Merchants Bancorp (MBIN) 10-Q8 Aug 222022 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2022	Aug. 01, 2022
Document Information
Entity Registrant Name	MERCHANTS BANCORP
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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		43,106,505
Entity Central Index Key	0001629019
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
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	Jun. 30, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 10,714	$ 14,030
Interest-earning demand accounts	247,432	1,018,584
Cash and cash equivalents	258,146	1,032,614
Securities purchased under agreements to resell	3,520	5,888
Mortgage loans in process of securitization	323,046	569,239
Available for sale securities	336,814	310,629
Federal Home Loan Bank (FHLB) stock	39,130	29,588
Loans held for sale (includes $41,991 and $48,583, respectively at fair value)	2,759,116	3,303,199
Loans receivable, net of allowance for credit losses on loans of $37,474 and $31,344, respectively	7,033,203
Loans receivable, net of allowance for credit losses on loans of $37,474 and $31,344, respectively		5,751,319
Premises and equipment, net	35,085	31,212
Servicing rights	130,710	110,348
Interest receivable	26,184	24,103
Goodwill	15,845	15,845
Intangible assets, net	1,441	1,707
Other assets and receivables	123,815	92,947
Total assets	11,086,055	11,278,638
Deposits
Noninterest-bearing	444,461	641,442
Interest-bearing	7,855,277	8,341,171
Total deposits	8,299,738	8,982,613
Borrowings	1,440,904	1,033,954
Deferred and current tax liabilities, net	19,414	19,170
Other liabilities	97,460	87,492
Total liabilities	9,857,516	10,123,229
Commitments and Contingencies
Shareholders' Equity
Common stock, without par value(1) Authorized - 75,000,000 shares at June 30, 2022 and 50,000,000 shares at December 31, 2021 Issued and outstanding - 43,106,505 shares at June 30, 2022 and 43,180,079 shares at December 31, 2021	136,671	137,565
Retained earnings	737,789	657,149
Accumulated other comprehensive loss	(8,070)	(1,454)
Total shareholders' equity	1,228,539	1,155,409
Total liabilities and shareholders' equity	11,086,055	11,278,638
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	$ 191,084	$ 191,084

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Loans held for sale at fair value	$ 41,991	$ 48,583
Allowance for credit losses on loans	$ 37,474
Allowance for credit losses on loans		$ 31,344
Stockholders' Equity:
Common stock, without par value (in dollars per share)
Common stock, shares authorized	75,000,000	50,000,000
Common stock, shares issued	43,106,505	43,180,079
Common stock, shares outstanding	43,106,505	43,180,079
Preferred stock, shares authorized	5,000,000	5,000,000
7% Preferred Stock
Stockholders' Equity:
Preferred stock, dividend rate (as a percent)	7%	7%
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%	6%
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%	6%
Preferred stock liquidation preference (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, shares authorized	250,000	250,000
Preferred stock, shares issued	196,181	196,181
Preferred stock, shares outstanding	196,181	196,181
Depositary shares	7,847,233	7,847,233

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022		Jun. 30, 2021		Jun. 30, 2022	Jun. 30, 2021
Interest Income
Loans	$ 85,994		$ 68,276		$ 158,190	$ 143,793
Mortgage loans in process of securitization	1,449		2,724		3,694	5,860
Investment securities:
Available for sale - taxable	917		833		1,618	1,187
Available for sale - tax exempt			9			20
Federal Home Loan Bank stock	284		392		553	776
Other	626		204		1,227	351
Total interest income	89,270		72,438		165,282	151,987
Interest Expense
Deposits	14,768		6,683		23,581	12,783
Borrowed funds	2,471		1,348		3,945	2,834
Total interest expense	17,239		8,031		27,526	15,617
Net Interest Income	72,031		64,407		137,756	136,370
Provision (credit) for credit losses	6,212		(315)		8,663	1,348
Net Interest Income After Provision for Credit Losses	65,819		64,722		129,093	135,022
Noninterest Income
Gain on sale of loans	21,564		25,122		39,529	53,742
Loan servicing fees, net	9,607		1,727		19,338	9,678
Mortgage warehouse fees	1,350		3,079		3,208	7,195
Syndication and asset management fees	1,599		480		2,213	535
Other income	5,051		2,447		9,480	5,641
Total noninterest income	39,171		32,855		73,768	76,791
Noninterest Expense
Salaries and employee benefits	22,475		18,869		43,768	40,143
Loan expenses	1,184		1,921		2,395	4,444
Occupancy and equipment	2,011		1,808		3,825	3,435
Professional fees	1,594		779		2,897	1,201
Deposit insurance expense	670		651		1,429	1,322
Technology expense	1,304		971		2,540	1,908
Other expense	3,719		3,184		7,136	5,814
Total noninterest expense	32,957		28,183		63,990	58,267
Income Before Income Taxes	72,033		69,394		138,871	153,546
Provision for income taxes	18,098		17,977		34,794	40,146
Net Income	53,935		51,417		104,077	113,400
Dividends on preferred stock	(5,729)		(5,659)		(11,457)	(9,416)
Net Income Allocated to Common Shareholders	$ 48,206		$ 45,758		$ 92,620	$ 103,984
Basic Earnings Per Share	$ 1.12	[1]	$ 1.06	[1]	$ 2.14	$ 2.41
Diluted Earnings Per Share	$ 1.11	[1]	$ 1.06	[1]	$ 2.14	$ 2.40
Basic (in Shares)	43,209,824	[1]	43,174,220	[1]	43,220,198	43,166,223
Diluted (in Shares)	43,335,211	[1]	43,311,488	[1]	43,367,875	43,293,599

[1] The number of shares and per share amounts have been restated to reflect the 3 -for-2 common stock split, effective on January 17, 2022

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements of Comprehensive Income
Net Income	$ 53,935	$ 51,417	$ 104,077	$ 113,400
Other Comprehensive Loss:
Net change in unrealized losses on investment securities available for sale, net of tax benefits of $553, $87, $2,203 and $130, respectively	(1,766)	(253)	(6,616)	(378)
Other comprehensive loss for the period	(1,766)	(253)	(6,616)	(378)
Comprehensive Income	$ 52,169	$ 51,164	$ 97,461	$ 113,022

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements of Comprehensive Income
Tax benefits on net change in unrealized gains/(losses) on investment securities available for sale	$ 553	$ 87	$ 2,203	$ 130

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands	Common stock	Preferred stock 8% Preferred Stock	Preferred stock 7% Preferred Stock	Preferred stock 6% Series B Preferred Stock	Preferred stock 6% Series C Preferred Stock Common Stock Offering	Preferred stock 6% Series C Preferred Stock Private Placement	Preferred stock 6% Series C Preferred Stock	Retained Earnings Impact from adoption of ASU	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at beginning of the period at Dec. 31, 2020	$ 135,857	$ 41,581	$ 50,221						$ 461,744	$ 374
Balance at beginning of the period (in shares) at Dec. 31, 2020	43,120,625	41,625	2,081,800	125,000
Condensed Consolidated Statements of Shareholders' Equity
Net income									113,400		$ 113,400
Distribution to employee stock ownership plan	$ 537
Distribution to employee stock ownership plan (in shares)	29,149
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations	$ 442
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares)	25,625
Issuance of shares, net of offering expenses					$ 144,926	$ 46,158
Issuance of shares, net of offering expenses (in shares)					150,000	46,181
Dividends on 8% preferred stock, annually									(833)
Final dividend for redemption of 8% preferred stock									(139)
Dividends on 7% preferred stock, annually									(1,821)
Dividends on 6% Series B preferred stock, annually									(3,750)
Dividends on 6% Series C preferred stock, annually									(2,873)
Dividends on common stock, annually									(5,181)
Deconsolidation of entities									(419)
Redemption of 8% preferred stock		$ (41,581)							(45)
Redemption of 8% preferred stock (in shares)		(41,625)
Other comprehensive loss										(378)	(378)
Balance at end of the period at Jun. 30, 2021	$ 136,836		$ 50,221	$ 120,844			$ 191,084		560,083	(4)	$ 1,059,064
Balance at end of the period (in shares) at Jun. 30, 2021	43,175,399		2,081,800	125,000			196,181
Balance at beginning of the period at Mar. 31, 2021	$ 136,474	$ 41,581	$ 50,221	$ 120,844			$ 144,925		516,961	249
Balance at beginning of the period (in shares) at Mar. 31, 2021	43,173,209	41,625	2,081,800	125,000			150,000
Condensed Consolidated Statements of Shareholders' Equity
Repurchase of common Stock (in shares)											0
Net income									51,417		$ 51,417
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations	$ 362
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares)	2,190
Issuance of shares, net of offering expenses					$ 1	$ 46,158
Issuance of shares, net of offering expenses (in shares)						46,181
Dividends on 7% preferred stock, annually									(911)
Dividends on 6% Series B preferred stock, annually									(1,875)
Dividends on 6% Series C preferred stock, annually									(2,873)
Dividends on common stock, annually									(2,591)
Redemption of 8% preferred stock		$ (41,581)							(45)
Redemption of 8% preferred stock (in shares)		(41,625)
Other comprehensive loss										(253)	(253)
Balance at end of the period at Jun. 30, 2021	$ 136,836		$ 50,221	$ 120,844			$ 191,084		560,083	(4)	1,059,064
Balance at end of the period (in shares) at Jun. 30, 2021	43,175,399		2,081,800	125,000			196,181
Balance at beginning of the period at Dec. 31, 2021	$ 137,565		$ 50,221	$ 120,844			$ 191,084		657,149	(1,454)	1,155,409
Balance at beginning of the period (in shares) at Dec. 31, 2021	43,180,079		2,081,800	125,000			196,181
Condensed Consolidated Statements of Shareholders' Equity
Repurchase of common stock	$ (1,761)								(2,174)
Repurchase of common Stock (in shares)	(165,037)
Net income									104,077		104,077
Cash paid in lieu of fractional shares for stock split	$ (1)
Cash paid in lieu of fractional shares for stock split (in shares)	(29)
Distribution to employee stock ownership plan	$ 653
Distribution to employee stock ownership plan (in shares)	20,709
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations	$ 215
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares)	70,783
Dividends on 7% preferred stock, annually									(1,821)
Dividends on 6% Series B preferred stock, annually									(3,750)
Dividends on 6% Series C preferred stock, annually									(5,886)
Dividends on common stock, annually									(6,048)
Other comprehensive loss										(6,616)	(6,616)
Balance at end of the period (ASU 2016-13) at Jun. 30, 2022								$ (3,648)
Balance at end of the period (ASU 2016-02) at Jun. 30, 2022								(110)
Balance at end of the period at Jun. 30, 2022	$ 136,671		$ 50,221	$ 120,844			$ 191,084		737,789	(8,070)	1,228,539
Balance at end of the period (in shares) at Jun. 30, 2022	43,106,505		2,081,800	125,000			196,181
Balance at beginning of the period at Mar. 31, 2022	$ 137,882		$ 50,221	$ 120,844			$ 191,084		694,776	(6,304)
Balance at beginning of the period (in shares) at Mar. 31, 2022	43,267,776		2,081,800	125,000			196,181
Condensed Consolidated Statements of Shareholders' Equity
Repurchase of common stock	$ (1,761)								(2,174)
Repurchase of common Stock (in shares)	(165,037)
Net income									53,935		53,935
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations	$ 550
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares)	3,766
Dividends on 7% preferred stock, annually									(911)
Dividends on 6% Series B preferred stock, annually									(1,875)
Dividends on 6% Series C preferred stock, annually									(2,943)
Dividends on common stock, annually									(3,019)
Other comprehensive loss										(1,766)	(1,766)
Balance at end of the period (ASU 2016-13) at Jun. 30, 2022								(3,648)
Balance at end of the period (ASU 2016-02) at Jun. 30, 2022								$ (110)
Balance at end of the period at Jun. 30, 2022	$ 136,671		$ 50,221	$ 120,844			$ 191,084		$ 737,789	$ (8,070)	$ 1,228,539
Balance at end of the period (in shares) at Jun. 30, 2022	43,106,505		2,081,800	125,000			196,181

Condensed Consolidated Statem_5

Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Dividends on common stock per share	$ 0.28	$ 0.24	$ 0.28	$ 0.24
8% Preferred Stock \| Preferred stock
Preferred stock, dividend rate (as a percent)	8%	8%	8%	8%
Dividends on preferred stock per share				$ 80
Final dividend for redemption of preferred stock per share				$ 3.33
7% Preferred Stock
Preferred stock, dividend rate (as a percent)			7%
7% Preferred Stock \| Preferred stock
Preferred stock, dividend rate (as a percent)	7%	7%	7%	7%
Dividends on preferred stock per share	$ 1.75	$ 1.75	$ 1.75	$ 1.75
6% Series B Preferred Stock
Preferred stock, dividend rate (as a percent)			6%
6% Series B Preferred Stock \| Preferred stock
Preferred stock, dividend rate (as a percent)	6%	6%	6%	6%
Dividends on preferred stock per share	$ 60	$ 60	$ 60	$ 60
6% Series C Preferred Stock
Preferred stock, dividend rate (as a percent)			6%
6% Series C Preferred Stock \| Preferred stock
Preferred stock, dividend rate (as a percent)	6%	6%	6%	6%
Dividends on preferred stock per share	$ 60	$ 60	$ 60	$ 60
Offering expenses on issuance of stock				$ 5,100,000
6% Series C Preferred Stock \| Private Placement \| Preferred stock
Preferred stock, dividend rate (as a percent)	6%	6%	6%	6%
Offering expenses on issuance of stock		$ 23,000		$ 23,000

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Condensed Consolidated Statements of Cash Flows - USD ($)	Jun. 30, 2022	Jun. 30, 2021
Operating activities:
Net income	$ 104,077,000	$ 113,400,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,204,000	1,061,000
Provision for credit losses	8,663,000	1,348,000
Gain on sale of loans	(39,529,000)	(53,742,000)
Proceeds from sales of loans	14,491,319,000	30,088,479,000
Loans and participations originated and purchased for sale	(13,918,978,000)	(29,764,386,000)
Purchases of low-income housing tax credits for sale	(9,829,000)
Change in mortgage servicing rights for paydowns and fair value adjustments	(9,367,000)	543,000
Net change in:
Mortgage loans in process of securitization	246,193,000	(123,181,000)
Other assets and receivables	(17,738,000)	(4,072,000)
Other liabilities	18,389,000	12,071,000
Other	371,000	(906,000)
Net cash provided by operating activities	874,775,000	270,615,000
Investing activities:
Net change in securities purchased under agreements to resell	2,368,000	73,000
Purchases of available for sale securities	(47,866,000)	(130,204,000)
Proceeds from the sale of available for sale securities	0	34,469,000
Proceeds from calls, maturities and paydowns of available for sale securities	12,206,000	49,444,000
Purchases of loans	(92,533,000)	(250,678,000)
Net change in loans receivable	(1,199,040,000)	(126,810,000)
Proceeds from sale of loans receivable		262,086,000
Purchase of FHLB stock	(10,326,000)	(111,000)
Proceeds from sale of FHLB stock	784,000
Proceeds from sale of servicing rights		438,000
Purchases of premises and equipment	(5,113,000)	(2,686,000)
Purchase of servicing rights	(2,057,000)
Purchase of limited partnership interests	(13,225,000)	(1,603,000)
Cash paid in deconsolidation of subsidiary		(464,000)
Other investing activities	2,924,000	366,000
Net cash used in investing activities	(1,351,878,000)	(165,680,000)
Financing activities:
Net change in deposits	(682,875,000)	629,407,000
Proceeds from borrowings	21,595,000,000	20,406,224,000
Repayment of borrowings	(21,190,050,000)	(21,053,107,000)
Proceeds from notes payable	2,000,000
Proceeds from issuance of preferred stock		191,084,000
Repurchase of preferred stock		(41,625,000)
Repurchase of common stock	(3,935,000)
Dividends	(17,505,000)	(14,597,000)
Net cash provided by (used in) financing activities	(297,365,000)	117,386,000
Net Change in Cash and Cash Equivalents	(774,468,000)	222,321,000
Cash and Cash Equivalents, Beginning of Period	1,032,614,000	179,728,000
Cash and Cash Equivalents, End of Period	258,146,000	402,049,000
Supplemental Cash Flows Information:
Interest paid	25,191,000	14,622,000
Income taxes paid, net of refunds	28,331,000	41,667,000
Transfer of loans from loans receivable to loans held for sale		166,688,000
Deconsolidation of debt fund entities

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2022
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”), Farmers-Merchants Bank of Illinois (“FMBI”) and Merchants Asset Management, LLC (“MAM”). Merchants Bank’s primary operating subsidiaries include Merchants Capital Corp. (‘MCC”), Merchants Capital Servicing, LLC (“MCS”), and Merchants Capital Investments, LLC (“MCI”). 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, 2021, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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, 2021 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 June 30, 2022 and the results of operations for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. All interim amounts have not been audited and the results of operations for the three and six months ended June 30, 2022, herein are not necessarily indicative of the results of operations to be expected for the entire year. Principles of Consolidation The unaudited condensed consolidated financial statements as of and for the period ended June 30, 2022 and 2021 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, FMBI and MAM. Also included are Merchants Bank’s primary operating subsidiaries, MCC, MCS and MCI, as well as all direct and indirectly owned subsidiaries owned by Merchants Bancorp. In addition, when the Company makes an equity investment in an entity for which it holds a variable interest, it is evaluated for consolidation requirements under Accounting Standards Update of Topic 810. Accordingly, the entity is assessed for potential consolidation under the variable interest entity (“VIE”) model and would only consolidate those entities for which it is a primary beneficiary. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the entity, and an interest that could be significant to the entity. To determine if an interest could be significant to the entity, both qualitative and quantitative factors regarding the nature, size and form of our involvement with the entity are evaluated. Alternatively, under the voting interest model, it would only consolidate those entities for which it has a controlling interest. Because the variable interest investments held by the Company as of June 30, 2022 are not deemed to be primary beneficiaries or controlling interests, the entities are not consolidated and the equity method or proportional method of accounting has been applied. 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. See Note 5: Variable Interest Entities (VIEs) for additional information about VIEs. All significant intercompany accounts and transactions have been eliminated in consolidation. Deconsolidation The unaudited condensed consolidated financial statements included consolidated results from certain entities primarily involved in single-family debt financing until January 30, 2021, while the Company was deemed to be a primary beneficiary. On February 1, 2021, the Company’s single-family 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 on the deconsolidation date 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. These continuing investments after deconsolidation are classified as variable interest entities, have not been consolidated, and are accounted for under the equity method of accounting. See Note 5: Variable Interest Entities (VIEs) 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 credit losses on loans, servicing rights and fair values of financial instruments. Significant Accounting Policies The significant accounting policies followed by the Company for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. However, on January 1, 2022, the Company adopted FASB Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL"). The Company revised certain accounting policies and implemented certain accounting policy elections, related to the adoption of CECL, which are described below. All adjustments, which are of a normal recurring nature and are, in the opinion of management, necessary for a fair statement of the results for the periods reported, have been included in the accompanying Condensed Consolidated Financial Statements. CECL replaces the previous "allowance for loan and lease losses" model for measuring credit losses, which encompassed allowances for current known and inherent losses within the portfolio, with an "expected loss" model for measuring credit losses, which encompasses allowances for losses expected to be incurred over the life of the included assets. The new CECL model requires the measurement of all expected credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures (“OBCEs”) based on historical experiences, current conditions, and reasonable and supportable forecasts. CECL also requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as credit quality and underwriting standards of an organization's portfolio. In addition, CECL includes certain changes to the accounting for investment securities available for sale depending on whether management intends to sell the securities or believes that it is more likely than not they will be required to sell. As of adoption date on January 1, 2022, the Company recorded a $3.6 million decrease, net of taxes, to retained earnings for the cumulative effect of adopting CECL. The transition adjustment included a $0.3 million increase to retained earnings related to allowance for credit losses on loans (“ACL-Loans”) and a $5.2 million decrease to retained earnings related to allowance for OBCEs (“ACL-OBCEs”). The following table summarizes the impact of the adoption of CECL on the Company’s balance sheet as of January 1, 2022. Impact of January 1, 2022 CECL Post-CECL December 31, 2021 Adoption Adoption Assets: (In thousands) MTG WHLOC $ 1,955 $ 41 $ 1,996 RES RE 4,170 275 4,445 MF FIN 14,084 520 14,604 HC FIN 4,461 139 4,600 CML & CRE 5,879 (1,277) 4,602 AG & AGRE 657 (18) 639 CON & MAR 138 21 159 ACL - Loans $ 31,344 $ (299) $ 31,045 Liabilities: ACL - OBCEs (in Other Liabilities) $ — $ 5,176 $ 5,176 Stockholders' Equity: Retained earnings, net of tax $ 657,149 $ (3,648) $ 653,501 ACL-Loans - the ACL-Loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans over the contractual term. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Adjustments to the ACL-Loans are reported in the income statement as a provision for credit loss. Further information regarding the policies and methodology used to estimate the ACL-Loans is detailed in Note 4: Loans and Allowance for credit losses on loans of these Notes to Consolidated Condensed Financial Statements. ACL-OBCEs – the ACL–OBCEs is a liability account representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if the Company has the unconditional right to cancel the obligation. OBCEs primarily consist of amounts available under outstanding lines of credit. For the period of exposure, the estimate of expected credit losses considers both the likelihood that funding will occur and the amount expected to be funded over the estimated remaining life of the commitment. The likelihood and expected amount of funding are based on historical utilization rates. The amount of the allowance represents management’s best estimate of expected credit losses on commitments expected to be funded over the contractual life of the commitment. The ACL–OBCEs is adjusted through the income statement as a component of provision for credit loss. The Company adopted CECL using the modified retrospective method for loans and OBCEs. Therefore, results for reporting periods beginning after January 1, 2022 are presented in accordance with CECL, while prior period amounts continue to be reported in accordance with previously applicable Generally Accepted Accounting Principles (“GAAP”). Reclassifications Certain reclassifications may have been made to the 2021 financial statements to conform to the financial statement presentation as of and for the three and six months ended June 30, 2022. These reclassifications had no effect on net income.

