Merchants Bancorp (MBIN) 10-Q9 Aug 232023 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, 2023	Jul. 31, 2023
Document Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-38258
Entity Registrant Name	MERCHANTS BANCORP
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	20-5747400
Entity Address, Address Line One	410 Monon Blvd
Entity Address, City or Town	Carmel
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46032
City Area Code	317
Local Phone Number	569-7420
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		43,237,300
Entity Central Index Key	0001629019
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
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
Series D Preferred Stock
Document Information
Title of 12(b) Security	Depositary Shares, each representing a 1/40th interest in a share of Series D Preferred Stock, without par value
Trading Symbol	MBINM
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Cash and due from banks	$ 15,390	$ 22,170
Interest-earning demand accounts	361,920	203,994
Cash and cash equivalents	377,310	226,164
Securities purchased under agreements to resell	3,412	3,464
Mortgage loans in process of securitization	298,907	154,194
Securities available for sale	648,003	323,337
Securities held to maturity (includes $1,058,590 and $1,118,966 at fair value, respectively)	1,062,017	1,119,078
Federal Home Loan Bank (FHLB) stock	39,130	39,130
Loans held for sale (includes $82,931 and $82,192 at fair value, respectively)	3,058,013	2,910,576
Loans receivable, net of allowance for credit losses on loans of $62,986 and $44,014, respectively	9,854,018	7,426,858
Premises and equipment, net	36,947	35,438
Servicing rights	147,288	146,248
Interest receivable	70,509	56,262
Goodwill	15,845	15,845
Intangible assets, net	949	1,186
Other assets and receivables	262,524	157,447
Total assets	15,874,872	12,615,227
Deposits
Noninterest-bearing	349,387	326,875
Interest-bearing	12,710,477	9,744,470
Total deposits	13,059,864	10,071,345
Borrowings	1,016,836	930,392
Deferred and current tax liabilities, net	16,084	19,613
Other liabilities	221,788	134,138
Total liabilities	14,314,572	11,155,488
Commitments and Contingencies
Shareholders' Equity
Common stock, without par value Authorized - 75,000,000 shares Issued and outstanding - 43,237,300 shares at June 30, 2023 and 43,113,127 shares at December 31, 2022	138,853	137,781
Retained earnings	928,875	832,871
Accumulated other comprehensive loss	(7,036)	(10,521)
Total shareholders' equity	1,560,300	1,459,739
Total liabilities and shareholders' equity	15,874,872	12,615,227
7% Series A 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
8.25% Series D Preferred Stock
Shareholders' Equity
Preferred stock	$ 137,459	$ 137,459

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Held to maturity securities, fair value	$ 1,058,590	$ 1,118,966
Loans held for sale at fair value	82,931	82,192
Allowance for credit losses on loans	$ 62,986	$ 44,014
Stockholders' Equity:
Common stock, without par value (in dollars per share)
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	43,237,300	43,113,127
Common stock, shares outstanding	43,237,300	43,113,127
Preferred stock, shares authorized	5,000,000	5,000,000
7% Series A 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	200,000	200,000
Preferred stock, shares issued	196,181	196,181
Preferred stock, shares outstanding	196,181	196,181
Depositary shares	7,847,233	7,847,233
8.25% Series D Preferred Stock
Stockholders' Equity:
Preferred stock, dividend rate (as a percent)	8.25%	8.25%
Preferred stock liquidation preference (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, shares authorized	300,000	300,000
Preferred stock, shares issued	142,500	142,500
Preferred stock, shares outstanding	142,500	142,500
Depositary shares	5,700,000	5,700,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest Income
Loans	$ 228,732	$ 85,994	$ 418,182	$ 158,190
Mortgage loans in process of securitization	3,127	1,449	4,775	3,694
Investment securities:
Available for sale - taxable	5,564	917	7,830	1,618
Held to maturity	17,311		33,065
Federal Home Loan Bank stock	471	284	898	553
Other	2,864	626	4,613	1,227
Total interest income	258,069	89,270	469,363	165,282
Interest Expense
Deposits	137,801	14,768	242,243	23,581
Borrowed funds	14,651	2,471	20,810	3,945
Total interest expense	152,452	17,239	263,053	27,526
Net Interest Income	105,617	72,031	206,310	137,756
Provision for credit losses	22,603	6,212	29,470	8,663
Net Interest Income After Provision for Credit Losses	83,014	65,819	176,840	129,093
Noninterest Income
Gain on sale of loans	11,350	21,564	18,083	39,529
Loan servicing fees, net	8,616	9,607	10,976	19,338
Mortgage warehouse fees	2,865	1,350	3,893	3,208
Syndication and asset management fees	3,896	1,599	5,108	2,213
Other income	3,155	5,051	6,086	9,480
Total noninterest income	29,882	39,171	44,146	73,768
Noninterest Expense
Salaries and employee benefits	25,724	22,475	47,870	43,768
Loan expenses	907	1,184	1,711	2,395
Occupancy and equipment	2,456	2,011	4,688	3,825
Professional fees	3,723	1,594	5,992	2,897
Deposit insurance expense	3,806	670	5,984	1,429
Technology expense	1,571	1,304	3,148	2,540
Other expense	6,133	3,719	9,699	7,136
Total noninterest expense	44,320	32,957	79,092	63,990
Income Before Income Taxes	68,576	72,033	141,894	138,871
Provision for income taxes	3,274	18,098	21,637	34,794
Net Income	65,302	53,935	120,257	104,077
Dividends on preferred stock	(8,668)	(5,729)	(17,335)	(11,457)
Net Income Allocated to Common Shareholders	$ 56,634	$ 48,206	$ 102,922	$ 92,620
Basic Earnings Per Share	$ 1.31	$ 1.12	$ 2.38	$ 2.14
Diluted Earnings Per Share	$ 1.31	$ 1.11	$ 2.38	$ 2.14
Weighted-Average Shares Outstanding
Basic (in Shares)	43,235,398	43,209,824	43,207,655	43,220,198
Diluted (in Shares)	43,309,393	43,335,211	43,300,240	43,367,875

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 65,302	$ 53,935	$ 120,257	$ 104,077
Other Comprehensive Income (Loss):
Net change in unrealized gain/(losses) on investment securities available for sale, net of tax (expense)/benefits of $(402), $553, $(1,336) and $2,203, respectively	693	(1,766)	3,485	(6,616)
Other comprehensive income (loss) for the period	693	(1,766)	3,485	(6,616)
Comprehensive Income	$ 65,995	$ 52,169	$ 123,742	$ 97,461

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Condensed Consolidated Statements of Comprehensive Income
Tax (expense)/ benefits on net change in unrealized gains/(losses) on investment securities available for sale	$ (402)	$ 553	$ (1,336)	$ 2,203

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands	Common stock	Preferred stock 7% Series A Preferred Stock	Preferred stock 6% Series B Preferred Stock	Preferred stock 6% Series C Preferred Stock	Preferred stock 8.25% Series D Preferred Stock	Retained Earnings Impact from adoption of ASU	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at beginning of the period (ASU 2016-13) at Dec. 31, 2021						$ (3,648)
Balance at beginning of the period (ASU 2016-02) at Dec. 31, 2021						$ (110)
Balance at beginning of the period at Dec. 31, 2021	$ 137,565	$ 50,221	$ 120,844	$ 191,084			$ 657,149	$ (1,454)
Balance at beginning of the period (in shares) at Dec. 31, 2021	43,180,079	2,081,800	125,000	196,181
Consolidated Statements of Shareholders' Equity
Net income							104,077		$ 104,077
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 income (loss)								(6,616)	(6,616)
Repurchase of common stock	$ (1,761)						(2,174)
Repurchase of common stock (in shares)	(165,037)
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
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
Consolidated Statements of Shareholders' Equity
Net income							53,935		53,935
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 income (loss)								(1,766)	(1,766)
Repurchase of common stock	$ (1,761)						(2,174)
Repurchase of common stock (in shares)	(165,037)
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
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 Dec. 31, 2022	$ 137,781	$ 50,221	$ 120,844	$ 191,084	$ 137,459		832,871	(10,521)	1,459,739
Balance at beginning of the period (in shares) at Dec. 31, 2022	43,113,127	2,081,800	125,000	196,181	142,500
Consolidated Statements of Shareholders' Equity
Net income							120,257		120,257
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 8.25 Percent Series D Preferred Stock							(5,878)
Dividends on common stock, annually							(6,918)
Other comprehensive income (loss)								3,485	3,485
Distribution to employee stock ownership plan	$ 810
Distribution to employee stock ownership plan (in shares)	33,293
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations	$ 262
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares)	90,880
Balance at end of the period at Jun. 30, 2023	$ 138,853	$ 50,221	$ 120,844	$ 191,084	$ 137,459		928,875	(7,036)	1,560,300
Balance at end of the period (in shares) at Jun. 30, 2023	43,237,300	2,081,800	125,000	196,181	142,500
Balance at beginning of the period at Mar. 31, 2023	$ 138,105	$ 50,221	$ 120,844	$ 191,084	$ 137,459		875,700	(7,729)
Balance at beginning of the period (in shares) at Mar. 31, 2023	43,233,618	2,081,800	125,000	196,181	142,500
Consolidated Statements of Shareholders' Equity
Net income							65,302		65,302
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 8.25 Percent Series D Preferred Stock							(2,939)
Dividends on common stock, annually							(3,459)
Other comprehensive income (loss)								693	693
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations	$ 748
Shares issued for stock compensation plans, net of taxes withheld to satisfy tax obligations (in shares)	3,682
Balance at end of the period at Jun. 30, 2023	$ 138,853	$ 50,221	$ 120,844	$ 191,084	$ 137,459		$ 928,875	$ (7,036)	$ 1,560,300
Balance at end of the period (in shares) at Jun. 30, 2023	43,237,300	2,081,800	125,000	196,181	142,500

Condensed Consolidated Statem_5

Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Dividends on common stock per share	$ 0.32	$ 0.28	$ 0.32	$ 0.28
7% Series A Preferred Stock
Preferred stock, dividend rate (as a percent)			7%		7%
7% Series A 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%
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%
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
8.25% Series D Preferred Stock
Preferred stock, dividend rate (as a percent)			8.25%		8.25%
8.25% Series D Preferred Stock \| Preferred stock
Preferred stock, dividend rate (as a percent)	8.25%	8.25%	8.25%	8.25%
Dividends on preferred stock per share	$ 82.50	$ 82.50	$ 82.50	$ 82.50

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities:
Net income	$ 120,257	$ 104,077
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,385	1,204
Provision for credit losses	29,470	8,663
Gain on sale of loans	(18,083)	(39,529)
Proceeds from sales of loans	8,388,537	14,491,319
Loans and participations originated and purchased for sale	(8,900,738)	(13,918,978)
Purchases of low-income housing tax credits for sale	(30,117)	(9,829)
Proceeds from sale of low-income housing tax credits	19,804
Change in servicing rights for paydowns and fair value adjustments	3,257	(9,367)
Net change in:
Mortgage loans in process of securitization	(144,713)	246,193
Other assets and receivables	(37,233)	(17,738)
Other liabilities	28,294	18,389
Other	(3,140)	371
Net cash (used in) provided by operating activities	(543,020)	874,775
Investing activities:
Net change in securities purchased under agreements to resell	52	2,368
Purchases of securities available for sale	(513,520)	(47,866)
Purchases of securities held to maturity	(4,261)
Proceeds from the sale of securities available for sale	132	0
Proceeds from calls, maturities and paydowns of securities available for sale	195,164	12,206
Proceeds from calls, maturities and paydowns of securities held to maturity	61,322
Purchases of loans	(269,855)	(92,533)
Net change in loans receivable	(1,805,415)	(1,199,040)
Purchase of FHLB stock		(10,326)
Proceeds from sale of FHLB stock		784
Purchases of premises and equipment	(2,943)	(5,113)
Purchase of servicing rights		(2,057)
Purchase of limited partnership interests	(71,001)	(13,225)
Proceeds from sale of limited partnership interests	52,458
Other investing activities	1,322	2,924
Net cash used in investing activities	(2,356,545)	(1,351,878)
Financing activities:
Net change in deposits	2,988,519	(682,875)
Proceeds from borrowings	42,149,880	21,595,000
Repayment of borrowings	(42,240,205)	(21,190,050)
Proceeds from notes payable	26,000	2,000
Proceeds from credit linked notes	153,546
Payment of credit linked notes	(2,980)
Repurchase of common stock		(3,935)
Dividends	(24,253)	(17,505)
Other financing activities	204
Net cash provided by (used in) financing activities	3,050,711	(297,365)
Net Change in Cash and Cash Equivalents	151,146	(774,468)
Cash and Cash Equivalents, Beginning of Period	226,164	1,032,614
Cash and Cash Equivalents, End of Period	377,310	258,146
Supplemental Cash Flows Information:
Interest paid	238,521	25,191
Income taxes paid, net of refunds	29,813	$ 28,331
Transfer of loans from loans held for sale to loans receivable	$ 377,460

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2023
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, 2022, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of June 30, 2023 and for the three and six months ended June 30, 2023 and 2022, 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, 2022 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, 2023 and the results of operations for the three and six months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 2023 and 2022. All interim amounts have not been audited and the results of operations for the three and six months ended June 30, 2023, 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, 2023 and 2022 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 or has a relationship with 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 the Company’s involvement with the entity are evaluated. Alternatively, under the voting interest model, it would only consolidate those entities for which it has a controlling interest. During the three months ended June 30, 2023, the Company acquired a variable interest in an investment fund for which it is the primary beneficiary of, and its results have been consolidated since the date of acquisition. Additionally, the Company has certain variable interest investments that were not deemed to be primary beneficiaries as of June 30, 2023. These VIEs are not consolidated and the equity or cost method of accounting has been applied. The Company will analyze whether the primary beneficiary designation has changed through triggering events on a prospective basis. Changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment. See Note 5: Variable Interest Entities (VIEs) for additional information about VIEs. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for 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. 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. 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. Restricted Cash Included in cash equivalents is an account restricted as collateral for the potential risk of loss on senior credit linked notes issued by the Company in March 2023. As of June 30, 2023, there was $35.3 million in restricted cash. Also see Note 11: Borrowings. Reclassifications Certain reclassifications may have been made to the 2022 financial statements to conform to the financial statement presentation as of and for the three and six months ended June 30, 2023. These reclassifications had no effect on net income.

Investment Securities

Investment Securities	6 Months Ended
Investment Securities	Jun. 30, 2023
Investment Securities
Investment Securities	Note 2: Investment Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities available for sale and held to maturity were as follows: June 30, 2023 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available for sale: Treasury notes $ 158,741 $ 43 $ 849 $ 157,935 Federal agencies 249,994 — 8,422 241,572 Mortgage-backed - Government-sponsored entity (GSE) 248,497 6 7 248,496 Total securities available for sale $ 657,232 $ 49 $ 9,278 $ 648,003 Securities held to maturity: Mortgage-backed - Non-GSE multi-family $ 835,649 $ — $ 42 $ 835,607 Mortgage-backed - Non-GSE residential 222,119 — 3,075 219,044 Mortgage-backed - Government - sponsored entity (GSE) 4,249 — 310 3,939 Total securities held to maturity $ 1,062,017 $ — $ 3,427 $ 1,058,590 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available for sale: Treasury notes $ 37,234 $ 1 $ 955 $ 36,280 Federal agencies 284,986 — 13,096 271,890 Mortgage-backed - Government-sponsored entity (GSE) 15,167 7 7 15,167 Total securities available for sale $ 337,387 $ 8 $ 14,058 $ 323,337 Securities held to maturity: Mortgage-backed - Non-GSE multi-family $ 871,772 $ 12 $ — $ 871,784 Mortgage-backed - Non-GSE residential 247,306 — 124 247,182 Total securities held to maturity $ 1,119,078 $ 12 $ 124 $ 1,118,966 At June 30, 2023 and December 31, 2022, GSE mortgage-backed securities included in the tables above are primarily backed by multi-family loans. The tables above for June 30, 2023 and December 31, 2022 primarily include securities held to maturity that were purchased following the September 2022 loan sale and securitization transactions. Accrued interest on securities available for sale totaled $1.9 million at June 30, 2023 and $0.5 million at December 31, 2022, respectively, and is excluded from the estimate of credit losses. Accrued interest on securities held to maturity totaled $4.4 million at June 30, 2023 and $4.3 at December 31, 2022, respectively, and is excluded from the estimate of credit losses. The amortized cost and fair value of available for sale securities at June 30, 2023 and December 31, 2022, 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, 2023 December 31, 2022 Amortized Fair Amortized Fair Cost Value Cost Value Securities available for sale: (In thousands) Within one year $ 321,992 $ 316,487 $ 118,984 $ 115,386 After one through five years 86,743 83,020 203,236 192,784 408,735 399,507 322,220 308,170 Mortgage-backed - Government-sponsored entity (GSE) 248,497 248,496 15,167 15,167 $ 657,232 $ 648,003 $ 337,387 $ 323,337 Securities held to maturity: Mortgage-backed - Non-GSE multi-family $ 835,649 $ 835,607 $ 871,772 $ 871,784 Mortgage-backed - Non-GSE residential 222,119 219,044 — — Mortgage-backed - Government - sponsored entity (GSE) 4,249 3,939 247,306 247,182 $ 1,062,017 $ 1,058,590 $ 1,119,078 $ 1,118,966 During the three and six months ended June 30, 2023, proceeds from sales of securities available for sale were $132,000 and the net gain was inconsequential. During the three and six months ended June 30, 2022, no securities available for sale were sold. The following tables show the Company’s gross unrealized losses and fair value of the Company’s investment securities with unrealized losses for which an ACL has not been recorded, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2023 and December 31, 2022: June 30, 2023 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Securities available for sale: Treasury notes $ 7,645 $ 101 $ 30,185 $ 748 $ 37,830 $ 849 Federal agencies 14,854 146 226,718 8,276 241,572 8,422 Mortgage-backed - Government-sponsored entity (GSE) 444 3 191 4 635 7 $ 22,943 $ 250 $ 257,094 $ 9,028 $ 280,037 $ 9,278 Securities held to maturity: Mortgage-backed - Non-GSE multi-family $ 835,607 $ 42 $ — $ — $ 835,607 $ 42 Mortgage-backed - Non-GSE residential 219,044 3,075 — — 219,044 3,075 Mortgage-backed - Government - sponsored entity (GSE) 3,939 310 — — 3,939 310 $ 1,058,590 $ 3,427 $ — $ — $ 1,058,590 $ 3,427 December 31, 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) Securities available for sale: Treasury notes $ 29,560 $ 762 $ 5,798 $ 193 $ 35,358 $ 955 Federal agencies 19,276 724 252,613 12,372 271,889 13,096 Mortgage-backed - Government-sponsored entity (GSE) 709 7 — — 709 7 $ 49,545 $ 1,493 $ 258,411 $ 12,565 $ 307,956 $ 14,058 Securities held to maturity: Mortgage-backed - Non-GSE residential 247,182 124 — — 247,182 124 $ 247,182 $ 124 $ — $ — $ 247,182 $ 124 Allowance for Credit Losses 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 accumulated other comprehensive income, 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, 2023 and December 31, 2022. Securities held to maturity are comprised of non-GSE mortgage-backed securities secured by multi-family or single-family properties, and GSE mortgage-backed securities secured by multi-family properties. The GSE security is a Government National Mortgage Association (“Ginnie Mae”) mortgage-backed security and backed by the full faith and credit of the U.S. government. Accordingly, no allowance for credit losses has been recorded for this security. The non-GSE securities were purchased under securitization arrangements where a credit loss component was purchased by third party investors. These securities were evaluated for credit losses over and above the credit loss percentage sold under the arrangements, and the Company does not anticipate any such losses. Additional qualitative factors are evaluated, including the timeliness of principal and interest payments under the contractual terms of the securities. Accordingly, no allowance for credit losses has been recorded for the non-GSE securities.

