, the Company’s debt fund entities were restructured in such a way that its ownership and participation was significantly reduced with the inclusion of additional, unrelated investors and the Company was no longer classified as a primary beneficiary. Accordingly, results from these entities were no longer consolidated after this date, in accordance with the consolidation guidelines of the Accounting Standards Update of Topic 810. Following the deconsolidation, the carrying value of assets and liabilities of these entities were removed from the consolidated balance sheet, and the continuing investments were recorded at fair value at the date of deconsolidation. The total amount deconsolidated from the balance sheet included net assets of approximately $10 million, consisting primarily of $66.6 million in loans receivable, and $52.7 million in borrowings with Merchants Bank that was previously eliminated in consolidation. The fair value of its continuing investments was approximately $10 million and has been reported in Other Assets after deconsolidation. The estimated fair value was determined based on third-party evaluations of similar assets in the underlying business. The difference between the fair value of these deconsolidated entities and their carrying value was deemed to be immaterial, resulting in no gain or loss on deconsolidation. The maximum loss exposure that would be absorbed by the Company in the event that these unconsolidated investments were deemed worthless is approximately $10.0 million at March 31, 2021. These continuing investments after deconsolidation are expected to be classified as variable interest entities, will not be consolidated, and will be accounted for under the equity method of accounting. The Company will analyze whether its entities are the primary beneficiary on an ongoing basis. Changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment.
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 may have been made to the 2020 financial statements to conform to the financial statement presentation as of and for the three months ended March 31, 2021. These reclassifications had no effect on net income.

Securities Available For Sale (

Securities Available For Sale (Tables)	3 Months Ended
Securities Available For Sale (Tables)	Mar. 31, 2021
Securities Available For Sale
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses	March 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: Treasury notes $ 4,025 $ 17 $ — $ 4,042 Federal agencies 209,958 29 102 209,885 Municipals 5,933 101 — 6,034 Mortgage-backed - Government-sponsored entity (GSE) - residential 21,464 266 — 21,730 Total available for sale securities $ 241,380 $ 413 $ 102 $ 241,691 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: Treasury notes $ 6,535 $ 24 $ — $ 6,559 Federal agencies 234,954 103 17 235,040 Municipals 5,935 90 — 6,025 Mortgage-backed - Government-sponsored entity (GSE) - residential 21,899 279 — 22,178 Total available for sale securities $ 269,323 $ 496 $ 17 $ 269,802
Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity	March 31, 2021 December 31, 2020 Amortized Fair Amortized Fair Cost Value Cost Value Contractual Maturity (In thousands) Within one year $ 8,077 $ 8,086 $ 6,288 $ 6,302 After one through five years 210,979 210,952 239,770 239,877 After five through ten years 514 549 515 549 After ten years 346 374 851 896 219,916 219,961 247,424 247,624 Mortgage-backed - Government-sponsored entity (GSE) - residential 21,464 21,730 21,899 22,178 $ 241,380 $ 241,691 $ 269,323 $ 269,802
Schedule of gross unrealized losses and fair value of investments with unrealized losses have been in continuous	March 31, 2021 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available for sale securities: Federal agencies $ 139,857 $ 102 $ — $ — $ 139,857 $ 102 December 31, 2020 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available for sale securities: Federal agencies $ 69,939 $ 17 $ — $ — $ 69,939 $ 17