Securities Available For Sale

Securities Available For Sale	6 Months Ended
Securities Available For Sale	Jun. 30, 2022
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: June 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: Treasury notes $ 35,111 $ 1 $ 308 $ 34,804 Federal agencies 284,978 — 10,126 274,852 Mortgage-backed - Government-sponsored entity (GSE) 15,774 12 7 15,779 Mortgage-backed - Non-GSE multi-family 11,731 — 352 11,379 Total available for sale securities $ 347,594 $ 13 $ 10,793 $ 336,814 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: Treasury notes $ 8,232 $ 4 $ 27 $ 8,209 Federal agencies 264,970 — 1,675 263,295 Municipals 4,300 — — 4,300 Mortgage-backed - Government-sponsored entity (GSE) 18,664 32 336 18,360 Mortgage-backed - Non-GSE multi-family 16,424 41 — 16,465 Total available for sale securities $ 312,590 $ 77 $ 2,038 $ 310,629 At June 30, 2022 and December 31, 2021, GSE mortgage-backed securities included in the tables above are primarily backed by multi-family loans. The tables above for June 30, 2022 and December 31, 2021 also include securities purchased from Freddie Mac following the loan sale and securitization arrangement with Freddie Mac described in Note 4: Loans and Allowance for Credit Losses on Loans. Accrued interest on available for sale securities totaled $0.5 million at June 30, 2022 and $0.4 million at December 31, 2021, respectively, and is excluded from the estimate of credit losses. The amortized cost and fair value of available for sale securities at June 30, 2022 and December 31, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. June 30, 2022 December 31, 2021 Amortized Fair Amortized Fair Cost Value Cost Value Contractual Maturity (In thousands) Within one year $ 54,247 $ 52,983 $ 6,548 $ 6,551 After one through five years 265,842 256,673 270,954 269,253 After five through ten years — — — — After ten years — — — — 320,089 309,656 277,502 275,804 Mortgage-backed - Government-sponsored entity (GSE) 15,774 15,779 18,664 18,360 Mortgage-backed - Non-GSE multi-family 11,731 11,379 16,424 16,465 $ 347,594 $ 336,814 $ 312,590 $ 310,629 During the three and six months ended June 30, 2022, no securities available for sale were sold. During the three and six months ended June 30, 2021 proceeds from sales of $34.5 million securities available for sale were sold, and no gain or loss was recognized. 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 June 30, 2022 and December 31, 2021: June 30, 2022 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available for sale securities: Treasury notes $ 32,599 $ 263 $ 1,955 $ 45 $ 34,554 $ 308 Federal agencies 169,115 5,884 105,737 4,242 274,852 10,126 Mortgage-backed - Government-sponsored entity (GSE) 798 7 — — 798 7 Mortgage-backed - Non-GSE multi-family — 352 — — — 352 $ 202,512 $ 6,506 $ 107,692 $ 4,287 $ 310,204 $ 10,793 December 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: Treasury notes $ 7,957 $ 27 $ — $ — $ 7,957 $ 27 Federal agencies 238,489 1,503 24,806 172 263,295 1,675 Mortgage-backed - Government-sponsored entity (GSE) 719 336 — — 719 336 $ 247,165 $ 1,866 $ 24,806 $ 172 $ 271,971 $ 2,038 For available for sale securities with an unrealized loss position, the Company evaluates the securities to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or non-credit related factors. Any impairment that is not credit-related is recognized in AOCI, net of tax. Credit-related impairment is recognized as an ACL for available for sale securities on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company expects, or is required, to sell an impaired available for sale security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation. In evaluating available for sale securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors. Unrealized losses on the Company’s investment securities portfolio have not been recognized as an expense because the securities are of high credit quality, and the decline in fair values is attributable to changes in the prevailing interest rate environment since the purchase date. Fair value is expected to recover as securities reach maturity and/or the interest rate environment returns to conditions similar to when these securities were purchased. There were no credit related factors underlying unrealized losses on available for sale debt securities at June 30, 2022 and December 31, 2021.

Mortgage Loans in Process of Se

Mortgage Loans in Process of Securitization	6 Months Ended
Mortgage Loans in Process of Securitization	Jun. 30, 2022
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 settlement 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 $4.9 million and $7.0 million at June 30, 2022 and 2021, respectively.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses on Loans	6 Months Ended
Loans and Allowance for Credit Losses on Loans	Jun. 30, 2022
Loans and Allowance for Credit Losses on Loans
Loans and Allowance for Credit Losses on Loans	Note 4: Loans and Allowance for Credit Losses on Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the ACL-Loans, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans at amortized cost, interest income is accrued based on the unpaid principal balance. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and reports accrued interest separately from the related loan balance in the consolidated balance sheets. Accrued interest on loans totaled $18.0 million and $15.4 million at June 30, 2022 and December 31, 2021, respectively. The Company also elected not to measure an allowance for credit losses for accrued interest receivables. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. 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. When cash payments for accrued interest are received on nonaccrual loans in each loan class, the Company records a reduction in principle on the 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 lines of 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. Loan Portfolio Summary ‌ Loans receivable at June 30, 2022 and December 31, 2021 include: June 30, December 31, 2022 2021 (In thousands) Mortgage warehouse lines of credit $ 900,585 $ 781,437 Residential real estate 876,652 843,101 Multi-family financing (1) 3,236,917 2,702,042 Healthcare financing (1) 1,262,424 826,157 Commercial and commercial real estate 695,158 520,199 Agricultural production and real estate 90,070 97,060 Consumer and margin loans 8,871 12,667 7,070,677 5,782,663 Less: ACL-Loans 37,474 31,344 Loans Receivable $ 7,033,203 $ 5,751,319 (1) In 2022, the Company started presenting these two loan types on separate lines for reporting purposes. 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. As of June 30, 2022 all PPP loans have been forgiven. As of December 31, 2021, commercial and commercial real estate loans included PPP loans with principal balances of $7.0 million 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 London Interbank Offered Rate (“LIBOR”) or the Federal Reserve’s Secured Overnight Financing Rate (“SOFR”), or mortgage note rate and a margin. Risk is evident if there is a change in the fair value of mortgage loans originated by mortgage 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 or the One-Year Constant Maturity Treasury (“CMT”), plus a margin. Multi-Family Financing (MF FIN): Healthcare Financing (HC FIN): The healthcare financing portfolio includes customized loan products for independent living, assisted living, memory care and skilled nursing projects. A variety of loan products are available to accommodate rehabilitation, acquisition, and refinancing of healthcare properties. Credit risk in these loans are primarily driven by local demographics and the expertise of the operators of the facilities. Repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent agency-eligible financing is obtained, as well as successful operation of a business or property and the borrower’s cash flows. Loans included in this segment typically carry a base rate of SOFR that adjusts on a monthly basis and a margin. 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 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. Agricultural real estate loans included in this segment are typically structured with a one-year ARM, 3-year ARM or 5-year ARM CMT and a margin. Agriculture production, livestock, and equipment loans are structured with variable rates that are indexed to prime or fixed for terms not exceeding 5 years. Consumer and Margin Loans (CON & MAR): Consumer loans are those loans secured by household assets. Margin loans are those loans secured by marketable securities. The term and maximum amount for these loans are determined by considering the purpose of the loan, the margin (advance percentage against value) in all collateral, the primary source of repayment, and the borrower’s other related cash flow. ACL-Loans The Company adopted CECL on January 1, 2022. CECL replaces the previous “Allowance for Loan and Lease Losses” standard for measuring credit losses. Upon adoption of CECL, the difference in the two measurements was recorded in the ACL-Loans and retained earnings. The ACL-Loans is the Company’s estimate of expected credit losses. Loans receivable is presented net of the allowance to reflect the principal balance expected to be collected over the contractual term of the loans. This life of loan allowance is established through a provision for credit losses charged to net interest income as loans are recorded in the financial statements. The provision for a reporting period also reflects increases or decreases in the allowance related to changes in credit loss expectations. Actual credit losses are charged against the allowance when management believes the uncollectibility of a loan balance, or a portion thereof, is confirmed. Subsequent recoveries, if any, are credited to the allowance. The ACL-Loans is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans considering relevant available information from internal and external sources, including historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. The allowance also incorporates reasonable and supportable forecasts. There have been no changes to the credit quality components used to assess risk during the six months ended June 30, 2022. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The level of the ACL is believed to be adequate to absorb innate expected future losses in the loan portfolio as of the measurement date. The ACL-Loans consists of individually evaluated loans and pooled loan components. The Company’s primary portfolio segmentation is by credit risk grade. Loans risk graded substandard and worse are individually evaluated for expected credit losses. For individually evaluated loans that are collateral dependent, an allowance is established when the fair value of the collateral, the loan’s obtainable market price, or the present value of expected future cash flows discounted at the loan’s effective interest rate, is lower than the carrying value of that loan. A loan is considered to be collateral dependent when repayment is expected to be provided substantially through the operation or the sale of the collateral. To calculate the allowance for expected credit losses on loans risk graded pass through special mention, the loan portfolio is segmented into 14 segments comprised of loans with similar risk characteristics. Loan Portfolio Segment ACL-Loans Methodology Ag loans Remaining Life Method Ag real estate loans Remaining Life Method Commercial loans Discounted Cash Flow Commercial real estate loans Discounted Cash Flow Consumer and margin loans Remaining Life Method HELOC loans Discounted Cash Flow Multi-family healthcare loans Discounted Cash Flow Multi-family non-management loans Discounted Cash Flow Multi-family construction loans Discounted Cash Flow Multi-family loans Discounted Cash Flow Residential real estate loans Discounted Cash Flow SBA commercial loans Discounted Cash Flow SBA real estate commercial loans Discounted Cash Flow Single-family warehouse lines of credit Remaining Life Method Loan characteristics used in determining the segmentation included the underlying collateral, type or purpose of the loan, and expected credit loss patterns. The estimation of expected credit losses for each segment is primarily based on historical credit loss experience. Given the Company’s modest historical credit loss experience, peer and industry data was incorporated into the measurement. Expected life of loan credit losses are quantified using discounted cash flows and remaining life methodologies. For the ten portfolio segments where the discounted cash flow method was employed, econometric models are utilized to determine a Probability of Default (“PD”). Macroeconomic factors utilized in the modeling process include the national unemployment rate and the home price index. A risk index was then utilized to predict the Loss Given Default (“LGD”). The PD is then multiplied by the LGD to determine the expected loss that is incorporated into the discounted cash flow calculations. Within the discount cash flow calculation, an effective yield of the instrument is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows. An ACL is established for the difference between the instrument’s net present value and amortized cost basis. The remaining life method applies average loss rates for each segment to estimated loan balances for the remaining life of the segment. The estimate includes a four-quarter reasonable and supportable economic forecast period followed by an eight-quarter, straight-line reversion period to the historical mean for the remaining life of the loans. Model results are supplemented by qualitative adjustments for risk factors relevant in assessing the expected credit losses within the portfolio segments. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor. The various risks that are considered in making qualitative adjustments include (i) changes in the value of underlying collateral for collateral dependent loans, (ii) the effect of other external factors such as regulatory and legal requirements, the impact of (i) changes in national, regional and local economic conditions, (ii) changes in lending policies and procedures, (iii) changes in the volume and severity of past due loans, (iv) changes in the nature and volume of the loan portfolio, (v) changes in the experience, depth and ability of lending management, (vi) the existence and effect of any concentrations in credit, (vii) changes in the quality of the credit review function, The models utilized and the applicable qualitative adjustments require assumptions and management judgement that can be subjective in nature. The above measurement approach is also used to estimate the expected credit losses associated with unfunded loan commitments, which also incorporates expected utilization rates. The following tables present, by loan portfolio segment, the activity in the ACL-Loans for the three and six months ended June 30, 2022: For the Three Months Ended June 30, 2022 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) ACL-Loans Balance, beginning of period $ 1,941 $ 4,547 $ 15,131 $ 5,618 $ 4,102 $ 597 $ 166 $ 32,102 Provision for credit losses 481 363 1,233 2,318 474 (46) (55) 4,768 Loans charged to the allowance — — — — (32) — (15) (47) Recoveries of loans previously charged off — — — — 651 — — 651 Balance, end of period $ 2,422 $ 4,910 $ 16,364 $ 7,936 $ 5,195 $ 551 $ 96 $ 37,474 For the Six Months Ended June 30, 2022 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) ACL-Loans Balance, beginning of period $ 1,955 $ 4,170 $ 14,084 $ 4,461 $ 5,879 $ 657 $ 138 $ 31,344 Impact of adopting CECL 41 275 520 139 (1,277) (18) 21 (299) Provision for credit losses 426 465 1,760 3,336 905 (88) (55) 6,749 Loans charged to the allowance — — — — (963) — (15) (978) Recoveries of loans previously charged off — — — — 651 — 7 658 Balance, end of period $ 2,422 $ 4,910 $ 16,364 $ 7,936 $ 5,195 $ 551 $ 96 $ 37,474 The Company recorded a provision for credit losses of $6.2 million for the three months ended June 30, 2022. The $6.2 million provision for credit losses consisted of $4.8 million for the ACL-Loans, $0.2 million for the ACL-OBCE’s and $1.2 million for the contingent reserve related to the Freddie Mac-sponsored Q-series securitization transaction. The Company recorded a provision for credit losses of $8.7 million for the six months ended June 30, 2022. The $8.7 million provision for credit losses consisted of $6.7 million for the ACL-Loans, $0.8 million for the ACL-OBCE’s, and $1.2 million for the contingent reserve related to the Freddie Mac-sponsored Q-series securitization transaction. Prior to the adoption of CECL, the Company maintained an allowance for loan losses in accordance with the incurred loss model as disclosed in the Company’s 2021 Annual Report on Form 10-K. The following tables present the allowance for loan losses for the three and six months ended June 30, 2021: For the Three Months Ended June 30, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 3,321 $ 3,600 $ 13,396 $ 3,740 $ 4,264 $ 632 $ 138 $ 29,091 Provision for credit losses (386) 371 (1,718) 364 1,059 (21) 16 (315) Loans charged to the allowance — (2) — — (84) — — (86) Recoveries of loans previously charged off — — — — — — 6 6 Balance, end of period $ 2,935 $ 3,969 $ 11,678 $ 4,104 $ 5,239 $ 611 $ 160 $ 28,696 For the Six Months Ended June 30, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 4,018 $ 3,334 $ 12,041 $ 2,690 $ 4,641 $ 636 $ 140 $ 27,500 Provision for credit losses (1,083) 637 (363) 1,414 750 (25) 18 1,348 Loans charged to the allowance — (2) — — (152) — (6) (160) Recoveries of loans previously charged off — — — — — — 8 8 Balance, end of period $ 2,935 $ 3,969 $ 11,678 $ 4,104 $ 5,239 $ 611 $ 160 $ 28,696 The following table presents the allowance for loan losses and the recorded investment in loans and impairment method as of December 31, 2021: December 31, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, December 31, 2021 $ 1,955 $ 4,170 $ 14,084 $ 4,461 $ 5,879 $ 657 $ 138 $ 31,344 Ending balance: individually evaluated for impairment $ — $ 16 $ — $ — $ 867 $ — $ 7 $ 890 Ending balance: collectively evaluated for impairment $ 1,955 $ 4,154 $ 14,084 $ 4,461 $ 5,012 $ 657 $ 131 $ 30,454 Loans Balance, December 31, 2021 $ 781,437 $ 843,101 $ 2,702,042 $ 826,157 $ 520,199 $ 97,060 $ 12,667 $ 5,782,663 Ending balance individually evaluated for impairment $ — $ 419 $ 36,760 $ — $ 6,055 $ 158 $ 13 $ 43,405 Ending balance collectively evaluated for impairment $ 781,437 $ 842,682 $ 2,665,282 $ 826,157 $ 514,144 $ 96,902 $ 12,654 $ 5,739,258 The below table presents the amortized cost basis and ACL-Loans allocated for collateral dependent loans, which are individually evaluated to determine expected credit losses: June 30, 2022 Real Estate Accounts Receivable / Equipment Other Total ACL-Loans Allocation (In thousands) RES RE $ 353 $ — $ 6 $ 359 $ 29 MF FIN 36,760 — — 36,760 187 CML & CRE 134 4,935 236 5,305 92 AG & AGRE 158 — — 158 1 CON & MAR — — 3 3 — Total collateral dependent loans $ 37,405 $ 4,935 $ 245 $ 42,585 $ 309 There has been no significant changes to the types of collateral securing the Company’s collateral dependent loans compared to June 30, 2021. Internal Risk Categories In adherence with policy, the Company uses the following internal risk grading categories and definitions for loans: Average or above Acceptable – Special Mention (Watch) – This is a loan that is sound and collectable but contains potential risk. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard Doubtful The following tables present the credit risk profile of the Company’s loan portfolio based on internal risk rating category as of June 30, 2022 and December 31, 2021: 2022 2021 2020 2019 2018 Prior Revolving Loans TOTAL (In thousands) MTG WHLOC Acceptable and Above $ — $ — $ — $ — $ — $ — $ 900,585 $ 900,585 Total $ — $ — $ — $ — $ — $ — $ 900,585 $ 900,585 RES RE Acceptable and Above 10,316 36,482 49,380 3,327 865 10,439 764,571 875,380 Special Mention (Watch) — — — 61 74 779 — 914 Substandard — — — — — 358 — 358 Total $ 10,316 $ 36,482 $ 49,380 $ 3,388 $ 939 $ 11,576 $ 764,571 $ 876,652 MF FIN Acceptable and Above 874,093 1,049,580 305,633 71,513 12,245 7,739 852,442 3,173,245 Special Mention (Watch) 14,614 12,298 — — — — — 26,912 Substandard 36,760 — — — — — — 36,760 Total $ 925,467 $ 1,061,878 $ 305,633 $ 71,513 $ 12,245 $ 7,739 $ 852,442 $ 3,236,917 HC FIN Acceptable and Above 486,989 331,862 183,035 17,186 — — 144,812 1,163,884 Special Mention (Watch) — 29,462 62,373 6,705 — — — 98,540 Total $ 486,989 $ 361,324 $ 245,408 $ 23,891 $ — $ — $ 144,812 $ 1,262,424 CML & CRE Acceptable and Above 66,173 85,267 31,966 49,946 13,850 15,489 424,308 686,999 Special Mention (Watch) 48 21 1,448 129 — 234 973 2,853 Substandard — 2,000 — 107 175 282 2,742 5,306 Total $ 66,221 $ 87,288 $ 33,414 $ 50,182 $ 14,025 $ 16,005 $ 428,023 $ 695,158 AG & AGRE Acceptable and Above 8,358 7,984 15,952 6,291 3,457 21,141 24,779 87,962 Special Mention (Watch) 14 64 719 431 288 390 44 1,950 Substandard — — — — — 158 — 158 Total $ 8,372 $ 8,048 $ 16,671 $ 6,722 $ 3,745 $ 21,689 $ 24,823 $ 90,070 CON & MAR Acceptable and Above 240 674 394 140 4,743 20 2,638 8,849 Special Mention (Watch) — — 16 — — 3 — 19 Substandard — — — — — 3 — 3 Total $ 240 $ 674 $ 410 $ 140 $ 4,743 $ 26 $ 2,638 $ 8,871 Total Acceptable and Above $ 1,446,169 $ 1,511,849 $ 586,360 $ 148,403 $ 35,160 $ 54,828 $ 3,114,135 $ 6,896,904 Total Special Mention (Watch) $ 14,676 $ 41,845 $ 64,556 $ 7,326 $ 362 $ 1,406 $ 1,017 $ 131,188 Total Substandard $ 36,760 $ 2,000 $ — $ 107 $ 175 $ 801 $ 2,742 $ 42,585 Total Loans $ 1,497,605 $ 1,555,694 $ 650,916 $ 155,836 $ 35,697 $ 57,035 $ 3,117,894 $ 7,070,677 December 31, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 946 $ 27,155 $ 66,406 $ 2,483 $ 3,820 $ 21 $ 100,831 Substandard — 419 36,760 — 6,055 158 13 43,405 Acceptable and Above 781,437 841,736 2,638,127 759,751 511,661 93,082 12,633 5,638,427 Total $ 781,437 $ 843,101 $ 2,702,042 $ 826,157 $ 520,199 $ 97,060 $ 12,667 $ 5,782,663 The Company evaluates the loan risk grading system definitions and ACL-Loans methodology on an ongoing basis. No significant changes were made to either during the past year. Delinquent Loans The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of June 30, 2022 and December 31, 2021. There was June 30, 2022 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 900,585 $ 900,585 RES RE 307 216 176 699 875,953 876,652 MF FIN — — — — 3,236,917 3,236,917 HC FIN — — — — 1,262,424 1,262,424 CML & CRE — — 4,083 4,083 691,075 695,158 AG & AGRE — — — — 90,070 90,070 CON & MAR 39 42 3 84 8,787 8,871 $ 346 $ 258 $ 4,262 $ 4,866 $ 7,065,811 $ 7,070,677 December 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 $ — $ — $ — $ — $ 781,437 $ 781,437 RES RE 1,252 287 186 1,725 841,376 843,101 MF FIN — — — — 2,702,042 2,702,042 HC FIN — — — — 826,157 826,157 CML & CRE 591 8 149 748 519,451 520,199 AG & AGRE 37 21 — 58 97,002 97,060 CON & MAR 43 5 40 88 12,579 12,667 $ 1,923 $ 321 $ 375 $ 2,619 $ 5,780,044 $ 5,782,663 Impaired Loans The following table presents impaired loans and specific valuation allowance information based on class level as of December 31, 2021: December 31, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ — $ 372 $ 36,760 $ — $ 3,912 $ 158 $ 4 $ 41,206 Unpaid principal balance — 372 36,760 — 3,912 158 4 41,206 Impaired loans with a specific allowance: — — Recorded investment — 47 — — 2,143 — 9 2,199 Unpaid principal balance — 47 — — 2,143 — 9 2,199 Specific allowance — 16 — — 867 — 7 890 Total impaired loans: Recorded investment — 419 36,760 — 6,055 158 13 43,405 Unpaid principal balance — 419 36,760 — 6,055 158 13 43,405 Specific allowance — 16 — — 867 — 7 890 The following table presents by portfolio class, information related to the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2021: For the Three Months Ended June 30, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL Average recorded investment in impaired loans — $ 2,201 $ — $ — $ 6,113 $ 175 $ 6 $ 8,495 Interest income recognized — 16 — — 55 — — 71 For the Six Months Ended June 30, 2021 CML & AG & CON & RES RE MF RE CRE AGRE MAR TOTAL Average recorded investment in impaired loans — $ 2,442 $ — $ — $ 7,254 $ 1,000 $ 7 $ 10,703 Interest income recognized — 27 — — 259 — — 286 Nonperforming Loans 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. The amount of interest income recognized on nonaccrual financial assets during the six months ended June 30, 2022 was immaterial. The following table presents the Company’s nonaccrual loans and loans past due 90 days or more and still accruing at June 30, 2022 and December 31, 2021. June 30, December 31, 2022 2021 Total Loans > Total Loans > 90 Days & 90 Days & Nonaccrual Accruing Nonaccrual Accruing (In thousands) RES RE $ 347 $ — $ 362 $ 22 CML & CRE 4,305 — — 149 AG & AGRE 158 — 158 30 CON & MAR 3 — 4 36 $ 4,813 $ — $ 524 $ 237 The Company did not have any nonperforming loans without an estimated ACL at June 30, 2022. No troubled loans were modified during the three or six months ended June 30, 2022 or 2021. restructured loans defaulted during the three or six months ended June 30, 2022 or 2021. 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 June 30, 2022, the Company has only There were no residential loans in process of foreclosure as of June 30, 2022 and December 31, 2021. Loan Sales for Freddie Mac Q Series Securitizations 2022 Activity On May 5, 2022, the Company entered into an arrangement t

