Merchants Bancorp
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 7, 2026
MBIN$51.76-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001104659-26-057107
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001104659-26-092702
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 162 previous paragraphs and 202 current paragraphs.
55 unchanged; 81 reworded; 47 added; 22 removed; 4 previous and 19 current paragraphs rearranged.
Tables are not compared: 44 previous and 86 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (47)
Current report
ACL-Loans. The ACL-Loans of $75.8 million at June 30, 2026 decreased $7.5 million, or 9%, compared to $83.3 million at December 31, 2025. The decrease compared to December 31, 2025 was driven by a $12.1 million decrease in specific reserves partially offset by a $4.6 million increase in the pooled loan reserve. For the six months ended June 30, 2026, $34.1 million of net charge-offs were partially offset by a $26.6 million in provision for credit losses on loans. Additional details are provided in the Asset Quality portion of theComparison of Financial Condition at June 30, 2026 and December 31, 2025 and inNote 4: Loans and Allowance for Credit Losses on Loans.
Current report
Deferred and Current Tax Liabilities.** **Deferred and current tax liabilities at June 30, 2026 increased $16.2 million, or 48%, compared to $33.9 million at December 31, 2025. The increase is primarily due to growth in servicing assets and other derivative activity.
Current report
The ACL-Loans of $75.8 million, as of June 30, 2026, decreased by $7.5 million, or 9%, compared to $83.3 million as of December 31, 2025. The $7.5 million decrease compared to December 31,2025 was driven by a $12.1 million decrease in specific reserves partially offset by a $4.6 million increase in the pooled loan reserve.
Current report
General. Net income of $78.3 million for the three months ended June 30, 2026 increased by $40.3 million, or 106%, compared to $38.0 million for the three months ended June 30, 2025. The increase was primarily driven by a $43.8 million, or 83%, decrease in the provision for credit losses, reflecting improved asset quality. The results were also favorably impacted by a $7.8 million increase in net interest income, and a $4.1 million decrease in noninterest expense, which were offset by a $10.6 million increase in the provision for income taxes, and a decrease of $4.8 million in noninterest income.
Current report
Interest income of $18.1 million on securities held to maturity for the three months ended June 30, 2026, decreased $5.1 million, or 22%, compared to $23.2 million for the three months ended June 30, 2025.
Current report
Interest income of $252.5 million on loans and loans held for sale for the three months ended June 30, 2026, decreased $3.1 million, or 1%, compared to $255.6 million for the three months ended June 30, 2025.
Current report
Interest income of $9.6 million on securities available for sale for the three months ended June 30, 2026, decreased $2.5 million, or 21%, compared to $12.1 million for the three months ended June 30, 2025.
Current report
Interest income of $4.5 million on mortgage loans in process of securitization for the three months ended June 30, 2026, decreased $0.8 million, or 16%, compared to $5.3 million for the three months ended June 30, 2025.
Current report
Interest expense of $13.3 million on certificates of deposit accounts for the three months ended June 30, 2026, decreased $22.1 million, or 62%, compared to $35.4 million for the three months ended June 30, 2025.
Current report
Interest expense of $67.4 million on interest-bearing checking accounts for the three months ended June 30, 2026, increased $6.6 million, or 11%, compared to $60.8 million for the three months ended June 30, 2025.
Current report
Interest expense of $40.7 million on borrowings for the three months ended June 30, 2026, decreased $3.6 million, or 8%, compared to $44.3 million for the three months ended June 30, 2025.
Current report
Noninterest income of $45.7 million for the three months ended June 30, 2026 decreased $4.8 million, or 10%, compared to $50.5 million for the three months ended June 30, 2025. The decline was primarily due to decreases of $10.2 million, or 44%, in gain on sale of loans, as well as $2.8 million, or 29%, in syndication and asset management fees. These decreases were offset by increases of $5.9 million, or 95%, in loan servicing fees, and $2.5 million in other noninterest income.
Current report
Gain on sale of loans of $13.2 million for the three months ended June 30, 2026 decreased $10.2 million, or 44%, compared to the three months ended June 30, 2025. The decrease was primarily due to higher 10-year interest rates, which delayed borrower decisions to transition to permanent fixed-rate loans.