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	3 Months Ended
Loans and Allowance for Loan Losses (Tables)	Mar. 31, 2021
Loans and Allowance for Loan Losses
Summary of loans	March 31, December 31, 2021 2020 (In thousands) Mortgage warehouse lines of credit $ 1,334,548 $ 1,605,745 Residential real estate 731,334 678,848 Multi-family and healthcare financing 3,206,633 2,749,020 Commercial and commercial real estate 357,682 387,294 Agricultural production and real estate 96,108 101,268 Consumer and margin loans 13,077 13,251 5,739,382 5,535,426 Less Allowance for loan losses 29,091 27,500 Loans Receivable $ 5,710,291 $ 5,507,926
Summary of activity in the allowance for loans and recorded investment by loan portfolio	At or For the Three Months Ended March 31, 2021 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 4,018 $ 3,334 $ 14,731 $ 4,641 $ 636 $ 140 $ 27,500 Provision (credit) for loan losses (697) 266 2,405 (309) (4) 2 1,663 Loans charged to the allowance — — — (68) — (6) (74) Recoveries of loans previously charged off — — — — — 2 2 Balance, end of period $ 3,321 $ 3,600 $ 17,136 $ 4,264 $ 632 $ 138 $ 29,091 Ending balance: individually evaluated for impairment $ — $ 3 $ — $ 1,518 $ — $ — $ 1,521 Ending balance: collectively evaluated for impairment $ 3,321 $ 3,597 $ 17,136 $ 2,746 $ 632 $ 138 $ 27,570 Loans Ending balance $ 1,334,548 $ 731,334 $ 3,206,633 $ 357,682 $ 96,108 $ 13,077 $ 5,739,382 Ending balance individually evaluated for impairment $ — $ 2,757 $ — $ 6,042 $ 180 $ 6 $ 8,985 Ending balance collectively evaluated for impairment $ 1,334,548 $ 728,577 $ 3,206,633 $ 351,640 $ 95,928 $ 13,071 $ 5,730,397 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
Summary of activity in the allowance for loan losses	December 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, December 31, 2020 $ 4,018 $ 3,334 $ 14,731 $ 4,641 $ 636 $ 140 $ 27,500 Ending balance: individually evaluated for impairment $ — $ 7 $ — $ 1,606 $ — $ — $ 1,613 Ending balance: collectively evaluated for impairment $ 4,018 $ 3,327 $ 14,731 $ 3,035 $ 636 $ 140 $ 25,887 Loans Balance, December 31, 2020 $ 1,605,745 $ 678,848 $ 2,749,020 $ 387,294 $ 101,268 $ 13,251 $ 5,535,426 Ending balance individually evaluated for impairment $ — $ 2,761 $ — $ 9,591 $ 2,100 $ 12 $ 14,464 Ending balance collectively evaluated for impairment $ 1,605,745 $ 676,087 $ 2,749,020 $ 377,703 $ 99,168 $ 13,239 $ 5,520,962
Schedule of credit risk profile of loan portfolio	March 31, 2021 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 833 $ 128,037 $ 2,403 $ 3,923 $ 32 $ 135,228 Special Mention (Watch) - COVID-19 Deferrals — 121 186 83 — — 390 Substandard — 2,757 — 6,042 180 6 8,985 Acceptable and Above 1,334,548 727,623 3,078,410 349,154 92,005 13,039 5,594,779 Total $ 1,334,548 $ 731,334 $ 3,206,633 $ 357,682 $ 96,108 $ 13,077 $ 5,739,382 December 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ 222 $ 853 $ 145,050 $ 2,620 $ 4,160 $ 34 $ 152,939 Special Mention (Watch) - COVID-19 Deferrals — 383 185 110 — — 678 Substandard — 2,761 — 9,591 2,100 12 14,464 Acceptable and Above 1,605,523 674,851 2,603,785 374,973 95,008 13,205 5,367,345 Total $ 1,605,745 $ 678,848 $ 2,749,020 $ 387,294 $ 101,268 $ 13,251 $ 5,535,426
Schedule of aging analysis of the recorded investment in loans	March 31, 2021 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 1,334,548 $ 1,334,548 RES RE 316 76 656 1,048 730,286 731,334 MF RE — — — — 3,206,633 3,206,633 CML & CRE 1,004 182 1,935 3,121 354,561 357,682 AG & AGRE 415 — 1,955 2,370 93,738 96,108 CON & MAR 35 — 14 49 13,028 13,077 $ 1,770 $ 258 $ 4,560 $ 6,588 $ 5,732,794 $ 5,739,382 December 31, 2020 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 1,605,745 $ 1,605,745 RES RE 364 80 630 1,074 677,774 678,848 MF RE — 36,760 — 36,760 2,712,260 2,749,020 CML & CRE 608 76 3,582 4,266 383,028 387,294 AG & AGRE 3,769 — 1,934 5,703 95,565 101,268 CON & MAR 7 — 19 26 13,225 13,251 $ 4,748 $ 36,916 $ 6,165 $ 47,829 $ 5,487,597 $ 5,535,426
Schedule of components of impaired loans and specific valuation allowance	March 31, 2021 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ — $ 2,703 $ — $ 436 $ 180 $ 6 $ 3,325 Unpaid principal balance — 2,703 — 436 180 6 3,325 Impaired loans with a specific allowance: Recorded investment — 54 — 5,606 — — 5,660 Unpaid principal balance — 54 — 5,606 — — 5,660 Specific allowance — 3 — 1,518 — — 1,521 Total impaired loans: Recorded investment — 2,757 — 6,042 180 6 8,985 Unpaid principal balance — 2,757 — 6,042 180 6 8,985 Specific allowance — 3 — 1,518 — — 1,521 December 31, 2020 MTG WHLOC RES RE MF RE CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ — $ 2,704 $ — $ 3,319 $ 2,100 $ 7 $ 8,130 Unpaid principal balance — 2,704 — 3,319 2,100 7 8,130 Impaired loans with a specific allowance: — Recorded investment — 57 — 6,272 — 5 6,334 Unpaid principal balance — 57 — 6,272 — 5 6,334 Specific allowance — 7 — 1,606 — — 1,613 Total impaired loans: Recorded investment — 2,761 — 9,591 2,100 12 14,464 Unpaid principal balance — 2,761 — 9,591 2,100 12 14,464 Specific allowance — 7 — 1,606 — — 1,613
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, 2021 Average recorded investment in impaired loans $ — $ 2,761 $ — $ 8,018 $ 1,620 $ 8 $ 12,407 Interest income recognized — 10 — 205 — — 215 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
Schedule of nonaccrual loans and loans past due 90 days or more and still accruing	March 31, December 31, 2021 2020 Total Loans > Total Loans > 90 Days & 90 Days & Nonaccrual Accruing Nonaccrual Accruing (In thousands) RES RE $ 583 $ 40 $ 578 $ 69 CML & CRE 1,636 25 2,052 1,240 AG & AGRE 180 2,197 181 2,181 CON & MAR 6 7 12 8 $ 2,405 $ 2,269 $ 2,823 $ 3,498

Regulatory Matters (Tables)