Variable Interest Entities (VIE

Variable Interest Entities (VIEs)	6 Months Ended
Variable Interest Entities (VIEs)	Jun. 30, 2022
Variable Interest Entities (VIEs).
Variable Interest Entities (VIEs)	Note 5: Variable Interest Entities (VIEs) A VIE is a corporation, partnership, limited liability company, or any other legal structure used to conduct activities or hold assets generally that either: ● Does not have equity investors with voting rights that can directly or indirectly make decisions about the entity’s activities through those voting rights or similar rights; or ● Has equity investors that do not provide sufficient equity for the entity to finance its activities without additional subordinated financial support. The Company has invested in single-family, multi-family, and healthcare debt financing entities, as well as low-income housing syndicated funds that are deemed to be VIEs. Accordingly, the entities were assessed for potential consolidation under the VIE model that requires primary beneficiaries to consolidate the entity’s results. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the entity, and an interest that could be significant to the entity. To determine if an interest could be significant to the entity, both qualitative and quantitative factors regarding the nature, size and form of involvement with the entity are evaluated. At June 30, 2022 the Company determined it was not the primary beneficiary of its VIEs primarily because the Company did not have the obligation to absorb losses or the rights to receive benefits from the VIE that could potentially be significant to the VIE. Evaluation and assessment of VIEs for consolidation is performed on an ongoing basis by management. Any changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment. The Company’s maximum exposure to loss associated with its VIEs consists of the capital invested plus any unfunded equity commitments. These investments are recorded in other assets and other liabilities on our consolidated balance sheet. The table below reflects the size of the VIEs as well as our maximum exposure to loss in connection with these investments at June 30, 2022, and December 31, 2021. Total Total Maximum Assets ($ in thousands) Assets Liabilities Exposure to Loss (In thousands) June 30, 2022 Unconsolidated VIEs $ 39,898 $ 14,823 $ 38,414 December 31, 2021 Unconsolidated VIEs $ 36,573 $ 21,014 $ 36,164

Regulatory Matters

Regulatory Matters	6 Months Ended
Regulatory Matters	Jun. 30, 2022
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 prescribed threshold established in response to COVID-19. The Company, Merchants Bank, and FMBI elected to begin using CBLR in the first quarter of 2020 and all intend to utilize this measure until they no longer meet the eligibility criteria and the applicable grace periods have expired. Accordingly, the Company will not calculate or report risk-based capital ratios at this time. At June 30, 2022 the Company’s off-balance sheets exposures exceeded 25% of total assets. If these exposures remain above 25%, the Company may no longer be eligible to utilize CBLR after September 30, 2022, when the grace periods expire. Additionally, total assets exceeded $10 billion and the Company is prepared to address the additional regulatory requirements and does not expect it to have significant financial implications. Management believes, as of June 30, 2022 and December 31, 2021, 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 June 30, 2022 and December 31, 2021, 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) June 30, 2022 CBLR (Tier 1) capital (1) (i.e., CBLR - leverage ratio) Company $ 1,217,718 12.4 % $ 882,179 > 9 % Merchants Bank 1,171,291 12.3 % 857,175 > 9 % FMBI 31,104 10.3 % 27,088 > 9 % (1) As defined by regulatory agencies. Minimum Amount To Be Well Actual Capitalized (1) Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2021 CBLR (Tier 1) capital (1) (i.e., CBLR - leverage ratio) Company $ 1,138,090 10.4 % $ 928,731 > 8.5 % Merchants Bank 1,088,621 10.3 % 901,188 > 8.5 % FMBI 28,958 9.7 % 25,499 > 8.5 % (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	6 Months Ended
Derivative Financial Instruments	Jun. 30, 2022
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, Interest Rate Lock Commitments, and Interest Rate Swaps 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. Interest rate swaps are also used by the Company to reduce the risk that significant increases in interest rates may have on the value of certain loans held for sale and the respective loan payments received from borrowers. All changes in the fair market value of these interest rate swaps and loans held for sale have been included in gain on sale of loans. Any difference between the fixed and floating interest rate components of these transactions have been included in interest income. All 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, forward contracts, and interest rate swaps utilized by the Company at June 30, 2022 and December 31, 2021. Notional Fair Value Amount Balance Sheet Location Asset Liability June 30, 2022 (In thousands) (In thousands) Interest rate lock commitments $ 62,301 Other assets/liabilities $ 299 $ 121 Forward contracts $ 49,750 Other assets/liabilities 114 203 Interest rate swaps $ 25,190 Other assets/liabilities 160 — $ 573 $ 324 Notional Fair Value Amount Balance Sheet Location Asset Liability December 31, 2021 (In thousands) (In thousands) Interest rate lock commitments $ 58,701 Other assets/liabilities $ 264 $ 41 Forward contracts $ 81,250 Other assets/liabilities 86 118 $ 350 $ 159 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 and six months ended June 30, 2022 and 2021. Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Derivative gain (loss) included in other income: Interest rate lock commitments $ 837 $ 1,046 $ (45) $ (5,698) Forward contracts (includes pair-off settlements) 1,309 (2,289) 4,459 6,107 Net derivative gains (loss) $ 2,146 $ (1,243) $ 4,414 $ 409 Gain (loss) included in gain on sale of loans: Interest rates swaps - change in fair value 160 — 160 — Hedged loans held for sale - change in fair value (165) — (165) — Net gain (loss) $ (5) $ — $ (5) $ — Derivatives on Behalf of Customers The Company offers derivative contracts to some customers in connection with their risk management needs. These derivatives include back-to-back interest rate 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 back-to-back 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) June 30, 2022 $ 181,805 Other assets/liabilities $ 3,662 $ 3,662 December 31, 2021 $ 135,686 Other assets/liabilities $ 1,131 $ 1,131 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 Six Months Ended June 30, June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Gross swap gains $ 2,035 $ 195 $ 2,531 $ 1,081 Gross swap losses 2,035 195 2,531 1,081 Net swap gains (losses) $ — $ — $ — $ — The Company pledged $2.9 million and $3.9 million in collateral to secure its obligations under back-to-back swap contracts at June 30, 2022 and December 31, 2021, respectively.

Disclosures about Fair Value of

Disclosures about Fair Value of Assets and Liabilities	6 Months Ended
Disclosures about Fair Value of Assets and Liabilities	Jun. 30, 2022
Disclosures about Fair Value of Assets and Liabilities
Disclosures about Fair Value of Assets and Liabilities	Note 8: Disclosures about Fair Value of Assets and Liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 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 June 30, 2022 and December 31, 2021: Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Assets Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2022 Mortgage loans in process of securitization $ 323,046 $ — $ 323,046 $ — Available for sale securities: Treasury notes 34,804 34,804 — — Federal agencies 274,852 — 274,852 — Mortgage-backed - Government-sponsored entity (GSE) 15,779 — 15,779 — Mortgage-backed - Non-GSE multi-family 11,379 — 11,379 — Loans held for sale 41,991 — 41,991 — Servicing rights 130,710 — — 130,710 Derivative assets - interest rate lock commitments 299 — — 299 Derivative assets - forward contracts 114 — 114 — Derivative assets - interest rate swaps 160 — 160 — Derivative assets - interest rate swaps (back-to-back) 3,662 — 3,662 — Derivative liabilities - interest rate lock commitments 121 — — 121 Derivative liabilities - forward contracts 203 — 203 — Derivative liabilities - interest rate swaps (back-to-back) 3,662 — 3,662 — December 31, 2021 Mortgage loans in process of securitization $ 569,239 $ — $ 569,239 $ — Available for sale securities: Treasury notes 8,209 8,209 — — Federal agencies 263,295 — 263,295 — Municipals 4,300 — 4,300 — Mortgage-backed - Government-sponsored entity (GSE) 18,360 — 18,360 — Mortgage-backed - Non-GSE multi-family 16,465 — 16,465 — Loans held for sale 48,583 — 48,583 — Servicing rights 110,348 — — 110,348 Derivative assets - interest rate lock commitments 264 — — 264 Derivative assets - forward contracts 86 — 86 — Derivative assets - interest rate swaps (back-to-back) 1,131 — 1,131 — Derivative liabilities - interest rate lock commitments 41 — — 41 Derivative liabilities - forward contracts 118 — 118 — Derivative liabilities - interest rate swaps (back-to-back) 1,131 — 1,131 — 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 six months ended June 30, 2022 and the year ended December 31, 2021. 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. Servicing Rights Servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed, cost of servicing, interest rates, and default rate. Due to the nature of the valuation inputs, servicing rights are classified within Level 3 of the hierarchy. The Chief Financial Officer’s (CFO) office contracts with 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 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Servicing rights Balance, beginning of period $ 121,036 $ 96,215 $ 110,348 $ 82,604 Additions Originated servicing 5,203 6,527 10,995 16,708 Subtractions Paydowns (3,268) (4,627) (6,017) (8,075) Sales of servicing — (438) — (438) Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model 7,739 654 15,384 7,532 Balance, end of period $ 130,710 $ 98,331 $ 130,710 $ 98,331 Derivative Assets - interest rate lock commitments Balance, beginning of period $ 112 $ 467 $ 264 $ 6,131 Changes in fair value 187 20 35 (5,644) Balance, end of period $ 299 $ 487 $ 299 $ 487 Derivative Liabilities - interest rate lock commitments Balance, beginning of period $ 771 $ 1,080 $ 41 $ — Changes in fair value (650) (1,026) 80 54 Balance, end of period $ 121 $ 54 $ 121 $ 54 Nonrecurring Measurements The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022 and December 31, 2021. Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Assets Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2022 Collateral dependent loans $ 4,275 $ — $ — $ 4,275 December 31, 2021 Impaired loans (collateral-dependent) $ 4,263 $ — $ — $ 4,263 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 Loans, Net of ACL-Loans The estimated fair value of collateral dependent loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral dependent loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Chief Credit Officer’s (“CCO)” office. Appraisals and evaluations are reviewed for accuracy and consistency by the CCO’s office. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the CCO’s office by comparison to historical results. Unobservable (Level 3) Inputs: The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill. Valuation Weighted Fair Value Technique Unobservable Inputs Range Average (In thousands) At June 30, 2022: Collateral dependent loans $ 4,275 Market comparable properties Marketability discount 82% 82% Servicing rights - Multi-family $ 97,059 Discounted cash flow Discount rate 8% - 13% 8% Constant prepayment rate 0% - 50% 3% Servicing rights - Single-family $ 29,632 Discounted cash flow Discount rate 9% - 10% 9% Constant prepayment rate 7% - 9% 7% Servicing rights - SBA $ 4,019 Discounted cash flow Discount rate 16% 16% Constant prepayment rate 3% - 16% 8% Derivative assets - interest rate lock commitments $ 299 Discounted cash flow Loan closing rates 50% - 99% 81% Derivative liabilities - interest rate lock commitments $ 121 Discounted cash flow Loan closing rates 50% - 99% 81% At December 31, 2021: Collateral-dependent impaired loans $ 4,263 Market comparable properties Marketability discount 44% - 76% 73% Servicing rights - Multi-family $ 84,567 Discounted cash flow Discount rate 8% - 13% 9% Constant prepayment rate 0 - 50% 4% Servicing rights - Single-family $ 23,012 Discounted cash flow Discount rate 9% - 10% 9% Constant prepayment rate 10 - 13% 11% Servicing rights - SBA $ 2,769 Discounted cash flow Discount rate 16% 16% Constant prepayment rate 10% - 13% 12% Derivative assets - interest rate lock commitments $ 264 Discounted cash flow Loan closing rates 63% - 99% 83% Derivative liabilities - interest rate lock commitments $ 41 Discounted cash flow Loan closing rates 63% - 99% 83% 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. Servicing Rights The significant unobservable inputs used in the fair value measurement of the Company’s servicing rights are discount rates and constant prepayment rates. These two inputs can drive a significant amount of a market participant’s valuation of servicing rights. Significant increases (decreases) in the discount rate or assumed constant prepayment rates used to value servicing rights would decrease (increase) the value derived. Fair Value of Financial Instruments The following table presents the carrying amount and estimated fair values of the Company’s financial instruments not carried at fair value and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022 and December 31, 2021. 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) June 30, 2022 Financial assets: Cash and cash equivalents $ 258,146 $ 258,146 $ 258,146 $ — $ — Securities purchased under agreements to resell 3,520 3,520 — 3,520 — FHLB stock 39,130 39,130 — 39,130 — Loans held for sale 2,717,125 2,717,125 — 2,717,125 — Loans receivable, net 7,033,203 7,046,313 — — 7,046,313 Interest receivable 26,184 26,184 — 26,184 — Financial liabilities: Deposits 8,299,738 8,294,601 6,829,667 1,464,934 — Short-term subordinated debt 19,000 19,000 — 19,000 — FHLB advances 851,904 851,711 — 851,711 — Other borrowing 570,000 570,000 — 570,000 — Interest payable 3,805 3,805 — 3,805 — December 31, 2021 Financial assets: Cash and cash equivalents $ 1,032,614 $ 1,032,614 $ 1,032,614 $ — $ — Securities purchased under agreements to resell 5,888 5,888 — 5,888 — FHLB stock 29,588 29,588 — 29,588 — Loans held for sale 3,254,616 3,254,616 — 3,254,616 — Loans receivable, net 5,751,319 5,731,500 — — 5,731,500 Interest receivable 24,103 24,103 — 24,103 — Financial liabilities: Deposits 8,982,613 8,982,680 7,783,553 1,199,127 — Short-term subordinated debt 17,000 17,000 — 17,000 — FHLB advances 556,954 556,925 — 556,925 — Other borrowing 460,000 460,000 — 460,000 — Interest payable 1,469 1,469 — 1,469 —

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2022
Leases.
Leases	Note 9: Leases The Company has operating leases for various locations with terms ranging from two The Company has operating lease right-of-use assets of $9.2 million and operating lease liabilities of $9.9 million as of June 30, 2022. Balance sheet, income statement and cash flow detail regarding operating leases follows: June 30, 2022 Balance Sheet (In thousands) Operating lease right-of-of use asset (in other assets) $ 9,189 Operating lease liability (in other liabilities) 9,920 Weighted average remaining lease term (years) 7.2 Weighted average discount rate 2.09% Maturities of lease liabilities: 2022 remaining $ 864 2023 1,812 2024 1,638 2025 1,246 2026 1,277 Thereafter 3,857 Total future minimum lease payments 10,694 Less: imputed interest 774 Total $ 9,920 Three Months Ended June 30, 2022 Income Statement (In thousands) Components of lease expense: Operating lease cost (in occupancy and equipment expense) $ 425 Six Months Ended June 30, 2022 Income Statement (In thousands) Components of lease expense: Operating lease cost (in occupancy and equipment expense) $ 792 Six Months Ended June 30, 2022 Cash Flow Statement (In thousands) Supplemental cash flow information: Operating cash flows from operating leases $ 597

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2022
Earnings Per Share
Earnings Per Share	Note 10: Earnings Per Share Earnings per share were computed as follows: Three Month Periods Ended June 30, 2022 2021 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 53,935 $ 51,417 Dividends on preferred stock (5,729) (5,659) Net income allocated to common shareholders $ 48,206 $ 45,758 Basic earnings per share (1) 43,209,824 $ 1.12 43,174,220 $ 1.06 Effect of dilutive securities-restricted stock awards (1) 125,387 137,268 Diluted earnings per share (1) 43,335,211 $ 1.11 43,311,488 $ 1.06 Six Month Periods Ended June 30, 2022 2021 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 104,077 $ 113,400 Dividends on preferred stock (11,457) (9,416) Net income allocated to common shareholders $ 92,620 $ 103,984 Basic earnings per share 43,220,198 $ 2.14 43,166,223 $ 2.41 Effect of dilutive securities-restricted stock awards 147,677 127,376 Diluted earnings per share 43,367,875 $ 2.14 43,293,599 $ 2.40 (1) The number of shares and per share amounts have been restated to reflect the 3 -for-2 common stock split, effective on January 17, 2022 .