Current report
Loan servicing fees of $12.0 million for the three months ended June 30, 2026 increased $5.9 million, or 95%, compared to $6.1 million for the three months ended June 30, 2025. Loan servicing fees included a $6.0 million positive fair market value adjustment to servicing rights for the three months ended June 30, 2026, compared to a $0.3 million positive fair market value adjustment to servicing rights for the three months ended June 30, 2025.
Current report
Other noninterest income of $11.7 million for the three months ended June 30, 2026 increased $2.5 million, or 27%, compared to $9.3 million for the three months ended June 30, 2025. Other noninterest income included increased operating income and gain on sale of other real estate owned partially offset by a lower positive fair market value adjustment on the floor derivatives.
Current report
Noninterest expense of $73.2 million for the three months ended June 30, 2026 decreased $4.1 million, or 5%, compared to the three months ended June 30, 2025. The lower expenses were primarily due to a $4.2 million decrease in salaries and employee benefits from lower commissions and bonuses.
Current report
General. Net income of $146.0 million for the six months ended June 30, 2026 increased $49.8 million, or 52%, compared to $96.2 million for the six months ended June 30, 2025. The increase was primarily driven by a $36.3 million, or 60%, decrease in the provision for credit losses, reflecting improved asset quality. Also benefiting income was a $14.3 million, or 6%, increase in net interest income and an $18.1 million, or 24%, increase in noninterest income. These were partially offset by a $9.9 million, or 7%, increase in noninterest expense and an $8.9 million, or 31%, increase in the provision for income taxes.
Current report
Interest Income. Interest income of $564.6 million for the six months ended June 30, 2026 decreased $27.0 million, or 5%, compared to $591.6 million for the six months ended June 30, 2025. This decrease was primarily attributable to lower average yields on higher average balances on loans and loans held for sale, and lower average yields on lower average balances on securities, both held to maturity and available for sale.
Current report
Interest income of $482.8 million on loans and loans held for sale for the six months ended June 30, 2026, decreased $12.1 million, or 2%, compared to $494.9 million for the six months ended June 30, 2025.
Current report
Interest income of $37.6 million on securities held to maturity for the six months ended June 30, 2026, decreased $10.0 million, or 21%, compared to the six months ended June 30, 2025.
Current report
Interest Expense. Total interest expense of $299.4 million for the six months ended June 30, 2026, decreased $41.3 million, or 12%, compared to $340.7 million for the six months ended June 30, 2025, primarily due to lower average balances on certificates of deposits and lower average rates on deposits and borrowings.
Current report
Interest expense of $28.4 million on certificates of deposit accounts for the six months ended June 30, 2026, decreased $45.8 million, or 62%, compared to $74.2 million for the six months ended June 30, 2025.
Current report
Interest expense of $128.2 million on interest-bearing checking accounts for the six months ended June 30, 2026, increased $16.7 million, or 15%, compared to $111.5 million for the six months ended June 30, 2025.
Current report
Interest expense on borrowings of $72.7 million for the six months ended June 30, 2026, decreased $12.7 million, or 15%, compared to $85.4 million for the six months ended June 30, 2025.
Current report
Provision for Credit Losses. We recorded a provision for credit losses of $24.5 million for the six months ended June 30, 2026, a decrease of $36.3 million, or 60%, compared to $60.8 million for the six months ended June 30, 2025. The decrease reflected improved asset quality, including lower charge-offs and lower specific reserves.
Current report
Noninterest Income.
Current report
Noninterest income of $92.3 million for the six months ended June 30, 2026 increased $18.1 million, or 24%, compared to $74.2 million for the six months ended June 30, 2025. The results reflected a $16.9 million, or 167%, increase in loan servicing fees and a $12.6 million, or 101%, increase in other noninterest income. These were partially offset by an $8.3 million, or 24% decrease in gain on sale of loans and a $3.0 million, or 23% decrease in syndication and asset management fees compared to the six months ended June 30, 2025.
Current report
Other noninterest income of $25.0 million for the six months ended June 30, 2026 increased $12.6 million, or 101%, compared to $12.4 million for the six months ended June 30, 2025. The results reflected higher operating income and gain on sale of other real estate owned, as well as gains on fair market value adjustments of derivatives discussed in more detail below.