Regulatory Matters (Tables)	3 Months Ended
Regulatory Matters (Tables)	Mar. 31, 2021
Regulatory Matters
Summary of bank's actual capital amounts and ratios	Minimum Amount To Be Well Actual Capitalized (1) Amount Ratio Amount Ratio (Dollars in thousands) March 31, 2021 CBLR (Tier 1) capital (1) (i.e., CBLR - leverage ratio) Company $ 993,392 10.1 % $ 839,158 > 8.5 % Merchants Bank 913,718 9.5 % 816,735 > 8.5 % FMBI 25,492 9.6 % 22,537 > 8.5 % (1) As defined by regulatory agencies. Minimum Amount To Be Well Actual Capitalized (1) Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2020 CBLR (Tier 1) capital (1) (i.e., CBLR - leverage ratio) Company $ 792,456 8.6 % $ 738,019 > 8 % Merchants Bank 781,221 8.7 % 718,120 > 8 % FMBI 24,456 9.8 % 19,979 > 8 % (1) As defined by regulatory agencies.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
Derivative Financial Instruments (Tables)	Mar. 31, 2021
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, 2021 (In thousands) (In thousands) Interest rate lock commitments $ 201,344 Other assets/liabilities $ 467 $ 1,080 Forward contracts $ 212,608 Other assets/liabilities 1,616 21 $ 2,083 $ 1,101 Notional Fair Value Amount Balance Sheet Location Asset Liability December 31, 2020 (In thousands) (In thousands) Interest rate lock commitments $ 412,043 Other assets/liabilities $ 6,131 $ — Forward contracts $ 304,024 Other assets/liabilities — 2,682 $ 6,131 $ 2,682
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, 2021 2020 (In thousands) Interest rate lock commitments $ (6,744) $ 1,813 Forward contracts (includes pair-off settlements) 8,396 (1,844) Net derivative gains (loss) $ 1,652 $ (31)
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, 2021 $ 88,384 Other assets/liabilities $ 2,284 $ 2,284 December 31, 2020 $ 82,726 Other assets/liabilities $ 3,170 $ 3,170
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, 2021 2020 (In thousands) Gross swap gains $ 886 $ 2,703 Gross swap losses (886) (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, 2021
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, 2021 Mortgage loans in process of securitization $ 432,063 $ — $ 432,063 $ — Available for sale securities: Treasury notes 4,042 4,042 — — Federal agencies 209,885 — 209,885 — Municipals 6,034 — 6,034 — Mortgage-backed - Government-sponsored entity (GSE) - residential 21,730 — 21,730 — Loans held for sale 57,998 — 57,998 — Mortgage servicing rights 96,215 — — 96,215 Derivative assets - interest rate lock commitments 467 — — 467 Derivative assets - forward contracts 1,616 — 1,616 — Derivative assets - interest rate swaps 2,284 — 2,284 — Derivative liabilities - interest rate lock commitments 1,080 — — 1,080 Derivative liabilities - forward contracts 21 — 21 — Derivative liabilities - interest rate swaps 2,284 — 2,284 — December 31, 2020 Mortgage loans in process of securitization $ 338,733 $ — $ 338,733 $ — Available for sale securities: Treasury notes 6,559 6,559 — — Federal agencies 235,040 — 235,040 — Municipals 6,025 — 6,025 — Mortgage-backed - Government-sponsored entity (GSE) - residential 22,178 — 22,178 — Loans held for sale 40,044 — 40,044 — Mortgage servicing rights 82,604 — — 82,604 Derivative assets - interest rate lock commitments 6,131 — — 6,131 Derivative asset - interest rate swap 3,170 — 3,170 — Derivative liabilities - forward contracts 2,682 — 2,682 — Derivative liabilities - interest rate swap 3,170 — 3,170 —
Schedule of Level 3 reconciliation of recurring fair value measurements	Three Months Ended March 31, 2021 2020 (In thousands) Mortgage servicing rights Balance, beginning of period $ 82,604 $ 74,387 Additions Originated and purchased servicing 10,181 3,929 Subtractions Paydowns (3,448) (1,858) Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model 6,878 (6,480) Balance, end of period $ 96,215 $ 69,978 Derivative Assets - interest rate lock commitments Balance, beginning of period $ 6,131 $ 186 Changes in fair value (5,664) 1,893 Balance, end of period $ 467 $ 2,079 Derivative Liabilities - interest rate lock commitments Balance, beginning of period $ — $ — Changes in fair value 1,080 80 Balance, end of period $ 1,080 80
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, 2021 Impaired loans (collateral-dependent) $ — $ — $ — $ — December 31, 2020 Impaired loans (collateral-dependent) $ 4,059 $ — $ — $ 4,059
Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill	Valuation Weighted Fair Value Technique Unobservable Inputs Range Average (In thousands) At March 31, 2021: Collateral-dependent impaired loans $ — Market comparable properties Marketability discount - - Mortgage servicing rights - Multi-family $ 78,895 Discounted cash flow Discount rate 8% - 13% 8% Constant prepayment rate 1% - 41% 3% Mortgage servicing rights - Single-family $ 17,320 Discounted cash flow Mortgage yield 10% 10% Constant prepayment rate 10% - 11% 10% Derivative assets - interest rate lock commitments $ 467 Discounted cash flow Loan closing rates 60%-99% 78% Derivative liabilities - interest rate lock commitments $ 1,080 Discounted cash flow Loan closing rates 60%-99% 78% At December 31, 2020: Collateral-dependent impaired loans $ 4,059 Market comparable properties Marketability discount 43% 43% Mortgage servicing rights - Multi-family $ 73,569 Discounted cash flow Discount rate 8% - 13% 9% Constant prepayment rate 2% - 43% 4% Mortgage servicing rights - Single-family $ 9,035 Discounted cash flow Discount rate 11% 11% Constant prepayment rate 8% - 35% 16% Derivative assets - interest rate lock commitments $ 6,131 Discounted cash flow Loan closing rates 55% - 99% 75%
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, 2021 Financial assets: Cash and cash equivalents $ 269,439 $ 269,439 $ 269,439 $ — $ — Securities purchased under agreements to resell 6,544 6,544 — 6,544 — FHLB stock 70,656 70,656 — 70,656 — Loans held for sale 2,691,664 2,691,664 — 2,691,664 — Loans, net 5,710,291 5,663,060 — — 5,663,060 Interest receivable 22,111 22,111 — 22,111 — Financial liabilities: Deposits 8,063,181 8,065,318 7,570,841 494,477 — Short-term subordinated debt 14,960 14,960 — 14,960 — FHLB advances 406,027 406,163 — 406,163 — Other borrowing 124,173 124,173 — 124,173 — Interest payable 2,090 2,090 — 2,090 — December 31, 2020 Financial assets: Cash and cash equivalents $ 179,728 $ 179,728 $ 179,728 $ — $ — Securities purchased under agreements to resell 6,580 6,580 — 6,580 — FHLB stock 70,656 70,656 — 70,656 — Loans held for sale 3,030,110 3,030,110 — 3,030,110 — Loans, net 5,507,926 5,484,824 — — 5,484,824 Interest receivable 21,770 21,770 — 21,770 — Financial liabilities: Deposits 7,408,066 7,410,759 7,051,413 359,346 — Short-term subordinated debt 14,960 14,960 — 14,960 — FHLB advances 1,221,071 1,221,870 — 1,221,870 — Federal Reserve discount window/PPPLF advances 112,225 112,225 — 112,225 — Interest payable 1,476 1,476 — 1,476 —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
Earnings Per Share (Tables)	Mar. 31, 2021
Earnings Per Share
Schedule of computation of earnings per share	Three Month Periods Ended March 31, 2021 2020 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 61,983 $ 24,583 Dividends on preferred stock (3,757) (3,618) Net income allocated to common shareholders $ 58,226 $ 20,965 Basic earnings per share 28,772,092 $ 2.02 28,734,632 $ 0.73 Effect of dilutive securities-restricted stock awards 78,322 24,780 Diluted earnings per share 28,850,414 $ 2.02 28,759,412 $ 0.73

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
Segment Information (Tables)	Mar. 31, 2021
Segment Information
Schedule of business segment financial information	Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Three Months Ended March 31, 2021 Interest income $ 207 $ 38,587 $ 39,540 $ 1,215 $ 79,549 Interest expense — 1,724 6,439 (577) 7,586 Net interest income 207 36,863 33,101 1,792 71,963 Provision for loan losses — (1,084) 2,747 — 1,663 Net interest income after provision for loan losses 207 37,947 30,354 1,792 70,300 Noninterest income 33,234 4,117 7,678 (1,093) 43,936 Noninterest expense 16,444 2,896 7,125 3,619 30,084 Income before income taxes 16,997 39,168 30,907 (2,920) 84,152 Income taxes 5,036 9,985 7,882 (734) 22,169 Net income (loss) $ 11,961 $ 29,183 $ 23,025 $ (2,186) $ 61,983 Total assets $ 219,954 $ 4,383,759 $ 5,010,799 $ 90,748 $ 9,705,260 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

Basis of Presentation - Princip

Basis of Presentation - Principles of Consolidation (Details) - USD ($)	Feb. 01, 2021	Mar. 31, 2021
Net assets deconsolidated	$ 10,000,000
Loans receivable deconsolidated	66,600,000
Borrowings deconsolidated	52,700,000
Gain or loss on deconsolidation	0
Maximum loss exposure		$ 10,000,000
Other assets, net
Fair value of continuing investments after deconsolidation	$ 10,000,000