Mortgage Loans in Process of Se

Mortgage Loans in Process of Securitization	6 Months Ended
Mortgage Loans in Process of Securitization	Jun. 30, 2023
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 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 $0.3 million and $4.9 million at June 30, 2023 and 2022, 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, 2023
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 $47.7 million and $35.0 million at June 30, 2023 and December 31, 2022, 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. For loan modifications, interest income is recognized on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms. The Company offers 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, 2023 and December 31, 2022 include: June 30, December 31, 2023 2022 (In thousands) Mortgage warehouse lines of credit $ 1,201,932 $ 464,785 Residential real estate 1,342,586 1,178,401 Multi-family financing 3,746,333 3,135,535 Healthcare financing 2,128,378 1,604,341 Commercial and commercial real estate(1)(2) 1,394,256 978,661 Agricultural production and real estate 91,599 95,651 Consumer and margin loans 11,920 13,498 9,917,004 7,470,872 Less: ACL-Loans 62,986 44,014 Loans Receivable $ 9,854,018 $ 7,426,858 (1) Includes $894.7 million and $497.0 million of revolving lines of credit collateralized primarily by mortgage servicing rights as of June 30, 2023 and December 31, 2022, respectively. (2) Includes only $8.3 million and $12.8 million of non-owner occupied commercial real estate as of June 30, 2023 and December 31, 2022, respectively. 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 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. However, the warehouse customers are required to hedge the change in value of these loans to mitigate the risk. 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 carried a base rate of 30-day LIBOR, plus a margin. With the sunset of LIBOR, loans will be transitioned to 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. 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. Small Business Administration (“SBA”) loans are included in this category. Less than 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 current 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 uncollectability 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, 2023. 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 current 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, the Company may use the fair value of the collateral, less estimated costs to sell, as a practical expedient as of the reporting date to determine the carrying amount of an asset and the allowance for credit losses, as applicable. A loan is considered to be collateral dependent when repayment is expected to be provided substantially through the operation or the sale of the collateral when the borrower is experiencing financial difficulty as of the reporting date. To calculate the allowance for expected credit losses on loans risk graded pass through special mention, the portfolio is segmented by loans with similar risk characteristics. Loan Portfolio Segment ACL-Loans Methodology Mortgage warehouse lines of credit Remaining Life Method Residential real estate loans Discounted Cash Flow Multi-family financing Discounted Cash Flow Healthcare financing Discounted Cash Flow Commercial and commercial real estate Discounted Cash Flow Agricultural production and real estate Remaining Life Method Consumer and margin loans Remaining Life Method Loan characteristics used in determining the segmentation 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. Model results are supplemented by qualitative adjustments for risk factors relevant in assessing the expected credit losses within the portfolio segments. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor. The models utilized and the applicable qualitative adjustments require assumptions and management judgement that can be subjective in nature. The above measurement approach is also used to estimate the expected credit losses associated with unfunded loan commitments, which also incorporates expected utilization rates. The following tables present, by loan portfolio segment, the activity in the ACL-Loans for the three and six months ended June 30, 2023 and 2022: For the Three Months Ended June 30, 2023 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) ACL-Loans Balance, beginning of period $ 1,664 $ 7,378 $ 19,851 $ 11,753 $ 10,482 $ 543 $ 167 $ 51,838 Provision for credit losses 1,697 48 13,250 4,370 1,329 13 (29) 20,678 Loans charged to the allowance — (13) (8,400) — (1,118) — (1) (9,532) Recoveries of loans previously charged-off — — — — 2 — — 2 Balance, end of period $ 3,361 $ 7,413 $ 24,701 $ 16,123 $ 10,695 $ 556 $ 137 $ 62,986 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 The Company recorded a total provision for credit losses of $22.6 million for the three months ended June 30, 2023. The $22.6 million total provision for credit losses consisted of $20.7 million for the ACL-Loans as shown above and $1.9 million for the ACL-OBCE’s. The Company recorded a total provision for credit losses of $6.2 million for the three months ended June 30, 2022. The $6.2 million total provision for credit losses consisted of $4.8 million for the ACL-Loans as shown above, $0.2 million for the ACL-OBCE’s and $1.2 million for ACL-Guarantees. For the Six Months Ended June 30, 2023 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) ACL-Loans Balance, beginning of period $ 1,249 $ 7,029 $ 16,781 $ 9,882 $ 8,326 $ 565 $ 182 $ 44,014 Provision for credit losses 2,112 397 16,320 6,241 3,478 (9) (44) 28,495 Loans charged to the allowance — (13) (8,400) — (1,118) — (1) (9,532) Recoveries of loans previously charged-off — — — — 9 — — 9 Balance, end of period $ 3,361 $ 7,413 $ 24,701 $ 16,123 $ 10,695 $ 556 $ 137 $ 62,986 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 total provision for credit losses of $29.5 million for the six months ended June 30, 2023. The $29.5 million total provision for credit losses consisted of $28.5 million for the ACL-Loans as shown above and $1.0 million for the ACL-OBCE’s. The Company recorded a total provision for credit losses of $8.7 million for the six months ended June 30, 2022. The $8.7 million total provision for credit losses consisted of $6.7 million for the ACL-Loans as shown above, $0.8 million for the ACL-OBCE’s and $1.2 million for ACL-Guarantees. The following table presents the allowance for loan losses and the recorded investment in loans and impairment method as of December 31, 2022: December 31, 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 (747) 2,588 2,177 5,282 4,216 (74) 31 13,473 Loans charged to the allowance — (4) — — (1,238) — (15) (1,257) Recoveries of loans previously charged-off — — — — 746 — 7 753 Balance, end of period $ 1,249 $ 7,029 $ 16,781 $ 9,882 $ 8,326 $ 565 $ 182 $ 44,014 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, 2023 Real Estate Accounts Receivable / Equipment Other Total ACL-Loans Allocation (In thousands) RES RE $ 209 $ — $ 3 $ 212 $ 36 MF FIN 41,335 — — 41,335 234 HC FIN 30,683 — — 30,683 2,348 CML & CRE — 3,830 3,294 7,124 1,145 AG & AGRE 147 — — 147 1 CON & MAR — — 5 5 — Total collateral dependent loans $ 72,374 $ 3,830 $ 3,302 $ 79,506 $ 3,764 There have been no significant changes to the types of collateral securing the Company’s collateral dependent loans compared to June 30, 2022. Internal Risk Categories In adherence with policy, the Company uses the following internal risk grading categories and definitions for loans: Pass 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, 2023 and December 31, 2022: As of June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans TOTAL (In thousands) MTG WHLOC Pass $ — $ — $ — $ — $ — $ — $ 1,201,932 $ 1,201,932 Total $ — $ — $ — $ — $ — $ — $ 1,201,932 $ 1,201,932 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — RES RE Pass 10,295 11,246 8,469 23,210 3,349 11,801 1,273,551 1,341,921 Special Mention (Watch) — — — — 60 393 — 453 Substandard — — — — — 212 — 212 Total $ 10,295 $ 11,246 $ 8,469 $ 23,210 $ 3,409 $ 12,406 $ 1,273,551 $ 1,342,586 Charge-offs $ — $ — $ — $ — $ — $ — $ 13 $ 13 MF FIN Pass 770,580 1,001,864 391,935 98,073 30,073 9,467 1,330,469 3,632,461 Special Mention (Watch) 13,102 21,512 3,404 8,000 — 1,491 25,028 72,537 Substandard — 28,360 12,975 — — — — 41,335 Total $ 783,682 $ 1,051,736 $ 408,314 $ 106,073 $ 30,073 $ 10,958 $ 1,355,497 $ 3,746,333 Charge-offs $ — $ 8,400 $ — $ — $ — $ — $ — $ 8,400 HC FIN Pass 334,477 1,079,976 236,816 69,827 14,769 — 251,640 1,987,505 Special Mention (Watch) 25,600 48,694 35,896 — — — — 110,190 Substandard — — 21,783 — — — 8,900 30,683 Total $ 360,077 $ 1,128,670 $ 294,495 $ 69,827 $ 14,769 $ — $ 260,540 $ 2,128,378 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — CML & CRE Pass 22,265 121,938 75,570 22,578 21,566 18,928 1,099,039 1,381,884 Special Mention (Watch) 16 39 4,510 173 153 334 23 5,248 Substandard — — 2,018 933 67 52 4,054 7,124 Total $ 22,281 $ 121,977 $ 82,098 $ 23,684 $ 21,786 $ 19,314 $ 1,103,116 $ 1,394,256 Charge-offs $ — $ 496 $ 36 $ 586 $ — $ — $ — $ 1,118 AG & AGRE Pass 7,377 10,845 6,664 14,699 5,468 18,769 27,570 91,392 Special Mention (Watch) — 11 49 — — — — 60 Substandard — — — — — 147 — 147 Total $ 7,377 $ 10,856 $ 6,713 $ 14,699 $ 5,468 $ 18,916 $ 27,570 $ 91,599 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — CON & MAR Pass 346 4,502 349 155 37 4,451 2,041 11,881 Special Mention (Watch) — — — 18 15 1 — 34 Substandard — — — — — 5 — 5 Total $ 346 $ 4,502 $ 349 $ 173 $ 52 $ 4,457 $ 2,041 $ 11,920 Charge-offs $ — $ — $ — $ — $ — $ 1 $ — $ 1 Total Pass $ 1,145,340 $ 2,230,371 $ 719,803 $ 228,542 $ 75,262 $ 63,416 $ 5,186,242 $ 9,648,976 Total Special Mention (Watch) $ 38,718 $ 70,256 $ 43,859 $ 8,191 $ 228 $ 2,219 $ 25,051 $ 188,522 Total Substandard $ — $ 28,360 $ 36,776 $ 933 $ 67 $ 416 $ 12,954 $ 79,506 Total Loans $ 1,184,058 $ 2,328,987 $ 800,438 $ 237,666 $ 75,557 $ 66,051 $ 5,224,247 $ 9,917,004 Total Charge-offs $ — $ 8,896 $ 36 $ 586 $ — $ 1 $ 13 $ 9,532 December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans TOTAL (In thousands) MTG WHLOC Pass $ — $ — $ — $ — $ — $ — $ 464,785 $ 464,785 Total $ — $ — $ — $ — $ — $ — $ 464,785 $ 464,785 RES RE Pass 13,344 8,192 24,708 3,498 1,722 11,166 1,114,705 1,177,335 Special Mention (Watch) — — — 61 — 668 91 820 Substandard — — — — 74 172 — 246 Total $ 13,344 $ 8,192 $ 24,708 $ 3,559 $ 1,796 $ 12,006 $ 1,114,796 $ 1,178,401 MF FIN Pass 1,212,008 544,823 200,829 32,349 4,416 7,229 1,042,024 3,043,678 Special Mention (Watch) 32,919 — 8,000 — — — 14,178 55,097 Substandard 36,760 — — — — — — 36,760 Total $ 1,281,687 $ 544,823 $ 208,829 $ 32,349 $ 4,416 $ 7,229 $ 1,056,202 $ 3,135,535 HC FIN Pass 987,676 301,103 78,792 13,770 — — 123,888 1,505,229 Special Mention (Watch) 52,022 25,307 — — — — — 77,329 Substandard — 21,783 — — — — — 21,783 Total $ 1,039,698 $ 348,193 $ 78,792 $ 13,770 $ — $ — $ 123,888 $ 1,604,341 CML & CRE Pass 123,757 86,282 23,803 24,730 12,335 8,765 690,114 969,786 Special Mention (Watch) 43 164 963 119 99 228 1,376 2,992 Substandard — 2,017 591 72 — 666 2,537 5,883 Total $ 123,800 $ 88,463 $ 25,357 $ 24,921 $ 12,434 $ 9,659 $ 694,027 $ 978,661 AG & AGRE Pass 12,112 7,485 15,660 5,808 3,137 20,176 29,566 93,944 Special Mention (Watch) 14 55 462 421 163 389 56 1,560 Substandard — — — — — 147 — 147 Total $ 12,126 $ 7,540 $ 16,122 $ 6,229 $ 3,300 $ 20,712 $ 29,622 $ 95,651 CON & MAR Pass 4,673 463 307 101 4,589 9 3,328 13,470 Special Mention (Watch) — — 20 — — 2 — 22 Substandard — — — — — 6 — 6 Total $ 4,673 $ 463 $ 327 $ 101 $ 4,589 $ 17 $ 3,328 $ 13,498 Total Pass $ 2,353,570 $ 948,348 $ 344,099 $ 80,256 $ 26,199 $ 47,345 $ 3,468,410 $ 7,268,227 Total Special Mention (Watch) $ 84,998 $ 25,526 $ 9,445 $ 601 $ 262 $ 1,287 $ 15,701 $ 137,820 Total Substandard $ 36,760 $ 23,800 $ 591 $ 72 $ 74 $ 991 $ 2,537 $ 64,825 Total Loans $ 2,475,328 $ 997,674 $ 354,135 $ 80,929 $ 26,535 $ 49,623 $ 3,486,648 $ 7,470,872 The Company did not have any material revolving loans converted to term loans at June 30, 2023 or December 31, 2022. 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, 2023 and December 31, 2022. June 30, 2023 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 1,201,932 $ 1,201,932 RES RE 40 236 1,364 1,640 1,340,946 1,342,586 MF FIN 9,332 — 41,335 50,667 3,695,666 3,746,333 HC FIN 14,500 — 21,783 36,283 2,092,095 2,128,378 CML & CRE 451 — 3,778 4,229 1,390,027 1,394,256 AG & AGRE — — — — 91,599 91,599 CON & MAR 11 — 38 49 11,871 11,920 $ 24,334 $ 236 $ 68,298 $ 92,868 $ 9,824,136 $ 9,917,004 December 31, 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 $ — $ — $ — $ — $ 464,785 $ 464,785 RES RE 4,053 152 272 4,477 1,173,924 1,178,401 MF FIN — — — — 3,135,535 3,135,535 HC FIN — — 21,783 21,783 1,582,558 1,604,341 CML & CRE 4,759 — 3,778 8,537 970,124 978,661 AG & AGRE 4,903 — — 4,903 90,748 95,651 CON & MAR 6 24 22 52 13,446 13,498 $ 13,721 $ 176 $ 25,855 $ 39,752 $ 7,431,120 $ 7,470,872 Nonperforming Loans Nonaccrual loans, including modified loans 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, 2023 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, 2023 and December 31, 2022. June 30, December 31, 2023 2022 Total Loans > Total Loans > 90 Days & 90 Days & Nonaccrual Accruing Nonaccrual Accruing (In thousands) RES RE $ 212 $ 1,152 $ 245 $ 96 MF FIN 41,335 — — — HC FIN 21,783 — 21,783 — CML & CRE 3,777 — 4,390 — AG & AGRE 147 — 147 — CON & MAR 5 34 6 16 $ 67,259 $ 1,186 $ 26,571 $ 112 The Company did not have any nonperforming loans without an estimated ACL at June 30, 2023. Modifications to Borrowers Experiencing Financial Difficulty The following table presents the amortized cost basis of loans at June 30, 2023 that were both experiencing financial difficulty and modified during the six months ended June 30, 2023, by class and by type of modification. There were no loans modified for borrowers experiencing financial difficulty during the three months ended June 30, 2023. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below: For the Six Months Ended June 30, 2023 Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Principal Forgiveness Combination Term Extension Interest Rate Reduction Total Class of Financing Receivable (In thousands) Commercial and commercial real estate $ — $ 3,778 $ — $ — $ — $ — — % Total $ — $ 3,778 $ — $ — $ — $ — — % The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last twelve months: 30 ‑ 59 Days 60 ‑ 89 Days Greater Than Total Past Due Past Due 90 Days Past Due (In thousands) Commercial and commercial real estate $ — $ — $ 3,778 $ 3,778 Total $ — $ — $ 3,778 $ 3,778 Foreclosures There were no residential loans in process of foreclosure as of June 30, 2023 and December 31, 2022. Loans Purchased The Company purchased $269.9 million and $92.5 million of loans during the six months ended June 30, 2023 and 2022, respectively.