Current report
Gain on sale of loans of $26.7 million for the six months ended June 30, 2026 decreased $8.3 million, or 24%, compared to $35.0 million for the six months ended June 30, 2025. The decrease in gain on sale of loans was primarily due to higher 10-year interest rates, which delayed borrower decisions to transition to permanent fixed-rate loans.
Current report
Noninterest Expense.
Current report
Noninterest expense of $148.9 million for the six months ended June 30, 2026 increased $9.9 million, or 7%, compared to $139.0 million for the six months ended June 30, 2025. The increase was due primarily to a $5.9 million increase in other noninterest expense, mainly related to higher other real estate owned expenses, and a $3.2 million increase in credit risk transfer premium expenses. The increase also reflects a rise in occupancy and equipment expenses. These were partially offset by a $2.1 million decrease in salaries and employee benefits from lower commissions and bonuses.
Current report
The efficiency ratio was at 41.65% for the six months ended June 30, 2026, compared with 42.76% for the six months ended June 30, 2025.
Current report
Income Taxes. Income tax expense of $38.1 million for the six months ended June 30, 2026 increased $8.9 million, or 31%, compared to the six months ended June 30, 2025. The effective tax rate was 20.7% and 23.2% for the six months ended June 30, 2026 and 2025, respectively. The decrease in effective tax rate reflected the utilization of originated and purchased tax credits.
Current report
Multi-family Mortgage Banking.
Current report
The Multi-family Mortgage Banking segment reported net income of $10.3 million for the three months ended June 30, 2026, an increase of $1.1 million, or 12%, compared to net income for the three months ended June 30, 2025. The results primarily reflect a decrease in noninterest expenses due to lower salaries and benefit expenses for commissions and bonuses.
Current report
Loan servicing fees included a $4.6 million positive fair market value adjustment to servicing rights for the three months ended June 30, 2026 compared to a $0.7 million positive fair market value adjustment for the three months ended June 30, 2025.
Current report
The Multi-family Mortgage Banking segment reported net income of $21.4 million for the six months ended June 30, 2026, an increase of $8.7 million, or 68%, compared to net income of $12.7 million for the six months ended June 30, 2025. The increase in net income was primarily due a $8.3 million increase in noninterest income driven by higher loan servicing fees.
Current report
Loan servicing fees included $12.0 million positive fair market value adjustment to servicing rights for the six months ended June 30, 2026, compared to $1.2 million positive fair market value adjustment of for the six months ended June 30, 2025.
Current report
Mortgage Warehousing.
Current report
The Mortgage Warehousing segment reported net income of $30.6 million for the three months ended June 30, 2026, an increase of $7.6 million, or 33%, compared to $23.0 million for the three months ended June 30, 2025. The increase in net income reflected higher net interest income reflecting the growth in average balances for warehouse loans in both loans receivable and loans held for sale.
Showing the first 40 of 47 passages. Open the source sections for the rest.
Removed paragraphs (22)
Previous report
ACL-Loans. The ACL-Loans of $76.8 million at March 31, 2026 decreased $6.5 million, or 8%, compared to $83.3 million at December 31, 2025. The decrease compared to December 31, 2025 was driven by $23.0 million in charge-offs that were partially offset by a $15.9 million increase in provision expense on loans. The latter was primarily associated with declines on certain multi-family property values, after receiving new appraisals, and the ongoing investigation of borrowers involved in mortgage fraud or suspected fraud, and loan growth. Additionally, the changes were attributable to certain types of subordinated loans that the Company no longer offers to borrowers. Losses on underperforming loans have been largely identified and have either been included in ACL-Loans as specific reserves or charged-off. Additional details are provided in the Asset Quality portion of theComparison of Financial Condition at March 31, 2026 and December 31, 2025 and inNote 4: Loans and Allowance for Credit Losses on Loans.