Common Stock

Common Stock	6 Months Ended
Common Stock	Jun. 30, 2022
Common Stock
Common Stock	Note 11: Common Stock Stock Splits: On November 17, 2021, the Company approved a 3 one Repurchase of Common Stock: During the three months ended June 30, 2022, the Company repurchased 165,037 shares for $3.9 million at an average price of per share of common stock. The Company did t have any repurchases of common stock during the three months ended June 30, 2021. The following table presents our repurchase activity on a cash basis: Three Months Ended June 30, 2022 Dollar value of shares repurchased $ 3,935,333 Shares repurchased (1) 165,037 Average price paid per share $ 23.85 (1) On November 17, 2021, the Company announced an increase in authorization for its stock repurchase program, up to $75,000,000 of common stock, expiring December 31, 2023. On April 29, 2022, the Company entered into a Rule 10b5-1 plan (the “10b5-1 Plan”) with a broker for the repurchase of shares of its common stock commencing on May 3, 2022. The details of this repurchase plan were provided in the Form 8-K filed by the Company on May 24, 2022.

Share-Based Payment Plans

Share-Based Payment Plans	6 Months Ended
Share-Based Payment Plans	Jun. 30, 2022
Share-Based Payment Plans
Share-Based Payment Plans	Note 12: Share-Based Payment Plans Equity-based incentive awards for Company officers are currently issued pursuant to the 2017 Equity Incentive Plan (the “2017 Incentive Plan”). During the three months ended June 30, 2022 and 2021, the Company did no t issue any shares. During the six months ended June 30, 2022 and 2021, the Company issued 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. 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 shares issued to non-executive directors during the three and six months ended June 30, 2021, respectively.

Preferred Stock

Preferred Stock	6 Months Ended
Preferred Stock	Jun. 30, 2022
Preferred Stock
Preferred Stock	Note 13: Preferred Stock Public Offerings of Preferred Stock: On March 28, 2019, the Company issued 2,000,000 shares of 7.00% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock, without par value, and with a liquidation preference of $25.00 per share (the “Series A Preferred Stock”). The aggregate gross offering proceeds for the shares issued by the Company was $50.0 million, and after deducting underwriting discounts and commissions and offering expenses of approximately $1.7 million paid to third parties, the Company received total net proceeds of $48.3 million. On April 12, 2019, the Company issued an additional 81,800 shares of Series A Preferred Stock to the underwriters related to their exercise of an option to purchase additional shares under the associated underwriting agreement, resulting in an additional $2.0 million in net proceeds, after deducting $41,000 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. approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption. On August 19, 2019, the Company issued 5,000,000 depositary shares, each representing a 1/40 th 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 its option, on any dividend payment date on or after April 1, 2026, subject to the approval of the appropriate federal banking agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption. 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. 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 and Chief Executive Officer of MCC; 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 Series C Preferred Stock. Accordingly, 46,181 shares (1,847,233 depositary shares) of Series C Preferred Stock were issued at a price of $25 per depositary share. The total capital raised from the private offering was $46.2 million, net of $23,000 in expenses. 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. On April 15, 2021, all 41,625 shares of the 8% Preferred Stock were redeemed for $41.6 million, plus unpaid dividends of $139,000, as noted above.

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2022
Segment Information
Segment Information	Note 14: Segment Information Our 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 and six months ended June 30, 2022 and 2021. Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Three Months Ended June 30, 2022 Interest income $ 383 $ 23,247 $ 63,578 $ 2,062 $ 89,270 Interest expense — 5,576 12,036 (373) 17,239 Net interest income 383 17,671 51,542 2,435 72,031 Provision for credit losses 1,153 834 4,225 — 6,212 Net interest income after provision for credit losses (770) 16,837 47,317 2,435 65,819 Noninterest income 49,430 1,350 (10,252) (1,357) 39,171 Noninterest expense 21,959 2,441 2,634 5,923 32,957 Income before income taxes 26,701 15,746 34,431 (4,845) 72,033 Income taxes 7,145 3,878 8,499 (1,424) 18,098 Net income (loss) $ 19,556 $ 11,868 $ 25,932 $ (3,421) $ 53,935 Total assets $ 330,676 $ 2,836,998 $ 7,835,152 $ 83,229 $ 11,086,055 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Three Months Ended June 30, 2021 Interest income $ 204 $ 29,935 $ 40,983 $ 1,316 $ 72,438 Interest expense — 1,599 7,216 (784) 8,031 Net interest income 204 28,336 33,767 2,100 64,407 Provision for credit losses — (40) (275) — (315) Net interest income after provision for credit losses 204 28,376 34,042 2,100 64,722 Noninterest income 28,572 3,079 2,613 (1,409) 32,855 Noninterest expense 13,626 2,703 7,496 4,358 28,183 Income before income taxes 15,150 28,752 29,159 (3,667) 69,394 Income taxes 4,179 7,304 7,418 (924) 17,977 Net income (loss) $ 10,971 $ 21,448 $ 21,741 $ (2,743) $ 51,417 Total assets $ 238,165 $ 4,265,162 $ 5,328,684 $ 49,521 $ 9,881,532 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Six Months Ended June 30, 2022 Interest income $ 640 $ 43,576 117,303 $ 3,763 $ 165,282 Interest expense — 7,597 20,553 (624) 27,526 Net interest income 640 35,979 96,750 4,387 137,756 Provision for credit losses 1,153 627 6,883 — 8,663 Net interest income after provision for credit losses (513) 35,352 89,867 4,387 129,093 Noninterest income 81,616 3,210 (8,063) (2,995) 73,768 Noninterest expense 38,490 5,367 9,208 10,925 63,990 Income before income taxes 42,613 33,195 72,596 (9,533) 138,871 Income taxes 11,565 8,168 17,900 (2,839) 34,794 Net income $ 31,048 $ 25,027 $ 54,696 $ (6,694) $ 104,077 Total assets $ 330,676 $ 2,836,998 $ 7,835,152 $ 83,229 $ 11,086,055 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Six Months Ended June 30, 2021 Interest income $ 411 $ 68,522 $ 80,523 $ 2,531 $ 151,987 Interest expense — 3,323 13,655 (1,361) 15,617 Net interest income 411 65,199 66,868 3,892 136,370 Provision for credit losses — (1,124) 2,472 — 1,348 Net interest income after provision for credit losses 411 66,323 64,396 3,892 135,022 Noninterest income 61,806 7,196 10,291 (2,502) 76,791 Noninterest expense 30,070 5,599 14,621 7,977 58,267 Income before income taxes 32,147 67,920 60,066 (6,587) 153,546 Income taxes 9,215 17,289 15,300 (1,658) 40,146 Net income $ 22,932 $ 50,631 $ 44,766 $ (4,929) $ 113,400 Total assets $ 238,165 $ 4,265,162 $ 5,328,684 $ 49,521 $ 9,881,532

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Jun. 30, 2022
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 15: 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 2016-13, Financial Instruments—Credit Losses The Company adopted FASB Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments As of the adoption date on January 1, 2022, the Company recorded a $3.6 million decrease, net of taxes, to retained earnings for the cumulative effect of adopting CECL. The transition adjustment included a $0.3 million increase to retained earnings related to ACL-Loans and a $5.2 million decrease to retained earnings related to ACL-OBCEs. 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. The Company adopted this new guidance on January 1, 2022 and has elected the alternative transition method whereby comparative periods will not be restated. The Company also elected the package of practical expedients permitted under the transition guidance within the new standard. At the adoption date, the Company reported increased assets of approximately $7.1 million, liabilities of approximately $7.2 million, and retained earnings, net of tax of $110,000 on its consolidated balance sheets as a result of recognizing right-of-use assets and lease liabilities related to non-cancelable operating lease agreements. 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 has organized a committee and implemented a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. All new contracts have incorporated language to address any required transition from LIBOR. The Company will continue to monitor and evaluate existing contracts throughout 2022. The Company believes the adoption of this guidance will not have a material impact on the consolidated financial statements. FASB ASU 2022-02 - Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In February 2022, the FASB issued an ASU update to eliminate the recognition and measurement guidance on troubled debt restructurings for creditors that have adopted CECL and require enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. The new guidance also requires public business entities to present current-period gross write-offs (on a current year-to-date basis for interim-period disclosures) by year of origination in their vintage disclosures. These changes would be applied on a prospective basis. Disclosure would not be required to prior period comparative periods. The updates in ASU 2022-02 are effective for interim and annual periods beginning after December 15, 2022. The Company is continuing to evaluate the impact of adopting this new guidance but does not expect it to have a material impact on the Company’s financial position or results of operations.

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2022
Subsequent Events
Subsequent Events	Note 16: Subsequent Events No material events were noted.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2022
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”), Farmers-Merchants Bank of Illinois (“FMBI”) and Merchants Asset Management, LLC (“MAM”). Merchants Bank’s primary operating subsidiaries include Merchants Capital Corp. (‘MCC”), Merchants Capital Servicing, LLC (“MCS”), and Merchants Capital Investments, LLC (“MCI”). 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, 2021, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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, 2021 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 June 30, 2022 and the results of operations for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. All interim amounts have not been audited and the results of operations for the three and six months ended June 30, 2022, herein are not necessarily indicative of the results of operations to be expected for the entire year.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements as of and for the period ended June 30, 2022 and 2021 include results from the Company, and its wholly owned subsidiaries, Merchants Bank, FMBI and MAM. Also included are Merchants Bank’s primary operating subsidiaries, MCC, MCS and MCI, as well as all direct and indirectly owned subsidiaries owned by Merchants Bancorp. In addition, when the Company makes an equity investment in an entity for which it holds a variable interest, it is evaluated for consolidation requirements under Accounting Standards Update of Topic 810. Accordingly, the entity is assessed for potential consolidation under the variable interest entity (“VIE”) model and would only consolidate those entities for which it is a primary beneficiary. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the entity, and an interest that could be significant to the entity. To determine if an interest could be significant to the entity, both qualitative and quantitative factors regarding the nature, size and form of our involvement with the entity are evaluated. Alternatively, under the voting interest model, it would only consolidate those entities for which it has a controlling interest. Because the variable interest investments held by the Company as of June 30, 2022 are not deemed to be primary beneficiaries or controlling interests, the entities are not consolidated and the equity method or proportional method of accounting has been applied. 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. See Note 5: Variable Interest Entities (VIEs) for additional information about VIEs. All significant intercompany accounts and transactions have been eliminated in consolidation.
Deconsolidation	Deconsolidation The unaudited condensed consolidated financial statements included consolidated results from certain entities primarily involved in single-family debt financing until January 30, 2021, while the Company was deemed to be a primary beneficiary. On February 1, 2021, the Company’s single-family 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 on the deconsolidation date 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. These continuing investments after deconsolidation are classified as variable interest entities, have not been consolidated, and are accounted for under the equity method of accounting. See Note 5: Variable Interest Entities (VIEs)
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 credit losses on loans, servicing rights and fair values of financial instruments.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
Basis of Presentation (Tables)	Jun. 30, 2022
Basis of Presentation
Schedule of impact of the adoption of CECL	Impact of January 1, 2022 CECL Post-CECL December 31, 2021 Adoption Adoption Assets: (In thousands) MTG WHLOC $ 1,955 $ 41 $ 1,996 RES RE 4,170 275 4,445 MF FIN 14,084 520 14,604 HC FIN 4,461 139 4,600 CML & CRE 5,879 (1,277) 4,602 AG & AGRE 657 (18) 639 CON & MAR 138 21 159 ACL - Loans $ 31,344 $ (299) $ 31,045 Liabilities: ACL - OBCEs (in Other Liabilities) $ — $ 5,176 $ 5,176 Stockholders' Equity: Retained earnings, net of tax $ 657,149 $ (3,648) $ 653,501

Securities Available For Sale (

Securities Available For Sale (Tables)	6 Months Ended
Securities Available For Sale (Tables)	Jun. 30, 2022
Securities Available For Sale
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses	June 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: Treasury notes $ 35,111 $ 1 $ 308 $ 34,804 Federal agencies 284,978 — 10,126 274,852 Mortgage-backed - Government-sponsored entity (GSE) 15,774 12 7 15,779 Mortgage-backed - Non-GSE multi-family 11,731 — 352 11,379 Total available for sale securities $ 347,594 $ 13 $ 10,793 $ 336,814 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: Treasury notes $ 8,232 $ 4 $ 27 $ 8,209 Federal agencies 264,970 — 1,675 263,295 Municipals 4,300 — — 4,300 Mortgage-backed - Government-sponsored entity (GSE) 18,664 32 336 18,360 Mortgage-backed - Non-GSE multi-family 16,424 41 — 16,465 Total available for sale securities $ 312,590 $ 77 $ 2,038 $ 310,629
Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity	June 30, 2022 December 31, 2021 Amortized Fair Amortized Fair Cost Value Cost Value Contractual Maturity (In thousands) Within one year $ 54,247 $ 52,983 $ 6,548 $ 6,551 After one through five years 265,842 256,673 270,954 269,253 After five through ten years — — — — After ten years — — — — 320,089 309,656 277,502 275,804 Mortgage-backed - Government-sponsored entity (GSE) 15,774 15,779 18,664 18,360 Mortgage-backed - Non-GSE multi-family 11,731 11,379 16,424 16,465 $ 347,594 $ 336,814 $ 312,590 $ 310,629
Schedule of gross unrealized losses and fair value of investments with unrealized losses have been in continuous	June 30, 2022 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Available for sale securities: Treasury notes $ 32,599 $ 263 $ 1,955 $ 45 $ 34,554 $ 308 Federal agencies 169,115 5,884 105,737 4,242 274,852 10,126 Mortgage-backed - Government-sponsored entity (GSE) 798 7 — — 798 7 Mortgage-backed - Non-GSE multi-family — 352 — — — 352 $ 202,512 $ 6,506 $ 107,692 $ 4,287 $ 310,204 $ 10,793 December 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: Treasury notes $ 7,957 $ 27 $ — $ — $ 7,957 $ 27 Federal agencies 238,489 1,503 24,806 172 263,295 1,675 Mortgage-backed - Government-sponsored entity (GSE) 719 336 — — 719 336 $ 247,165 $ 1,866 $ 24,806 $ 172 $ 271,971 $ 2,038