Variable Interest Entities (VIE

Variable Interest Entities (VIEs)	6 Months Ended
Variable Interest Entities (VIEs)	Jun. 30, 2023
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. The Company also has deemed as a VIE, a real estate mortgage investment conduit (“REMIC”) trust that was established in conjunction with the September 2022 multi-family loan sale and securitization transaction. 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, 2023 the Company determined it was not the primary beneficiary for most 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 unconsolidated 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 VIEs at June 30, 2023 and December 31, 2022. Total Total Maximum Assets ($ in thousands) Assets Liabilities Exposure to Loss (In thousands) June 30, 2023 Unconsolidated VIEs $ 124,736 $ 82,262 $ 124,736 December 31, 2022 Unconsolidated VIEs $ 52,125 $ 25,564 $ 52,125 In addition to the table above, the Company also has a VIE in a REMIC trust that was established in September 2022 in conjunction with a loan sale and securitization. Although the trust is not recognized on the balance sheet, the maximum exposure to loss is the carrying value of the security acquired as part of the securitization transaction, which was

Regulatory Matters

Regulatory Matters	6 Months Ended
Regulatory Matters	Jun. 30, 2023
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. Quantitative measures established by regulation to ensure capital adequacy require the Company, Merchants Bank, and FMBI to maintain minimum amounts and ratios (set forth in the table below). Management believes, as of June 30, 2023 and December 31, 2022, that the Company, Merchants Bank, and FMBI met all capital adequacy requirements to which they were subject. As of June 30, 2023 and December 31, 2022, the most recent notifications from the Board of Governors of the Federal Reserve System (“Federal Reserve”) categorized the Company as well capitalized and most recent notifications from the Federal Deposit Insurance Corporation (“FDIC”) categorized Merchants Bank and FMBI as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Company’s, Merchants Bank’s, or FMBI’s category. The Company’s, Merchants Bank’s, and FMBI’s actual capital amounts and ratios are presented in the following tables. Minimum Minimum Amount Required Amount To Be for Adequately Well Actual Capitalized (1) Capitalized (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) June 30, 2023 Total capital (1) Company $ 1,625,223 11.3 % $ 1,148,948 8.0 % $ — N/A % Merchants Bank 1,563,433 11.1 % 1,127,989 8.0 % 1,409,986 10.0 FMBI 37,536 11.3 % 26,636 8.0 % 33,295 10.0 % Tier I capital (1) Company 1,549,763 10.8 % 861,711 6.0 % — N/A % Merchants Bank 1,488,730 10.6 % 845,992 6.0 % 1,127,989 8.0 FMBI 36,779 11.0 % 19,977 6.0 % 26,636 8.0 % Common Equity Tier I capital (1) Company 1,050,155 7.3 % 646,284 4.5 % — N/A % Merchants Bank 1,488,730 10.6 % 634,494 4.5 % 916,491 6.5 FMBI 36,779 11.0 % 14,983 4.5 % 21,642 6.5 % Tier I capital (1) Company 1,549,763 10.6 % 586,227 4.0 % — N/A % Merchants Bank 1,488,730 10.4 % 574,725 4.0 % 718,406 5.0 FMBI 36,779 10.6 % 13,823 4.0 % 17,279 5.0 % (1) As defined by regulatory agencies. Minimum Minimum Amount Required Amount To Be for Adequately Well Actual Capitalized (1) Capitalized (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2022 Total capital (1) Company $ 1,507,968 12.2 % $ 992,883 8.0 % $ — N/A % Merchants Bank 1,427,738 11.7 % 975,853 8.0 % 1,219,817 10.0 % FMBI 34,769 11.3 % 24,703 8.0 % 30,878 10.0 % Tier I capital (1) Company 1,452,456 11.7 % 744,662 6.0 % — N/A % Merchants Bank 1,372,941 11.3 % 731,890 6.0 % 975,853 8.0 % FMBI 34,054 11.0 % 18,527 6.0 % 24,703 8.0 % Common Equity Tier I capital (1) Company 952,848 7.7 % 558,497 4.5 % — N/A % Merchants Bank 1,372,941 11.3 % 548,917 4.5 % 792,881 6.5 % FMBI 34,054 11.0 % 13,895 4.5 % 20,071 6.5 % Tier I capital (1) Company 1,452,456 11.7 % 497,604 4.0 % — N/A % Merchants Bank 1,372,941 11.3 % 487,511 4.0 % 609,389 5.0 % FMBI 34,054 10.7 % 12,702 4.0 % 15,878 5.0 % (1) As defined by regulatory agencies.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
Derivative Financial Instruments	Jun. 30, 2023
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 fixed rate loans held for sale and the respective loan payments received from borrowers. All changes in the fair market value of these interest rate swaps and associated loans held for sale have been included in gain on sale of loans. Any difference between the fixed and floating interest rate components of these transactions have 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, 2023 and December 31, 2022. This table excludes the fair market value adjustment on loans associated with these derivatives. Notional Fair Value Amount Balance Sheet Location Asset Liability June 30, 2023 (In thousands) (In thousands) Interest rate lock commitments $ 24,216 Other assets/liabilities $ 94 $ 68 Forward contracts $ 27,125 Other assets/liabilities 111 7 Interest rate swaps $ 57,557 Other assets/liabilities 3,291 — $ 3,496 $ 75 Notional Fair Value Amount Balance Sheet Location Asset Liability December 31, 2022 (In thousands) (In thousands) Interest rate lock commitments $ 8,759 Other assets/liabilities $ 28 $ 23 Forward contracts $ 13,096 Other assets/liabilities 46 52 Interest rate swaps $ 57,574 Other assets/liabilities 3,030 — $ 3,104 $ 75 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, 2023 and 2022. Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In thousands) (In thousands) Derivative gain (loss) included in gain on sale of loans: Interest rate lock commitments $ (188) $ 837 $ 21 $ (45) Forward contracts (includes pair-off settlements) 376 1,309 280 4,459 Interest rates swaps 1,597 160 261 160 Net derivative gains (loss) $ 1,785 $ 2,306 $ 562 $ 4,574 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, 2023 $ 218,291 Other assets/liabilities $ 9,477 $ 9,477 December 31, 2022 $ 77,495 Other assets/liabilities $ 3,041 $ 3,041 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, 2023 2022 2023 2022 (In thousands) (In thousands) Gross swap gains $ 7,016 $ 2,035 $ 6,436 $ 2,531 Gross swap losses 7,016 2,035 6,436 2,531 Net swap gains (losses) $ — $ — $ — $ — The Company pledged $0 in collateral to secure its obligations under swap contracts at both June 30, 2023 and December 31, 2022.

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, 2023
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, 2023 and December 31, 2022: 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, 2023 Mortgage loans in process of securitization $ 298,907 $ — $ 298,907 $ — Securities available for sale: Treasury notes 157,935 157,935 — — Federal agencies 241,572 — 241,572 — Mortgage-backed - Government-sponsored entity (GSE) 248,496 — 248,496 — Loans held for sale 82,931 — 82,931 — Servicing rights 147,288 — — 147,288 Derivative assets - interest rate lock commitments 94 — — 94 Derivative assets - forward contracts 111 — 111 — Derivative assets - interest rate swaps 3,291 — 3,291 — Derivative assets - interest rate swaps (back-to-back) 9,477 — 9,477 — Derivative liabilities - interest rate lock commitments 68 — — 68 Derivative liabilities - forward contracts 7 — 7 — Derivative liabilities - interest rate swaps (back-to-back) 9,477 — 9,477 — December 31, 2022 Mortgage loans in process of securitization $ 154,194 $ — $ 154,194 $ — Securities available for sale: Treasury notes 36,280 36,280 — — Federal agencies 271,890 — 271,890 — Mortgage-backed - Government-sponsored entity (GSE) 15,167 — 15,167 — Loans held for sale 82,192 — 82,192 — Servicing rights 146,248 — — 146,248 Derivative assets - interest rate lock commitments 28 — — 28 Derivative assets - forward contracts 46 — 46 — Derivative assets - interest rate swaps 3,030 — 3,030 — Derivative assets - interest rate swaps (back-to-back) 3,041 — 3,041 — Derivative liabilities - interest rate lock commitments 23 — — 23 Derivative liabilities - forward contracts 52 — 52 — Derivative liabilities - interest rate swaps (back-to-back) 3,041 — 3,041 — 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, 2023 and the year ended December 31, 2022. 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 Securities Available for Sale 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 an independent pricing specialist to generate fair value estimates on a quarterly basis. The CFO’s office challenges the reasonableness of the assumptions used and reviews the methodology to ensure the estimated fair value complies with 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, 2023 2022 2023 2022 (In thousands) (In thousands) Servicing rights Balance, beginning of period $ 143,867 $ 121,036 $ 146,248 $ 110,348 Additions Originated servicing 2,124 5,203 4,297 10,995 Subtractions Paydowns (2,073) (3,268) (3,771) (6,017) Sales of servicing — — — — Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model 3,370 7,739 514 15,384 Balance, end of period $ 147,288 $ 130,710 $ 147,288 $ 130,710 Derivative Assets - interest rate lock commitments Balance, beginning of period $ 218 $ 112 $ 28 $ 264 Changes in fair value (124) 187 66 35 Balance, end of period $ 94 $ 299 $ 94 $ 299 Derivative Liabilities - interest rate lock commitments Balance, beginning of period $ 4 $ 771 $ 23 $ 41 Changes in fair value 64 (650) 45 80 Balance, end of period $ 68 $ 121 $ 68 $ 121 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, 2023 and December 31, 2022. Fair Value Measurements Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Fair Identical Assets Inputs Inputs Assets Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2023 Impaired loans (collateral-dependent) $ 40,839 $ — $ — $ 40,839 December 31, 2022 Impaired loans (collateral-dependent) $ 4,465 $ — $ — $ 4,465 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, 2023: Collateral dependent loans $ 40,839 Market comparable properties Marketability discount 0% - 23% 1% Servicing rights - Multi-family $ 111,756 Discounted cash flow Discount rate 8% - 13% 9% Constant prepayment rate 1% - 100% 7% Servicing rights - Single-family $ 30,466 Discounted cash flow Discount rate 9% - 10% 9% Constant prepayment rate 7% - 14% 7% Servicing rights - SBA $ 5,066 Discounted cash flow Discount rate 16% 16% Constant prepayment rate 3% - 16% 8% Derivative assets - interest rate lock commitments $ 94 Discounted cash flow Loan closing rates 50% - 99% 79% Derivative liabilities - interest rate lock commitments $ 68 Discounted cash flow Loan closing rates 50% - 99% 79% At December 31, 2022: Collateral dependent loans $ 4,465 Market comparable properties Marketability discount 4% - 54% 5% Servicing rights - Multi-family $ 111,690 Discounted cash flow Discount rate 8% - 13% 9% Constant prepayment rate 0 - 39% 8% Servicing rights - Single-family $ 29,926 Discounted cash flow Discount rate 9% - 10% 9% Constant prepayment rate 7% - 10% 7% Servicing rights - SBA $ 4,632 Discounted cash flow Discount rate 16% 16% Constant prepayment rate 3% - 12% 8% Derivative assets - interest rate lock commitments $ 28 Discounted cash flow Loan closing rates 60% - 87% 77% Derivative liabilities - interest rate lock commitments $ 23 Discounted cash flow Loan closing rates 60% - 87% 77% 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, 2023 and December 31, 2022. 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, 2023 Financial assets: Cash and cash equivalents $ 377,310 $ 377,310 $ 377,310 $ — $ — Securities purchased under agreements to resell 3,412 3,412 — 3,412 — Securities held to maturity 1,062,017 1,058,590 — 222,983 835,607 FHLB stock 39,130 39,130 — 39,130 — Loans held for sale 2,975,082 2,975,082 — 2,975,082 — Loans receivable, net 9,854,018 9,817,979 — — 9,817,979 Interest receivable 70,509 70,509 — 70,509 — Financial liabilities: Deposits 13,059,864 13,057,747 7,878,580 5,179,167 — Short-term subordinated debt 47,000 47,000 — 47,000 — FHLB advances 736,132 735,695 — 735,695 — Other borrowing 82,934 82,934 — 82,934 — Credit linked notes 150,770 151,720 — 151,720 — Interest payable 25,489 25,489 — 25,489 — December 31, 2022 Financial assets: Cash and cash equivalents $ 226,164 $ 226,164 $ 226,164 $ — $ — Securities purchased under agreements to resell 3,464 3,464 — 3,464 — Securities held to maturity 1,119,078 1,118,966 — 247,182 871,784 FHLB stock 39,130 39,130 — 39,130 — Loans held for sale 2,828,384 2,828,384 — 2,828,384 — Loans receivable, net 7,426,858 7,431,731 — — 7,431,731 Interest receivable 56,262 56,262 — 56,262 — Financial liabilities: Deposits 10,071,345 10,064,941 7,082,056 2,982,885 — Short-term subordinated debt 21,000 21,000 — 21,000 — FHLB advances 859,392 858,984 — 858,984 — Other borrowing 50,000 50,000 — 50,000 — Interest payable 23,384 23,384 — 23,384 —

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2023
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 $11.1 million and operating lease right-of-use liabilities of $12.3 million as of June 30, 2023. Balance sheet, income statement and cash flow detail regarding operating leases follows: June 30, 2023 December 31, 2022 Balance Sheet (In thousands) (In thousands) Operating lease right-of-of use asset (in other assets) $ 11,050 $ 10,969 Operating lease liability (in other liabilities) 12,326 11,992 Weighted average remaining lease term (years) 6.3 6.5 Weighted average discount rate 2.86% 2.65% Maturities of lease liabilities: One year or less $ 1,243 $ 2,181 Year two 2,441 2,321 Year three 2,064 1,881 Year four 2,100 1,911 Year five 2,046 1,853 Thereafter 3,566 2,902 Total future minimum lease payments 13,460 13,049 Less: imputed interest 1,134 1,057 Total $ 12,326 $ 11,992 Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 Income Statement (In thousands) (In thousands) Components of lease expense: Operating lease cost (in occupancy and equipment expense) $ 666 $ 425 Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 Income Statement (In thousands) (In thousands) Components of lease expense: Operating lease cost (in occupancy and equipment expense) $ 1,249 $ 792 Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 Cash Flow Statement (In thousands) (In thousands) Supplemental cash flow information: Operating cash flows from operating leases $ 886 $ 597

Deposits

Deposits	6 Months Ended
Deposits	Jun. 30, 2023
Deposits
Deposits	Note 10: Deposits Deposits were comprised of the following at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2023 2022 (In thousands) Noninterest-bearing deposits Demand deposits $ 349,387 $ 326,875 Total noninterest-bearing deposits 349,387 326,875 Interest-bearing deposits Demand deposits $ 4,583,080 $ 3,720,363 Savings deposits 2,946,113 3,034,818 Certificates of deposit 5,181,284 2,989,289 Total interest-bearing deposits 12,710,477 9,744,470 Total deposits $ 13,059,864 $ 10,071,345 Maturities for certificates of deposit are as follows: June 30, 2023 (In thousands) Due within one year $ 5,018,137 Due in one year to two years 117,566 Due in two years to three years 43,816 Due in three years to four years 1,016 Due in four years to five years 749 Due in five years to six years — $ 5,181,284 Brokered deposit amounts at June 30, 2023 and December 31, 2022, were as follows: June 30, December 31, 2023 2022 (In thousands) Brokered certificates of deposit $ 4,619,798 $ 2,681,198 Brokered savings deposits 6,243 81,532 Brokered deposit on demand accounts 125,108 13 $ 4,751,149 $ 2,762,743

Borrowings

Borrowings	6 Months Ended
Borrowings	Jun. 30, 2023
Borrowings
Borrowings	Note 11: Borrowings Borrowings were comprised of the following at June 30, 2023 and December 31, 2022: June 30, December 31, 2023 2022 (In thousands) Federal Reserve discount window borrowings $ 75,000 $ 20,000 Short-term subordinated debt 47,000 21,000 FHLB advances 736,132 859,392 American Financial Exchange borrowing — 30,000 Credit linked notes 150,770 — Other borrowings 7,934 — Total borrowings $ 1,016,836 $ 930,392 On March 30, 2023, Merchants Bank of Indiana issued and sold credit linked notes, due May 26, 2028. The notes are secured by a restricted collateral account which the Company is required to maintain with a third-party financial institution. The collateral account maintains an amount equal to at least the initial aggregate unpaid principal of the notes. As of June 30, 2023, the account included $35.3 million of restricted cash and the acquisition of $119.9 million in short-term Treasury securities. These are reported as cash equivalents and securities available for sale in the consolidated balance sheets. In April 2023, the Company entered into a warehouse financing arrangement, whereby a customer agreed to invest up to $45 million in the Company’s subordinated debt. The subordinated debt balance as of June 30, 2023 was $11.0 million. As of June 30, 2023, interest on the debt is paid quarterly by the Company at a rate equal to SOFR, plus 300 bps. The agreement matures on December 1, 2023, and automatically extends for one year unless 180 day notification is received from either party. During the three months ended June 30, 2023, the Company acquired a variable interest in an investment fund for which it is the primary beneficiary of, and the results are consolidated since the date of acquisition. The fund obtained a loan from an external party, and had a balance of $7.9 million as of June 30, 2023. Interest on the debt will accrue at the rate of 1.00% per year until it matures in 2047.

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2023
Earnings Per Share
Earnings Per Share	Note 12: Earnings Per Share Earnings per share were computed as follows: Three Month Periods Ended June 30, 2023 2022 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 65,302 $ 53,935 Dividends on preferred stock (8,668) (5,729) Net income allocated to common shareholders $ 56,634 $ 48,206 Basic earnings per share 43,235,398 $ 1.31 43,209,824 $ 1.12 Effect of dilutive securities-restricted stock awards 73,995 125,387 Diluted earnings per share 43,309,393 $ 1.31 43,335,211 $ 1.11 Six Month Periods Ended June 30, 2023 2022 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 120,257 $ 104,077 Dividends on preferred stock (17,335) (11,457) Net income allocated to common shareholders $ 102,922 $ 92,620 Basic earnings per share 43,207,655 $ 2.38 43,220,198 $ 2.14 Effect of dilutive securities-restricted stock awards 92,585 147,677 Diluted earnings per share 43,300,240 $ 2.38 43,367,875 $ 2.14

Share-Based Payment Plans

Share-Based Payment Plans	6 Months Ended
Share-Based Payment Plans	Jun. 30, 2023
Share-Based Payment Plans
Share-Based Payment Plans	Note 13: 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, 2023 and 2022, the Company did no t issue any shares. During the six months ended June 30, 2023 and 2022, 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 six months ended June 30, 2023 and 2022, respectively. The Company established an employee stock ownership plan (“ESOP”) effective as of January 1, 2020 to provide certain benefits for all employees who meet certain requirements. There was no expense recognized for the contribution to the ESOP during the three months ended June 30, 2023 and 2022. Expense recognized for the contribution to the ESOP totaled $810,000 and $653,000 for the six months ended June 30, 2023 and 2022, respectively. The Company contributed 33,293 shares and 20,709 shares to the ESOP for the six months ended June 30, 2023 and 2022, respectively.