Previous report
The ACL-Loans of $76.8 million, as of March 31, 2026, decreased by $6.5 million, or 8%, compared to $83.3 million as of December 31, 2025. The $6.5 million decrease compared to December 31, 2025 was driven by $23.0 million in charge-offs, partially offset by $15.9 million in provision expense. The latter was primarily associated with declines on certain multi-family property values, after receiving new appraisals, and the ongoing investigation of borrowers involved in mortgage fraud or suspected fraud. Additionally, the changes were attributable to certain types of subordinated loans that the Company no longer offers to borrowers. These underperforming loans have been largely identified and evaluated for potential losses that have either been included in the ACL-Loans as specific reserves or charged-off.
Previous report
General. Net income of $67.7 million for the three months ended March 31, 2026 increased by $9.5 million, or 16%, compared with the three months ended March 31, 2025. The improvement was primarily attributable to a $22.9 million, or 97%, increase in noninterest income driven principally by higher positive fair value adjustments to mortgage servicing rights and certain derivatives. Net income also benefited from a $6.5 million, or 5%, increase in net interest income. These increases were partially offset by a $14.0 million, or 23%, increase in noninterest expense and a $7.6 million increase in the provision for credit losses.
Previous report
The interest rate spread of 2.50% for the three months ended March 31, 2026 increased 12 basis points compared to 2.38% for the three months ended March 31, 2025. Our net interest margin increased three basis points, to 2.92%, for the three months ended March 31, 2026 compared to 2.89% for the three months ended March 31, 2025. The increase in net interest margin was primarily attributable to the repayment of credit-linked notes in December 2025.
Previous report
Interest income of $230.3 million on loans and loans held for sale for the three months ended March 31, 2026, decreased $9.0 million, or 4%, compared to $239.3 million for the three months ended March 31, 2025. The average yield on loans decreased 72 basis points to 6.34%, for the three months ended March 31, 2026, compared to 7.06% for the three months ended March 31, 2025. The average balance of loans and loans held for sale of $14.7 billion for the three months ended March 31, 2026 increased $990.1 million, or 7%, compared to the three months ended March 31, 2025.
Previous report
ended March 31, 2026 decreased $150.5 million, or 9%, compared to $1.6 billion for the three months ended March 31, 2025. The decrease in average balance was primarily due to repayments.
Previous report
Interest income of $9.9 million on securities available for sale for the three months ended March 31, 2026, decreased $2.4 million, or 20%, compared to the three months ended March 31, 2025. The average balance of securities available for sale of $856.8 million for the three months ended March 31, 2026 decreased $104.2 million, or 11%, compared to the three months ended March 31, 2025. The average yield decreased 50 basis points to 4.71%, for the three months ended March 31, 2026, compared to 5.21% for the three months ended March 31, 2025. The decrease in average balance of securities available for sale was primarily due to maturities and repayments, as well as fair value adjustments, that were partially offset by purchases.
Previous report
Interest income of $4.4 million on mortgage loans in process of securitization for the three months ended March 31, 2026, increased $0.6 million, or 17%, compared to the three months ended March 31, 2025. The average balance of mortgage loans in process of securitization of $338.1 million increased $60.6 million, or 22%, compared to the three months ended March 31, 2025. The average yield decreased 21 basis points, to 5.26% for the three months ended March 31, 2026, compared to 5.47% for the three months ended March 31, 2025. The increase in average balance was primarily due to a higher origination volume of loans pending settlement for sale on the secondary market.
Previous report
Interest expense of $15.1 million on certificate of deposit accountsfor the three months ended March 31, 2026, decreased $23.7 million, or 61%, compared to $38.8 million for the three months ended March 31, 2025. The average balance of $1.6 billion for the three months ended March 31, 2026, decreased $1.8 billion, or 54%, compared to $3.4 billion the three months ended March 31, 2025. The average rate on certificates of deposit was 3.92% for the three months ended March 31, 2026, which was a 75 basis points decrease compared to 4.67% for the three months ended March 31, 2025. The decrease in certificates of deposit is primarily due to the decrease in use of brokered deposits.
Previous report
Interest expense of $60.8 million on interest-bearing checking accounts for the three months ended March 31, 2026, increased $10.2 million, or 20%, compared to $50.6 million the three months ended March 31, 2025. The average balance of $7.2 billion for the three months ended March 31, 2026, increased $2.1 billion, or 41%, compared to $5.1 billion the three months ended March 31, 2025. The average rate on interest-bearing checking accounts was 3.42% for the three months ended March 31, 2026, which was a 59 basis points decrease compared to 4.01% for the three months ended March 31, 2025.