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	6 Months Ended
Loans and Allowance for Credit Losses on Loans (Tables)	Jun. 30, 2022
Loans and Allowance for Credit Losses on Loans
Summary of loans	June 30, December 31, 2022 2021 (In thousands) Mortgage warehouse lines of credit $ 900,585 $ 781,437 Residential real estate 876,652 843,101 Multi-family financing (1) 3,236,917 2,702,042 Healthcare financing (1) 1,262,424 826,157 Commercial and commercial real estate 695,158 520,199 Agricultural production and real estate 90,070 97,060 Consumer and margin loans 8,871 12,667 7,070,677 5,782,663 Less: ACL-Loans 37,474 31,344 Loans Receivable $ 7,033,203 $ 5,751,319 (1) In 2022, the Company started presenting these two loan types on separate lines for reporting purposes.
Schedule of allowance for credit loss on loan methodology by loan portfolio segment	Loan Portfolio Segment ACL-Loans Methodology Ag loans Remaining Life Method Ag real estate loans Remaining Life Method Commercial loans Discounted Cash Flow Commercial real estate loans Discounted Cash Flow Consumer and margin loans Remaining Life Method HELOC loans Discounted Cash Flow Multi-family healthcare loans Discounted Cash Flow Multi-family non-management loans Discounted Cash Flow Multi-family construction loans Discounted Cash Flow Multi-family loans Discounted Cash Flow Residential real estate loans Discounted Cash Flow SBA commercial loans Discounted Cash Flow SBA real estate commercial loans Discounted Cash Flow Single-family warehouse lines of credit Remaining Life Method
Summary of the activity in the ACL-Loans by portfolio segment	For the Three Months Ended June 30, 2022 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) ACL-Loans Balance, beginning of period $ 1,941 $ 4,547 $ 15,131 $ 5,618 $ 4,102 $ 597 $ 166 $ 32,102 Provision for credit losses 481 363 1,233 2,318 474 (46) (55) 4,768 Loans charged to the allowance — — — — (32) — (15) (47) Recoveries of loans previously charged off — — — — 651 — — 651 Balance, end of period $ 2,422 $ 4,910 $ 16,364 $ 7,936 $ 5,195 $ 551 $ 96 $ 37,474 For the Six Months Ended June 30, 2022 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) ACL-Loans Balance, beginning of period $ 1,955 $ 4,170 $ 14,084 $ 4,461 $ 5,879 $ 657 $ 138 $ 31,344 Impact of adopting CECL 41 275 520 139 (1,277) (18) 21 (299) Provision for credit losses 426 465 1,760 3,336 905 (88) (55) 6,749 Loans charged to the allowance — — — — (963) — (15) (978) Recoveries of loans previously charged off — — — — 651 — 7 658 Balance, end of period $ 2,422 $ 4,910 $ 16,364 $ 7,936 $ 5,195 $ 551 $ 96 $ 37,474
Summary of activity in the allowance for loan losses	For the Three Months Ended June 30, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 3,321 $ 3,600 $ 13,396 $ 3,740 $ 4,264 $ 632 $ 138 $ 29,091 Provision for credit losses (386) 371 (1,718) 364 1,059 (21) 16 (315) Loans charged to the allowance — (2) — — (84) — — (86) Recoveries of loans previously charged off — — — — — — 6 6 Balance, end of period $ 2,935 $ 3,969 $ 11,678 $ 4,104 $ 5,239 $ 611 $ 160 $ 28,696 For the Six Months Ended June 30, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, beginning of period $ 4,018 $ 3,334 $ 12,041 $ 2,690 $ 4,641 $ 636 $ 140 $ 27,500 Provision for credit losses (1,083) 637 (363) 1,414 750 (25) 18 1,348 Loans charged to the allowance — (2) — — (152) — (6) (160) Recoveries of loans previously charged off — — — — — — 8 8 Balance, end of period $ 2,935 $ 3,969 $ 11,678 $ 4,104 $ 5,239 $ 611 $ 160 $ 28,696
Summary of activity in the allowance for loans and recorded investment by loan portfolio	December 31, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Allowance for loan losses Balance, December 31, 2021 $ 1,955 $ 4,170 $ 14,084 $ 4,461 $ 5,879 $ 657 $ 138 $ 31,344 Ending balance: individually evaluated for impairment $ — $ 16 $ — $ — $ 867 $ — $ 7 $ 890 Ending balance: collectively evaluated for impairment $ 1,955 $ 4,154 $ 14,084 $ 4,461 $ 5,012 $ 657 $ 131 $ 30,454 Loans Balance, December 31, 2021 $ 781,437 $ 843,101 $ 2,702,042 $ 826,157 $ 520,199 $ 97,060 $ 12,667 $ 5,782,663 Ending balance individually evaluated for impairment $ — $ 419 $ 36,760 $ — $ 6,055 $ 158 $ 13 $ 43,405 Ending balance collectively evaluated for impairment $ 781,437 $ 842,682 $ 2,665,282 $ 826,157 $ 514,144 $ 96,902 $ 12,654 $ 5,739,258
Schedule of allowance for credit loss allocated to collateral dependent loans	June 30, 2022 Real Estate Accounts Receivable / Equipment Other Total ACL-Loans Allocation (In thousands) RES RE $ 353 $ — $ 6 $ 359 $ 29 MF FIN 36,760 — — 36,760 187 CML & CRE 134 4,935 236 5,305 92 AG & AGRE 158 — — 158 1 CON & MAR — — 3 3 — Total collateral dependent loans $ 37,405 $ 4,935 $ 245 $ 42,585 $ 309
Schedule of credit risk profile of loan portfolio	2022 2021 2020 2019 2018 Prior Revolving Loans TOTAL (In thousands) MTG WHLOC Acceptable and Above $ — $ — $ — $ — $ — $ — $ 900,585 $ 900,585 Total $ — $ — $ — $ — $ — $ — $ 900,585 $ 900,585 RES RE Acceptable and Above 10,316 36,482 49,380 3,327 865 10,439 764,571 875,380 Special Mention (Watch) — — — 61 74 779 — 914 Substandard — — — — — 358 — 358 Total $ 10,316 $ 36,482 $ 49,380 $ 3,388 $ 939 $ 11,576 $ 764,571 $ 876,652 MF FIN Acceptable and Above 874,093 1,049,580 305,633 71,513 12,245 7,739 852,442 3,173,245 Special Mention (Watch) 14,614 12,298 — — — — — 26,912 Substandard 36,760 — — — — — — 36,760 Total $ 925,467 $ 1,061,878 $ 305,633 $ 71,513 $ 12,245 $ 7,739 $ 852,442 $ 3,236,917 HC FIN Acceptable and Above 486,989 331,862 183,035 17,186 — — 144,812 1,163,884 Special Mention (Watch) — 29,462 62,373 6,705 — — — 98,540 Total $ 486,989 $ 361,324 $ 245,408 $ 23,891 $ — $ — $ 144,812 $ 1,262,424 CML & CRE Acceptable and Above 66,173 85,267 31,966 49,946 13,850 15,489 424,308 686,999 Special Mention (Watch) 48 21 1,448 129 — 234 973 2,853 Substandard — 2,000 — 107 175 282 2,742 5,306 Total $ 66,221 $ 87,288 $ 33,414 $ 50,182 $ 14,025 $ 16,005 $ 428,023 $ 695,158 AG & AGRE Acceptable and Above 8,358 7,984 15,952 6,291 3,457 21,141 24,779 87,962 Special Mention (Watch) 14 64 719 431 288 390 44 1,950 Substandard — — — — — 158 — 158 Total $ 8,372 $ 8,048 $ 16,671 $ 6,722 $ 3,745 $ 21,689 $ 24,823 $ 90,070 CON & MAR Acceptable and Above 240 674 394 140 4,743 20 2,638 8,849 Special Mention (Watch) — — 16 — — 3 — 19 Substandard — — — — — 3 — 3 Total $ 240 $ 674 $ 410 $ 140 $ 4,743 $ 26 $ 2,638 $ 8,871 Total Acceptable and Above $ 1,446,169 $ 1,511,849 $ 586,360 $ 148,403 $ 35,160 $ 54,828 $ 3,114,135 $ 6,896,904 Total Special Mention (Watch) $ 14,676 $ 41,845 $ 64,556 $ 7,326 $ 362 $ 1,406 $ 1,017 $ 131,188 Total Substandard $ 36,760 $ 2,000 $ — $ 107 $ 175 $ 801 $ 2,742 $ 42,585 Total Loans $ 1,497,605 $ 1,555,694 $ 650,916 $ 155,836 $ 35,697 $ 57,035 $ 3,117,894 $ 7,070,677 December 31, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Special Mention (Watch) $ — $ 946 $ 27,155 $ 66,406 $ 2,483 $ 3,820 $ 21 $ 100,831 Substandard — 419 36,760 — 6,055 158 13 43,405 Acceptable and Above 781,437 841,736 2,638,127 759,751 511,661 93,082 12,633 5,638,427 Total $ 781,437 $ 843,101 $ 2,702,042 $ 826,157 $ 520,199 $ 97,060 $ 12,667 $ 5,782,663
Schedule of aging analysis of the recorded investment in loans	June 30, 2022 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 900,585 $ 900,585 RES RE 307 216 176 699 875,953 876,652 MF FIN — — — — 3,236,917 3,236,917 HC FIN — — — — 1,262,424 1,262,424 CML & CRE — — 4,083 4,083 691,075 695,158 AG & AGRE — — — — 90,070 90,070 CON & MAR 39 42 3 84 8,787 8,871 $ 346 $ 258 $ 4,262 $ 4,866 $ 7,065,811 $ 7,070,677 December 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 $ — $ — $ — $ — $ 781,437 $ 781,437 RES RE 1,252 287 186 1,725 841,376 843,101 MF FIN — — — — 2,702,042 2,702,042 HC FIN — — — — 826,157 826,157 CML & CRE 591 8 149 748 519,451 520,199 AG & AGRE 37 21 — 58 97,002 97,060 CON & MAR 43 5 40 88 12,579 12,667 $ 1,923 $ 321 $ 375 $ 2,619 $ 5,780,044 $ 5,782,663
Schedule of components of impaired loans and specific valuation allowance	December 31, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) Impaired loans without a specific allowance: Recorded investment $ — $ 372 $ 36,760 $ — $ 3,912 $ 158 $ 4 $ 41,206 Unpaid principal balance — 372 36,760 — 3,912 158 4 41,206 Impaired loans with a specific allowance: — — Recorded investment — 47 — — 2,143 — 9 2,199 Unpaid principal balance — 47 — — 2,143 — 9 2,199 Specific allowance — 16 — — 867 — 7 890 Total impaired loans: Recorded investment — 419 36,760 — 6,055 158 13 43,405 Unpaid principal balance — 419 36,760 — 6,055 158 13 43,405 Specific allowance — 16 — — 867 — 7 890
Schedule of average recorded investment and interest income recognized in impaired loans	For the Three Months Ended June 30, 2021 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL Average recorded investment in impaired loans — $ 2,201 $ — $ — $ 6,113 $ 175 $ 6 $ 8,495 Interest income recognized — 16 — — 55 — — 71 For the Six Months Ended June 30, 2021 CML & AG & CON & RES RE MF RE CRE AGRE MAR TOTAL Average recorded investment in impaired loans — $ 2,442 $ — $ — $ 7,254 $ 1,000 $ 7 $ 10,703 Interest income recognized — 27 — — 259 — — 286
Schedule of nonaccrual loans and loans past due 90 days or more and still accruing	June 30, December 31, 2022 2021 Total Loans > Total Loans > 90 Days & 90 Days & Nonaccrual Accruing Nonaccrual Accruing (In thousands) RES RE $ 347 $ — $ 362 $ 22 CML & CRE 4,305 — — 149 AG & AGRE 158 — 158 30 CON & MAR 3 — 4 36 $ 4,813 $ — $ 524 $ 237

Variable Interest Entities (V_2

Variable Interest Entities (VIEs) (Tables)	6 Months Ended
Variable Interest Entities (VIEs) (Tables)	Jun. 30, 2022
Variable Interest Entities (VIEs).
Schedule reflects the size of VIEs as well as maximum exposure to loss in connection with investments	Total Total Maximum Assets ($ in thousands) Assets Liabilities Exposure to Loss (In thousands) June 30, 2022 Unconsolidated VIEs $ 39,898 $ 14,823 $ 38,414 December 31, 2021 Unconsolidated VIEs $ 36,573 $ 21,014 $ 36,164

Regulatory Matters (Tables)

Regulatory Matters (Tables)	6 Months Ended
Regulatory Matters (Tables)	Jun. 30, 2022
Regulatory Matters
Summary of bank's actual capital amounts and ratios	The Company’s, Merchants Bank’s, and FMBI’s actual capital amounts and ratios are presented in the following tables. Minimum Amount To Be Well Actual Capitalized (1) Amount Ratio Amount Ratio (Dollars in thousands) June 30, 2022 CBLR (Tier 1) capital (1) (i.e., CBLR - leverage ratio) Company $ 1,217,718 12.4 % $ 882,179 > 9 % Merchants Bank 1,171,291 12.3 % 857,175 > 9 % FMBI 31,104 10.3 % 27,088 > 9 % (1) As defined by regulatory agencies. Minimum Amount To Be Well Actual Capitalized (1) Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2021 CBLR (Tier 1) capital (1) (i.e., CBLR - leverage ratio) Company $ 1,138,090 10.4 % $ 928,731 > 8.5 % Merchants Bank 1,088,621 10.3 % 901,188 > 8.5 % FMBI 28,958 9.7 % 25,499 > 8.5 % (1) As defined by regulatory agencies.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
Derivative Financial Instruments (Tables)	Jun. 30, 2022
Derivative Financial Instruments
Summary of notional amount and fair value of derivative assets and liabilities	Notional Fair Value Amount Balance Sheet Location Asset Liability June 30, 2022 (In thousands) (In thousands) Interest rate lock commitments $ 62,301 Other assets/liabilities $ 299 $ 121 Forward contracts $ 49,750 Other assets/liabilities 114 203 Interest rate swaps $ 25,190 Other assets/liabilities 160 — $ 573 $ 324 Notional Fair Value Amount Balance Sheet Location Asset Liability December 31, 2021 (In thousands) (In thousands) Interest rate lock commitments $ 58,701 Other assets/liabilities $ 264 $ 41 Forward contracts $ 81,250 Other assets/liabilities 86 118 $ 350 $ 159
Summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income	Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Derivative gain (loss) included in other income: Interest rate lock commitments $ 837 $ 1,046 $ (45) $ (5,698) Forward contracts (includes pair-off settlements) 1,309 (2,289) 4,459 6,107 Net derivative gains (loss) $ 2,146 $ (1,243) $ 4,414 $ 409 Gain (loss) included in gain on sale of loans: Interest rates swaps - change in fair value 160 — 160 — Hedged loans held for sale - change in fair value (165) — (165) — Net gain (loss) $ (5) $ — $ (5) $ —
Interest rate swaps
Derivative Financial Instruments
Summary of notional amount and fair value of derivative assets and liabilities	Notional Fair Value Amount Balance Sheet Location Asset Liability (In thousands) (In thousands) June 30, 2022 $ 181,805 Other assets/liabilities $ 3,662 $ 3,662 December 31, 2021 $ 135,686 Other assets/liabilities $ 1,131 $ 1,131
Summarizes the periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income	Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Gross swap gains $ 2,035 $ 195 $ 2,531 $ 1,081 Gross swap losses 2,035 195 2,531 1,081 Net swap gains (losses) $ — $ — $ — $ —

Disclosures about Fair Value _2

Disclosures about Fair Value of Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2022
Disclosures about Fair Value of Assets and Liabilities
Schedule of fair value measurement of assets measured at fair value on recurring basis	Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Assets Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2022 Mortgage loans in process of securitization $ 323,046 $ — $ 323,046 $ — Available for sale securities: Treasury notes 34,804 34,804 — — Federal agencies 274,852 — 274,852 — Mortgage-backed - Government-sponsored entity (GSE) 15,779 — 15,779 — Mortgage-backed - Non-GSE multi-family 11,379 — 11,379 — Loans held for sale 41,991 — 41,991 — Servicing rights 130,710 — — 130,710 Derivative assets - interest rate lock commitments 299 — — 299 Derivative assets - forward contracts 114 — 114 — Derivative assets - interest rate swaps 160 — 160 — Derivative assets - interest rate swaps (back-to-back) 3,662 — 3,662 — Derivative liabilities - interest rate lock commitments 121 — — 121 Derivative liabilities - forward contracts 203 — 203 — Derivative liabilities - interest rate swaps (back-to-back) 3,662 — 3,662 — December 31, 2021 Mortgage loans in process of securitization $ 569,239 $ — $ 569,239 $ — Available for sale securities: Treasury notes 8,209 8,209 — — Federal agencies 263,295 — 263,295 — Municipals 4,300 — 4,300 — Mortgage-backed - Government-sponsored entity (GSE) 18,360 — 18,360 — Mortgage-backed - Non-GSE multi-family 16,465 — 16,465 — Loans held for sale 48,583 — 48,583 — Servicing rights 110,348 — — 110,348 Derivative assets - interest rate lock commitments 264 — — 264 Derivative assets - forward contracts 86 — 86 — Derivative assets - interest rate swaps (back-to-back) 1,131 — 1,131 — Derivative liabilities - interest rate lock commitments 41 — — 41 Derivative liabilities - forward contracts 118 — 118 — Derivative liabilities - interest rate swaps (back-to-back) 1,131 — 1,131 —
Schedule of Level 3 reconciliation of recurring fair value measurements	Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) (In thousands) Servicing rights Balance, beginning of period $ 121,036 $ 96,215 $ 110,348 $ 82,604 Additions Originated servicing 5,203 6,527 10,995 16,708 Subtractions Paydowns (3,268) (4,627) (6,017) (8,075) Sales of servicing — (438) — (438) Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model 7,739 654 15,384 7,532 Balance, end of period $ 130,710 $ 98,331 $ 130,710 $ 98,331 Derivative Assets - interest rate lock commitments Balance, beginning of period $ 112 $ 467 $ 264 $ 6,131 Changes in fair value 187 20 35 (5,644) Balance, end of period $ 299 $ 487 $ 299 $ 487 Derivative Liabilities - interest rate lock commitments Balance, beginning of period $ 771 $ 1,080 $ 41 $ — Changes in fair value (650) (1,026) 80 54 Balance, end of period $ 121 $ 54 $ 121 $ 54
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) June 30, 2022 Collateral dependent loans $ 4,275 $ — $ — $ 4,275 December 31, 2021 Impaired loans (collateral-dependent) $ 4,263 $ — $ — $ 4,263
Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill	Valuation Weighted Fair Value Technique Unobservable Inputs Range Average (In thousands) At June 30, 2022: Collateral dependent loans $ 4,275 Market comparable properties Marketability discount 82% 82% Servicing rights - Multi-family $ 97,059 Discounted cash flow Discount rate 8% - 13% 8% Constant prepayment rate 0% - 50% 3% Servicing rights - Single-family $ 29,632 Discounted cash flow Discount rate 9% - 10% 9% Constant prepayment rate 7% - 9% 7% Servicing rights - SBA $ 4,019 Discounted cash flow Discount rate 16% 16% Constant prepayment rate 3% - 16% 8% Derivative assets - interest rate lock commitments $ 299 Discounted cash flow Loan closing rates 50% - 99% 81% Derivative liabilities - interest rate lock commitments $ 121 Discounted cash flow Loan closing rates 50% - 99% 81% At December 31, 2021: Collateral-dependent impaired loans $ 4,263 Market comparable properties Marketability discount 44% - 76% 73% Servicing rights - Multi-family $ 84,567 Discounted cash flow Discount rate 8% - 13% 9% Constant prepayment rate 0 - 50% 4% Servicing rights - Single-family $ 23,012 Discounted cash flow Discount rate 9% - 10% 9% Constant prepayment rate 10 - 13% 11% Servicing rights - SBA $ 2,769 Discounted cash flow Discount rate 16% 16% Constant prepayment rate 10% - 13% 12% Derivative assets - interest rate lock commitments $ 264 Discounted cash flow Loan closing rates 63% - 99% 83% Derivative liabilities - interest rate lock commitments $ 41 Discounted cash flow Loan closing rates 63% - 99% 83%
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) June 30, 2022 Financial assets: Cash and cash equivalents $ 258,146 $ 258,146 $ 258,146 $ — $ — Securities purchased under agreements to resell 3,520 3,520 — 3,520 — FHLB stock 39,130 39,130 — 39,130 — Loans held for sale 2,717,125 2,717,125 — 2,717,125 — Loans receivable, net 7,033,203 7,046,313 — — 7,046,313 Interest receivable 26,184 26,184 — 26,184 — Financial liabilities: Deposits 8,299,738 8,294,601 6,829,667 1,464,934 — Short-term subordinated debt 19,000 19,000 — 19,000 — FHLB advances 851,904 851,711 — 851,711 — Other borrowing 570,000 570,000 — 570,000 — Interest payable 3,805 3,805 — 3,805 — December 31, 2021 Financial assets: Cash and cash equivalents $ 1,032,614 $ 1,032,614 $ 1,032,614 $ — $ — Securities purchased under agreements to resell 5,888 5,888 — 5,888 — FHLB stock 29,588 29,588 — 29,588 — Loans held for sale 3,254,616 3,254,616 — 3,254,616 — Loans receivable, net 5,751,319 5,731,500 — — 5,731,500 Interest receivable 24,103 24,103 — 24,103 — Financial liabilities: Deposits 8,982,613 8,982,680 7,783,553 1,199,127 — Short-term subordinated debt 17,000 17,000 — 17,000 — FHLB advances 556,954 556,925 — 556,925 — Other borrowing 460,000 460,000 — 460,000 — Interest payable 1,469 1,469 — 1,469 —

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2022
Leases.
Schedule of balance sheet, income statement and cash flow detail regarding operating leases	June 30, 2022 Balance Sheet (In thousands) Operating lease right-of-of use asset (in other assets) $ 9,189 Operating lease liability (in other liabilities) 9,920 Weighted average remaining lease term (years) 7.2 Weighted average discount rate 2.09% Maturities of lease liabilities: 2022 remaining $ 864 2023 1,812 2024 1,638 2025 1,246 2026 1,277 Thereafter 3,857 Total future minimum lease payments 10,694 Less: imputed interest 774 Total $ 9,920 Three Months Ended June 30, 2022 Income Statement (In thousands) Components of lease expense: Operating lease cost (in occupancy and equipment expense) $ 425 Six Months Ended June 30, 2022 Income Statement (In thousands) Components of lease expense: Operating lease cost (in occupancy and equipment expense) $ 792 Six Months Ended June 30, 2022 Cash Flow Statement (In thousands) Supplemental cash flow information: Operating cash flows from operating leases $ 597