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2023
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. It is also a fully integrated syndicator of low-income housing tax credit and debt funds. The Mortgage Warehousing segment funds agency eligible residential loans from the date of origination or purchase, until the date of sale in the secondary market, as well as commercial loans to non-depository financial institutions. The Banking segment provides a wide range of financial products and services to consumers and businesses, including retail banking, commercial lending, agricultural lending, retail and correspondent residential mortgage banking, and 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, 2023 and 2022. Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total Three Months Ended June 30, 2023 (In thousands) Interest income $ 1,248 $ 64,267 $ 191,406 $ 1,148 $ 258,069 Interest expense 13 42,984 111,311 (1,856) 152,452 Net interest income 1,235 21,283 80,095 3,004 105,617 Provision for credit losses — 2,320 20,283 — 22,603 Net interest income after provision for credit losses 1,235 18,963 59,812 3,004 83,014 Noninterest income 30,325 2,872 (760) (2,555) 29,882 Noninterest expense 19,962 3,617 12,118 8,623 44,320 Income (loss) before income taxes 11,598 18,218 46,934 (8,174) 68,576 Income taxes 356 (378) 4,284 (988) 3,274 Net income (loss) $ 11,242 $ 18,596 $ 42,650 $ (7,186) $ 65,302 Total assets $ 373,680 $ 4,474,832 $ 10,784,596 $ 241,764 $ 15,874,872 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total Three Months Ended June 30, 2022 (In thousands) 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 (loss) 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) Six Months Ended June 30, 2023 Interest income $ 2,354 $ 106,585 358,132 $ 2,292 $ 469,363 Interest expense 13 70,778 195,837 (3,575) 263,053 Net interest income 2,341 35,807 162,295 5,867 206,310 Provision for credit losses — 3,684 25,786 — 29,470 Net interest income after provision for credit losses 2,341 32,123 136,509 5,867 176,840 Noninterest income 46,922 3,905 (1,949) (4,732) 44,146 Noninterest expense 34,593 6,372 22,288 15,839 79,092 Income (loss) before income taxes 14,670 29,656 112,272 (14,704) 141,894 Income taxes 1,462 2,419 20,315 (2,559) 21,637 Net income (loss) $ 13,208 $ 27,237 $ 91,957 $ (12,145) $ 120,257 Total assets $ 373,680 $ 4,474,832 $ 10,784,596 $ 241,764 $ 15,874,872 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 (loss) 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 (loss) $ 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

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Jun. 30, 2023
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 15: Recent Accounting Pronouncements The Company continually monitors potential accounting pronouncement and SEC release changes. No new pronouncements or releases are expected to be applicable to the Company.

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2023
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, 2023
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, 2022, which has been derived from audited financial statements, and unaudited condensed consolidated financial statements of the Company as of June 30, 2023 and for the three and six months ended June 30, 2023 and 2022, 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, 2022 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, 2023 and the results of operations for the three and six months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 2023 and 2022. All interim amounts have not been audited and the results of operations for the three and six months ended June 30, 2023, 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, 2023 and 2022 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 or has a relationship with 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 the Company’s involvement with the entity are evaluated. Alternatively, under the voting interest model, it would only consolidate those entities for which it has a controlling interest. During the three months ended June 30, 2023, the Company acquired a variable interest in an investment fund for which it is the primary beneficiary of, and its results have been consolidated since the date of acquisition. Additionally, the Company has certain variable interest investments that were not deemed to be primary beneficiaries as of June 30, 2023. These VIEs are not consolidated and the equity or cost method of accounting has been applied. The Company will analyze whether the primary beneficiary designation has changed through triggering events on a prospective basis. Changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment. See Note 5: Variable Interest Entities (VIEs) for additional information about VIEs. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of 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	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. 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. 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.
Restricted Cash	Restricted Cash Included in cash equivalents is an account restricted as collateral for the potential risk of loss on senior credit linked notes issued by the Company in March 2023. As of June 30, 2023, there was $35.3 million in restricted cash. Also see Note 11: Borrowings.
Reclassifications	Reclassifications Certain reclassifications may have been made to the 2022 financial statements to conform to the financial statement presentation as of and for the three and six months ended June 30, 2023. These reclassifications had no effect on net income.

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
Investment Securities (Tables)	Jun. 30, 2023
Investment Securities
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses	June 30, 2023 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available for sale: Treasury notes $ 158,741 $ 43 $ 849 $ 157,935 Federal agencies 249,994 — 8,422 241,572 Mortgage-backed - Government-sponsored entity (GSE) 248,497 6 7 248,496 Total securities available for sale $ 657,232 $ 49 $ 9,278 $ 648,003 Securities held to maturity: Mortgage-backed - Non-GSE multi-family $ 835,649 $ — $ 42 $ 835,607 Mortgage-backed - Non-GSE residential 222,119 — 3,075 219,044 Mortgage-backed - Government - sponsored entity (GSE) 4,249 — 310 3,939 Total securities held to maturity $ 1,062,017 $ — $ 3,427 $ 1,058,590 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available for sale: Treasury notes $ 37,234 $ 1 $ 955 $ 36,280 Federal agencies 284,986 — 13,096 271,890 Mortgage-backed - Government-sponsored entity (GSE) 15,167 7 7 15,167 Total securities available for sale $ 337,387 $ 8 $ 14,058 $ 323,337 Securities held to maturity: Mortgage-backed - Non-GSE multi-family $ 871,772 $ 12 $ — $ 871,784 Mortgage-backed - Non-GSE residential 247,306 — 124 247,182 Total securities held to maturity $ 1,119,078 $ 12 $ 124 $ 1,118,966
Schedule of amortized cost and fair value of available-for-sale securities and held to maturity securities by contractual maturity	June 30, 2023 December 31, 2022 Amortized Fair Amortized Fair Cost Value Cost Value Securities available for sale: (In thousands) Within one year $ 321,992 $ 316,487 $ 118,984 $ 115,386 After one through five years 86,743 83,020 203,236 192,784 408,735 399,507 322,220 308,170 Mortgage-backed - Government-sponsored entity (GSE) 248,497 248,496 15,167 15,167 $ 657,232 $ 648,003 $ 337,387 $ 323,337 Securities held to maturity: Mortgage-backed - Non-GSE multi-family $ 835,649 $ 835,607 $ 871,772 $ 871,784 Mortgage-backed - Non-GSE residential 222,119 219,044 — — Mortgage-backed - Government - sponsored entity (GSE) 4,249 3,939 247,306 247,182 $ 1,062,017 $ 1,058,590 $ 1,119,078 $ 1,118,966
Schedule of gross unrealized losses and fair value of investments with unrealized losses have been in continuous	June 30, 2023 12 Months or Less than 12 Months Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (In thousands) Securities available for sale: Treasury notes $ 7,645 $ 101 $ 30,185 $ 748 $ 37,830 $ 849 Federal agencies 14,854 146 226,718 8,276 241,572 8,422 Mortgage-backed - Government-sponsored entity (GSE) 444 3 191 4 635 7 $ 22,943 $ 250 $ 257,094 $ 9,028 $ 280,037 $ 9,278 Securities held to maturity: Mortgage-backed - Non-GSE multi-family $ 835,607 $ 42 $ — $ — $ 835,607 $ 42 Mortgage-backed - Non-GSE residential 219,044 3,075 — — 219,044 3,075 Mortgage-backed - Government - sponsored entity (GSE) 3,939 310 — — 3,939 310 $ 1,058,590 $ 3,427 $ — $ — $ 1,058,590 $ 3,427 December 31, 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) Securities available for sale: Treasury notes $ 29,560 $ 762 $ 5,798 $ 193 $ 35,358 $ 955 Federal agencies 19,276 724 252,613 12,372 271,889 13,096 Mortgage-backed - Government-sponsored entity (GSE) 709 7 — — 709 7 $ 49,545 $ 1,493 $ 258,411 $ 12,565 $ 307,956 $ 14,058 Securities held to maturity: Mortgage-backed - Non-GSE residential 247,182 124 — — 247,182 124 $ 247,182 $ 124 $ — $ — $ 247,182 $ 124

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, 2023
Loans and Allowance for Credit Losses on Loans
Summary of loans	June 30, December 31, 2023 2022 (In thousands) Mortgage warehouse lines of credit $ 1,201,932 $ 464,785 Residential real estate 1,342,586 1,178,401 Multi-family financing 3,746,333 3,135,535 Healthcare financing 2,128,378 1,604,341 Commercial and commercial real estate(1)(2) 1,394,256 978,661 Agricultural production and real estate 91,599 95,651 Consumer and margin loans 11,920 13,498 9,917,004 7,470,872 Less: ACL-Loans 62,986 44,014 Loans Receivable $ 9,854,018 $ 7,426,858 (1) Includes $894.7 million and $497.0 million of revolving lines of credit collateralized primarily by mortgage servicing rights as of June 30, 2023 and December 31, 2022, respectively. (2) Includes only $8.3 million and $12.8 million of non-owner occupied commercial real estate as of June 30, 2023 and December 31, 2022, respectively.
Schedule of allowance for credit loss on loan methodology by loan portfolio segment	Loan Portfolio Segment ACL-Loans Methodology Mortgage warehouse lines of credit Remaining Life Method Residential real estate loans Discounted Cash Flow Multi-family financing Discounted Cash Flow Healthcare financing Discounted Cash Flow Commercial and commercial real estate Discounted Cash Flow Agricultural production and real estate Remaining Life Method Consumer and margin loans Remaining Life Method
Summary of the activity in the ACL-Loans by portfolio segment	For the Three Months Ended June 30, 2023 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) ACL-Loans Balance, beginning of period $ 1,664 $ 7,378 $ 19,851 $ 11,753 $ 10,482 $ 543 $ 167 $ 51,838 Provision for credit losses 1,697 48 13,250 4,370 1,329 13 (29) 20,678 Loans charged to the allowance — (13) (8,400) — (1,118) — (1) (9,532) Recoveries of loans previously charged-off — — — — 2 — — 2 Balance, end of period $ 3,361 $ 7,413 $ 24,701 $ 16,123 $ 10,695 $ 556 $ 137 $ 62,986 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 The Company recorded a total provision for credit losses of $22.6 million for the three months ended June 30, 2023. The $22.6 million total provision for credit losses consisted of $20.7 million for the ACL-Loans as shown above and $1.9 million for the ACL-OBCE’s. The Company recorded a total provision for credit losses of $6.2 million for the three months ended June 30, 2022. The $6.2 million total provision for credit losses consisted of $4.8 million for the ACL-Loans as shown above, $0.2 million for the ACL-OBCE’s and $1.2 million for ACL-Guarantees. For the Six Months Ended June 30, 2023 MTG WHLOC RES RE MF FIN HC FIN CML & CRE AG & AGRE CON & MAR TOTAL (In thousands) ACL-Loans Balance, beginning of period $ 1,249 $ 7,029 $ 16,781 $ 9,882 $ 8,326 $ 565 $ 182 $ 44,014 Provision for credit losses 2,112 397 16,320 6,241 3,478 (9) (44) 28,495 Loans charged to the allowance — (13) (8,400) — (1,118) — (1) (9,532) Recoveries of loans previously charged-off — — — — 9 — — 9 Balance, end of period $ 3,361 $ 7,413 $ 24,701 $ 16,123 $ 10,695 $ 556 $ 137 $ 62,986 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 loans and recorded investment by loan portfolio	December 31, 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 (747) 2,588 2,177 5,282 4,216 (74) 31 13,473 Loans charged to the allowance — (4) — — (1,238) — (15) (1,257) Recoveries of loans previously charged-off — — — — 746 — 7 753 Balance, end of period $ 1,249 $ 7,029 $ 16,781 $ 9,882 $ 8,326 $ 565 $ 182 $ 44,014
Schedule of allowance for credit loss allocated to collateral dependent loans	June 30, 2023 Real Estate Accounts Receivable / Equipment Other Total ACL-Loans Allocation (In thousands) RES RE $ 209 $ — $ 3 $ 212 $ 36 MF FIN 41,335 — — 41,335 234 HC FIN 30,683 — — 30,683 2,348 CML & CRE — 3,830 3,294 7,124 1,145 AG & AGRE 147 — — 147 1 CON & MAR — — 5 5 — Total collateral dependent loans $ 72,374 $ 3,830 $ 3,302 $ 79,506 $ 3,764
Schedule of credit risk profile of loan portfolio	As of June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans TOTAL (In thousands) MTG WHLOC Pass $ — $ — $ — $ — $ — $ — $ 1,201,932 $ 1,201,932 Total $ — $ — $ — $ — $ — $ — $ 1,201,932 $ 1,201,932 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — RES RE Pass 10,295 11,246 8,469 23,210 3,349 11,801 1,273,551 1,341,921 Special Mention (Watch) — — — — 60 393 — 453 Substandard — — — — — 212 — 212 Total $ 10,295 $ 11,246 $ 8,469 $ 23,210 $ 3,409 $ 12,406 $ 1,273,551 $ 1,342,586 Charge-offs $ — $ — $ — $ — $ — $ — $ 13 $ 13 MF FIN Pass 770,580 1,001,864 391,935 98,073 30,073 9,467 1,330,469 3,632,461 Special Mention (Watch) 13,102 21,512 3,404 8,000 — 1,491 25,028 72,537 Substandard — 28,360 12,975 — — — — 41,335 Total $ 783,682 $ 1,051,736 $ 408,314 $ 106,073 $ 30,073 $ 10,958 $ 1,355,497 $ 3,746,333 Charge-offs $ — $ 8,400 $ — $ — $ — $ — $ — $ 8,400 HC FIN Pass 334,477 1,079,976 236,816 69,827 14,769 — 251,640 1,987,505 Special Mention (Watch) 25,600 48,694 35,896 — — — — 110,190 Substandard — — 21,783 — — — 8,900 30,683 Total $ 360,077 $ 1,128,670 $ 294,495 $ 69,827 $ 14,769 $ — $ 260,540 $ 2,128,378 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — CML & CRE Pass 22,265 121,938 75,570 22,578 21,566 18,928 1,099,039 1,381,884 Special Mention (Watch) 16 39 4,510 173 153 334 23 5,248 Substandard — — 2,018 933 67 52 4,054 7,124 Total $ 22,281 $ 121,977 $ 82,098 $ 23,684 $ 21,786 $ 19,314 $ 1,103,116 $ 1,394,256 Charge-offs $ — $ 496 $ 36 $ 586 $ — $ — $ — $ 1,118 AG & AGRE Pass 7,377 10,845 6,664 14,699 5,468 18,769 27,570 91,392 Special Mention (Watch) — 11 49 — — — — 60 Substandard — — — — — 147 — 147 Total $ 7,377 $ 10,856 $ 6,713 $ 14,699 $ 5,468 $ 18,916 $ 27,570 $ 91,599 Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — CON & MAR Pass 346 4,502 349 155 37 4,451 2,041 11,881 Special Mention (Watch) — — — 18 15 1 — 34 Substandard — — — — — 5 — 5 Total $ 346 $ 4,502 $ 349 $ 173 $ 52 $ 4,457 $ 2,041 $ 11,920 Charge-offs $ — $ — $ — $ — $ — $ 1 $ — $ 1 Total Pass $ 1,145,340 $ 2,230,371 $ 719,803 $ 228,542 $ 75,262 $ 63,416 $ 5,186,242 $ 9,648,976 Total Special Mention (Watch) $ 38,718 $ 70,256 $ 43,859 $ 8,191 $ 228 $ 2,219 $ 25,051 $ 188,522 Total Substandard $ — $ 28,360 $ 36,776 $ 933 $ 67 $ 416 $ 12,954 $ 79,506 Total Loans $ 1,184,058 $ 2,328,987 $ 800,438 $ 237,666 $ 75,557 $ 66,051 $ 5,224,247 $ 9,917,004 Total Charge-offs $ — $ 8,896 $ 36 $ 586 $ — $ 1 $ 13 $ 9,532 December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans TOTAL (In thousands) MTG WHLOC Pass $ — $ — $ — $ — $ — $ — $ 464,785 $ 464,785 Total $ — $ — $ — $ — $ — $ — $ 464,785 $ 464,785 RES RE Pass 13,344 8,192 24,708 3,498 1,722 11,166 1,114,705 1,177,335 Special Mention (Watch) — — — 61 — 668 91 820 Substandard — — — — 74 172 — 246 Total $ 13,344 $ 8,192 $ 24,708 $ 3,559 $ 1,796 $ 12,006 $ 1,114,796 $ 1,178,401 MF FIN Pass 1,212,008 544,823 200,829 32,349 4,416 7,229 1,042,024 3,043,678 Special Mention (Watch) 32,919 — 8,000 — — — 14,178 55,097 Substandard 36,760 — — — — — — 36,760 Total $ 1,281,687 $ 544,823 $ 208,829 $ 32,349 $ 4,416 $ 7,229 $ 1,056,202 $ 3,135,535 HC FIN Pass 987,676 301,103 78,792 13,770 — — 123,888 1,505,229 Special Mention (Watch) 52,022 25,307 — — — — — 77,329 Substandard — 21,783 — — — — — 21,783 Total $ 1,039,698 $ 348,193 $ 78,792 $ 13,770 $ — $ — $ 123,888 $ 1,604,341 CML & CRE Pass 123,757 86,282 23,803 24,730 12,335 8,765 690,114 969,786 Special Mention (Watch) 43 164 963 119 99 228 1,376 2,992 Substandard — 2,017 591 72 — 666 2,537 5,883 Total $ 123,800 $ 88,463 $ 25,357 $ 24,921 $ 12,434 $ 9,659 $ 694,027 $ 978,661 AG & AGRE Pass 12,112 7,485 15,660 5,808 3,137 20,176 29,566 93,944 Special Mention (Watch) 14 55 462 421 163 389 56 1,560 Substandard — — — — — 147 — 147 Total $ 12,126 $ 7,540 $ 16,122 $ 6,229 $ 3,300 $ 20,712 $ 29,622 $ 95,651 CON & MAR Pass 4,673 463 307 101 4,589 9 3,328 13,470 Special Mention (Watch) — — 20 — — 2 — 22 Substandard — — — — — 6 — 6 Total $ 4,673 $ 463 $ 327 $ 101 $ 4,589 $ 17 $ 3,328 $ 13,498 Total Pass $ 2,353,570 $ 948,348 $ 344,099 $ 80,256 $ 26,199 $ 47,345 $ 3,468,410 $ 7,268,227 Total Special Mention (Watch) $ 84,998 $ 25,526 $ 9,445 $ 601 $ 262 $ 1,287 $ 15,701 $ 137,820 Total Substandard $ 36,760 $ 23,800 $ 591 $ 72 $ 74 $ 991 $ 2,537 $ 64,825 Total Loans $ 2,475,328 $ 997,674 $ 354,135 $ 80,929 $ 26,535 $ 49,623 $ 3,486,648 $ 7,470,872
Schedule of aging analysis of the recorded investment in loans	June 30, 2023 30-59 Days 60-89 Days Greater Than Total Total Past Due Past Due 90 Days Past Due Current Loans (In thousands) MTG WHLOC $ — $ — $ — $ — $ 1,201,932 $ 1,201,932 RES RE 40 236 1,364 1,640 1,340,946 1,342,586 MF FIN 9,332 — 41,335 50,667 3,695,666 3,746,333 HC FIN 14,500 — 21,783 36,283 2,092,095 2,128,378 CML & CRE 451 — 3,778 4,229 1,390,027 1,394,256 AG & AGRE — — — — 91,599 91,599 CON & MAR 11 — 38 49 11,871 11,920 $ 24,334 $ 236 $ 68,298 $ 92,868 $ 9,824,136 $ 9,917,004 December 31, 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 $ — $ — $ — $ — $ 464,785 $ 464,785 RES RE 4,053 152 272 4,477 1,173,924 1,178,401 MF FIN — — — — 3,135,535 3,135,535 HC FIN — — 21,783 21,783 1,582,558 1,604,341 CML & CRE 4,759 — 3,778 8,537 970,124 978,661 AG & AGRE 4,903 — — 4,903 90,748 95,651 CON & MAR 6 24 22 52 13,446 13,498 $ 13,721 $ 176 $ 25,855 $ 39,752 $ 7,431,120 $ 7,470,872
Schedule of nonaccrual loans and loans past due 90 days or more and still accruing	June 30, December 31, 2023 2022 Total Loans > Total Loans > 90 Days & 90 Days & Nonaccrual Accruing Nonaccrual Accruing (In thousands) RES RE $ 212 $ 1,152 $ 245 $ 96 MF FIN 41,335 — — — HC FIN 21,783 — 21,783 — CML & CRE 3,777 — 4,390 — AG & AGRE 147 — 147 — CON & MAR 5 34 6 16 $ 67,259 $ 1,186 $ 26,571 $ 112
Schedule of company's modified loans	For the Six Months Ended June 30, 2023 Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Principal Forgiveness Combination Term Extension Interest Rate Reduction Total Class of Financing Receivable (In thousands) Commercial and commercial real estate $ — $ 3,778 $ — $ — $ — $ — — % Total $ — $ 3,778 $ — $ — $ — $ — — % The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last twelve months: 30 ‑ 59 Days 60 ‑ 89 Days Greater Than Total Past Due Past Due 90 Days Past Due (In thousands) Commercial and commercial real estate $ — $ — $ 3,778 $ 3,778 Total $ — $ — $ 3,778 $ 3,778