Previous report
Interest expense of $34.0 million for money market/savings accounts decreased $0.5 million, or 2%, for the three months ended March 31, 2026, compared to $34.5 million for the three months ended March 31, 2025. The average balance of money market/savings accounts of $3.9 billion for the three months ended March 31, 2026 increased $380.5 million, or 11%, compared to $3.5 billion for the three months ended March 31, 2025. The average rate on
Previous report
Interest expense on borrowings of $32.0 million for the three months ended March 31, 2026, decreased $9.1 million, or 22%, compared to $41.1 million the three months ended March 31, 2025. The decrease was due primarily to a 119 basis points reduction in average interest rates, to 4.14%, for the three months ended March 31, 2026, compared to 5.33% for the three months ended March 31, 2025. This was partially offset by an $11.4 million increase in average borrowings, to $3.1 billion, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025.
Previous report
Noninterest income of $46.6 million for the three months ended March 31, 2026 increased $22.9 million, or 97%, compared to $23.7 million for the three months ended March 31, 2025. Results reflected a $11.1 million, or 277%, increase in loan servicing fees, $10.1 million, or 319%, increase in other income, and a $1.9 million, or 16%, increase in gain on sale of loans.
Previous report
Also included in other noninterest income were changes in fair value on certain securities available for sale that the Company elected to account for under the fair value option, with changes in fair value reflected in earnings. The Company also has put options associated with these securities that provide protection against any change in value. By design, the fair value adjustments of the securities and the put options should be substantially equal and offsetting. For the three months ended March 31, 2026 there was a $7.9 million negative fair value adjustment on the securities that were offset by a $7.9 million positive fair value adjustment on the put options, hence having no net gain or loss recognized. Also seeNote 2: Investment Securities, Note 11: Derivative Financial Instruments, andNote 12: Disclosures about Fair Value of Assets and Liabilities.
Previous report
Gain on sale of loans of $13.5 million for the three months ended March 31, 2026 increased $1.9 million, or 16%, compared to $11.6 million for the three months ended March 31, 2025. The increase in gain on sale of loans resulted primarily from higher volume in the multi-family loan portfolio.
Previous report
Noninterest expense of $75.6 million for the three months ended March 31, 2026 increased $14.0 million, or 23%, compared to the three months ended March 31, 2025. Results reflected a $7.5 million increase in other noninterest expense that included $3.1 million in collateral preservation expenses associated with taxes, insurance, property expenses, and legal fees related to nonperforming assets. The increase also reflects a $2.1 million, or 6%, increase in salaries and employee benefits to support business growth, a $1.9 million increase in credit risk transfer premium expense associated with credit default swaps, as well as $1.2 million, or 16%, increase in deposit insurance expense primarily associated with asset quality.
Previous report
Multi-family Mortgage Banking. The Multi-family Mortgage Banking segment reported net income of $11.0 million for the three months ended March 31, 2026, an increase of $7.6 million, or 223%, compared to net income of $3.4 million for the three months ended March 31, 2025. The rise in net income was primarily due to increases of $7.6 million in loan servicing fees and $2.1 million in gain on sale of loans, which was partially offset by an increase in income tax expense of $1.4 million.
Previous report
Loan servicing fees included $7.4 million positive fair market value adjustment to servicing rights for the three months ended March 31, 2026, compared to a $0.4 million positive fair market value adjustment for the three months ended March 31, 2025.
Previous report
Mortgage Warehousing. The Mortgage Warehousing segment reported net income of $28.6 million for the three months ended March 31, 2026, an increase of $13.3 million, or 86%, compared to the three months ended March 31, 2025. The rise in net income reflected increases of $10.1 million in net interest income and $5.0 million in other noninterest income, which was partially offset by an increase in income tax expense of $2.3 million.
Previous report
Banking. The Banking segment reported net income of $38.0 million for the three months ended March 31, 2026, a decrease of $9.1 million, or 19%, compared to $47.1 million for the three months ended March 31, 2025. The decrease in net income was primarily due to lower net interest income after provision for credit losses.