Securities Available For Sale -

Securities Available For Sale - Amortized Cost to Approximate Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Available-for-sale securities:
Amortized Cost	$ 241,380	$ 269,323
Gross Unrealized Gains	413	496
Gross Unrealized Losses	102	17
Fair Value of available for sale securities	241,691	269,802
Treasury notes
Available-for-sale securities:
Amortized Cost	4,025	6,535
Gross Unrealized Gains	17	24
Fair Value of available for sale securities	4,042	6,559
Federal agencies
Available-for-sale securities:
Amortized Cost	209,958	234,954
Gross Unrealized Gains	29	103
Gross Unrealized Losses	102	17
Fair Value of available for sale securities	209,885	235,040
Municipals
Available-for-sale securities:
Amortized Cost	5,933	5,935
Gross Unrealized Gains	101	90
Fair Value of available for sale securities	6,034	6,025
Mortgage-backed - Government-sponsored entity (GSE) - residential
Available-for-sale securities:
Amortized Cost	21,464	21,899
Gross Unrealized Gains	266	279
Fair Value of available for sale securities	$ 21,730	$ 22,178

Securities Available For Sale_2

Securities Available For Sale - Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Contractual Maturities, Amortized Cost
Within one year	$ 8,077	$ 6,288
After one through five years	210,979	239,770
After five through ten years	514	515
After ten years	346	851
Amortized Costs, Gross	219,916	247,424
Amortized Costs, Net	241,380	269,323
Contractual Maturities, Fair Value
Within one year	8,086	6,302
After one through five years	210,952	239,877
After five through ten years	549	549
After ten years	374	896
Fair Value, Gross	219,961	247,624
Available-for-sale Securities, Debt Securities, Total	241,691	269,802
Mortgage-backed - Government-sponsored entity (GSE) - residential
Contractual Maturities, Amortized Cost
Amortized Costs, Mortgage-backed - Government-sponsored entity (GSE) - residential	21,464	21,899
Amortized Costs, Net	21,464	21,899
Contractual Maturities, Fair Value
Fair Value, Mortgage-backed - Government-sponsored entity (GSE) - residential	21,730	22,178
Available-for-sale Securities, Debt Securities, Total	$ 21,730	$ 22,178

Securities Available For Sale_3

Securities Available For Sale - Sale of securities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Securities Available For Sale
Proceeds from the sale of available for sale securities	$ 0	$ 0

Securities Available For Sale_4

Securities Available For Sale - Continuous Unrealized Loss Position (Details) - Federal agencies - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	$ 139,857	$ 69,939
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	139,857	69,939
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	102	17
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	$ 102	$ 17

Mortgage Loans in Process of _2

Mortgage Loans in Process of Securitization (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Mortgage Loans in Process of Securitization
Unrealized gains included in mortgage loans	$ 1	$ 2.2

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses - Summary of Loans By Classification (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Loans and Allowance for Loan Losses
Loans	$ 5,739,382	$ 5,535,426
Allowance for loan losses	29,091	27,500	$ 18,883	$ 15,842
Loans and Leases Receivable, Net Amount, Total	5,710,291	5,507,926
Mortgage warehouse lines of credit
Loans and Allowance for Loan Losses
Loans	1,334,548	1,605,745
Allowance for loan losses	3,321	4,018	2,709	1,913
Residential real estate
Loans and Allowance for Loan Losses
Loans	731,334	678,848
Allowance for loan losses	3,600	3,334	2,062	2,042
Multi-family and healthcare financing
Loans and Allowance for Loan Losses
Loans	3,206,633	2,749,020
Allowance for loan losses	17,136	14,731	7,694	7,018
Commercial and commercial real estate
Loans and Allowance for Loan Losses
Loans	357,682	387,294
Allowance for loan losses	4,264	4,641	5,662	4,173
Commercial and commercial real estate \| Loans funded through PPP, CARES Act
Loans and Allowance for Loan Losses
Loans	65,900	60,200
Agricultural production and real estate
Loans and Allowance for Loan Losses
Loans	96,108	101,268
Allowance for loan losses	632	636	561	523
Consumer and margin loans
Loans and Allowance for Loan Losses
Loans	13,077	13,251
Allowance for loan losses	$ 138	$ 140	$ 195	$ 173

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, 2021	Mar. 31, 2020	Dec. 31, 2020
Allowance for loan losses
Balance, beginning of period	$ 27,500	$ 15,842
Provision (credit) for loan losses	1,663	2,998
Loans charged to the allowance	(74)	(1)
Recoveries of loans previously charged off	2	44
Balance, end of period	29,091	18,883
Ending balance: individually evaluated for impairment	1,521		$ 1,613
Ending balance: collectively evaluated for impairment	27,570		25,887
Loans
Ending balance	5,739,382		5,535,426
Ending balance individually evaluated for impairment	8,985		14,464
Ending balance: collectively evaluated for impairment	5,730,397		5,520,962
Mortgage warehouse lines of credit
Allowance for loan losses
Balance, beginning of period	4,018	1,913
Provision (credit) for loan losses	(697)	796
Balance, end of period	3,321	2,709
Ending balance: collectively evaluated for impairment	3,321		4,018
Loans
Ending balance	1,334,548		1,605,745
Ending balance: collectively evaluated for impairment	1,334,548		1,605,745
Residential real estate
Allowance for loan losses
Balance, beginning of period	3,334	2,042
Provision (credit) for loan losses	266	20
Balance, end of period	3,600	2,062
Ending balance: individually evaluated for impairment	3		7
Ending balance: collectively evaluated for impairment	3,597		3,327
Loans
Ending balance	731,334		678,848
Ending balance individually evaluated for impairment	2,757		2,761
Ending balance: collectively evaluated for impairment	728,577		676,087
Multi-family and healthcare financing
Allowance for loan losses
Balance, beginning of period	14,731	7,018
Provision (credit) for loan losses	2,405	676
Balance, end of period	17,136	7,694
Ending balance: collectively evaluated for impairment	17,136		14,731
Loans
Ending balance	3,206,633		2,749,020
Ending balance: collectively evaluated for impairment	3,206,633		2,749,020
Commercial and commercial real estate
Allowance for loan losses
Balance, beginning of period	4,641	4,173
Provision (credit) for loan losses	(309)	1,445
Loans charged to the allowance	(68)
Recoveries of loans previously charged off		44
Balance, end of period	4,264	5,662
Ending balance: individually evaluated for impairment	1,518		1,606
Ending balance: collectively evaluated for impairment	2,746		3,035
Loans
Ending balance	357,682		387,294
Ending balance individually evaluated for impairment	6,042		9,591
Ending balance: collectively evaluated for impairment	351,640		377,703
Agricultural production and real estate
Allowance for loan losses
Balance, beginning of period	636	523
Provision (credit) for loan losses	(4)	38
Balance, end of period	632	561
Ending balance: collectively evaluated for impairment	632		636
Loans
Ending balance	96,108		101,268
Ending balance individually evaluated for impairment	180		2,100
Ending balance: collectively evaluated for impairment	95,928		99,168
Consumer and margin loans
Allowance for loan losses
Balance, beginning of period	140	173
Provision (credit) for loan losses	2	23
Loans charged to the allowance	(6)	(1)
Recoveries of loans previously charged off	2
Balance, end of period	138	$ 195
Ending balance: collectively evaluated for impairment	138		140
Loans
Ending balance	13,077		13,251
Ending balance individually evaluated for impairment	6		12
Ending balance: collectively evaluated for impairment	$ 13,071		$ 13,239