Variable Interest Entities (V_2

Variable Interest Entities (VIEs) (Tables)	6 Months Ended
Variable Interest Entities (VIEs) (Tables)	Jun. 30, 2023
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, 2023 Unconsolidated VIEs $ 124,736 $ 82,262 $ 124,736 December 31, 2022 Unconsolidated VIEs $ 52,125 $ 25,564 $ 52,125

Regulatory Matters (Tables)

Regulatory Matters (Tables)	6 Months Ended
Regulatory Matters (Tables)	Jun. 30, 2023
Regulatory Matters
Summary of bank's actual capital amounts and ratios	Minimum Minimum Amount Required Amount To Be for Adequately Well Actual Capitalized (1) Capitalized (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) June 30, 2023 Total capital (1) Company $ 1,625,223 11.3 % $ 1,148,948 8.0 % $ — N/A % Merchants Bank 1,563,433 11.1 % 1,127,989 8.0 % 1,409,986 10.0 FMBI 37,536 11.3 % 26,636 8.0 % 33,295 10.0 % Tier I capital (1) Company 1,549,763 10.8 % 861,711 6.0 % — N/A % Merchants Bank 1,488,730 10.6 % 845,992 6.0 % 1,127,989 8.0 FMBI 36,779 11.0 % 19,977 6.0 % 26,636 8.0 % Common Equity Tier I capital (1) Company 1,050,155 7.3 % 646,284 4.5 % — N/A % Merchants Bank 1,488,730 10.6 % 634,494 4.5 % 916,491 6.5 FMBI 36,779 11.0 % 14,983 4.5 % 21,642 6.5 % Tier I capital (1) Company 1,549,763 10.6 % 586,227 4.0 % — N/A % Merchants Bank 1,488,730 10.4 % 574,725 4.0 % 718,406 5.0 FMBI 36,779 10.6 % 13,823 4.0 % 17,279 5.0 % (1) As defined by regulatory agencies. Minimum Minimum Amount Required Amount To Be for Adequately Well Actual Capitalized (1) Capitalized (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2022 Total capital (1) Company $ 1,507,968 12.2 % $ 992,883 8.0 % $ — N/A % Merchants Bank 1,427,738 11.7 % 975,853 8.0 % 1,219,817 10.0 % FMBI 34,769 11.3 % 24,703 8.0 % 30,878 10.0 % Tier I capital (1) Company 1,452,456 11.7 % 744,662 6.0 % — N/A % Merchants Bank 1,372,941 11.3 % 731,890 6.0 % 975,853 8.0 % FMBI 34,054 11.0 % 18,527 6.0 % 24,703 8.0 % Common Equity Tier I capital (1) Company 952,848 7.7 % 558,497 4.5 % — N/A % Merchants Bank 1,372,941 11.3 % 548,917 4.5 % 792,881 6.5 % FMBI 34,054 11.0 % 13,895 4.5 % 20,071 6.5 % Tier I capital (1) Company 1,452,456 11.7 % 497,604 4.0 % — N/A % Merchants Bank 1,372,941 11.3 % 487,511 4.0 % 609,389 5.0 % FMBI 34,054 10.7 % 12,702 4.0 % 15,878 5.0 % (1) As defined by regulatory agencies.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
Derivative Financial Instruments (Tables)	Jun. 30, 2023
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, 2023 (In thousands) (In thousands) Interest rate lock commitments $ 24,216 Other assets/liabilities $ 94 $ 68 Forward contracts $ 27,125 Other assets/liabilities 111 7 Interest rate swaps $ 57,557 Other assets/liabilities 3,291 — $ 3,496 $ 75 Notional Fair Value Amount Balance Sheet Location Asset Liability December 31, 2022 (In thousands) (In thousands) Interest rate lock commitments $ 8,759 Other assets/liabilities $ 28 $ 23 Forward contracts $ 13,096 Other assets/liabilities 46 52 Interest rate swaps $ 57,574 Other assets/liabilities 3,030 — $ 3,104 $ 75
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, 2023 2022 2023 2022 (In thousands) (In thousands) Derivative gain (loss) included in gain on sale of loans: Interest rate lock commitments $ (188) $ 837 $ 21 $ (45) Forward contracts (includes pair-off settlements) 376 1,309 280 4,459 Interest rates swaps 1,597 160 261 160 Net derivative gains (loss) $ 1,785 $ 2,306 $ 562 $ 4,574
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, 2023 $ 218,291 Other assets/liabilities $ 9,477 $ 9,477 December 31, 2022 $ 77,495 Other assets/liabilities $ 3,041 $ 3,041
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, 2023 2022 2023 2022 (In thousands) (In thousands) Gross swap gains $ 7,016 $ 2,035 $ 6,436 $ 2,531 Gross swap losses 7,016 2,035 6,436 2,531 Net swap gains (losses) $ — $ — $ — $ —

Disclosures about Fair Value _2

Disclosures about Fair Value of Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
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, 2023 Mortgage loans in process of securitization $ 298,907 $ — $ 298,907 $ — Securities available for sale: Treasury notes 157,935 157,935 — — Federal agencies 241,572 — 241,572 — Mortgage-backed - Government-sponsored entity (GSE) 248,496 — 248,496 — Loans held for sale 82,931 — 82,931 — Servicing rights 147,288 — — 147,288 Derivative assets - interest rate lock commitments 94 — — 94 Derivative assets - forward contracts 111 — 111 — Derivative assets - interest rate swaps 3,291 — 3,291 — Derivative assets - interest rate swaps (back-to-back) 9,477 — 9,477 — Derivative liabilities - interest rate lock commitments 68 — — 68 Derivative liabilities - forward contracts 7 — 7 — Derivative liabilities - interest rate swaps (back-to-back) 9,477 — 9,477 — December 31, 2022 Mortgage loans in process of securitization $ 154,194 $ — $ 154,194 $ — Securities available for sale: Treasury notes 36,280 36,280 — — Federal agencies 271,890 — 271,890 — Mortgage-backed - Government-sponsored entity (GSE) 15,167 — 15,167 — Loans held for sale 82,192 — 82,192 — Servicing rights 146,248 — — 146,248 Derivative assets - interest rate lock commitments 28 — — 28 Derivative assets - forward contracts 46 — 46 — Derivative assets - interest rate swaps 3,030 — 3,030 — Derivative assets - interest rate swaps (back-to-back) 3,041 — 3,041 — Derivative liabilities - interest rate lock commitments 23 — — 23 Derivative liabilities - forward contracts 52 — 52 — Derivative liabilities - interest rate swaps (back-to-back) 3,041 — 3,041 —
Schedule of Level 3 reconciliation of recurring fair value measurements	Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) (In thousands) Servicing rights Balance, beginning of period $ 143,867 $ 121,036 $ 146,248 $ 110,348 Additions Originated servicing 2,124 5,203 4,297 10,995 Subtractions Paydowns (2,073) (3,268) (3,771) (6,017) Sales of servicing — — — — Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model 3,370 7,739 514 15,384 Balance, end of period $ 147,288 $ 130,710 $ 147,288 $ 130,710 Derivative Assets - interest rate lock commitments Balance, beginning of period $ 218 $ 112 $ 28 $ 264 Changes in fair value (124) 187 66 35 Balance, end of period $ 94 $ 299 $ 94 $ 299 Derivative Liabilities - interest rate lock commitments Balance, beginning of period $ 4 $ 771 $ 23 $ 41 Changes in fair value 64 (650) 45 80 Balance, end of period $ 68 $ 121 $ 68 $ 121
Schedule of fair value measurement of assets and liabilities measured at fair value on nonrecurring basis	Fair Value Measurements Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Fair Identical Assets Inputs Inputs Assets Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2023 Impaired loans (collateral-dependent) $ 40,839 $ — $ — $ 40,839 December 31, 2022 Impaired loans (collateral-dependent) $ 4,465 $ — $ — $ 4,465
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, 2023: Collateral dependent loans $ 40,839 Market comparable properties Marketability discount 0% - 23% 1% Servicing rights - Multi-family $ 111,756 Discounted cash flow Discount rate 8% - 13% 9% Constant prepayment rate 1% - 100% 7% Servicing rights - Single-family $ 30,466 Discounted cash flow Discount rate 9% - 10% 9% Constant prepayment rate 7% - 14% 7% Servicing rights - SBA $ 5,066 Discounted cash flow Discount rate 16% 16% Constant prepayment rate 3% - 16% 8% Derivative assets - interest rate lock commitments $ 94 Discounted cash flow Loan closing rates 50% - 99% 79% Derivative liabilities - interest rate lock commitments $ 68 Discounted cash flow Loan closing rates 50% - 99% 79% At December 31, 2022: Collateral dependent loans $ 4,465 Market comparable properties Marketability discount 4% - 54% 5% Servicing rights - Multi-family $ 111,690 Discounted cash flow Discount rate 8% - 13% 9% Constant prepayment rate 0 - 39% 8% Servicing rights - Single-family $ 29,926 Discounted cash flow Discount rate 9% - 10% 9% Constant prepayment rate 7% - 10% 7% Servicing rights - SBA $ 4,632 Discounted cash flow Discount rate 16% 16% Constant prepayment rate 3% - 12% 8% Derivative assets - interest rate lock commitments $ 28 Discounted cash flow Loan closing rates 60% - 87% 77% Derivative liabilities - interest rate lock commitments $ 23 Discounted cash flow Loan closing rates 60% - 87% 77%
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, 2023 Financial assets: Cash and cash equivalents $ 377,310 $ 377,310 $ 377,310 $ — $ — Securities purchased under agreements to resell 3,412 3,412 — 3,412 — Securities held to maturity 1,062,017 1,058,590 — 222,983 835,607 FHLB stock 39,130 39,130 — 39,130 — Loans held for sale 2,975,082 2,975,082 — 2,975,082 — Loans receivable, net 9,854,018 9,817,979 — — 9,817,979 Interest receivable 70,509 70,509 — 70,509 — Financial liabilities: Deposits 13,059,864 13,057,747 7,878,580 5,179,167 — Short-term subordinated debt 47,000 47,000 — 47,000 — FHLB advances 736,132 735,695 — 735,695 — Other borrowing 82,934 82,934 — 82,934 — Credit linked notes 150,770 151,720 — 151,720 — Interest payable 25,489 25,489 — 25,489 — December 31, 2022 Financial assets: Cash and cash equivalents $ 226,164 $ 226,164 $ 226,164 $ — $ — Securities purchased under agreements to resell 3,464 3,464 — 3,464 — Securities held to maturity 1,119,078 1,118,966 — 247,182 871,784 FHLB stock 39,130 39,130 — 39,130 — Loans held for sale 2,828,384 2,828,384 — 2,828,384 — Loans receivable, net 7,426,858 7,431,731 — — 7,431,731 Interest receivable 56,262 56,262 — 56,262 — Financial liabilities: Deposits 10,071,345 10,064,941 7,082,056 2,982,885 — Short-term subordinated debt 21,000 21,000 — 21,000 — FHLB advances 859,392 858,984 — 858,984 — Other borrowing 50,000 50,000 — 50,000 — Interest payable 23,384 23,384 — 23,384 —

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2023
Leases.
Schedule of balance sheet, income statement and cash flow detail regarding operating leases	June 30, 2023 December 31, 2022 Balance Sheet (In thousands) (In thousands) Operating lease right-of-of use asset (in other assets) $ 11,050 $ 10,969 Operating lease liability (in other liabilities) 12,326 11,992 Weighted average remaining lease term (years) 6.3 6.5 Weighted average discount rate 2.86% 2.65% Maturities of lease liabilities: One year or less $ 1,243 $ 2,181 Year two 2,441 2,321 Year three 2,064 1,881 Year four 2,100 1,911 Year five 2,046 1,853 Thereafter 3,566 2,902 Total future minimum lease payments 13,460 13,049 Less: imputed interest 1,134 1,057 Total $ 12,326 $ 11,992 Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 Income Statement (In thousands) (In thousands) Components of lease expense: Operating lease cost (in occupancy and equipment expense) $ 666 $ 425 Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 Income Statement (In thousands) (In thousands) Components of lease expense: Operating lease cost (in occupancy and equipment expense) $ 1,249 $ 792 Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 Cash Flow Statement (In thousands) (In thousands) Supplemental cash flow information: Operating cash flows from operating leases $ 886 $ 597

Deposits (Tables)

Deposits (Tables)	6 Months Ended
Deposits (Tables)	Jun. 30, 2023
Deposits
Schedule of deposits	June 30, 2023 December 31, 2023 2022 (In thousands) Noninterest-bearing deposits Demand deposits $ 349,387 $ 326,875 Total noninterest-bearing deposits 349,387 326,875 Interest-bearing deposits Demand deposits $ 4,583,080 $ 3,720,363 Savings deposits 2,946,113 3,034,818 Certificates of deposit 5,181,284 2,989,289 Total interest-bearing deposits 12,710,477 9,744,470 Total deposits $ 13,059,864 $ 10,071,345
Schedule of maturities of time deposits	June 30, 2023 (In thousands) Due within one year $ 5,018,137 Due in one year to two years 117,566 Due in two years to three years 43,816 Due in three years to four years 1,016 Due in four years to five years 749 Due in five years to six years — $ 5,181,284
Schedule of brokered deposit amounts	June 30, December 31, 2023 2022 (In thousands) Brokered certificates of deposit $ 4,619,798 $ 2,681,198 Brokered savings deposits 6,243 81,532 Brokered deposit on demand accounts 125,108 13 $ 4,751,149 $ 2,762,743

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
Borrowings (Tables)	Jun. 30, 2023
Borrowings
Schedule of borrowings	June 30, December 31, 2023 2022 (In thousands) Federal Reserve discount window borrowings $ 75,000 $ 20,000 Short-term subordinated debt 47,000 21,000 FHLB advances 736,132 859,392 American Financial Exchange borrowing — 30,000 Credit linked notes 150,770 — Other borrowings 7,934 — Total borrowings $ 1,016,836 $ 930,392

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2023
Earnings Per Share
Schedule of computation of earnings per share	Three Month Periods Ended June 30, 2023 2022 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 65,302 $ 53,935 Dividends on preferred stock (8,668) (5,729) Net income allocated to common shareholders $ 56,634 $ 48,206 Basic earnings per share 43,235,398 $ 1.31 43,209,824 $ 1.12 Effect of dilutive securities-restricted stock awards 73,995 125,387 Diluted earnings per share 43,309,393 $ 1.31 43,335,211 $ 1.11 Six Month Periods Ended June 30, 2023 2022 Weighted- Per Weighted- Per Net Average Share Net Average Share Income Shares Amount Income Shares Amount (In thousands) (In thousands) Net income $ 120,257 $ 104,077 Dividends on preferred stock (17,335) (11,457) Net income allocated to common shareholders $ 102,922 $ 92,620 Basic earnings per share 43,207,655 $ 2.38 43,220,198 $ 2.14 Effect of dilutive securities-restricted stock awards 92,585 147,677 Diluted earnings per share 43,300,240 $ 2.38 43,367,875 $ 2.14