Previous report
Noninterest income included a $1.6 million positive fair market value adjustment to servicing rights for the three months ended March 31, 2026, compared to a $1.2 million negative fair market value adjustment to servicing rights for the three months ended March 31, 2025.
Previous report
During the three months ended March 31, 2026, the Company’s MOU from mid-2025 with the FDIC and DFI was terminated, following progress made by management in addressing the MOU provisions. As a result, the Company is no longer subject to any dividend or capital restrictions beyond those applicable to institutions that are considered well-capitalized under applicable regulatory guidelines.
Reworded paragraphs (81)
Previous wording
Management’s discussion and analysis of the financial condition at March 31, 2026 and results of operations for the three months ended March 31, 2026 and 2025, is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto, appearing in Part I, Item 1 of this Form 10-Q.
Current wording
Management’s discussion and analysis of the financial condition at June 30, 2026 and results of operations for the three and six months ended June 30, 2026 and 2025, is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto, appearing in Part I, Item 1 of this Form 10-Q.
Previous wording
Our business consists of funding low risk, multi-family, residential, and SBA loans meeting underwriting standards of government programs under an originate to sell model, and retaining adjustable-rate loans as held for investment to reduce interest rate risk. The gain on sale of these loans and servicing fees contribute to noninterest income. The funding source is primarily from mortgage custodial, retail, commercial, brokered deposits, and short-term borrowings. We believe that the combination of net interest income and noninterest income from the sale of low risk profile assets has traditionally resulted in lower than industry charge-offs and a lower expense base, which serves to maximize net income and higher than industry shareholder return.
Current wording
Our business consists of funding multi-family, residential, and SBA loans meeting underwriting standards of government programs under an originate to sell model, and retaining adjustable-rate loans as held for investment to reduce interest rate risk. The gain on sale of these loans and servicing fees contribute to noninterest income. The funding source is primarily from mortgage custodial, retail, commercial, brokered deposits and short-term borrowings. We believe that the combination of net interest income and noninterest income from the sale of low risk profile assets has traditionally resulted in lower than industry charge-offs and a lower expense base, which serves to maximize net income and higher than industry shareholder return.
Previous wording
ACL-Loans and $4.7 billion of loans held for sale. Assets also included $1.4 billion in securities held to maturity and $843.9 million in securities available for sale, the majority of which were acquired from a warehouse customer. There are some restrictions on the types of securities we hold, particularly for those that are funded by certain multi-family custodial deposits where we set the cost of deposits based on the yield of the related security. Additionally, we had $437.0 million of mortgage loans in process of securitization that represent pre-sold multi-family rental real estate loan originations in primarily Ginnie Mae, Fannie Mae, and Freddie Mac mortgage-backed securities pending settlements that typically occur within 30 days, as well as other assets of $744.2 million, which primarily related to low-income housing tax credits, and $83.2 million of cash and cash equivalents. Servicing rights at March 31, 2026 were $229.6 million based on the fair value of the loan servicing, which primarily includes Ginnie Mae multi-family servicing rights with 10-year call protection.
Current wording
As of June 30, 2026, we had approximately $21.2 billion in total assets, $14.3 billion in deposits, and $2.4 billion in total shareholders’ equity. Total assets as of June 30, 2026 included $12.3 billion of loans receivable, net of ACL-Loans, and $4.6 billion of loans held for sale. Assets also included $1.4 billion in securities held to maturity and $820.1 million in securities available for sale, the majority of which were acquired from a warehouse customer. Additionally, we had $407.4 million of mortgage loans in process of securitization that represent pre-sold multi-family rental real estate loan originations in primarily Ginnie Mae, Fannie Mae, and Freddie Mac mortgage-backed securities pending settlements that typically occur within 30 days, as well as other assets of $751.0 million, which primarily related to low-income housing tax credits, and $314.7 million of cash and cash equivalents. Servicing rights at June 30, 2026 were $236.9 million based on the fair value of the loan servicing, which primarily includes Ginnie Mae multi-family servicing rights with 10-year call protection at origination.