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses - Credit Risk Profile of Loan Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Credit risk profile of portfolio
Loans	$ 5,739,382	$ 5,535,426
Special Mention (Watch)
Credit risk profile of portfolio
Loans	135,228	152,939
Special Mention (Watch) Covid 19 Deferrals
Credit risk profile of portfolio
Loans	390	678
Substandard
Credit risk profile of portfolio
Loans	8,985	14,464
Acceptable and Above
Credit risk profile of portfolio
Loans	5,594,779	5,367,345
Mortgage warehouse lines of credit
Credit risk profile of portfolio
Loans	1,334,548	1,605,745
Mortgage warehouse lines of credit \| Special Mention (Watch)
Credit risk profile of portfolio
Loans		222
Mortgage warehouse lines of credit \| Acceptable and Above
Credit risk profile of portfolio
Loans	1,334,548	1,605,523
Residential real estate
Credit risk profile of portfolio
Loans	731,334	678,848
Residential real estate \| Special Mention (Watch)
Credit risk profile of portfolio
Loans	833	853
Residential real estate \| Special Mention (Watch) Covid 19 Deferrals
Credit risk profile of portfolio
Loans	121	383
Residential real estate \| Substandard
Credit risk profile of portfolio
Loans	2,757	2,761
Residential real estate \| Acceptable and Above
Credit risk profile of portfolio
Loans	727,623	674,851
Multi-family and healthcare financing
Credit risk profile of portfolio
Loans	3,206,633	2,749,020
Multi-family and healthcare financing \| Special Mention (Watch)
Credit risk profile of portfolio
Loans	128,037	145,050
Multi-family and healthcare financing \| Special Mention (Watch) Covid 19 Deferrals
Credit risk profile of portfolio
Loans	186	185
Multi-family and healthcare financing \| Acceptable and Above
Credit risk profile of portfolio
Loans	3,078,410	2,603,785
Commercial and commercial real estate
Credit risk profile of portfolio
Loans	357,682	387,294
Commercial and commercial real estate \| Special Mention (Watch)
Credit risk profile of portfolio
Loans	2,403	2,620
Commercial and commercial real estate \| Special Mention (Watch) Covid 19 Deferrals
Credit risk profile of portfolio
Loans	83	110
Commercial and commercial real estate \| Substandard
Credit risk profile of portfolio
Loans	6,042	9,591
Commercial and commercial real estate \| Acceptable and Above
Credit risk profile of portfolio
Loans	349,154	374,973
Agricultural production and real estate
Credit risk profile of portfolio
Loans	96,108	101,268
Agricultural production and real estate \| Special Mention (Watch)
Credit risk profile of portfolio
Loans	3,923	4,160
Agricultural production and real estate \| Substandard
Credit risk profile of portfolio
Loans	180	2,100
Agricultural production and real estate \| Acceptable and Above
Credit risk profile of portfolio
Loans	92,005	95,008
Consumer and margin loans
Credit risk profile of portfolio
Loans	13,077	13,251
Consumer and margin loans \| Special Mention (Watch)
Credit risk profile of portfolio
Loans	32	34
Consumer and margin loans \| Substandard
Credit risk profile of portfolio
Loans	6	12
Consumer and margin loans \| Acceptable and Above
Credit risk profile of portfolio
Loans	$ 13,039	$ 13,205

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Aging Analysis Of The Recorded Investment In Loans (Details)	Mar. 31, 2021USD ($)loan	Dec. 31, 2020USD ($)
Aging analysis of loan portfolio
Past due loans	$ 6,588,000	$ 47,829,000
Current loans	5,732,794,000	5,487,597,000
Loans and Leases Receivable, Net of Deferred Income, Total	$ 5,739,382,000	5,535,426,000
Number of loans modified in accordance with CARES Act \| loan	9
Amount of outstanding loans modified in accordance with CARES Act	$ 37,200,000
Loans modified in accordance with CARES Act, payments due	0
30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	1,770,000	4,748,000
60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	258,000	36,916,000
Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	4,560,000	6,165,000
Mortgage warehouse lines of credit
Aging analysis of loan portfolio
Current loans	1,334,548,000	1,605,745,000
Loans and Leases Receivable, Net of Deferred Income, Total	1,334,548,000	1,605,745,000
Residential real estate
Aging analysis of loan portfolio
Past due loans	1,048,000	1,074,000
Current loans	730,286,000	677,774,000
Loans and Leases Receivable, Net of Deferred Income, Total	731,334,000	678,848,000
Residential real estate \| 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	316,000	364,000
Residential real estate \| 60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	76,000	80,000
Residential real estate \| Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	656,000	630,000
Multi-family and healthcare financing
Aging analysis of loan portfolio
Past due loans		36,760,000
Current loans	3,206,633,000	2,712,260,000
Loans and Leases Receivable, Net of Deferred Income, Total	3,206,633,000	2,749,020,000
Multi-family and healthcare financing \| 60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans		36,760,000
Commercial and commercial real estate
Aging analysis of loan portfolio
Past due loans	3,121,000	4,266,000
Current loans	354,561,000	383,028,000
Loans and Leases Receivable, Net of Deferred Income, Total	357,682,000	387,294,000
Commercial and commercial real estate \| 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	1,004,000	608,000
Commercial and commercial real estate \| 60-89 Days Past Due
Aging analysis of loan portfolio
Past due loans	182,000	76,000
Commercial and commercial real estate \| Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	1,935,000	3,582,000
Agricultural production and real estate
Aging analysis of loan portfolio
Past due loans	2,370,000	5,703,000
Current loans	93,738,000	95,565,000
Loans and Leases Receivable, Net of Deferred Income, Total	96,108,000	101,268,000
Agricultural production and real estate \| 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	415,000	3,769,000
Agricultural production and real estate \| Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	1,955,000	1,934,000
Consumer and margin loans
Aging analysis of loan portfolio
Past due loans	49,000	26,000
Current loans	13,028,000	13,225,000
Loans and Leases Receivable, Net of Deferred Income, Total	13,077,000	13,251,000
Consumer and margin loans \| 30-59 Days Past Due
Aging analysis of loan portfolio
Past due loans	35,000	7,000
Consumer and margin loans \| Greater Than 90 Days
Aging analysis of loan portfolio
Past due loans	$ 14,000	$ 19,000