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2023
Segment Information
Schedule of business segment financial information	Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total Three Months Ended June 30, 2023 (In thousands) Interest income $ 1,248 $ 64,267 $ 191,406 $ 1,148 $ 258,069 Interest expense 13 42,984 111,311 (1,856) 152,452 Net interest income 1,235 21,283 80,095 3,004 105,617 Provision for credit losses — 2,320 20,283 — 22,603 Net interest income after provision for credit losses 1,235 18,963 59,812 3,004 83,014 Noninterest income 30,325 2,872 (760) (2,555) 29,882 Noninterest expense 19,962 3,617 12,118 8,623 44,320 Income (loss) before income taxes 11,598 18,218 46,934 (8,174) 68,576 Income taxes 356 (378) 4,284 (988) 3,274 Net income (loss) $ 11,242 $ 18,596 $ 42,650 $ (7,186) $ 65,302 Total assets $ 373,680 $ 4,474,832 $ 10,784,596 $ 241,764 $ 15,874,872 Multi-family Mortgage Mortgage Banking Warehousing Banking Other Total Three Months Ended June 30, 2022 (In thousands) 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 (loss) 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) Six Months Ended June 30, 2023 Interest income $ 2,354 $ 106,585 358,132 $ 2,292 $ 469,363 Interest expense 13 70,778 195,837 (3,575) 263,053 Net interest income 2,341 35,807 162,295 5,867 206,310 Provision for credit losses — 3,684 25,786 — 29,470 Net interest income after provision for credit losses 2,341 32,123 136,509 5,867 176,840 Noninterest income 46,922 3,905 (1,949) (4,732) 44,146 Noninterest expense 34,593 6,372 22,288 15,839 79,092 Income (loss) before income taxes 14,670 29,656 112,272 (14,704) 141,894 Income taxes 1,462 2,419 20,315 (2,559) 21,637 Net income (loss) $ 13,208 $ 27,237 $ 91,957 $ (12,145) $ 120,257 Total assets $ 373,680 $ 4,474,832 $ 10,784,596 $ 241,764 $ 15,874,872 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 (loss) 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 (loss) $ 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

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Retained earnings, net of tax	$ 928,875	$ 832,871
Restricted Cash \| Credit linked notes
Debt instrument, collateral amount	$ 35,300
Impact from adoption of ASU \| ASU 2016-13
Retained earnings, net of tax			$ (3,600)
Allowance for loan losses			(300)
ACL - OBCEs (in Other Liabilities)			$ 5,200

Investment Securities - Amortiz

Investment Securities - Amortized Cost to Approximate Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Available for sale securities:
Amortized Cost	$ 657,232	$ 337,387
Gross Unrealized Gains	49	8
Gross Unrealized Losses	9,278	14,058
Fair Value	648,003	323,337
Accrued interest on securities available for sale	1,900	500
Accrued interest on securities held to maturity	4,400	4,300
Held to maturity securities:
Amortized Cost	1,062,017	1,119,078
Gross Unrealized Gains		12
Gross Unrealized Losses	3,427	124
Fair Value	1,058,590	1,118,966
Treasury notes
Available for sale securities:
Amortized Cost	158,741	37,234
Gross Unrealized Gains	43	1
Gross Unrealized Losses	849	955
Fair Value	157,935	36,280
Federal agencies
Available for sale securities:
Amortized Cost	249,994	284,986
Gross Unrealized Losses	8,422	13,096
Fair Value	241,572	271,890
Mortgage-backed - Government-sponsored entity (GSE)
Available for sale securities:
Amortized Cost	248,497	15,167
Gross Unrealized Gains	6	7
Gross Unrealized Losses	7	7
Fair Value	248,496	15,167
Held to maturity securities:
Amortized Cost	4,249	247,306
Gross Unrealized Losses	310
Fair Value	3,939	247,182
Mortgage-backed - Non-GSE multi-family
Held to maturity securities:
Amortized Cost	835,649	871,772
Gross Unrealized Gains		12
Gross Unrealized Losses	42
Fair Value	835,607	871,784
Mortgage-backed - Non-GSE residential
Held to maturity securities:
Amortized Cost	222,119	247,306
Gross Unrealized Losses	3,075	124
Fair Value	$ 219,044	$ 247,182

Investment Securities - Contrac

Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Available for Sale Securities, Amortized Cost
Within one year	$ 321,992	$ 118,984
After one through five years	86,743	203,236
Total, single maturity date	408,735	322,220
Total	657,232	337,387
Available for Sale Securities, Fair Value
Within one year	316,487	115,386
After one through five years	83,020	192,784
Total, single maturity date	399,507	308,170
Total	648,003	323,337
Held to Maturity Securities, Amortized Cost
Total	1,062,017	1,119,078
Held to Maturity Securities, Fair Value
Total	1,058,590	1,118,966
Held to maturity securities:
Amortized Cost	1,062,017	1,119,078
Fair Value	1,058,590	1,118,966
Mortgage-backed - Government-sponsored entity (GSE)
Available for Sale Securities, Amortized Cost
Without single maturity date	248,497	15,167
Total	248,497	15,167
Available for Sale Securities, Fair Value
Without single maturity date	248,496	15,167
Total	248,496	15,167
Held to Maturity Securities, Amortized Cost
Total	4,249	247,306
Held to Maturity Securities, Fair Value
Total	3,939	247,182
Held to maturity securities:
Amortized Cost	4,249	247,306
Fair Value	3,939	247,182
Mortgage-backed - Non-GSE multi-family
Held to Maturity Securities, Amortized Cost
Total	835,649	871,772
Held to Maturity Securities, Fair Value
Total	835,607	871,784
Held to maturity securities:
Amortized Cost	835,649	871,772
Fair Value	835,607	871,784
Mortgage-backed - Non-GSE residential
Held to Maturity Securities, Amortized Cost
Total	222,119	247,306
Held to Maturity Securities, Fair Value
Total	219,044	247,182
Held to maturity securities:
Amortized Cost	222,119	247,306
Fair Value	$ 219,044	$ 247,182

Investment Securities - Sale of

Investment Securities - Sale of securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investment Securities
Proceeds from the sale of securities available for sale	$ 132	$ 0	$ 132	$ 0

Investment Securities - Continu

Investment Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	$ 22,943	$ 49,545
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	257,094	258,411
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	280,037	307,956
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	1,058,590	247,182
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	1,058,590	247,182
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	250	1,493
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	9,028	12,565
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	9,278	14,058
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	3,427	124
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	3,427	124
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	7,645	29,560
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	30,185	5,798
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	37,830	35,358
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	101	762
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	748	193
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	849	955
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	14,854	19,276
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	226,718	252,613
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	241,572	271,889
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	146	724
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	8,276	12,372
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	8,422	13,096
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	444	709
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	191
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	635	709
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	3,939
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	3,939
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	3	7
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	4
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	7	7
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	310
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	310
Mortgage-backed - Non-GSE multi-family
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	835,607
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	835,607
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	42
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	42
Mortgage-backed - Non-GSE residential
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	219,044	247,182
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	219,044	247,182
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	3,075	124
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	$ 3,075	$ 124

Mortgage Loans in Process of _2

Mortgage Loans in Process of Securitization (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Mortgage Loans in Process of Securitization
Unrealized gains included in mortgage loans	$ 0.3	$ 4.9

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Summary of Loans By Classification (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Loans and Allowance for Credit Losses on Loans
Loans	$ 9,917,004		$ 7,470,872
Less: ACL-Loans	62,986	$ 51,838	44,014	$ 37,474	$ 32,102	$ 31,344
Loans receivable	9,854,018		7,426,858
Accrued interest on loans, excluded from amortized cost of loans	47,700		35,000
Mortgage warehouse lines of credit
Loans and Allowance for Credit Losses on Loans
Loans	1,201,932		464,785
Less: ACL-Loans	3,361	1,664	1,249	2,422	1,941	1,955
Residential real estate
Loans and Allowance for Credit Losses on Loans
Loans	1,342,586		1,178,401
Less: ACL-Loans	7,413	7,378	7,029	4,910	4,547	4,170
Healthcare financing
Loans and Allowance for Credit Losses on Loans
Loans	2,128,378		1,604,341
Less: ACL-Loans	16,123	11,753	9,882	7,936	5,618	4,461
Multi-family financing
Loans and Allowance for Credit Losses on Loans
Loans	3,746,333		3,135,535
Less: ACL-Loans	24,701	19,851	16,781	16,364	15,131	14,084
Commercial and commercial real estate
Loans and Allowance for Credit Losses on Loans
Loans	1,394,256		978,661
Less: ACL-Loans	10,695	10,482	8,326	5,195	4,102	5,879
Revolving lines of credit collateralized primarily by mortgage servicing rights	894,700		497,000
Commercial and commercial real estate \| Non-owner occupied commercial real estate
Loans and Allowance for Credit Losses on Loans
Loans	$ 8,300		12,800
Commercial and commercial real estate \| Non-owner occupied commercial real estate \| Minimum
Loans and Allowance for Credit Losses on Loans
Percentage of loans to be forgiven	1
Agricultural production and real estate
Loans and Allowance for Credit Losses on Loans
Loans	$ 91,599		95,651
Less: ACL-Loans	556	543	565	551	597	657
Consumer and margin loans
Loans and Allowance for Credit Losses on Loans
Loans	11,920		13,498
Less: ACL-Loans	$ 137	$ 167	$ 182	$ 96	$ 166	$ 138

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		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Allowance for credit losses
Balance, beginning of period	$ 51,838	$ 32,102	$ 44,014	$ 31,344	$ 31,344
Provision for credit losses	20,678	4,768	28,495	6,749	13,473
Loans charged to the allowance	(9,532)	(47)	(9,532)	(978)	(1,257)
Recoveries of loans previously charged off	2	651	9	658	753
Balance, end of period	62,986	37,474	62,986	37,474	44,014
ACL Loans
Provision for credit losses	22,603	6,212	29,470	8,663
Provision for credit losses, ACL Loans	20,678	4,768	28,495	6,749	13,473
Provision for credit losses, ACL-OBCE's	1,900	200	1,000	800
Provision for credit losses, ACL-Guarantees		1,200		1,200
ASU 2016-13 \| Impact from adoption of ASU
Allowance for credit losses
Balance, beginning of period				(299)	(299)
Mortgage warehouse lines of credit
Allowance for credit losses
Balance, beginning of period	1,664	1,941	1,249	1,955	1,955
Provision for credit losses	1,697	481	2,112	426	(747)
Balance, end of period	3,361	2,422	3,361	2,422	1,249
ACL Loans
Provision for credit losses, ACL Loans	1,697	481	2,112	426	(747)
Mortgage warehouse lines of credit \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for credit losses
Balance, beginning of period				41	41
Residential real estate
Allowance for credit losses
Balance, beginning of period	7,378	4,547	7,029	4,170	4,170
Provision for credit losses	48	363	397	465	2,588
Loans charged to the allowance	(13)		(13)		(4)
Balance, end of period	7,413	4,910	7,413	4,910	7,029
ACL Loans
Provision for credit losses, ACL Loans	48	363	397	465	2,588
Residential real estate \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for credit losses
Balance, beginning of period				275	275
Multi-family financing
Allowance for credit losses
Balance, beginning of period	19,851	15,131	16,781	14,084	14,084
Provision for credit losses	13,250	1,233	16,320	1,760	2,177
Loans charged to the allowance	(8,400)		(8,400)
Balance, end of period	24,701	16,364	24,701	16,364	16,781
ACL Loans
Provision for credit losses, ACL Loans	13,250	1,233	16,320	1,760	2,177
Multi-family financing \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for credit losses
Balance, beginning of period				520	520
Healthcare financing
Allowance for credit losses
Balance, beginning of period	11,753	5,618	9,882	4,461	4,461
Provision for credit losses	4,370	2,318	6,241	3,336	5,282
Balance, end of period	16,123	7,936	16,123	7,936	9,882
ACL Loans
Provision for credit losses, ACL Loans	4,370	2,318	6,241	3,336	5,282
Healthcare financing \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for credit losses
Balance, beginning of period				139	139
Commercial and commercial real estate
Allowance for credit losses
Balance, beginning of period	10,482	4,102	8,326	5,879	5,879
Provision for credit losses	1,329	474	3,478	905	4,216
Loans charged to the allowance	(1,118)	(32)	(1,118)	(963)	(1,238)
Recoveries of loans previously charged off	2	651	9	651	746
Balance, end of period	10,695	5,195	10,695	5,195	8,326
ACL Loans
Provision for credit losses, ACL Loans	1,329	474	3,478	905	4,216
Commercial and commercial real estate \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for credit losses
Balance, beginning of period				(1,277)	(1,277)
Agricultural production and real estate
Allowance for credit losses
Balance, beginning of period	543	597	565	657	657
Provision for credit losses	13	(46)	(9)	(88)	(74)
Balance, end of period	556	551	556	551	565
ACL Loans
Provision for credit losses, ACL Loans	13	(46)	(9)	(88)	(74)
Agricultural production and real estate \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for credit losses
Balance, beginning of period				(18)	(18)
Consumer and margin loans
Allowance for credit losses
Balance, beginning of period	167	166	182	138	138
Provision for credit losses	(29)	(55)	(44)	(55)	31
Loans charged to the allowance	(1)	(15)	(1)	(15)	(15)
Recoveries of loans previously charged off				7	7
Balance, end of period	137	96	137	96	182
ACL Loans
Provision for credit losses, ACL Loans	$ (29)	$ (55)	$ (44)	(55)	31
Consumer and margin loans \| ASU 2016-13 \| Impact from adoption of ASU
Allowance for credit losses
Balance, beginning of period				$ 21	$ 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, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	$ 9,917,004		$ 7,470,872
Allowance for credit losses on loans	62,986	$ 51,838	44,014	$ 37,474	$ 32,102	$ 31,344
Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	79,506
Allowance for credit losses on loans	3,764
Real Estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	72,374
Accounts Receivable Or Equipment
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	3,830
Other Collateralized Assets
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	3,302
Mortgage warehouse lines of credit
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	1,201,932		464,785
Allowance for credit losses on loans	3,361	1,664	1,249	2,422	1,941	1,955
Residential real estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	1,342,586		1,178,401
Allowance for credit losses on loans	7,413	7,378	7,029	4,910	4,547	4,170
Residential real estate \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	212
Allowance for credit losses on loans	36
Residential real estate \| Real Estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	209
Residential real estate \| Other Collateralized Assets
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	3
Multi-family financing
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	3,746,333		3,135,535
Allowance for credit losses on loans	24,701	19,851	16,781	16,364	15,131	14,084
Multi-family financing \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	41,335
Allowance for credit losses on loans	234
Multi-family financing \| Real Estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	41,335
Healthcare financing
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	2,128,378		1,604,341
Allowance for credit losses on loans	16,123	11,753	9,882	7,936	5,618	4,461
Healthcare financing \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	30,683
Allowance for credit losses on loans	2,348
Healthcare financing \| Real Estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	30,683
Commercial and commercial real estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	1,394,256		978,661
Allowance for credit losses on loans	10,695	10,482	8,326	5,195	4,102	5,879
Commercial and commercial real estate \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	7,124
Allowance for credit losses on loans	1,145
Commercial and commercial real estate \| Accounts Receivable Or Equipment
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	3,830
Commercial and commercial real estate \| Other Collateralized Assets
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	3,294
Agricultural production and real estate
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	91,599		95,651
Allowance for credit losses on loans	556	543	565	551	597	657
Agricultural production and real estate \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	147
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	147
Consumer and margin loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	11,920		13,498
Allowance for credit losses on loans	137	$ 167	$ 182	$ 96	$ 166	$ 138
Consumer and margin loans \| Collateral Dependent Loans
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	5
Consumer and margin loans \| Other Collateralized Assets
Loans and Allowance for Credit Losses on Loans
Amortized Cost Basis	$ 5