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2022
Earnings Per Share
Schedule of computation of earnings per share	Three Month Periods Ended June 30, 2022 2021 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 53,935 $ 51,417 Dividends on preferred stock (5,729) (5,659) Net income allocated to common shareholders $ 48,206 $ 45,758 Basic earnings per share (1) 43,209,824 $ 1.12 43,174,220 $ 1.06 Effect of dilutive securities-restricted stock awards (1) 125,387 137,268 Diluted earnings per share (1) 43,335,211 $ 1.11 43,311,488 $ 1.06 Six Month Periods Ended June 30, 2022 2021 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 104,077 $ 113,400 Dividends on preferred stock (11,457) (9,416) Net income allocated to common shareholders $ 92,620 $ 103,984 Basic earnings per share 43,220,198 $ 2.14 43,166,223 $ 2.41 Effect of dilutive securities-restricted stock awards 147,677 127,376 Diluted earnings per share 43,367,875 $ 2.14 43,293,599 $ 2.40

Common Stock (Tables)

Common Stock (Tables)	6 Months Ended
Common Stock (Tables)	Jun. 30, 2022
Common Stock
Schedule of repurchase activity on a cash basis	Three Months Ended June 30, 2022 Dollar value of shares repurchased $ 3,935,333 Shares repurchased (1) 165,037 Average price paid per share $ 23.85 (1) On November 17, 2021, the Company announced an increase in authorization for its stock repurchase program, up to $75,000,000 of common stock, expiring December 31, 2023. On April 29, 2022, the Company entered into a Rule 10b5-1 plan (the “10b5-1 Plan”) with a broker for the repurchase of shares of its common stock commencing on May 3, 2022. The details of this repurchase plan were provided in the Form 8-K filed by the Company on May 24, 2022.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2022
Segment Information
Schedule of business segment financial information	Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Three Months Ended June 30, 2022 Interest income $ 383 $ 23,247 $ 63,578 $ 2,062 $ 89,270 Interest expense — 5,576 12,036 (373) 17,239 Net interest income 383 17,671 51,542 2,435 72,031 Provision for credit losses 1,153 834 4,225 — 6,212 Net interest income after provision for credit losses (770) 16,837 47,317 2,435 65,819 Noninterest income 49,430 1,350 (10,252) (1,357) 39,171 Noninterest expense 21,959 2,441 2,634 5,923 32,957 Income before income taxes 26,701 15,746 34,431 (4,845) 72,033 Income taxes 7,145 3,878 8,499 (1,424) 18,098 Net income (loss) $ 19,556 $ 11,868 $ 25,932 $ (3,421) $ 53,935 Total assets $ 330,676 $ 2,836,998 $ 7,835,152 $ 83,229 $ 11,086,055 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Three Months Ended June 30, 2021 Interest income $ 204 $ 29,935 $ 40,983 $ 1,316 $ 72,438 Interest expense — 1,599 7,216 (784) 8,031 Net interest income 204 28,336 33,767 2,100 64,407 Provision for credit losses — (40) (275) — (315) Net interest income after provision for credit losses 204 28,376 34,042 2,100 64,722 Noninterest income 28,572 3,079 2,613 (1,409) 32,855 Noninterest expense 13,626 2,703 7,496 4,358 28,183 Income before income taxes 15,150 28,752 29,159 (3,667) 69,394 Income taxes 4,179 7,304 7,418 (924) 17,977 Net income (loss) $ 10,971 $ 21,448 $ 21,741 $ (2,743) $ 51,417 Total assets $ 238,165 $ 4,265,162 $ 5,328,684 $ 49,521 $ 9,881,532 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Six Months Ended June 30, 2022 Interest income $ 640 $ 43,576 117,303 $ 3,763 $ 165,282 Interest expense — 7,597 20,553 (624) 27,526 Net interest income 640 35,979 96,750 4,387 137,756 Provision for credit losses 1,153 627 6,883 — 8,663 Net interest income after provision for credit losses (513) 35,352 89,867 4,387 129,093 Noninterest income 81,616 3,210 (8,063) (2,995) 73,768 Noninterest expense 38,490 5,367 9,208 10,925 63,990 Income before income taxes 42,613 33,195 72,596 (9,533) 138,871 Income taxes 11,565 8,168 17,900 (2,839) 34,794 Net income $ 31,048 $ 25,027 $ 54,696 $ (6,694) $ 104,077 Total assets $ 330,676 $ 2,836,998 $ 7,835,152 $ 83,229 $ 11,086,055 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total (In thousands) Six Months Ended June 30, 2021 Interest income $ 411 $ 68,522 $ 80,523 $ 2,531 $ 151,987 Interest expense — 3,323 13,655 (1,361) 15,617 Net interest income 411 65,199 66,868 3,892 136,370 Provision for credit losses — (1,124) 2,472 — 1,348 Net interest income after provision for credit losses 411 66,323 64,396 3,892 135,022 Noninterest income 61,806 7,196 10,291 (2,502) 76,791 Noninterest expense 30,070 5,599 14,621 7,977 58,267 Income before income taxes 32,147 67,920 60,066 (6,587) 153,546 Income taxes 9,215 17,289 15,300 (1,658) 40,146 Net income $ 22,932 $ 50,631 $ 44,766 $ (4,929) $ 113,400 Total assets $ 238,165 $ 4,265,162 $ 5,328,684 $ 49,521 $ 9,881,532

Basis of Presentation - Princip

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

Basis of Presentation - Impact

Basis of Presentation - Impact of the Adoption of CECL (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jan. 01, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Allowance for loan losses			$ 31,344	$ 28,696	$ 29,091	$ 27,500
Retained earnings, net of tax	$ 737,789		657,149
Impact from adoption of ASU \| ASU 2016-13
Allowance for loan losses		$ (299)	(299)
ACL - OBCEs (in Other Liabilities)		5,176
Retained earnings, net of tax		(3,648)
Post ASU Adoption \| ASU 2016-13
Allowance for loan losses		31,045
ACL - OBCEs (in Other Liabilities)		5,176
Retained earnings, net of tax		653,501
Mortgage warehouse lines of credit
Allowance for loan losses			1,955	2,935	3,321	4,018
Mortgage warehouse lines of credit \| Impact from adoption of ASU \| ASU 2016-13
Allowance for loan losses		41	41
Mortgage warehouse lines of credit \| Post ASU Adoption \| ASU 2016-13
Allowance for loan losses		1,996
Residential real estate
Allowance for loan losses			4,170	3,969	3,600	3,334
Residential real estate \| Impact from adoption of ASU \| ASU 2016-13
Allowance for loan losses		275	275
Residential real estate \| Post ASU Adoption \| ASU 2016-13
Allowance for loan losses		4,445
Multi-family financing
Allowance for loan losses			14,084	11,678	13,396	12,041
Multi-family financing \| Impact from adoption of ASU \| ASU 2016-13
Allowance for loan losses		520	520
Multi-family financing \| Post ASU Adoption \| ASU 2016-13
Allowance for loan losses		14,604
Healthcare financing
Allowance for loan losses			4,461	4,104	3,740	2,690
Healthcare financing \| Impact from adoption of ASU \| ASU 2016-13
Allowance for loan losses		139	139
Healthcare financing \| Post ASU Adoption \| ASU 2016-13
Allowance for loan losses		4,600
Commercial and commercial real estate
Allowance for loan losses			5,879	5,239	4,264	4,641
Commercial and commercial real estate \| Impact from adoption of ASU \| ASU 2016-13
Allowance for loan losses		(1,277)	(1,277)
Commercial and commercial real estate \| Post ASU Adoption \| ASU 2016-13
Allowance for loan losses		4,602
Agricultural production and real estate
Allowance for loan losses			657	611	632	636
Agricultural production and real estate \| Impact from adoption of ASU \| ASU 2016-13
Allowance for loan losses		(18)	(18)
Agricultural production and real estate \| Post ASU Adoption \| ASU 2016-13
Allowance for loan losses		639
Consumer and margin loans
Allowance for loan losses			138	$ 160	$ 138	$ 140
Consumer and margin loans \| Impact from adoption of ASU \| ASU 2016-13
Allowance for loan losses		21	$ 21
Consumer and margin loans \| Post ASU Adoption \| ASU 2016-13
Allowance for loan losses		$ 159

Securities Available For Sale -

Securities Available For Sale - Amortized Cost to Approximate Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Available-for-sale securities:
Amortized Cost	$ 347,594	$ 312,590
Gross Unrealized Gains	13	77
Gross Unrealized Losses	10,793	2,038
Fair Value	336,814	310,629
Accrued interest on available for sale securities	500	400
Treasury notes
Available-for-sale securities:
Amortized Cost	35,111	8,232
Gross Unrealized Gains	1	4
Gross Unrealized Losses	308	27
Fair Value	34,804	8,209
Federal agencies
Available-for-sale securities:
Amortized Cost	284,978	264,970
Gross Unrealized Losses	10,126	1,675
Fair Value	274,852	263,295
Municipals
Available-for-sale securities:
Amortized Cost		4,300
Fair Value		4,300
Mortgage-backed - Government-sponsored entity (GSE)
Available-for-sale securities:
Amortized Cost	15,774	18,664
Gross Unrealized Gains	12	32
Gross Unrealized Losses	7	336
Fair Value	15,779	18,360
Mortgage-backed - Non-GSE multi-family
Available-for-sale securities:
Amortized Cost	11,731	16,424
Gross Unrealized Gains		41
Gross Unrealized Losses	352
Fair Value	$ 11,379	$ 16,465

Securities Available For Sale_2

Securities Available For Sale - Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Contractual Maturities, Amortized Cost
Within one year	$ 54,247	$ 6,548
After one through five years	265,842	270,954
Amortized Costs, Gross	320,089	277,502
Amortized Costs, Net	347,594	312,590
Contractual Maturities, Fair Value
Within one year	52,983	6,551
After one through five years	256,673	269,253
Fair Value, Gross	309,656	275,804
Available-for-sale Securities, Debt Securities, Total	336,814	310,629
Mortgage-backed - Government-sponsored entity (GSE)
Contractual Maturities, Amortized Cost
Amortized Costs, Mortgage-backed	15,774	18,664
Amortized Costs, Net	15,774	18,664
Contractual Maturities, Fair Value
Fair Value, Mortgage-backed	15,779	18,360
Available-for-sale Securities, Debt Securities, Total	15,779	18,360
Mortgage-backed - Non-GSE multi-family
Contractual Maturities, Amortized Cost
Amortized Costs, Mortgage-backed	11,731	16,424
Amortized Costs, Net	11,731	16,424
Contractual Maturities, Fair Value
Fair Value, Mortgage-backed	11,379	16,465
Available-for-sale Securities, Debt Securities, Total	$ 11,379	$ 16,465

Securities Available For Sale_3

Securities Available For Sale - Sale of securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Securities Available For Sale
Proceeds from the sale of available for sale securities	$ 0	$ 34,500	$ 0	$ 34,469
Gain loss recognized		$ 0		$ 0

Securities Available For Sale_4

Securities Available For Sale - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	$ 202,512	$ 247,165
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	107,692	24,806
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	310,204	271,971
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	6,506	1,866
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	4,287	172
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	10,793	2,038
Treasury notes
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	32,599	7,957
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	1,955
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	34,554	7,957
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	263	27
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	45
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	308	27
Federal agencies
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	169,115	238,489
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	105,737	24,806
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	274,852	263,295
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	5,884	1,503
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	4,242	172
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	10,126	1,675
Mortgage-backed - Government-sponsored entity (GSE)
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	798	719
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	798	719
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	7	336
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	7	$ 336
Mortgage-backed - Non-GSE multi-family
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	352
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	$ 352

Mortgage Loans in Process of _2

Mortgage Loans in Process of Securitization (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Mortgage Loans in Process of Securitization
Unrealized gains included in mortgage loans	$ 4.9	$ 7

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Summary of Loans By Classification (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Loans and Allowance for Loan Losses
Loans	$ 7,070,677
Less: ACL-Loans	37,474	$ 32,102
Loans receivable	7,033,203
Loans			$ 5,782,663
Allowance for loan losses			31,344	$ 28,696	$ 29,091	$ 27,500
Loans Receivable			5,751,319
Accrued interest on loans, excluded from amortized cost of loans	18,000		15,400
Mortgage warehouse lines of credit
Loans and Allowance for Loan Losses
Loans	900,585
Less: ACL-Loans	2,422	1,941
Loans			781,437
Allowance for loan losses			1,955	2,935	3,321	4,018
Residential real estate
Loans and Allowance for Loan Losses
Loans	876,652
Less: ACL-Loans	4,910	4,547
Loans			843,101
Allowance for loan losses			4,170	3,969	3,600	3,334
Healthcare financing
Loans and Allowance for Loan Losses
Loans	1,262,424
Less: ACL-Loans	7,936	5,618
Loans			826,157
Allowance for loan losses			4,461	4,104	3,740	2,690
Multi-family financing
Loans and Allowance for Loan Losses
Loans	3,236,917
Less: ACL-Loans	16,364	15,131
Loans			2,702,042
Allowance for loan losses			14,084	11,678	13,396	12,041
Commercial and commercial real estate
Loans and Allowance for Loan Losses
Loans	695,158
Less: ACL-Loans	5,195	4,102
Loans			520,199
Allowance for loan losses			5,879	5,239	4,264	4,641
Commercial and commercial real estate \| Loans funded through PPP, CARES Act
Loans and Allowance for Loan Losses
Loans			7,000
Agricultural production and real estate
Loans and Allowance for Loan Losses
Loans	90,070
Less: ACL-Loans	551	597
Loans			97,060
Allowance for loan losses			657	611	632	636
Consumer and margin loans
Loans and Allowance for Loan Losses
Loans	8,871
Less: ACL-Loans	$ 96	$ 166
Loans			12,667
Allowance for loan losses			$ 138	$ 160	$ 138	$ 140

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses on Loans - Allowance For Credit-Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Allowance for credit losses
Balance, beginning of period	$ 32,102
Provision for credit losses	4,768		$ 6,749
Loans charged to the allowance	(47)		(978)
Recoveries of loans previously charged off	651		658
Balance, end of period	37,474		37,474
Allowance for loan losses
Balance, beginning of period		$ 29,091	31,344	$ 27,500
Provision for credit losses		(315)		1,348
Loans charged to the allowance		86		160
Recoveries of loans previously charged off		(6)		8
Balance, end of period		28,696		28,696
Ending balance: individually evaluated for impairment					$ 890
Ending balance: collectively evaluated for impairment					30,454
Loans
Ending balance					5,782,663
Ending balance individually evaluated for impairment					43,405
Ending balance: collectively evaluated for impairment					5,739,258
ACL Loans
Provision for credit losses	6,212	(315)	8,663	1,348
Provision for credit losses, ACL Loans	4,768		6,749
Provision for credit losses, ACL-OBCE's	200		800
Provision for credit losses, Freddie Mac-sponsored Q-series securitization transaction	1,200		1,200
ASU 2016-13 \| Impact from adoption of ASU
Allowance for loan losses
Balance, beginning of period			(299)
Mortgage warehouse lines of credit
Allowance for credit losses
Balance, beginning of period	1,941
Provision for credit losses	481		426
Balance, end of period	2,422		2,422
Allowance for loan losses
Balance, beginning of period		3,321	1,955	4,018
Provision for credit losses		(386)		(1,083)
Balance, end of period		2,935		2,935
Ending balance: collectively evaluated for impairment					1,955
Loans
Ending balance					781,437
Ending balance: collectively evaluated for impairment					781,437
ACL Loans
Provision for credit losses, ACL Loans	481		426
Mortgage warehouse lines of credit \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for loan losses
Balance, beginning of period			41
Residential real estate
Allowance for credit losses
Balance, beginning of period	4,547
Provision for credit losses	363		465
Balance, end of period	4,910		4,910
Allowance for loan losses
Balance, beginning of period		3,600	4,170	3,334
Provision for credit losses		371		637
Loans charged to the allowance		2		2
Balance, end of period		3,969		3,969
Ending balance: individually evaluated for impairment					16
Ending balance: collectively evaluated for impairment					4,154
Loans
Ending balance					843,101
Ending balance individually evaluated for impairment					419
Ending balance: collectively evaluated for impairment					842,682
ACL Loans
Provision for credit losses, ACL Loans	363		465
Residential real estate \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for loan losses
Balance, beginning of period			275
Multi-family financing
Allowance for credit losses
Balance, beginning of period	15,131
Provision for credit losses	1,233		1,760
Balance, end of period	16,364		16,364
Allowance for loan losses
Balance, beginning of period		13,396	14,084	12,041
Provision for credit losses		(1,718)		(363)
Balance, end of period		11,678		11,678
Ending balance: collectively evaluated for impairment					14,084
Loans
Ending balance					2,702,042
Ending balance individually evaluated for impairment					36,760
Ending balance: collectively evaluated for impairment					2,665,282
ACL Loans
Provision for credit losses, ACL Loans	1,233		1,760
Multi-family financing \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for loan losses
Balance, beginning of period			520
Healthcare financing
Allowance for credit losses
Balance, beginning of period	5,618
Provision for credit losses	2,318		3,336
Balance, end of period	7,936		7,936
Allowance for loan losses
Balance, beginning of period		3,740	4,461	2,690
Provision for credit losses		364		1,414
Balance, end of period		4,104		4,104
Ending balance: collectively evaluated for impairment					4,461
Loans
Ending balance					826,157
Ending balance: collectively evaluated for impairment					826,157
ACL Loans
Provision for credit losses, ACL Loans	2,318		3,336
Healthcare financing \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for loan losses
Balance, beginning of period			139
Commercial and commercial real estate
Allowance for credit losses
Balance, beginning of period	4,102
Provision for credit losses	474		905
Loans charged to the allowance	(32)		(963)
Recoveries of loans previously charged off	651		651
Balance, end of period	5,195		5,195
Allowance for loan losses
Balance, beginning of period		4,264	5,879	4,641
Provision for credit losses		1,059		750
Loans charged to the allowance		84		152
Balance, end of period		5,239		5,239
Ending balance: individually evaluated for impairment					867
Ending balance: collectively evaluated for impairment					5,012
Loans
Ending balance					520,199
Ending balance individually evaluated for impairment					6,055
Ending balance: collectively evaluated for impairment					514,144
ACL Loans
Provision for credit losses, ACL Loans	474		905
Commercial and commercial real estate \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for loan losses
Balance, beginning of period			(1,277)
Commercial and commercial real estate \| Loans funded through PPP, CARES Act
Loans
Ending balance					7,000
Agricultural production and real estate
Allowance for credit losses
Balance, beginning of period	597
Provision for credit losses	(46)		(88)
Balance, end of period	551		551
Allowance for loan losses
Balance, beginning of period		632	657	636
Provision for credit losses		(21)		(25)
Balance, end of period		611		611
Ending balance: collectively evaluated for impairment					657
Loans
Ending balance					97,060
Ending balance individually evaluated for impairment					158
Ending balance: collectively evaluated for impairment					96,902
ACL Loans
Provision for credit losses, ACL Loans	(46)		(88)
Agricultural production and real estate \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for loan losses
Balance, beginning of period			(18)
Consumer and margin loans
Allowance for credit losses
Balance, beginning of period	166
Provision for credit losses	(55)		(55)
Loans charged to the allowance	(15)		(15)
Recoveries of loans previously charged off			7
Balance, end of period	96		96
Allowance for loan losses
Balance, beginning of period		138	138	140
Provision for credit losses		16		18
Loans charged to the allowance				6
Recoveries of loans previously charged off		(6)		8
Balance, end of period		$ 160		$ 160
Ending balance: individually evaluated for impairment					7
Ending balance: collectively evaluated for impairment					131
Loans
Ending balance					12,667
Ending balance individually evaluated for impairment					13
Ending balance: collectively evaluated for impairment					$ 12,654
ACL Loans
Provision for credit losses, ACL Loans	$ (55)		(55)
Consumer and margin loans \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for loan losses
Balance, beginning of period			$ 21