Previous wording
Total Assets. Total assets of $20.3 billion at March 31, 2026 increased $872.8 million, or 4%, compared to $19.4 billion at December 31, 2025. The increase was due primarily to growth in loans and loans held for sale, specifically in the warehouse and multi-family loan portfolios, which were partially offset by lower balances in the healthcare loan portfolio. Warehouse loans, including loans held for sale and loans receivable, are exclusively made up of loans to residential and multi-family mortgage bankers that are funding agency-eligible mortgages and commercial loans, which represent all of the Company’s loans to non-depository institutions.
Current wording
Total Assets. Total assets of $21.2 billion at June 30, 2026 increased $1.8 billion, or 9%, compared to $19.4 billion at December 31, 2025. The increase was due primarily to growth in loans and loans held for sale, specifically in the multi-family and warehouse portfolios, as well as revolving lines of credit collateralized by mortgage servicing rights that are included in the commercial and commercial real estate portfolio. Warehouse loans, including loans held for sale and loans receivable, are exclusively made up of loans to residential and multi-family mortgage bankers that are funding agency-eligible mortgages and commercial loans, which represent all of the Company’s loans to non-depository institutions.
Previous wording
Cash and Cash Equivalents. Cash and cash equivalents of $83.2 million at March 31, 2026 decreased $129.0 million, or 61%, compared to $212.2 million at December 31, 2025. The decrease was primarily attributable to growth in the loan portfolio.
Current wording
Cash and Cash Equivalents. Cash and cash equivalents of $314.7 million at June 30, 2026 increased $102.5 million, or 48%, compared to $212.2 million at December 31, 2025. The increase was primarily to satisfy anticipated loan funding commitments*.*
Previous wording
Mortgage Loans in Process of Securitization. Mortgage loans in process of securitization of $437.0 million at March 31, 2026 decreased $183.1 million, or 30%, compared to $620.1 million at December 31, 2025. These represent loans that our banking subsidiary, Merchants Bank, has funded and are held in the loan portfolio pending settlement, as primarily Ginnie Mae, Fannie Mae, and Freddie Mac mortgage-backed securities with a firm investor commitment to purchase the securities.
Current wording
Mortgage Loans in Process of Securitization. Mortgage loans in process of securitization of $407.4 million at June 30, 2026 decreased $212.7 million, or 34%, compared to $620.1 million at December 31, 2025. These represent loans that our banking subsidiary, Merchants Bank, has funded and are held in the loan portfolio pending settlement, as primarily Ginnie Mae, Fannie Mae, and Freddie Mac mortgage-backed securities with a firm investor commitment to purchase the securities.
Previous wording
Securities Available for Sale. Securities available for sale of $843.9 million at March 31, 2026 decreased $21.2 million, or 2%, compared to $865.1 million at December 31, 2025. The decrease in securities available for sale was primarily due to $225.5 million in calls, maturities, repayments, sales and other adjustments, partially offset by purchases of $204.3 million during the period.
Current wording
Securities Available for Sale. Securities available for sale of $820.1 million at June 30, 2026 decreased $45.0 million, or 5%, compared to $865.1 million at December 31, 2025. The decrease in securities available for sale was primarily due to $305.3 million in calls, maturities, repayments, and other adjustments, partially offset by purchases of $260.4 million during the period.
Previous wording
Included in securities available for sale were $550.2 million and $571.3 million of investments for which a fair value option was elected at March 31, 2026 and December 31, 2025, respectively. Fair value option securities represent securities which the Company has elected to carry at fair value and are separately identified on the unaudited condensed consolidated balance sheets with changes in the fair value recognized in earnings as they occur.
Current wording
Included in securities available for sale were $527.7 million and $571.3 million of investments for which a fair value option was elected at June 30, 2026 and December 31, 2025, respectively. Fair value option securities represent securities which the Company has elected to carry at fair value and are separately identified on the unaudited condensed consolidated balance sheets with changes in the fair value recognized in earnings as they occur.
Previous wording
As of March 31, 2026, AOCL of $0.8 million, related to securities available for sale increased $771,000 from December 31, 2025. The $0.8 million of AOCL as of March 31, 2026 represented less than 0.001% of total equity and total securities available for sale, reflecting our interest rate risk policy of maintaining short duration on assets and liabilities.