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses on Loans - Credit Risk Profile of Loan Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Credit risk profile of portfolio
2023	$ 1,184,058		$ 1,184,058		$ 2,475,328
2022	2,328,987		2,328,987		997,674
2021	800,438		800,438		354,135
2020	237,666		237,666		80,929
2019	75,557		75,557		26,535
Prior	66,051		66,051		49,623
Revolving Loans	5,224,247		5,224,247		3,486,648
Loans	9,917,004		9,917,004		7,470,872
Net Charge-Offs
2022			8,896
2021			36
2020			586
Prior			1
Revolving-New			13
Net Charge-Offs	9,532	$ 47	9,532	$ 978	1,257
Pass
Credit risk profile of portfolio
2023	1,145,340		1,145,340		2,353,570
2022	2,230,371		2,230,371		948,348
2021	719,803		719,803		344,099
2020	228,542		228,542		80,256
2019	75,262		75,262		26,199
Prior	63,416		63,416		47,345
Revolving Loans	5,186,242		5,186,242		3,468,410
Loans	9,648,976		9,648,976		7,268,227
Special Mention (Watch)
Credit risk profile of portfolio
2023	38,718		38,718		84,998
2022	70,256		70,256		25,526
2021	43,859		43,859		9,445
2020	8,191		8,191		601
2019	228		228		262
Prior	2,219		2,219		1,287
Revolving Loans	25,051		25,051		15,701
Loans	188,522		188,522		137,820
Substandard
Credit risk profile of portfolio
2023					36,760
2022	28,360		28,360		23,800
2021	36,776		36,776		591
2020	933		933		72
2019	67		67		74
Prior	416		416		991
Revolving Loans	12,954		12,954		2,537
Loans	79,506		79,506		64,825
Mortgage warehouse lines of credit
Credit risk profile of portfolio
Revolving Loans	1,201,932		1,201,932		464,785
Loans	1,201,932		1,201,932		464,785
Mortgage warehouse lines of credit \| Pass
Credit risk profile of portfolio
Revolving Loans	1,201,932		1,201,932		464,785
Loans	1,201,932		1,201,932		464,785
Residential real estate
Credit risk profile of portfolio
2023	10,295		10,295		13,344
2022	11,246		11,246		8,192
2021	8,469		8,469		24,708
2020	23,210		23,210		3,559
2019	3,409		3,409		1,796
Prior	12,406		12,406		12,006
Revolving Loans	1,273,551		1,273,551		1,114,796
Loans	1,342,586		1,342,586		1,178,401
Net Charge-Offs
Revolving-New			13
Net Charge-Offs	13		13		4
Residential real estate \| Pass
Credit risk profile of portfolio
2023	10,295		10,295		13,344
2022	11,246		11,246		8,192
2021	8,469		8,469		24,708
2020	23,210		23,210		3,498
2019	3,349		3,349		1,722
Prior	11,801		11,801		11,166
Revolving Loans	1,273,551		1,273,551		1,114,705
Loans	1,341,921		1,341,921		1,177,335
Residential real estate \| Special Mention (Watch)
Credit risk profile of portfolio
2020					61
2019	60		60
Prior	393		393		668
Revolving Loans					91
Loans	453		453		820
Residential real estate \| Substandard
Credit risk profile of portfolio
2019					74
Prior	212		212		172
Loans	212		212		246
Multi-family financing
Credit risk profile of portfolio
2023	783,682		783,682		1,281,687
2022	1,051,736		1,051,736		544,823
2021	408,314		408,314		208,829
2020	106,073		106,073		32,349
2019	30,073		30,073		4,416
Prior	10,958		10,958		7,229
Revolving Loans	1,355,497		1,355,497		1,056,202
Loans	3,746,333		3,746,333		3,135,535
Net Charge-Offs
2022			8,400
Net Charge-Offs	8,400		8,400
Multi-family financing \| Pass
Credit risk profile of portfolio
2023	770,580		770,580		1,212,008
2022	1,001,864		1,001,864		544,823
2021	391,935		391,935		200,829
2020	98,073		98,073		32,349
2019	30,073		30,073		4,416
Prior	9,467		9,467		7,229
Revolving Loans	1,330,469		1,330,469		1,042,024
Loans	3,632,461		3,632,461		3,043,678
Multi-family financing \| Special Mention (Watch)
Credit risk profile of portfolio
2023	13,102		13,102		32,919
2022	21,512		21,512
2021	3,404		3,404		8,000
2020	8,000		8,000
Prior	1,491		1,491
Revolving Loans	25,028		25,028		14,178
Loans	72,537		72,537		55,097
Multi-family financing \| Substandard
Credit risk profile of portfolio
2023					36,760
2022	28,360		28,360
2021	12,975		12,975
Loans	41,335		41,335		36,760
Healthcare financing
Credit risk profile of portfolio
2023	360,077		360,077		1,039,698
2022	1,128,670		1,128,670		348,193
2021	294,495		294,495		78,792
2020	69,827		69,827		13,770
2019	14,769		14,769
Revolving Loans	260,540		260,540		123,888
Loans	2,128,378		2,128,378		1,604,341
Healthcare financing \| Pass
Credit risk profile of portfolio
2023	334,477		334,477		987,676
2022	1,079,976		1,079,976		301,103
2021	236,816		236,816		78,792
2020	69,827		69,827		13,770
2019	14,769		14,769
Revolving Loans	251,640		251,640		123,888
Loans	1,987,505		1,987,505		1,505,229
Healthcare financing \| Special Mention (Watch)
Credit risk profile of portfolio
2023	25,600		25,600		52,022
2022	48,694		48,694		25,307
2021	35,896		35,896
Loans	110,190		110,190		77,329
Healthcare financing \| Substandard
Credit risk profile of portfolio
2022					21,783
2021	21,783		21,783
Revolving Loans	8,900		8,900
Loans	30,683		30,683		21,783
Commercial and commercial real estate
Credit risk profile of portfolio
2023	22,281		22,281		123,800
2022	121,977		121,977		88,463
2021	82,098		82,098		25,357
2020	23,684		23,684		24,921
2019	21,786		21,786		12,434
Prior	19,314		19,314		9,659
Revolving Loans	1,103,116		1,103,116		694,027
Loans	1,394,256		1,394,256		978,661
Net Charge-Offs
2022			496
2021			36
2020			586
Net Charge-Offs	1,118	32	1,118	963	1,238
Commercial and commercial real estate \| Pass
Credit risk profile of portfolio
2023	22,265		22,265		123,757
2022	121,938		121,938		86,282
2021	75,570		75,570		23,803
2020	22,578		22,578		24,730
2019	21,566		21,566		12,335
Prior	18,928		18,928		8,765
Revolving Loans	1,099,039		1,099,039		690,114
Loans	1,381,884		1,381,884		969,786
Commercial and commercial real estate \| Special Mention (Watch)
Credit risk profile of portfolio
2023	16		16		43
2022	39		39		164
2021	4,510		4,510		963
2020	173		173		119
2019	153		153		99
Prior	334		334		228
Revolving Loans	23		23		1,376
Loans	5,248		5,248		2,992
Commercial and commercial real estate \| Substandard
Credit risk profile of portfolio
2022					2,017
2021	2,018		2,018		591
2020	933		933		72
2019	67		67
Prior	52		52		666
Revolving Loans	4,054		4,054		2,537
Loans	7,124		7,124		5,883
Agricultural production and real estate
Credit risk profile of portfolio
2023	7,377		7,377		12,126
2022	10,856		10,856		7,540
2021	6,713		6,713		16,122
2020	14,699		14,699		6,229
2019	5,468		5,468		3,300
Prior	18,916		18,916		20,712
Revolving Loans	27,570		27,570		29,622
Loans	91,599		91,599		95,651
Agricultural production and real estate \| Pass
Credit risk profile of portfolio
2023	7,377		7,377		12,112
2022	10,845		10,845		7,485
2021	6,664		6,664		15,660
2020	14,699		14,699		5,808
2019	5,468		5,468		3,137
Prior	18,769		18,769		20,176
Revolving Loans	27,570		27,570		29,566
Loans	91,392		91,392		93,944
Agricultural production and real estate \| Special Mention (Watch)
Credit risk profile of portfolio
2023					14
2022	11		11		55
2021	49		49		462
2020					421
2019					163
Prior					389
Revolving Loans					56
Loans	60		60		1,560
Agricultural production and real estate \| Substandard
Credit risk profile of portfolio
Prior	147		147		147
Loans	147		147		147
Consumer and margin loans
Credit risk profile of portfolio
2023	346		346		4,673
2022	4,502		4,502		463
2021	349		349		327
2020	173		173		101
2019	52		52		4,589
Prior	4,457		4,457		17
Revolving Loans	2,041		2,041		3,328
Loans	11,920		11,920		13,498
Net Charge-Offs
Prior			1
Net Charge-Offs	1	$ 15	1	$ 15	15
Consumer and margin loans \| Pass
Credit risk profile of portfolio
2023	346		346		4,673
2022	4,502		4,502		463
2021	349		349		307
2020	155		155		101
2019	37		37		4,589
Prior	4,451		4,451		9
Revolving Loans	2,041		2,041		3,328
Loans	11,881		11,881		13,470
Consumer and margin loans \| Special Mention (Watch)
Credit risk profile of portfolio
2021					20
2020	18		18
2019	15		15
Prior	1		1		2
Loans	34		34		22
Consumer and margin loans \| Substandard
Credit risk profile of portfolio
Prior	5		5		6
Loans	$ 5		$ 5		$ 6

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses on Loans - Aging Analysis Of The Recorded Investment In Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Aging analysis of loan portfolio
Loans	$ 9,917,004	$ 7,470,872
Total Past Due
Aging analysis of loan portfolio
Loans	92,868	39,752
30-59 Days Past Due
Aging analysis of loan portfolio
Loans	24,334	13,721
60-89 Days Past Due
Aging analysis of loan portfolio
Loans	236	176
Greater Than 90 Days
Aging analysis of loan portfolio
Loans	68,298	25,855
Current.
Aging analysis of loan portfolio
Loans	9,824,136	7,431,120
Mortgage warehouse lines of credit
Aging analysis of loan portfolio
Loans	1,201,932	464,785
Mortgage warehouse lines of credit \| Current.
Aging analysis of loan portfolio
Loans	1,201,932	464,785
Residential real estate
Aging analysis of loan portfolio
Loans	1,342,586	1,178,401
Residential real estate \| Total Past Due
Aging analysis of loan portfolio
Loans	1,640	4,477
Residential real estate \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans	40	4,053
Residential real estate \| 60-89 Days Past Due
Aging analysis of loan portfolio
Loans	236	152
Residential real estate \| Greater Than 90 Days
Aging analysis of loan portfolio
Loans	1,364	272
Residential real estate \| Current.
Aging analysis of loan portfolio
Loans	1,340,946	1,173,924
Healthcare financing
Aging analysis of loan portfolio
Loans	2,128,378	1,604,341
Healthcare financing \| Total Past Due
Aging analysis of loan portfolio
Loans	36,283	21,783
Healthcare financing \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans	14,500
Healthcare financing \| Greater Than 90 Days
Aging analysis of loan portfolio
Loans	21,783	21,783
Healthcare financing \| Current.
Aging analysis of loan portfolio
Loans	2,092,095	1,582,558
Multi-family financing
Aging analysis of loan portfolio
Loans	3,746,333	3,135,535
Multi-family financing \| Total Past Due
Aging analysis of loan portfolio
Loans	50,667
Multi-family financing \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans	9,332
Multi-family financing \| Greater Than 90 Days
Aging analysis of loan portfolio
Loans	41,335
Multi-family financing \| Current.
Aging analysis of loan portfolio
Loans	3,695,666	3,135,535
Commercial and commercial real estate
Aging analysis of loan portfolio
Loans	1,394,256	978,661
Commercial and commercial real estate \| Total Past Due
Aging analysis of loan portfolio
Loans	4,229	8,537
Commercial and commercial real estate \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans	451	4,759
Commercial and commercial real estate \| Greater Than 90 Days
Aging analysis of loan portfolio
Loans	3,778	3,778
Commercial and commercial real estate \| Current.
Aging analysis of loan portfolio
Loans	1,390,027	970,124
Agricultural production and real estate
Aging analysis of loan portfolio
Loans	91,599	95,651
Agricultural production and real estate \| Total Past Due
Aging analysis of loan portfolio
Loans		4,903
Agricultural production and real estate \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans		4,903
Agricultural production and real estate \| Current.
Aging analysis of loan portfolio
Loans	91,599	90,748
Consumer and margin loans
Aging analysis of loan portfolio
Loans	11,920	13,498
Consumer and margin loans \| Total Past Due
Aging analysis of loan portfolio
Loans	49	52
Consumer and margin loans \| 30-59 Days Past Due
Aging analysis of loan portfolio
Loans	11	6
Consumer and margin loans \| 60-89 Days Past Due
Aging analysis of loan portfolio
Loans		24
Consumer and margin loans \| Greater Than 90 Days
Aging analysis of loan portfolio
Loans	38	22
Consumer and margin loans \| Current.
Aging analysis of loan portfolio
Loans	$ 11,871	$ 13,446

Loans and Allowance for Credi_8

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, 2023	Dec. 31, 2022
Loan portfolio past due loans
Nonaccrual	$ 67,259	$ 26,571
Total Loans Greater than 90 Days & Accruing	1,186	112
Residential real estate
Loan portfolio past due loans
Nonaccrual	212	245
Total Loans Greater than 90 Days & Accruing	1,152	96
Multi-family financing
Loan portfolio past due loans
Nonaccrual	41,335
Healthcare financing
Loan portfolio past due loans
Nonaccrual	21,783	21,783
Commercial and commercial real estate
Loan portfolio past due loans
Nonaccrual	3,777	4,390
Agricultural production and real estate
Loan portfolio past due loans
Nonaccrual	147	147
Consumer and margin loans
Loan portfolio past due loans
Nonaccrual	5	6
Total Loans Greater than 90 Days & Accruing	$ 34	$ 16

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses on Loans - Modified loans (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($) item loan	Jun. 30, 2023 USD ($) item
Loan portfolio past due loans
Number of loans modified for borrowers \| loan	0
Number of modified loans defaulted during the period \| item	0	0
Total Past Due
Loan portfolio past due loans
Modified loans	$ 3,778	$ 3,778
Greater Than 90 Days
Loan portfolio past due loans
Modified loans	3,778	3,778
Payment Delay
Loan portfolio past due loans
Modified loans	3,778	$ 3,778
Commercial and commercial real estate
Loan portfolio past due loans
Weighted average term increase from modification		3 months
Commercial and commercial real estate \| Total Past Due
Loan portfolio past due loans
Modified loans	3,778	$ 3,778
Commercial and commercial real estate \| Greater Than 90 Days
Loan portfolio past due loans
Modified loans	3,778	3,778
Commercial and commercial real estate \| Payment Delay
Loan portfolio past due loans
Modified loans	$ 3,778	$ 3,778

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) loan	Jun. 30, 2022 USD ($)	Dec. 31, 2022 loan
Loans and Allowance for Credit Losses on Loans
Purchase of loans \| $	$ 269,855	$ 92,533
Residential real estate
Loans and Allowance for Credit Losses on Loans
Number of loans in the process of foreclosure \| loan	0		0

Variable Interest Entities (V_3

Variable Interest Entities (VIEs) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Variable Interest Entities (VIEs)
Total Assets	$ 15,874,872	$ 12,615,227	$ 11,086,055
Total Liabilities	14,314,572	11,155,488
Maximum Exposure to Loss	835,600	871,800
Single Family and Multi-Family Debt Financing Investments \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entities (VIEs)
Total Assets	124,736	52,125
Total Liabilities	82,262	25,564
Maximum Exposure to Loss	$ 124,736	$ 52,125

Regulatory Matters (Details)

Regulatory Matters (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Company
Total Capital (to risk-weighted assets)
Total Capital (to risk-weighted assets), Actual, Capital Amount	$ 1,625,223	$ 1,507,968
Total Capital (to risk weighted assets), Actual, Ratio (as a percent)	0.113	0.122
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 1,148,948	$ 992,883
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.080	0.080
Tier I Capital (to risk-weighted assets)
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount	$ 1,549,763	$ 1,452,456
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)	0.108	0.117
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 861,711	$ 744,662
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.060	0.060
Common Equity Tier I Capital 1 (to risk-weighted assets)
Common Equity Tier I Capital 1, Actual, Capital Amount	$ 1,050,155	$ 952,848
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)	0.073	0.077
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 646,284	$ 558,497
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.045	0.045
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 1,549,763	$ 1,452,456
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	0.106	0.117
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 586,227	$ 497,604
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.040	0.040
Merchants Bank
Total Capital (to risk-weighted assets)
Total Capital (to risk-weighted assets), Actual, Capital Amount	$ 1,563,433	$ 1,427,738
Total Capital (to risk weighted assets), Actual, Ratio (as a percent)	0.111	0.117
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 1,127,989	$ 975,853
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.080	0.080
Total capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 1,409,986	$ 1,219,817
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	0.100	0.100
Tier I Capital (to risk-weighted assets)
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount	$ 1,488,730	$ 1,372,941
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)	0.106	0.113
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 845,992	$ 731,890
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.060	0.060
Tier I Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 1,127,989	$ 975,853
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	0.080	0.080
Common Equity Tier I Capital 1 (to risk-weighted assets)
Common Equity Tier I Capital 1, Actual, Capital Amount	$ 1,488,730	$ 1,372,941
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)	0.106	0.113
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 634,494	$ 548,917
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.045	0.045
Common Equity Tier I Capital 1, Minimum Amount To Be Well Capitalized, Capital Amount	$ 916,491	$ 792,881
Common Equity Tier I Capital 1 (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	0.065	0.065
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 1,488,730	$ 1,372,941
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	0.104	0.113
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 574,725	$ 487,511
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.040	0.040
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 718,406	$ 609,389
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	0.050	0.050
FMBI
Total Capital (to risk-weighted assets)
Total Capital (to risk-weighted assets), Actual, Capital Amount	$ 37,536	$ 34,769
Total Capital (to risk weighted assets), Actual, Ratio (as a percent)	0.113	0.113
Total Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 26,636	$ 24,703
Total Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.080	0.080
Total capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 33,295	$ 30,878
Total Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	0.100	0.100
Tier I Capital (to risk-weighted assets)
Tier I Capital, (to risk-weighted assets), Actual, Capital Amount	$ 36,779	$ 34,054
Tier I Capital (to risk weighted assets), Actual, Ratio (as a percent)	0.110	0.110
Tier I Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 19,977	$ 18,527
Tier I Capital (to risk weighted assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.060	0.060
Tier I Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 26,636	$ 24,703
Tier I Capital (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	0.080	0.080
Common Equity Tier I Capital 1 (to risk-weighted assets)
Common Equity Tier I Capital 1, Actual, Capital Amount	$ 36,779	$ 34,054
Common Equity Tier I Capital 1 (to risk weighted assets), Ratio (as a percent)	0.110	0.110
Common Equity Tier I Capital 1, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 14,983	$ 13,895
Common Equity Tier I Capital 1 (to risk weighted assets, Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.045	0.045
Common Equity Tier I Capital 1, Minimum Amount To Be Well Capitalized, Capital Amount	$ 21,642	$ 20,071
Common Equity Tier I Capital 1 (to risk weighted assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	0.065	0.065
Tier 1 Capital (to average assets)
Tier 1 Capital, Actual, Capital Amount	$ 36,779	$ 34,054
Tier 1 Capital (to average assets), Actual, Ratio (as a percent)	0.106	0.107
Tier 1 Capital, Minimum Amount Required for Adequately Capitalized, Capital Amount	$ 13,823	$ 12,702
Tier 1 Capital (to average assets), Minimum Amount Required for Adequately Capitalized, Ratio (as a percent)	0.040	0.040
Tier 1 Capital, Minimum Amount To Be Well Capitalized, Capital Amount	$ 17,279	$ 15,878
Tier 1 Capital (to average assets), Minimum Amount To Be Well Capitalized, Ratio (as a percent)	0.050	0.050

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Derivative Financial Instruments
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets and Receivables		Other Assets and Receivables		Other Assets and Receivables
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities.		Other Liabilities.		Other Liabilities.
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net swap gains (losses)	$ 1,785	$ 2,306	$ 562	$ 4,574
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Gain (Loss) on Sales of Loans, Net	Gain (Loss) on Sales of Loans, Net	Gain (Loss) on Sales of Loans, Net	Gain (Loss) on Sales of Loans, Net
Pledged in collateral	$ 0		$ 0		$ 0
Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	3,496		3,496		3,104
Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	75		75		75
Interest rate lock commitments
Derivative Financial Instruments
Notional amount	24,216		24,216		8,759
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net swap gains (losses)	(188)	$ 837	21	$ (45)
Interest rate lock commitments \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	94		94		28
Interest rate lock commitments \| Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	68		68		23
Forward contracts
Derivative Financial Instruments
Notional amount	27,125		27,125		13,096
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net swap gains (losses)	376	1,309	280	4,459
Forward contracts \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	111		111		46
Forward contracts \| Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	7		7		52
Interest rate swaps
Derivative Financial Instruments
Notional amount	57,557		57,557		57,574
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Net swap gains (losses)	1,597	160	261	160
Interest rate swaps \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	3,291		3,291		3,030
Interest rate swaps (back-to-back)
Derivative Financial Instruments
Notional amount	218,291		218,291		77,495
The periodic changes in the fair value of the derivative financial instruments on the condensed consolidated statements of income
Gross swap gains	7,016	2,035	6,436	2,531
Gross swap losses	7,016	$ 2,035	6,436	$ 2,531
Interest rate swaps (back-to-back) \| Derivative assets
Derivative Financial Instruments
Derivative assets, fair value	9,477		9,477		3,041
Interest rate swaps (back-to-back) \| Derivative liabilities
Derivative Financial Instruments
Derivative liabilities, fair value	$ 9,477		$ 9,477		$ 3,041