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses - Impaired Loans and Specific Valuation Allowance (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Impaired loans without a specific allowance:
Recorded investment	$ 3,325	$ 8,130
Unpaid principal balance	3,325	8,130
Impaired loans with a specific allowance:
Recorded investment	5,660	6,334
Unpaid principal balance	5,660	6,334
Specific allowance	1,521	1,613
Total impaired loans:
Recorded investments	8,985	14,464
Unpaid principal balance	8,985	14,464
Specific allowance	1,521	1,613
Residential real estate
Impaired loans without a specific allowance:
Recorded investment	2,703	2,704
Unpaid principal balance	2,703	2,704
Impaired loans with a specific allowance:
Recorded investment	54	57
Unpaid principal balance	54	57
Specific allowance	3	7
Total impaired loans:
Recorded investments	2,757	2,761
Unpaid principal balance	2,757	2,761
Specific allowance	3	7
Commercial and commercial real estate
Impaired loans without a specific allowance:
Recorded investment	436	3,319
Unpaid principal balance	436	3,319
Impaired loans with a specific allowance:
Recorded investment	5,606	6,272
Unpaid principal balance	5,606	6,272
Specific allowance	1,518	1,606
Total impaired loans:
Recorded investments	6,042	9,591
Unpaid principal balance	6,042	9,591
Specific allowance	1,518	1,606
Agricultural production and real estate
Impaired loans without a specific allowance:
Recorded investment	180	2,100
Unpaid principal balance	180	2,100
Total impaired loans:
Recorded investments	180	2,100
Unpaid principal balance	180	2,100
Consumer and margin loans
Impaired loans without a specific allowance:
Recorded investment	6	7
Unpaid principal balance	6	7
Impaired loans with a specific allowance:
Recorded investment		5
Unpaid principal balance		5
Total impaired loans:
Recorded investments	6	12
Unpaid principal balance	$ 6	$ 12

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, 2021	Mar. 31, 2020
Impaired Loans
Average recorded investment in impaired loans	$ 12,407	$ 14,884
Interest income recognized	215	147
Mortgage warehouse lines of credit
Impaired Loans
Average recorded investment in impaired loans		231
Residential real estate
Impaired Loans
Average recorded investment in impaired loans	2,761	3,088
Interest income recognized	10	16
Commercial and commercial real estate
Impaired Loans
Average recorded investment in impaired loans	8,018	9,502
Interest income recognized	205	131
Agricultural production and real estate
Impaired Loans
Average recorded investment in impaired loans	1,620	2,043
Consumer and margin loans
Impaired Loans
Average recorded investment in impaired loans	$ 8	$ 20

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, 2021	Dec. 31, 2020
Loan portfolio past due loans
Nonaccrual	$ 2,405	$ 2,823
Total Loans Greater than 90 Days & Accruing	2,269	3,498
Residential real estate
Loan portfolio past due loans
Nonaccrual	583	578
Total Loans Greater than 90 Days & Accruing	40	69
Commercial and commercial real estate
Loan portfolio past due loans
Nonaccrual	1,636	2,052
Total Loans Greater than 90 Days & Accruing	25	1,240
Agricultural production and real estate
Loan portfolio past due loans
Nonaccrual	180	181
Total Loans Greater than 90 Days & Accruing	2,197	2,181
Consumer and margin loans
Loan portfolio past due loans
Nonaccrual	6	12
Total Loans Greater than 90 Days & Accruing	$ 7	$ 8

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses - Troubled Debt and Modifications (Details)	3 Months Ended
	Mar. 31, 2021USD ($)loanitem	Mar. 31, 2020itemloan
Troubled debt and modifications
Number of troubled debt restructuring \| item	0	0
Number of loans restructured defaulted \| item	0	0
Amount of outstanding loans modified in accordance with CARES Act \| $	$ 37,200,000
Residential real estate
Troubled debt and modifications
Number of loans in the process of foreclosure \| loan	2	0
Value of residential loans in process of foreclosure \| $	$ 692,000

Borrowings - Other borrowings (

Borrowings - Other borrowings (Details) - American Financial Exchange, Extensions of Credit $ in Millions	Mar. 31, 2021USD ($)
Borrowings
Maximum borrowing capacity	$ 275
Outstanding balance	$ 25
Fixed rate (as a percent)	0.06%

Regulatory Matters (Details)

Regulatory Matters (Details) $ in Thousands	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Company
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 993,392	$ 792,456
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	10.1	8.6
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 839,158	$ 738,019
Company \| Minimum
Tier 1 Capital (to average assets)
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	8.5	8
Merchants Bank
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 913,718	$ 781,221
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	9.5	8.7
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 816,735	$ 718,120
Merchants Bank \| Minimum
Tier 1 Capital (to average assets)
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	8.5	8
FMBI
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 25,492	$ 24,456
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	9.6	9.8
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 22,537	$ 19,979
FMBI \| Minimum
Tier 1 Capital (to average assets)
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	8.5	8

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net derivative gains (loss)	$ 1,652	$ (31)
Pledged in collateral	3,900		$ 3,900
Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	2,083		6,131
Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	1,101		2,682
Interest Rate Lock Commitments
Derivative Financial Instruments
Notional amount	201,344		412,043
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net derivative gains (loss)	(6,744)	1,813
Interest Rate Lock Commitments \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	467		6,131
Interest Rate Lock Commitments \| Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	1,080
Forward Contracts
Derivative Financial Instruments
Notional amount	212,608		304,024
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net derivative gains (loss)	8,396	(1,844)
Forward Contracts \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	1,616
Forward Contracts \| Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	21		2,682
Interest rate swaps
Derivative Financial Instruments
Notional amount	88,384		82,726
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Gross swap gains	(886)	(2,703)
Gross swap losses	886	$ 2,703
Interest rate swaps \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	2,284		3,170
Interest rate swaps \| Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	$ 2,284		$ 3,170

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, 2021	Dec. 31, 2020
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	$ 432,063	$ 338,733
Available for sale securities	241,691	269,802
Loans held for sale	57,998	40,044
Mortgage servicing rights	96,215	82,604
Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	432,063	338,733
Loans held for sale	57,998	40,044
Mortgage servicing rights	96,215	82,604
Recurring \| Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	467	6,131
Derivative liabilities	1,080
Recurring \| Forward Contracts
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	1,616
Derivative liabilities	21	2,682
Recurring \| Interest rate swaps
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	2,284	3,170
Derivative liabilities	2,284	3,170
Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	432,063	338,733
Loans held for sale	57,998	40,044
Level 2 \| Recurring \| Forward Contracts
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	1,616
Derivative liabilities	21	2,682
Level 2 \| Recurring \| Interest rate swaps
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	2,284	3,170
Derivative liabilities	2,284	3,170
Level 3 \| Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	467	6,131
Derivative liabilities	1,080
Level 3 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage servicing rights	96,215	82,604
Level 3 \| Recurring \| Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	467	6,131
Derivative liabilities	1,080
Treasury notes \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	4,042	6,559
Treasury notes \| Level 1 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	4,042	6,559
Federal agencies
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	209,885	235,040
Federal agencies \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	209,885	235,040
Federal agencies \| Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	209,885	235,040
Municipals \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	6,034	6,025
Municipals \| Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	6,034	6,025
Mortgage-backed - Government-sponsored entity (GSE) - residential
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	21,730	22,178
Mortgage-backed - Government-sponsored entity (GSE) - residential \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	21,730	22,178
Mortgage-backed - Government-sponsored entity (GSE) - residential \| Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	$ 21,730	$ 22,178