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses on Loans - Amortized cost basis and ACL (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	$ 7,070,677
Allowance for credit losses on loans	37,474	$ 32,102
Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	42,585
Allowance for credit losses on loans	309
Real Estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	37,405
Accounts Receivable Or Equipment
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	4,935
Other Collateralized Assets
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	245
Mortgage warehouse lines of credit
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	900,585
Allowance for credit losses on loans	2,422	1,941
Residential real estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	876,652
Allowance for credit losses on loans	4,910	4,547
Residential real estate \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	359
Allowance for credit losses on loans	29
Residential real estate \| Real Estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	353
Residential real estate \| Other Collateralized Assets
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	6
Multi-family financing
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	3,236,917
Allowance for credit losses on loans	16,364	15,131
Multi-family financing \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	36,760
Allowance for credit losses on loans	187
Multi-family financing \| Real Estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	36,760
Healthcare financing
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	1,262,424
Allowance for credit losses on loans	7,936	5,618
Commercial and commercial real estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	695,158
Allowance for credit losses on loans	5,195	4,102
Commercial and commercial real estate \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	5,305
Allowance for credit losses on loans	92
Commercial and commercial real estate \| Real Estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	134
Commercial and commercial real estate \| Accounts Receivable Or Equipment
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	4,935
Commercial and commercial real estate \| Other Collateralized Assets
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	236
Agricultural production and real estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	90,070
Allowance for credit losses on loans	551	597
Agricultural production and real estate \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	158
Allowance for credit losses on loans	1
Agricultural production and real estate \| Real Estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	158
Consumer and margin loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	8,871
Allowance for credit losses on loans	96	$ 166
Consumer and margin loans \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	3
Consumer and margin loans \| Other Collateralized Assets
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	$ 3

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses on Loans - Credit Risk Profile of Loan Portfolio (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Credit risk profile of portfolio
2022	$ 1,497,605
2021	1,555,694
2020	650,916
2019	155,836
2018	35,697
Prior	57,035
Revolving Loans	3,117,894
Loans	7,070,677
Loans		$ 5,782,663
Acceptable and Above
Credit risk profile of portfolio
2022	1,446,169
2021	1,511,849
2020	586,360
2019	148,403
2018	35,160
Prior	54,828
Revolving Loans	3,114,135
Loans	6,896,904
Loans		5,638,427
Special Mention (Watch)
Credit risk profile of portfolio
2022	14,676
2021	41,845
2020	64,556
2019	7,326
2018	362
Prior	1,406
Revolving Loans	1,017
Loans	131,188
Loans		100,831
Substandard
Credit risk profile of portfolio
2022	36,760
2021	2,000
2019	107
2018	175
Prior	801
Revolving Loans	2,742
Loans	42,585
Loans		43,405
Mortgage warehouse lines of credit
Credit risk profile of portfolio
Revolving Loans	900,585
Loans	900,585
Loans		781,437
Mortgage warehouse lines of credit \| Acceptable and Above
Credit risk profile of portfolio
Revolving Loans	900,585
Loans	900,585
Loans		781,437
Residential real estate
Credit risk profile of portfolio
2022	10,316
2021	36,482
2020	49,380
2019	3,388
2018	939
Prior	11,576
Revolving Loans	764,571
Loans	876,652
Loans		843,101
Residential real estate \| Acceptable and Above
Credit risk profile of portfolio
2022	10,316
2021	36,482
2020	49,380
2019	3,327
2018	865
Prior	10,439
Revolving Loans	764,571
Loans	875,380
Loans		841,736
Residential real estate \| Special Mention (Watch)
Credit risk profile of portfolio
2019	61
2018	74
Prior	779
Loans	914
Loans		946
Residential real estate \| Substandard
Credit risk profile of portfolio
Prior	358
Loans	358
Loans		419
Multi-family financing
Credit risk profile of portfolio
2022	925,467
2021	1,061,878
2020	305,633
2019	71,513
2018	12,245
Prior	7,739
Revolving Loans	852,442
Loans	3,236,917
Loans		2,702,042
Multi-family financing \| Acceptable and Above
Credit risk profile of portfolio
2022	874,093
2021	1,049,580
2020	305,633
2019	71,513
2018	12,245
Prior	7,739
Revolving Loans	852,442
Loans	3,173,245
Loans		2,638,127
Multi-family financing \| Special Mention (Watch)
Credit risk profile of portfolio
2022	14,614
2021	12,298
Loans	26,912
Loans		27,155
Multi-family financing \| Substandard
Credit risk profile of portfolio
2022	36,760
Loans	36,760
Loans		36,760
Healthcare financing
Credit risk profile of portfolio
2022	486,989
2021	361,324
2020	245,408
2019	23,891
Revolving Loans	144,812
Loans	1,262,424
Loans		826,157
Healthcare financing \| Acceptable and Above
Credit risk profile of portfolio
2022	486,989
2021	331,862
2020	183,035
2019	17,186
Revolving Loans	144,812
Loans	1,163,884
Loans		759,751
Healthcare financing \| Special Mention (Watch)
Credit risk profile of portfolio
2021	29,462
2020	62,373
2019	6,705
Loans	98,540
Loans		66,406
Commercial and commercial real estate
Credit risk profile of portfolio
2022	66,221
2021	87,288
2020	33,414
2019	50,182
2018	14,025
Prior	16,005
Revolving Loans	428,023
Loans	695,158
Loans		520,199
Commercial and commercial real estate \| Acceptable and Above
Credit risk profile of portfolio
2022	66,173
2021	85,267
2020	31,966
2019	49,946
2018	13,850
Prior	15,489
Revolving Loans	424,308
Loans	686,999
Loans		511,661
Commercial and commercial real estate \| Special Mention (Watch)
Credit risk profile of portfolio
2022	48
2021	21
2020	1,448
2019	129
Prior	234
Revolving Loans	973
Loans	2,853
Loans		2,483
Commercial and commercial real estate \| Substandard
Credit risk profile of portfolio
2021	2,000
2019	107
2018	175
Prior	282
Revolving Loans	2,742
Loans	5,306
Loans		6,055
Agricultural production and real estate
Credit risk profile of portfolio
2022	8,372
2021	8,048
2020	16,671
2019	6,722
2018	3,745
Prior	21,689
Revolving Loans	24,823
Loans	90,070
Loans		97,060
Agricultural production and real estate \| Acceptable and Above
Credit risk profile of portfolio
2022	8,358
2021	7,984
2020	15,952
2019	6,291
2018	3,457
Prior	21,141
Revolving Loans	24,779
Loans	87,962
Loans		93,082
Agricultural production and real estate \| Special Mention (Watch)
Credit risk profile of portfolio
2022	14
2021	64
2020	719
2019	431
2018	288
Prior	390
Revolving Loans	44
Loans	1,950
Loans		3,820
Agricultural production and real estate \| Substandard
Credit risk profile of portfolio
Prior	158
Loans	158
Loans		158
Consumer and margin loans
Credit risk profile of portfolio
2022	240
2021	674
2020	410
2019	140
2018	4,743
Prior	26
Revolving Loans	2,638
Loans	8,871
Loans		12,667
Consumer and margin loans \| Acceptable and Above
Credit risk profile of portfolio
2022	240
2021	674
2020	394
2019	140
2018	4,743
Prior	20
Revolving Loans	2,638
Loans	8,849
Loans		12,633
Consumer and margin loans \| Special Mention (Watch)
Credit risk profile of portfolio
2020	16
Prior	3
Loans	19
Loans		21
Consumer and margin loans \| Substandard
Credit risk profile of portfolio
Prior	3
Loans	$ 3
Loans		$ 13

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses on Loans - Aging Analysis Of The Recorded Investment In Loans (Details)	Jun. 30, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Aging analysis of loan portfolio
Loans	$ 7,070,677,000
Loans		$ 5,782,663,000
Number of loans modified in accordance with CARES Act \| loan	1	1
Amount of outstanding loans modified in accordance with CARES Act	$ 36,800,000	$ 36,800,000
Loans modified in accordance with CARES Act, payments due	0
Total Past Due
Aging analysis of loan portfolio
Loans	4,866,000
Loans		2,619,000
30-59 Days Past Due
Aging analysis of loan portfolio
Loans	346,000
Loans		1,923,000
60-89 Days Past Due
Aging analysis of loan portfolio
Loans	258,000
Loans		321,000
Greater Than 90 Days
Aging analysis of loan portfolio
Loans	4,262,000
Loans		375,000
Current.
Aging analysis of loan portfolio
Loans	7,065,811,000
Loans		5,780,044,000
Mortgage warehouse lines of credit
Aging analysis of loan portfolio
Loans	900,585,000
Loans		781,437,000
Mortgage warehouse lines of credit \| Current.
Aging analysis of loan portfolio
Loans	900,585,000
Loans		781,437,000
Residential real estate
Aging analysis of loan portfolio
Loans	876,652,000
Loans		843,101,000
Residential real estate \| Total Past Due
Aging analysis of loan portfolio
Loans	699,000
Loans		1,725,000
Residential real estate \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans	307,000
Loans		1,252,000
Residential real estate \| 60-89 Days Past Due
Aging analysis of loan portfolio
Loans	216,000
Loans		287,000
Residential real estate \| Greater Than 90 Days
Aging analysis of loan portfolio
Loans	176,000
Loans		186,000
Residential real estate \| Current.
Aging analysis of loan portfolio
Loans	875,953,000
Loans		841,376,000
Healthcare financing
Aging analysis of loan portfolio
Loans	1,262,424,000
Loans		826,157,000
Healthcare financing \| Current.
Aging analysis of loan portfolio
Loans	1,262,424,000
Loans		826,157,000
Multi-family financing
Aging analysis of loan portfolio
Loans	3,236,917,000
Loans		2,702,042,000
Multi-family financing \| Current.
Aging analysis of loan portfolio
Loans	3,236,917,000
Loans		2,702,042,000
Commercial and commercial real estate
Aging analysis of loan portfolio
Loans	695,158,000
Loans		520,199,000
Commercial and commercial real estate \| Total Past Due
Aging analysis of loan portfolio
Loans	4,083,000
Loans		748,000
Commercial and commercial real estate \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans		591,000
Commercial and commercial real estate \| 60-89 Days Past Due
Aging analysis of loan portfolio
Loans		8,000
Commercial and commercial real estate \| Greater Than 90 Days
Aging analysis of loan portfolio
Loans	4,083,000
Loans		149,000
Commercial and commercial real estate \| Current.
Aging analysis of loan portfolio
Loans	691,075,000
Loans		519,451,000
Commercial and commercial real estate \| Government guaranteed SBA loans \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans	0
Loans		3,200,000
Commercial and commercial real estate \| Government guaranteed SBA loans \| Greater Than 90 Days
Aging analysis of loan portfolio
Loans	0
Loans		274,000
Agricultural production and real estate
Aging analysis of loan portfolio
Loans	90,070,000
Loans		97,060,000
Agricultural production and real estate \| Total Past Due
Aging analysis of loan portfolio
Loans		58,000
Agricultural production and real estate \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans		37,000
Agricultural production and real estate \| 60-89 Days Past Due
Aging analysis of loan portfolio
Loans		21,000
Agricultural production and real estate \| Current.
Aging analysis of loan portfolio
Loans	90,070,000
Loans		97,002,000
Consumer and margin loans
Aging analysis of loan portfolio
Loans	8,871,000
Loans		12,667,000
Consumer and margin loans \| Total Past Due
Aging analysis of loan portfolio
Loans	84,000
Loans		88,000
Consumer and margin loans \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans	39,000
Loans		43,000
Consumer and margin loans \| 60-89 Days Past Due
Aging analysis of loan portfolio
Loans	42,000
Loans		5,000
Consumer and margin loans \| Greater Than 90 Days
Aging analysis of loan portfolio
Loans	3,000
Loans		40,000
Consumer and margin loans \| Current.
Aging analysis of loan portfolio
Loans	$ 8,787,000
Loans		$ 12,579,000

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Impaired Loans and Specific Valuation Allowance (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Impaired loans without a specific allowance:
Recorded investment	$ 41,206
Unpaid principal balance	41,206
Impaired loans with a specific allowance:
Recorded investment	2,199
Unpaid principal balance	2,199
Specific allowance	890
Total impaired loans:
Recorded investments	43,405
Unpaid principal balance	43,405
Specific allowance	890
Residential real estate
Impaired loans without a specific allowance:
Recorded investment	372
Unpaid principal balance	372
Impaired loans with a specific allowance:
Recorded investment	47
Unpaid principal balance	47
Specific allowance	16
Total impaired loans:
Recorded investments	419
Unpaid principal balance	419
Specific allowance	16
Multi-family financing
Impaired loans without a specific allowance:
Recorded investment	36,760
Unpaid principal balance	36,760
Total impaired loans:
Recorded investments	36,760
Unpaid principal balance	36,760
Commercial and commercial real estate
Impaired loans without a specific allowance:
Recorded investment	3,912
Unpaid principal balance	3,912
Impaired loans with a specific allowance:
Recorded investment	2,143
Unpaid principal balance	2,143
Specific allowance	867
Total impaired loans:
Recorded investments	6,055
Unpaid principal balance	6,055
Specific allowance	867
Agricultural production and real estate
Impaired loans without a specific allowance:
Recorded investment	158
Unpaid principal balance	158
Total impaired loans:
Recorded investments	158
Unpaid principal balance	158
Consumer and margin loans
Impaired loans without a specific allowance:
Recorded investment	4
Unpaid principal balance	4
Impaired loans with a specific allowance:
Recorded investment	9
Unpaid principal balance	9
Specific allowance	7
Total impaired loans:
Recorded investments	13
Unpaid principal balance	13
Specific allowance	$ 7

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses on Loans - Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Impaired Loans
Average recorded investment in impaired loans	$ 8,495	$ 10,703
Interest income recognized	71	286
Residential real estate
Impaired Loans
Average recorded investment in impaired loans	2,201	2,442
Interest income recognized	16	27
Commercial and commercial real estate
Impaired Loans
Average recorded investment in impaired loans	6,113	7,254
Interest income recognized	55	259
Agricultural production and real estate
Impaired Loans
Average recorded investment in impaired loans	175	1,000
Consumer and margin loans
Impaired Loans
Average recorded investment in impaired loans	$ 6	$ 7

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - Non Accrual Loans and Loans Past Due 90 Days Or More and Still Accruing (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Loan portfolio past due loans
Nonaccrual	$ 4,813	$ 524
Total Loans Greater than 90 Days & Accruing		237
Residential real estate
Loan portfolio past due loans
Nonaccrual	347	362
Total Loans Greater than 90 Days & Accruing		22
Commercial and commercial real estate
Loan portfolio past due loans
Nonaccrual	4,305
Total Loans Greater than 90 Days & Accruing		149
Agricultural production and real estate
Loan portfolio past due loans
Nonaccrual	158	158
Total Loans Greater than 90 Days & Accruing		30
Consumer and margin loans
Loan portfolio past due loans
Nonaccrual	$ 3	4
Total Loans Greater than 90 Days & Accruing		$ 36

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses on Loans - Troubled Debt and Modifications (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($) loan item	Jun. 30, 2021 loan item	Jun. 30, 2022 USD ($) loan item	Jun. 30, 2021 item loan	Dec. 31, 2021 USD ($) loan
Troubled debt and modifications
Number of troubled debt restructuring	0	0	0	0
Number of loans restructured defaulted \| item	0	0	0	0
Number of loans modified in accordance with CARES Act	1		1		1
Amount of outstanding loans modified in accordance with CARES Act \| $	$ 36.8		$ 36.8		$ 36.8
Residential real estate
Troubled debt and modifications
Number of loans in the process of foreclosure			0		0

Loans and Allowance for Cred_12

Loans and Allowance for Credit Losses on Loans - Narrative (Details)			6 Months Ended
	May 05, 2022 USD ($) security	May 07, 2021 USD ($) security	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Proceeds from sale of loans receivable				$ 262,086,000
Purchases of available for sale securities			$ 47,866,000	130,204,000
Servicing rights			130,710,000		$ 110,348,000
Purchase of loans			$ 92,533,000	$ 250,678,000
Loan Sale and Freddie Mac Q Series Securitization
Loans and Leases Receivable Disclosure [Line Items]
Net gain (loss) on sale of loans	$ 2,300,000	$ (676,000)
First loss position in loan portfolio, maximum securitization pool, percentage	12%	10%
First loss position in loan portfolio, maximum securitization pool, amount	$ 25,700,000	$ 26,200,000
First loss position in loan portfolio, reserves for losses	1,200,000	1,400,000
Servicing rights	1,200,000	$ 730,000
Loan Sale and Freddie Mac Q Series Securitization \| Other liabilities
Loans and Leases Receivable Disclosure [Line Items]
Non-contingent reserve	$ 2,500,000
Loan Sale and Freddie Mac Q Series Securitization \| Mortgage-backed Securities, Purchased from Freddie Mac
Loans and Leases Receivable Disclosure [Line Items]
Number of securities purchased \| security	0	2
Purchases of available for sale securities		$ 28,700,000
Loan Sale and Freddie Mac Q Series Securitization \| US Treasury Securities.
Loans and Leases Receivable Disclosure [Line Items]
Purchases of available for sale securities	$ 27,000,000
Multi-family financing \| Loan Sale and Freddie Mac Q Series Securitization
Loans and Leases Receivable Disclosure [Line Items]
Proceeds from sale of loans receivable	$ 214,000,000	$ 262,000,000

Variable Interest Entities (V_3

Variable Interest Entities (VIEs) (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Variable Interest Entities (VIEs)
Total Assets	$ 11,086,055	$ 11,278,638	$ 9,881,532
Total Liabilities	9,857,516	10,123,229
Single Family and Multi-Family Debt Financing Investments \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entities (VIEs)
Total Assets	39,898	36,573
Total Liabilities	14,823	21,014
Maximum Exposure to Loss	$ 38,414	$ 36,164

Regulatory Matters (Details)

Regulatory Matters (Details) $ in Thousands	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Company
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 1,217,718	$ 1,138,090
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	0.124	0.104
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 882,179	$ 928,731
Company \| Minimum
Tier 1 Capital (to average assets)
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	0.09	0.085
Merchants Bank
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 1,171,291	$ 1,088,621
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	0.123	0.103
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 857,175	$ 901,188
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)	0.09	0.085
FMBI
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 31,104	$ 28,958
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	0.103	0.097
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 27,088	$ 25,499
FMBI \| Minimum
Tier 1 Capital (to average assets)
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	0.09	0.085

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Pledged in collateral	$ 2,900		$ 2,900		$ 3,900
Other income
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net swap gains (losses)	2,146	$ (1,243)	4,414	$ 409
Loans held for sale
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net swap gains (losses)	(5)		(5)
Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	573		573		350
Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	324		324		159
Interest Rate Lock Commitments
Derivative Financial Instruments
Notional amount	62,301		62,301		58,701
Interest Rate Lock Commitments \| Other income
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net swap gains (losses)	837	1,046	(45)	(5,698)
Interest Rate Lock Commitments \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	299		299		264
Interest Rate Lock Commitments \| Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	121		121		41
Forward Contracts
Derivative Financial Instruments
Notional amount	49,750		49,750		81,250
Forward Contracts \| Other income
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net swap gains (losses)	1,309	(2,289)	4,459	6,107
Forward Contracts \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	114		114		86
Forward Contracts \| Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	203		203		118
Interest rate swaps
Derivative Financial Instruments
Notional amount	25,190		25,190
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Gross swap gains	2,035	195	2,531	1,081
Gross swap losses	2,035	$ 195	2,531	$ 1,081
Interest rate swaps \| Loans held for sale
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net swap gains (losses)	160		160
Interest rate swaps \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	160		160
Interest rate swap back to back
Derivative Financial Instruments
Notional amount	181,805		181,805		135,686
Interest rate swap back to back \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	3,662		3,662		1,131
Interest rate swap back to back \| Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	3,662		3,662		$ 1,131
Loans held for sale \| Loans held for sale
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net swap gains (losses)	$ (165)		$ (165)