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, 2023	Dec. 31, 2022
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	$ 298,907	$ 154,194
Securities available for sale	648,003	323,337
Loans held for sale	82,931	82,192
Servicing rights	147,288	146,248
Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	298,907	154,194
Loans held for sale	82,931	82,192
Servicing rights	147,288	146,248
Recurring \| Interest rate lock commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	94	28
Derivative liabilities	68	23
Recurring \| Forward contracts
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	111	46
Derivative liabilities	7	52
Recurring \| Interest rate swaps
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	3,291	3,030
Recurring \| Interest rate swaps (back-to-back)
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	9,477	3,041
Derivative liabilities	9,477	3,041
Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Mortgage loans in process of securitization	298,907	154,194
Loans held for sale	82,931	82,192
Level 2 \| Recurring \| Forward contracts
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	111	46
Derivative liabilities	7	52
Level 2 \| Recurring \| Interest rate swaps
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	3,291	3,030
Level 2 \| Recurring \| Interest rate swaps (back-to-back)
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	9,477	3,041
Derivative liabilities	9,477	3,041
Level 3 \| Interest rate lock commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	94	28
Derivative liabilities	68	23
Level 3 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Servicing rights	147,288	146,248
Level 3 \| Recurring \| Interest rate lock commitments
Disclosures about Fair Value of Assets and Liabilities
Derivative assets	94	28
Derivative liabilities	68	23
Treasury notes
Disclosures about Fair Value of Assets and Liabilities
Securities available for sale	157,935	36,280
Treasury notes \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Securities available for sale	157,935	36,280
Treasury notes \| Level 1 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Securities available for sale	157,935	36,280
Federal agencies
Disclosures about Fair Value of Assets and Liabilities
Securities available for sale	241,572	271,890
Federal agencies \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Securities available for sale	241,572	271,890
Federal agencies \| Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Securities available for sale	241,572	271,890
Mortgage-backed - Government-sponsored entity (GSE)
Disclosures about Fair Value of Assets and Liabilities
Securities available for sale	248,496	15,167
Mortgage-backed - Government-sponsored entity (GSE) \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Securities available for sale	248,496	15,167
Mortgage-backed - Government-sponsored entity (GSE) \| Level 2 \| Recurring
Disclosures about Fair Value of Assets and Liabilities
Securities available for sale	$ 248,496	$ 15,167

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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative liabilities \| Interest rate lock commitments
Reconciliation of significant unobservable inputs, liabilities:
Balance, beginning of period	$ 4	$ 771	$ 23	$ 41
Changes in fair value	64	(650)	45	80
Balance, end of period	68	121	68	121
Servicing rights.
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	143,867	121,036	146,248	110,348
Additions
Originated servicing	2,124	5,203	4,297	10,995
Subtractions
Paydowns	(2,073)	(3,268)	(3,771)	(6,017)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model	3,370	7,739	514	15,384
Balance, end of period	147,288	130,710	147,288	130,710
Derivative assets \| Interest rate lock commitments
Reconciliation of significant unobservable inputs, assets:
Balance, beginning of period	218	112	28	264
Subtractions
Changes in fair value	(124)	187	66	35
Balance, end of period	$ 94	$ 299	$ 94	$ 299

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, 2023	Dec. 31, 2022
Disclosures about Fair Value of Assets and Liabilities
Impaired loans (collateral-dependent)	$ 40,839	$ 4,465
Level 3
Disclosures about Fair Value of Assets and Liabilities
Impaired loans (collateral-dependent)	$ 40,839	$ 4,465

Disclosures about Fair Value _6

Disclosures about Fair Value of Assets and Liabilities - Quantitative Information about Unobservable Inputs (Details)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Quantitative information about unobservable inputs
Servicing rights	$ 147,288,000	$ 146,248,000
Level 3 \| Servicing rights \| SBA
Quantitative information about unobservable inputs
Servicing rights	$ 5,066,000	$ 4,632,000
Level 3 \| Servicing rights \| SBA \| Discount Rate
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.16	0.16
Level 3 \| Servicing rights \| SBA \| Discount Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.16	0.16
Level 3 \| Servicing rights \| SBA \| Constant Prepayment Rate \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.03	0.03
Level 3 \| Servicing rights \| SBA \| Constant Prepayment Rate \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.16	0.12
Level 3 \| Servicing rights \| SBA \| Constant Prepayment Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.08	0.08
Level 3 \| Servicing rights \| Single Family
Quantitative information about unobservable inputs
Servicing rights	$ 30,466,000	$ 29,926,000
Level 3 \| Servicing rights \| Single Family \| Discount Rate \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.09	0.09
Level 3 \| Servicing rights \| Single Family \| Discount Rate \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.10	0.10
Level 3 \| Servicing rights \| Single Family \| Discount Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.09	0.09
Level 3 \| Servicing rights \| Single Family \| Constant Prepayment Rate \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.07	0.07
Level 3 \| Servicing rights \| Single Family \| Constant Prepayment Rate \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.14	0.10
Level 3 \| Servicing rights \| Single Family \| Constant Prepayment Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.07	0.07
Level 3 \| Servicing rights \| Multi-family
Quantitative information about unobservable inputs
Servicing rights	$ 111,756,000	$ 111,690,000
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	0.09	0.09
Level 3 \| Servicing rights \| Multi-family \| Constant Prepayment Rate \| Minimum
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.01	0
Level 3 \| Servicing rights \| Multi-family \| Constant Prepayment Rate \| Maximum
Quantitative information about unobservable inputs
Servicing asset, measurement input	1	0.39
Level 3 \| Servicing rights \| Multi-family \| Constant Prepayment Rate \| Weighted average
Quantitative information about unobservable inputs
Servicing asset, measurement input	0.07	0.08
Level 3 \| Collateral-dependent impaired loans
Quantitative information about unobservable inputs
Collateral-dependent impaired loans	$ 40,839,000	$ 4,465,000
Level 3 \| Collateral-dependent impaired loans \| Weighted average
Quantitative information about unobservable inputs
Marketability discount (as a percent)	0.01	0.05
Level 3 \| Collateral-dependent impaired loans \| Measurement Input, Maturity \| Minimum
Quantitative information about unobservable inputs
Marketability discount (as a percent)	0	0.04
Level 3 \| Collateral-dependent impaired loans \| Measurement Input, Maturity \| Maximum
Quantitative information about unobservable inputs
Marketability discount (as a percent)	0.23	0.54
Level 3 \| Interest rate lock commitments
Quantitative information about unobservable inputs
Derivative assets	$ 94,000	$ 28,000
Derivative liabilities	$ 68,000	$ 23,000
Level 3 \| Interest rate lock commitments \| Measurement Input, Maturity \| Minimum
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	0.50	0.60
Loan closing rates (as a percent)	0.50	0.60
Level 3 \| Interest rate lock commitments \| Measurement Input, Maturity \| Maximum
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	0.99	0.87
Loan closing rates (as a percent)	0.99	0.87
Level 3 \| Interest rate lock commitments \| Measurement Input, Maturity \| Weighted average
Quantitative information about unobservable inputs
Loan closing rates (as a percent)	0.79	0.77
Loan closing rates (as a percent)	0.79	0.77

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, 2023	Dec. 31, 2022
Financial assets:
Securities held to maturity	$ 1,058,590	$ 1,118,966
Loans held for sale	82,931	82,192
Carrying value per balance sheet
Financial assets:
Cash and cash equivalents	377,310	226,164
Securities purchased under agreements to resell	3,412	3,464
Securities held to maturity	1,062,017	1,119,078
FHLB stock	39,130	39,130
Loans held for sale	2,975,082	2,828,384
Loans receivable, net	9,854,018	7,426,858
Interest receivable	70,509	56,262
Financial liabilities:
Deposits	13,059,864	10,071,345
Short-term subordinated debt	47,000	21,000
FHLB advances	736,132	859,392
Other borrowing	82,934	50,000
Credit linked notes	150,770
Interest payable	25,489	23,384
Estimated fair value
Financial assets:
Cash and cash equivalents	377,310	226,164
Securities purchased under agreements to resell	3,412	3,464
Securities held to maturity	1,058,590	1,118,966
FHLB stock	39,130	39,130
Loans held for sale	2,975,082	2,828,384
Loans receivable, net	9,817,979	7,431,731
Interest receivable	70,509	56,262
Financial liabilities:
Deposits	13,057,747	10,064,941
Short-term subordinated debt	47,000	21,000
FHLB advances	735,695	858,984
Other borrowing	82,934	50,000
Credit linked notes	151,720
Interest payable	25,489	23,384
Level 1 \| Estimated fair value
Financial assets:
Cash and cash equivalents	377,310	226,164
Financial liabilities:
Deposits	7,878,580	7,082,056
Level 2 \| Estimated fair value
Financial assets:
Securities purchased under agreements to resell	3,412	3,464
Securities held to maturity	222,983	247,182
FHLB stock	39,130	39,130
Loans held for sale	2,975,082	2,828,384
Interest receivable	70,509	56,262
Financial liabilities:
Deposits	5,179,167	2,982,885
Short-term subordinated debt	47,000	21,000
FHLB advances	735,695	858,984
Other borrowing	82,934	50,000
Credit linked notes	151,720
Interest payable	25,489	23,384
Level 3 \| Estimated fair value
Financial assets:
Securities held to maturity	835,607	871,784
Loans receivable, net	$ 9,817,979	$ 7,431,731

Leases - Other (Details)

Leases - Other (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases
Operating lease right-of-use assets	$ 11,050	$ 10,969
Operating lease liabilities	$ 12,326	$ 11,992
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) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Leases.
Operating lease right-of-of use asset (in other assets)	$ 11,050		$ 11,050		$ 10,969
Operating lease liability (in other liabilities)	$ 12,326		$ 12,326		$ 11,992
Weighted average remaining lease term (years)	6 years 3 months 18 days		6 years 3 months 18 days		6 years 6 months
Weighted average discount rate	2.86%		2.86%		2.65%
Maturities of lease liabilities:
One year or less	$ 1,243		$ 1,243		$ 2,181
Year two	2,441		2,441		2,321
Year three	2,064		2,064		1,881
Year four	2,100		2,100		1,911
Year five	2,046		2,046		1,853
Thereafter	3,566		3,566		2,902
Total future minimum lease payments	13,460		13,460		13,049
Less: imputed interest	1,134		1,134		1,057
Total	12,326		12,326		$ 11,992
Components of lease expense:
Operating lease cost (in occupancy and equipment expense)	$ 666	$ 425	1,249	$ 792
Operating cash flows from operating leases			$ 886	$ 597

Deposits - Components (Details)

Deposits - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Noninterest-bearing deposits
Total noninterest-bearing deposits	$ 349,387	$ 326,875
Interest-bearing deposits
Demand deposits	4,583,080	3,720,363
Savings deposits	2,946,113	3,034,818
Certificates of deposit	5,181,284	2,989,289
Total interest-bearing deposits	12,710,477	9,744,470
Total deposits	$ 13,059,864	$ 10,071,345

Deposits - Maturities of deposi

Deposits - Maturities of deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Deposits
Due within one year	$ 5,018,137
Due in one year to two years	117,566
Due in two years to three years	43,816
Due in three years to four years	1,016
Due in four years to five years	749
Total time deposits	$ 5,181,284	$ 2,989,289

Deposits - Brokered deposits (D

Deposits - Brokered deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Deposits
Brokered certificates of deposit	$ 4,619,798	$ 2,681,198
Brokered savings deposits	6,243	81,532
Brokered deposit on demand accounts	125,108	13
Total brokered deposits	$ 4,751,149	$ 2,762,743

Borrowings - Components (Detail

Borrowings - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Borrowings
Other borrowings	$ 7,934
Borrowings	1,016,836	$ 930,392
Federal Reserve discount window borrowings
Borrowings
Borrowings	75,000	20,000
Short-term subordinated debt
Borrowings
Borrowings	47,000	21,000
FHLB advances
Borrowings
Borrowings	736,132	859,392
American Financial Exchange borrowing
Borrowings
Borrowings		$ 30,000
Credit linked notes
Borrowings
Borrowings	$ 150,770

Borrowings - Other (Details)

Borrowings - Other (Details) $ in Thousands	1 Months Ended	6 Months Ended
Borrowings - Other (Details) $ in Thousands	Apr. 30, 2023 USD ($) D	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Debt
Proceeds from notes and bonds payable issued		$ 26,000	$ 2,000
Amount outstanding		$ 1,016,836		$ 930,392
Fixed rate (as a percent)		1%
Credit linked notes
Debt
Amount outstanding		$ 150,770
Credit linked notes \| Restricted Cash
Debt
Debt instrument, collateral amount		35,300
Credit linked notes \| Short term Treasury Securities
Debt
Debt instrument, collateral amount		119,900
Short-Term Subordinated Debt
Debt
Amount outstanding		47,000		$ 21,000
Debt instrument, extension term	1 year
Number of days notification for debt term \| D	180
Short-Term Subordinated Debt \| Customer
Debt
Maximum investment by counterparty in Company's subordinated debt	$ 45,000
Amount outstanding	$ 11,000
Short-Term Subordinated Debt \| SOFR \| Customer
Debt
Variable interest rate, basis points spread over variable reference rate (as a percent)	3%
Loan From External Party
Debt
Amount outstanding		$ 7,900

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net Income
Net income	$ 65,302	$ 53,935	$ 120,257	$ 104,077
Dividends on preferred stock	(8,668)	(5,729)	(17,335)	(11,457)
Net Income Allocated to Common Shareholders	$ 56,634	$ 48,206	$ 102,922	$ 92,620
Weighted-Average Shares
Weighted average shares - Basic	43,235,398	43,209,824	43,207,655	43,220,198
Effect of dilutive securities-restricted stock awards	73,995	125,387	92,585	147,677
Weighted average shares - diluted	43,309,393	43,335,211	43,300,240	43,367,875
Per Share Amount
Basic earnings per share	$ 1.31	$ 1.12	$ 2.38	$ 2.14
Diluted earnings per share	$ 1.31	$ 1.11	$ 2.38	$ 2.14

Share-Based Payment Plans - Inc

Share-Based Payment Plans - Incentive Plan (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 31, 2021	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2018
Non executive directors
Plan disclosures
Shares issued		3,682	3,766	6,545	5,821
Value of shares available for issuance for compensation related to annual fees	$ 50,000					$ 10,000
2017 Plan
Plan disclosures
Shares issued		0	0	84,335	64,962

Share-Based Payment Plans - ESO

Share-Based Payment Plans - ESOP (Details) - ESOP - USD ($)	3 Months Ended		6 Months Ended
Share-Based Payment Plans - ESOP (Details) - ESOP - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Stock Ownership Plan
Expense recognized for the contribution to the plan	$ 0	$ 0	$ 810,000	$ 653,000
Shares contributed to the plan			33,293	20,709

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Segment Information
Interest income	$ 258,069	$ 89,270	$ 469,363	$ 165,282
Interest expense	152,452	17,239	263,053	27,526
Net Interest Income	105,617	72,031	206,310	137,756
Provision for credit losses	22,603	6,212	29,470	8,663
Net Interest Income After Provision for Credit Losses	83,014	65,819	176,840	129,093
Noninterest income	29,882	39,171	44,146	73,768
Noninterest expense	44,320	32,957	79,092	63,990
Income Before Income Taxes	68,576	72,033	141,894	138,871
Income taxes	3,274	18,098	21,637	34,794
Net Income	65,302	53,935	120,257	104,077
Total assets	15,874,872	11,086,055	15,874,872	11,086,055	$ 12,615,227
Other
Segment Information
Interest income	1,148	2,062	2,292	3,763
Interest expense	(1,856)	(373)	(3,575)	(624)
Net Interest Income	3,004	2,435	5,867	4,387
Net Interest Income After Provision for Credit Losses	3,004	2,435	5,867	4,387
Noninterest income	(2,555)	(1,357)	(4,732)	(2,995)
Noninterest expense	8,623	5,923	15,839	10,925
Income Before Income Taxes	(8,174)	(4,845)	(14,704)	(9,533)
Income taxes	(988)	(1,424)	(2,559)	(2,839)
Net Income	(7,186)	(3,421)	(12,145)	(6,694)
Total assets	241,764	83,229	241,764	83,229
Multi-family Mortgage Banking \| Operating Segments
Segment Information
Interest income	1,248	383	2,354	640
Interest expense	13		13
Net Interest Income	1,235	383	2,341	640
Provision for credit losses		1,153		1,153
Net Interest Income After Provision for Credit Losses	1,235	(770)	2,341	(513)
Noninterest income	30,325	49,430	46,922	81,616
Noninterest expense	19,962	21,959	34,593	38,490
Income Before Income Taxes	11,598	26,701	14,670	42,613
Income taxes	356	7,145	1,462	11,565
Net Income	11,242	19,556	13,208	31,048
Total assets	373,680	330,676	373,680	330,676
Mortgage Warehousing \| Operating Segments
Segment Information
Interest income	64,267	23,247	106,585	43,576
Interest expense	42,984	5,576	70,778	7,597
Net Interest Income	21,283	17,671	35,807	35,979
Provision for credit losses	2,320	834	3,684	627
Net Interest Income After Provision for Credit Losses	18,963	16,837	32,123	35,352
Noninterest income	2,872	1,350	3,905	3,210
Noninterest expense	3,617	2,441	6,372	5,367
Income Before Income Taxes	18,218	15,746	29,656	33,195
Income taxes	(378)	3,878	2,419	8,168
Net Income	18,596	11,868	27,237	25,027
Total assets	4,474,832	2,836,998	4,474,832	2,836,998
Banking \| Operating Segments
Segment Information
Interest income	191,406	63,578	358,132	117,303
Interest expense	111,311	12,036	195,837	20,553
Net Interest Income	80,095	51,542	162,295	96,750
Provision for credit losses	20,283	4,225	25,786	6,883
Net Interest Income After Provision for Credit Losses	59,812	47,317	136,509	89,867
Noninterest income	(760)	(10,252)	(1,949)	(8,063)
Noninterest expense	12,118	2,634	22,288	9,208
Income Before Income Taxes	46,934	34,431	112,272	72,596
Income taxes	4,284	8,499	20,315	17,900
Net Income	42,650	25,932	91,957	54,696
Total assets	$ 10,784,596	$ 7,835,152	$ 10,784,596	$ 7,835,152

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 65,302	$ 53,935	$ 120,257	$ 104,077

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false