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, 2021	Mar. 31, 2020
Derivative liabilities \| Interest Rate Lock Commitments
Reconciliation of significant unobservable inputs, liabilities:
Changes in fair value	$ 1,080	$ 80
Balance, end of period	1,080	80
Mortgage servicing rights.
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	82,604	74,387
Additions
Originated and purchased servicing	10,181	3,929
Subtractions
Paydowns	(3,448)	(1,858)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model	6,878	(6,480)
Balance, end of period	96,215	69,978
Derivative assets \| Interest Rate Lock Commitments
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	6,131	186
Subtractions
Changes in fair value	(5,664)	1,893
Balance, end of period	$ 467	$ 2,079

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 $ in Thousands	Dec. 31, 2020USD ($)
Disclosures about Fair Value of Assets and Liabilities
Impaired loans (collateral dependent)	$ 4,059
Level 3
Disclosures about Fair Value of Assets and Liabilities
Impaired loans (collateral dependent)	$ 4,059

Disclosures about Fair Value _6

Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs (Details)	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Quantitative information about unobservable inputs
Mortgage servicing rights	$ 96,215,000	$ 82,604,000
Mortgage servicing rights \| Single Family \| Level 3
Quantitative information about unobservable inputs
Mortgage servicing rights	17,320,000	9,035,000
Mortgage servicing rights \| Multi-family \| Level 3
Quantitative information about unobservable inputs
Mortgage servicing rights	$ 78,895,000	73,569,000
Collateral-dependent impaired loans \| Level 3
Quantitative information about unobservable inputs
Collateral-dependent impaired loans		$ 4,059,000
Marketability discount (as a percent)		0.43
Collateral-dependent impaired loans \| Level 3 \| Weighted average
Quantitative information about unobservable inputs
Marketability discount (as a percent)		0.43
Discount Rate \| Mortgage servicing rights \| Single Family \| Level 3
Quantitative information about unobservable inputs
Servicing asset, measurement input		0.11
Discount Rate \| Mortgage servicing rights \| Single Family \| Level 3 \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input		0.11
Discount Rate \| Mortgage servicing rights \| Multi-family \| Level 3 \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.08	0.08
Discount Rate \| Mortgage servicing rights \| Multi-family \| Level 3 \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.13	0.13
Discount Rate \| Mortgage servicing rights \| Multi-family \| Level 3 \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input		0.08
Constant Prepayment Rate \| Mortgage servicing rights \| Single Family \| Level 3 \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.10	0.08
Constant Prepayment Rate \| Mortgage servicing rights \| Single Family \| Level 3 \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.11	0.35
Constant Prepayment Rate \| Mortgage servicing rights \| Single Family \| Level 3 \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.10	0.16
Constant Prepayment Rate \| Mortgage servicing rights \| Multi-family \| Level 3 \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.01	0.02
Constant Prepayment Rate \| Mortgage servicing rights \| Multi-family \| Level 3 \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.41	0.43
Constant Prepayment Rate \| Mortgage servicing rights \| Multi-family \| Level 3 \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.03	0.04
Mortgage Yield \| Mortgage servicing rights \| Single Family \| Level 3
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.10
Mortgage Yield \| Mortgage servicing rights \| Single Family \| Level 3 \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.10
Interest Rate Lock Commitments \| Level 3
Quantitative information about unobservable inputs
Derivative assets	$ 467,000	$ 6,131,000
Derivative liabilities	$ 1,080,000
Interest Rate Lock Commitments \| Measurement Input, Maturity \| Level 3 \| Minimum
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	0.60	0.55
Loan closing rates (as a percent)	0.60
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
Interest Rate Lock Commitments \| Measurement Input, Maturity \| Level 3 \| Weighted average
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	0.78	0.75
Loan closing rates (as a percent)	0.78

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, 2021	Dec. 31, 2020
Financial assets:
Loans held for sale	$ 57,998	$ 40,044
Carrying Value
Financial assets:
Cash and cash equivalents	269,439	179,728
Securities purchased under agreements to resell	6,544	6,580
FHLB stock	70,656	70,656
Loans held for sale	2,691,664	3,030,110
Loans, net	5,710,291	5,507,926
Interest receivable	22,111	21,770
Financial liabilities:
Deposits	8,063,181	7,408,066
Short-term subordinated debt	14,960	14,960
FHLB advances	406,027	1,221,071
Other borrowing	124,173
Federal Reserve discount window/PPPLF advances		112,225
Interest payable	2,090	1,476
Fair Value
Financial assets:
Cash and cash equivalents	269,439	179,728
Securities purchased under agreements to resell	6,544	6,580
FHLB stock	70,656	70,656
Loans held for sale	2,691,664	3,030,110
Loans, net	5,663,060	5,484,824
Interest receivable	22,111	21,770
Financial liabilities:
Deposits	8,065,318	7,410,759
Short-term subordinated debt	14,960	14,960
FHLB advances	406,163	1,221,870
Other borrowing	124,173
Federal Reserve discount window/PPPLF advances		112,225
Interest payable	2,090	1,476
Level 1 \| Fair Value
Financial assets:
Cash and cash equivalents	269,439	179,728
Financial liabilities:
Deposits	7,570,841	7,051,413
Level 2 \| Fair Value
Financial assets:
Securities purchased under agreements to resell	6,544	6,580
FHLB stock	70,656	70,656
Loans held for sale	2,691,664	3,030,110
Interest receivable	22,111	21,770
Financial liabilities:
Deposits	494,477	359,346
Short-term subordinated debt	14,960	14,960
FHLB advances	406,163	1,221,870
Other borrowing	124,173
Federal Reserve discount window/PPPLF advances		112,225
Interest payable	2,090	1,476
Level 3 \| Fair Value
Financial assets:
Loans, net	$ 5,663,060	$ 5,484,824

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Income
Net income	$ 61,983	$ 24,583
Dividends on preferred stock	(3,757)	(3,618)
Net Income Allocated to Common Shareholders	$ 58,226	$ 20,965
Weighted-Average Shares
Weighted average shares - Basic	28,772,092	28,734,632
Effect of dilutive securities-restricted stock awards	78,322	24,780
Weighted average shares - diluted	28,850,414	28,759,412
Per Share Amount
Basic earnings per share	$ 2.02	$ 0.73
Diluted earnings per share	$ 2.02	$ 0.73