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	Jun. 30, 2022	Dec. 31, 2021
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	$ 323,046	$ 569,239
Available for sale securities	336,814	310,629
Loans held for sale	41,991	48,583
Servicing rights	130,710	110,348
Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	323,046	569,239
Loans held for sale	41,991	48,583
Servicing rights	130,710	110,348
Recurring \| Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	299	264
Derivative liabilities	121	41
Recurring \| Forward Contracts
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	114	86
Derivative liabilities	203	118
Recurring \| Interest rate swaps
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	160
Recurring \| Interest rate swap back to back
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	3,662	1,131
Derivative liabilities	3,662	1,131
Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	323,046	569,239
Loans held for sale	41,991	48,583
Level 2 \| Recurring \| Forward Contracts
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	114	86
Derivative liabilities	203	118
Level 2 \| Recurring \| Interest rate swaps
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	160
Level 2 \| Recurring \| Interest rate swap back to back
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	3,662	1,131
Derivative liabilities	3,662	1,131
Level 3 \| Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	299	264
Derivative liabilities	121	41
Level 3 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Servicing rights	130,710	110,348
Level 3 \| Recurring \| Interest Rate Lock Commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	299	264
Derivative liabilities	121	41
Treasury notes
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	34,804	8,209
Treasury notes \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	34,804	8,209
Treasury notes \| Level 1 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	34,804	8,209
Federal agencies
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	274,852	263,295
Federal agencies \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	274,852	263,295
Federal agencies \| Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	274,852	263,295
Municipals. \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities		4,300
Municipals. \| Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities		4,300
Mortgage-backed - Government-sponsored entity (GSE)
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	15,779	18,360
Mortgage-backed - Government-sponsored entity (GSE) \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	15,779	18,360
Mortgage-backed - Government-sponsored entity (GSE) \| Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	15,779	18,360
Mortgage-backed - Non-GSE multi-family
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	11,379	16,465
Mortgage-backed - Non-GSE multi-family \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	11,379	16,465
Mortgage-backed - Non-GSE multi-family \| Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Available for sale securities	$ 11,379	$ 16,465

Disclosures about Fair Value _4

Disclosures about Fair Value of Assets and Liabilities - Reconciliation of Unobservable Inputs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative liabilities \| Interest Rate Lock Commitments
Reconciliation of significant unobservable inputs, liabilities:
Balance, beginning of period	$ 771	$ 1,080	$ 41
Changes in fair value	(650)	(1,026)	80	$ 54
Balance, end of period	121	54	121	54
Servicing rights.
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	121,036	96,215	110,348	82,604
Additions
Originated servicing	5,203	6,527	10,995	16,708
Subtractions
Paydowns	(3,268)	(4,627)	(6,017)	(8,075)
Sales of servicing		(438)		(438)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model	7,739	654	15,384	7,532
Balance, end of period	130,710	98,331	130,710	98,331
Derivative assets \| Interest Rate Lock Commitments
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	112	467	264	6,131
Subtractions
Changes in fair value	187	20	35	(5,644)
Balance, end of period	$ 299	$ 487	$ 299	$ 487

Disclosures about Fair Value _5

Disclosures about Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Disclosures about Fair Value of Assets and Liabilities
Collateral dependent loans	$ 4,275	$ 4,263
Level 3
Disclosures about Fair Value of Assets and Liabilities
Collateral dependent loans	$ 4,275	$ 4,263

Disclosures about Fair Value _6

Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs (Details)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Quantitative information about unobservable inputs
Servicing rights	$ 130,710,000	$ 110,348,000
Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input		12
Level 3 \| Servicing rights \| Loans funded through PPP, CARES Act
Quantitative information about unobservable inputs
Servicing rights	$ 4,019,000
Level 3 \| Servicing rights \| Loans funded through PPP, CARES Act \| Discount Rate
Quantitative information about unobservable inputs
Servicing rights		$ 2,769,000
Servicing asset, measurement input	0.16	16
Level 3 \| Servicing rights \| Loans funded through PPP, CARES Act \| Discount Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.16	16
Level 3 \| Servicing rights \| Loans funded through PPP, CARES Act \| Constant Prepayment Rate \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.03	10
Level 3 \| Servicing rights \| Loans funded through PPP, CARES Act \| Constant Prepayment Rate \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.16	13
Level 3 \| Servicing rights \| Loans funded through PPP, CARES Act \| Constant Prepayment Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.08
Level 3 \| Servicing rights \| Single Family
Quantitative information about unobservable inputs
Servicing rights	$ 29,632,000	$ 23,012,000
Level 3 \| Servicing rights \| Single Family \| Discount Rate \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input		9
Level 3 \| Servicing rights \| Single Family \| Discount Rate \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input		10
Level 3 \| Servicing rights \| Single Family \| Discount Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input		9
Level 3 \| Servicing rights \| Single Family \| Constant Prepayment Rate \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.07	0.10
Level 3 \| Servicing rights \| Single Family \| Constant Prepayment Rate \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.09	0.13
Level 3 \| Servicing rights \| Single Family \| Constant Prepayment Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	7	0.11
Level 3 \| Servicing rights \| Single Family \| Mortgage Yield \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.09
Level 3 \| Servicing rights \| Single Family \| Mortgage Yield \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.10
Level 3 \| Servicing rights \| Single Family \| Mortgage Yield \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	9
Level 3 \| Servicing rights \| Multi-family
Quantitative information about unobservable inputs
Servicing rights	$ 97,059,000	$ 84,567,000
Level 3 \| Servicing rights \| Multi-family \| Discount Rate \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.08	0.08
Level 3 \| Servicing rights \| Multi-family \| Discount Rate \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.13	0.13
Level 3 \| Servicing rights \| Multi-family \| Discount Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.08	0.09
Level 3 \| Servicing rights \| Multi-family \| Constant Prepayment Rate \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0	0
Level 3 \| Servicing rights \| Multi-family \| Constant Prepayment Rate \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.50	0.50
Level 3 \| Servicing rights \| Multi-family \| Constant Prepayment Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.03	0.04
Level 3 \| Collateral-dependent impaired loans
Quantitative information about unobservable inputs
Collateral-dependent impaired loans	$ 4,275,000	$ 4,263,000
Marketability discount (as a percent)	0.82
Level 3 \| Collateral-dependent impaired loans \| Minimum
Quantitative information about unobservable inputs
Marketability discount (as a percent)		0.44
Level 3 \| Collateral-dependent impaired loans \| Weighted average
Quantitative information about unobservable inputs
Marketability discount (as a percent)	0.82	0.73
Level 3 \| Interest Rate Lock Commitments
Quantitative information about unobservable inputs
Derivative assets	$ 299,000	$ 264,000
Derivative liabilities	$ 121,000	$ 41,000
Level 3 \| Interest Rate Lock Commitments \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input		63
Level 3 \| Interest Rate Lock Commitments \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input		99
Level 3 \| Interest Rate Lock Commitments \| Measurement Input, Maturity \| Minimum
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	0.50	0.63
Loan closing rates (as a percent)	0.50
Level 3 \| Interest Rate Lock Commitments \| Measurement Input, Maturity \| Maximum
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	0.99	0.99
Loan closing rates (as a percent)	0.99
Level 3 \| Interest Rate Lock Commitments \| Measurement Input, Maturity \| Weighted average
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	81	0.83
Loan closing rates (as a percent)	81	83

Disclosures about Fair Value _7

Disclosures about Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financial assets:
Loans held for sale	$ 41,991	$ 48,583
Carrying value per balance sheet
Financial assets:
Cash and cash equivalents	258,146	1,032,614
Securities purchased under agreements to resell	3,520	5,888
FHLB stock	39,130	29,588
Loans held for sale	2,717,125	3,254,616
Loans receivable, net	7,033,203	5,751,319
Interest receivable	26,184	24,103
Financial liabilities:
Deposits	8,299,738	8,982,613
Short-term subordinated debt	19,000	17,000
FHLB advances	851,904	556,954
Other borrowing	570,000	460,000
Interest payable	3,805	1,469
Estimated fair value
Financial assets:
Cash and cash equivalents	258,146	1,032,614
Securities purchased under agreements to resell	3,520	5,888
FHLB stock	39,130	29,588
Loans held for sale	2,717,125	3,254,616
Loans receivable, net	7,046,313	5,731,500
Interest receivable	26,184	24,103
Financial liabilities:
Deposits	8,294,601	8,982,680
Short-term subordinated debt	19,000	17,000
FHLB advances	851,711	556,925
Other borrowing	570,000	460,000
Interest payable	3,805	1,469
Level 1 \| Estimated fair value
Financial assets:
Cash and cash equivalents	258,146	1,032,614
Financial liabilities:
Deposits	6,829,667	7,783,553
Level 2 \| Estimated fair value
Financial assets:
Securities purchased under agreements to resell	3,520	5,888
FHLB stock	39,130	29,588
Loans held for sale	2,717,125	3,254,616
Interest receivable	26,184	24,103
Financial liabilities:
Deposits	1,464,934	1,199,127
Short-term subordinated debt	19,000	17,000
FHLB advances	851,711	556,925
Other borrowing	570,000	460,000
Interest payable	3,805	1,469
Level 3 \| Estimated fair value
Financial assets:
Loans receivable, net	$ 7,046,313	$ 5,731,500

Leases (Details)

Leases (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Leases
Operating lease right-of-use assets	$ 9,189
Operating lease liabilities	$ 9,920
Maximum
Leases
Lease period	11 years
Minimum
Leases
Lease period	2 years

Leases - Balance sheet, income

Leases - Balance sheet, income statement and cash flow detail regarding operating leases (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)
Leases.
Operating lease right-of-of use asset (in Other Assets)	$ 9,189	$ 9,189
Operating lease liability (in Other Liabilities)	$ 9,920	$ 9,920
Weighted average remaining lease term (years)	7 years 2 months 12 days	7 years 2 months 12 days
Weighted average discount rate	2.09%	2.09%
Maturities of lease liabilities
2022 remaining	$ 864	$ 864
2023	1,812	1,812
2024	1,638	1,638
2025	1,246	1,246
2026	1,277	1,277
Thereafter	3,857	3,857
Total future minimum lease payments	10,694	10,694
Less: imputed interest	774	774
Total	9,920	9,920
Components of lease expense:
Operating lease cost (in occupancy and equipment expense)	$ 425	792
Operating cash flows from operating leases		$ 597

Earnings Per Share (Details)

Earnings Per Share (Details) $ / shares in Units, $ in Thousands		3 Months Ended				6 Months Ended
	Jan. 17, 2022	Jun. 30, 2022 USD ($) $ / shares shares		Jun. 30, 2021 USD ($) $ / shares shares		Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2021 USD ($) $ / shares shares
Net Income
Net income \| $		$ 53,935		$ 51,417		$ 104,077	$ 113,400
Dividends on preferred stock \| $		(5,729)		(5,659)		(11,457)	(9,416)
Net Income Allocated to Common Shareholders \| $		$ 48,206		$ 45,758		$ 92,620	$ 103,984
Weighted-Average Shares
Weighted average shares - Basic \| shares		43,209,824	[1]	43,174,220	[1]	43,220,198	43,166,223
Effect of dilutive securities-restricted stock awards \| shares		125,387	[1]	137,268	[1]	147,677	127,376
Weighted average shares - diluted \| shares		43,335,211	[1]	43,311,488	[1]	43,367,875	43,293,599
Per Share Amount
Basic earnings per share \| $ / shares		$ 1.12	[1]	$ 1.06	[1]	$ 2.14	$ 2.41
Diluted earnings per share \| $ / shares		$ 1.11	[1]	$ 1.06	[1]	$ 2.14	$ 2.40
Other disclosures
Stock split ratio	1.5

[1] The number of shares and per share amounts have been restated to reflect the 3 -for-2 common stock split, effective on January 17, 2022

Common Stock (Details)

Common Stock (Details)		3 Months Ended		6 Months Ended
Common Stock (Details)	Jan. 17, 2022	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2021 shares	Jun. 30, 2022 USD ($)	Nov. 17, 2021 USD ($)
Common Stock
Repurchase of common Stock (in shares) \| shares			0
Stock split ratio	1.5
Exchange Ratio of Additional Shares for Every Shares Owned					0.5
Repurchased (in shares) \| shares		165,037
Repurchased amount \| $		$ 3,935,333		$ 3,935,000
Average price per common share \| $ / shares		$ 23.85
Repurchase program, Authorized Amount \| $					$ 75,000,000

Share-Based Payment Plans (Deta

Share-Based Payment Plans (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
Share-Based Payment Plans (Details) - USD ($)	Jan. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2018
Non executive directors
Plan disclosures
Shares issued		3,766	2,190	5,821	4,695
Value of shares available for issuance for compensation related to annual fees	$ 50,000					$ 10,000
2017 Plan \| Restricted Stock
Plan disclosures
Shares issued		0	0	64,962	35,056

Preferred Stock (Details)

Preferred Stock (Details)									6 Months Ended		12 Months Ended		24 Months Ended
Preferred Stock (Details)	May 06, 2021 USD ($) $ / shares shares	Apr. 15, 2021 USD ($) shares	Mar. 23, 2021 USD ($) $ / shares shares	Sep. 23, 2019 USD ($) $ / shares shares	Aug. 19, 2019 USD ($) $ / shares shares	Jun. 27, 2019 USD ($) $ / shares shares	Apr. 12, 2019 USD ($) shares	Mar. 28, 2019 USD ($) $ / shares shares	Jun. 30, 2022 $ / shares	Jun. 30, 2021 USD ($)	Dec. 31, 2021 $ / shares	Dec. 31, 2016 $ / shares	Dec. 31, 2016 $ / shares shares
Public Offering of Preferred Stock
Net proceeds										$ 191,084,000
8% Preferred Stock
Public Offering of Preferred Stock
Redemption of 8% preferred stock (in shares) \| shares		41,625
Redemption of 8% preferred stock		$ 41,600,000
Preferred stock, dividend rate (as a percent)	8%	8%
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%
Preferred stock liquidation preference (in dollars per share) \| $ / shares												$ 1,000	$ 1,000
7% Preferred Stock
Public Offering of Preferred Stock
Redemption of 8% preferred stock (in shares) \| shares				874,000
Preferred stock, dividend rate (as a percent)				7%					7%		7%
Preferred stock liquidation preference (in dollars per share) \| $ / shares				$ 25					$ 25		$ 25
Redemption of preferred stock				$ 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%
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%
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%		6%
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
Shares issued (in shares) \| shares					5,000,000
Depositary shares equivalent preferred stock interest per share					0.250
Preferred stock, dividend rate (as a percent)					6%
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
Underwriting discounts					$ 4,200,000
6% Series C Preferred Stock
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%		6%
Preferred stock liquidation preference (in dollars per share) \| $ / shares									$ 1,000		$ 1,000
Net proceeds	$ 46,200,000
Offering costs	$ 23,000
6% Series C Preferred Stock \| Public Offering
Public Offering of Preferred Stock
Shares issued (in shares) \| shares			6,000,000
Depositary shares equivalent preferred stock interest per share			0.250
Preferred stock, dividend rate (as a percent)			6%
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			$ 150,000,000
Net proceeds			144,900,000
Underwriting discounts			$ 5,100,000

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Segment Information
Interest income	$ 89,270	$ 72,438	$ 165,282	$ 151,987
Interest expense	17,239	8,031	27,526	15,617
Net Interest Income	72,031	64,407	137,756	136,370
Provision for credit losses	4,768		6,749
Provision for credit losses	6,212	(315)	8,663	1,348
Net Interest Income After Provision for Credit Losses	65,819	64,722	129,093	135,022
Noninterest income	39,171	32,855	73,768	76,791
Noninterest expense	32,957	28,183	63,990	58,267
Income Before Income Taxes	72,033	69,394	138,871	153,546
Income taxes	18,098	17,977	34,794	40,146
Net Income	53,935	51,417	104,077	113,400
Total assets	11,086,055	9,881,532	11,086,055	9,881,532	$ 11,278,638
Other
Segment Information
Interest income	2,062	1,316	3,763	2,531
Interest expense	(373)	(784)	(624)	(1,361)
Net Interest Income	2,435	2,100	4,387	3,892
Net Interest Income After Provision for Credit Losses	2,435	2,100	4,387	3,892
Noninterest income	(1,357)	(1,409)	(2,995)	(2,502)
Noninterest expense	5,923	4,358	10,925	7,977
Income Before Income Taxes	(4,845)	(3,667)	(9,533)	(6,587)
Income taxes	(1,424)	(924)	(2,839)	(1,658)
Net Income	(3,421)	(2,743)	(6,694)	(4,929)
Total assets	83,229	49,521	83,229	49,521
Multifamily \| Operating Segments
Segment Information
Interest income	383	204	640	411
Net Interest Income	383	204	640	411
Provision for credit losses	1,153		1,153
Net Interest Income After Provision for Credit Losses	(770)	204	(513)	411
Noninterest income	49,430	28,572	81,616	61,806
Noninterest expense	21,959	13,626	38,490	30,070
Income Before Income Taxes	26,701	15,150	42,613	32,147
Income taxes	7,145	4,179	11,565	9,215
Net Income	19,556	10,971	31,048	22,932
Total assets	330,676	238,165	330,676	238,165
Mortgage Warehousing \| Operating Segments
Segment Information
Interest income	23,247	29,935	43,576	68,522
Interest expense	5,576	1,599	7,597	3,323
Net Interest Income	17,671	28,336	35,979	65,199
Provision for credit losses	834	(40)	627	(1,124)
Net Interest Income After Provision for Credit Losses	16,837	28,376	35,352	66,323
Noninterest income	1,350	3,079	3,210	7,196
Noninterest expense	2,441	2,703	5,367	5,599
Income Before Income Taxes	15,746	28,752	33,195	67,920
Income taxes	3,878	7,304	8,168	17,289
Net Income	11,868	21,448	25,027	50,631
Total assets	2,836,998	4,265,162	2,836,998	4,265,162
Banking \| Operating Segments
Segment Information
Interest income	63,578	40,983	117,303	80,523
Interest expense	12,036	7,216	20,553	13,655
Net Interest Income	51,542	33,767	96,750	66,868
Provision for credit losses	4,225	(275)	6,883	2,472
Net Interest Income After Provision for Credit Losses	47,317	34,042	89,867	64,396
Noninterest income	(10,252)	2,613	(8,063)	10,291
Noninterest expense	2,634	7,496	9,208	14,621
Income Before Income Taxes	34,431	29,159	72,596	60,066
Income taxes	8,499	7,418	17,900	15,300
Net Income	25,932	21,741	54,696	44,766
Total assets	$ 7,835,152	$ 5,328,684	$ 7,835,152	$ 5,328,684

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details) - USD ($)	Jun. 30, 2022	Jan. 01, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Recent Accounting Pronouncements
Allowance for loan losses			$ 31,344,000	$ 28,696,000	$ 29,091,000	$ 27,500,000
Retained earnings, net of tax	$ 737,789,000		657,149,000
Operating lease right-of-use assets	9,189,000
Operating lease liabilities	$ 9,920,000
Impact from adoption of ASU \| ASU 2016-02
Recent Accounting Pronouncements
Retained earnings, net of tax		$ 110,000
Operating lease right-of-use assets		7,100,000
Operating lease liabilities		7,200,000
Impact from adoption of ASU \| ASU 2016-13
Recent Accounting Pronouncements
Allowance for loan losses		(299,000)	$ (299,000)
ACL - OBCEs (in Other Liabilities)		5,176,000
Retained earnings, net of tax		$ (3,648,000)