Share-Based Payment Plan (Detai

Share-Based Payment Plan (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
Share-Based Payment Plan (Details) - USD ($)	Jan. 31, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2018
Non executive directors
Plan disclosures
Shares issued		0	0
Value of shares available for issuance for compensation related to annual fees	$ 50,000			$ 10,000
2017 Plan \| Restricted stock
Plan disclosures
Shares issued		35,056	36,046

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Segment Information
Interest income	$ 79,549	$ 60,417
Interest expense	7,586	22,064
Net Interest Income	71,963	38,353
Provision for loan losses	1,663	2,998
Net Interest Income After Provision for Loan Losses	70,300	35,355
Noninterest income	43,936	19,902
Noninterest expense	30,084	22,293
Income Before Income Taxes	84,152	32,964
Income taxes	22,169	8,381
Net Income	61,983	24,583
Total assets	9,705,260	7,908,398	$ 9,645,375
Other
Segment Information
Interest income	1,215	668
Interest expense	(577)	(1,828)
Net Interest Income	1,792	2,496
Net Interest Income After Provision for Loan Losses	1,792	2,496
Noninterest income	(1,093)	(921)
Noninterest expense	3,619	3,238
Income Before Income Taxes	(2,920)	(1,663)
Income taxes	(734)	(460)
Net Income	(2,186)	(1,203)
Total assets	90,748	41,453
Multifamily \| Operating Segments
Segment Information
Interest income	207	420
Net Interest Income	207	420
Net Interest Income After Provision for Loan Losses	207	420
Noninterest income	33,234	17,364
Noninterest expense	16,444	10,348
Income Before Income Taxes	16,997	7,436
Income taxes	5,036	2,037
Net Income	11,961	5,399
Total assets	219,954	180,772
Mortgage Warehousing \| Operating Segments
Segment Information
Interest income	38,587	30,099
Interest expense	1,724	12,085
Net Interest Income	36,863	18,014
Provision for loan losses	(1,084)	1,180
Net Interest Income After Provision for Loan Losses	37,947	16,834
Noninterest income	4,117	2,776
Noninterest expense	2,896	3,019
Income Before Income Taxes	39,168	16,591
Income taxes	9,985	4,154
Net Income	29,183	12,437
Total assets	4,383,759	4,362,423
Banking \| Operating Segments
Segment Information
Interest income	39,540	29,230
Interest expense	6,439	11,807
Net Interest Income	33,101	17,423
Provision for loan losses	2,747	1,818
Net Interest Income After Provision for Loan Losses	30,354	15,605
Noninterest income	7,678	683
Noninterest expense	7,125	5,688
Income Before Income Taxes	30,907	10,600
Income taxes	7,882	2,650
Net Income	23,025	7,950
Total assets	$ 5,010,799	$ 3,323,750

Preferred Stock Offerings (Deta

Preferred Stock Offerings (Details)	May 06, 2021USD ($)$ / sharesshares	Apr. 15, 2021USD ($)shares	Mar. 23, 2021USD ($)$ / sharesshares	Sep. 23, 2019USD ($)$ / sharesshares	Aug. 19, 2019USD ($)$ / sharesshares	Jun. 27, 2019USD ($)$ / sharesshares	Apr. 12, 2019USD ($)shares	Mar. 28, 2019USD ($)$ / sharesshares	Mar. 31, 2021USD ($)$ / sharesshares	Mar. 31, 2020shares	Dec. 31, 2020$ / shares	Dec. 31, 2016$ / shares	Dec. 31, 2015$ / shares	Dec. 31, 2016$ / sharesshares
Public Offering of Preferred Stock
Net proceeds									$ 144,925,000
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 \| Subsequent event
Public Offering of Preferred Stock
Shares redeemed (in shares) \| shares		41,625
Preferred stock, dividend rate (as a percent)		8.00%
Aggregate cost		$ 41,600,000
Final dividend for redemption of 8% preferred stock		$ 139,000
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
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
Net proceeds							$ 2,000,000	48,300,000
Offering costs								$ 1,700,000
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% Series B Preferred Stock
Public Offering of Preferred Stock
Preferred stock, dividend rate (as a percent)									6.00%		6.00%
Preferred stock liquidation preference (in dollars per share) \| $ / shares									$ 1,000		$ 1,000
6% Series B 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
Net proceeds					120,800,000
Offering costs					$ 4,200,000
6% Series C 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
6% Series C Preferred Stock \| Subsequent event
Public Offering of Preferred Stock
Shares issued (in shares) \| shares	46,181
Depositary shares issued (in shares) \| shares	1,847,233
Depositary share price (in dollars per share) \| $ / shares	$ 25
Preferred stock, dividend rate (as a percent)	6.00%
Net proceeds	$ 46,100,000
Offering costs	$ 50,000
6% Series C Preferred Stock \| Public Offering
Public Offering of Preferred Stock
Depositary shares issued (in shares) \| shares			6,000,000
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
Net proceeds			$ 144,900,000
Offering costs			150,000,000
Underwriting discounts			$ 5,100,000
Preferred Stock \| 8% Preferred Stock
Public Offering of Preferred Stock
Preferred stock, dividend rate (as a percent)									8.00%	8.00%
Preferred Stock \| 7% Preferred Stock
Public Offering of Preferred Stock
Preferred stock, dividend rate (as a percent)									7.00%	7.00%
Preferred Stock \| 6% Series B Preferred Stock
Public Offering of Preferred Stock
Preferred stock, dividend rate (as a percent)									6.00%	6.00%
Preferred Stock \| 6% Series C Preferred Stock
Public Offering of Preferred Stock
Shares issued (in shares) \| shares									150,000
Preferred stock, dividend rate (as a percent)									6.00%
Offering costs									$ 5,100,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	May 06, 2021	Apr. 15, 2021	Mar. 31, 2021	Dec. 31, 2020
Subsequent events
Net proceeds			$ 144,925,000
8% Preferred Stock
Subsequent events
Preferred stock, dividend rate (as a percent)			8.00%	8.00%
6% Series C Preferred Stock
Subsequent events
Preferred stock, dividend rate (as a percent)			6.00%	6.00%
Subsequent event \| 8% Preferred Stock
Subsequent events
Shares redeemed (in shares)		41,625
Preferred stock, dividend rate (as a percent)		8.00%
Aggregate cost		$ 41,600,000
Final dividend for redemption of 8% preferred stock		$ 139,000
Subsequent event \| 6% Series C Preferred Stock
Subsequent events
Preferred stock, dividend rate (as a percent)	6.00%
Shares issued (in shares)	46,181
Depositary shares issued (in shares)	1,847,233
Depositary share price (in dollars per share)	$ 25
Net proceeds	$ 46,100,000
Offering costs	$ 50,000