Current wording
As of June 30, 2026, AOCL of $1.2 million, related to securities available for sale increased $1.2 million from December 31, 2025. The $1.2 million of AOCL as of June 30, 2026 represented less than 0.15% of total equity and total securities available for sale, reflecting our interest rate risk policy of maintaining short duration on assets and liabilities.
Previous wording
Securities Held to Maturity. Securities held to maturity of $1.4 billion at March 31, 2026 decreased $117.7 million, or 8%, compared to $1.5 billion at December 31, 2025. The decrease was due to repayments and amortization of securities totaling $117.7 million during the period.
Current wording
Securities Held to Maturity. Securities held to maturity of $1.4 billion at June 30, 2026 decreased $188.8 million compared to $1.5 billion at December 31, 2025. The decrease was due to repayments, net of accretion.
Previous wording
Loans Held for Sale. Loans held for sale of $4.7 billion at March 31, 2026 increased $836.7 million, or 22%, compared to $3.9 billion at December 31, 2025. The increase in loans held for sale was due primarily to a significant increase in single-family warehouse participations, as we experienced higher volume. Loans held for sale are comprised
Current wording
Loans Held for Sale. Loans held for sale of $4.6 billion at June 30, 2026 increased $742.9 million, or 19%, compared to $3.9 billion at December 31, 2025. The increase in loans held for sale was due primarily to a significant
Previous wording
primarily of single-family residential real estate loan participations that meet Fannie Mae, Freddie Mac, or Ginnie Mae eligibility. Loans held for sale also includes single-family, SBA, and multi-family loans that are expected to be sold or securitized in the future.
Current wording
increase in single-family warehouse participations, as we experienced higher volume. Loans held for sale are comprised primarily of single-family residential real estate loan participations that meet Fannie Mae, Freddie Mac, or Ginnie Mae eligibility. Loans held for sale also includes single-family, SBA, and multi-family loans that are expected to be sold or securitized in the future.
Previous wording
Loans Receivable, Net. Loans receivable, net of ACL-Loans, of $11.4 billion at March 31, 2026, increased $448.5 million compared to $11.0 billion at December 31, 2025. The increase in net loans was comprised primarily of:
Current wording
Loans Receivable, Net. Loans receivable, net of ACL-Loans, of $12.3 billion at June 30, 2026, increased $1.3 billion, or 12%, compared to $11.0 billion at December 31,2025. The increase in net loans was comprised primarily of:
Previous wording
As of March 31, 2026, approximately 97% of total loans reprice within three months, which reduces the risk of market rate fluctuations.
Current wording
As of June 30, 2026, approximately 97% of total loans reprice within three months, which reduces the risk of market rate increases.
Previous wording
The Company is a nationwide lender, especially in our largest portfolios of multi-family, mortgage warehouse repurchase agreements, and healthcare financing.
Current wording
The Company is a nationwide lender, especially in our multi-family and healthcare financing portfolios.
Previous wording
Servicing Rights. Servicing rights of $229.6 million at March 31,2026 increased $12.3 million compared to $217.3 million at December 31, 2025. During the three months ended March 31, 2026, a positive fair market value adjustment of $8.9 million and originated or purchased servicing of $5.9 million were partially offset by paydowns of $2.5 million. The $8.9 million positive fair market value adjustment reflected a positive adjustment of $7.4 million for multi-family and healthcare mortgages and $1.6 million for single-family mortgages and SBA loans during the three months ended March 31, 2026.
Current wording
Servicing Rights. Servicing rights of $236.9 million at June 30, 2026 increased $19.7 million, or 9%, compared to December 31, 2025. During the six months ended June 30, 2026, a positive fair market value adjustment of $15.0 million and originated or purchased servicing of $9.9 million were partially offset by paydowns of $5.2 million. The $15.0 million positive fair market value adjustment reflected a positive adjustment of $12.0 million for multi-family and healthcare mortgages and a positive adjustment of $3.0 million for single-family mortgages and SBA loans during the six months ended June 30, 2026.
Previous wording
Servicing rights are recognized in connection with salesof loans when we retain servicing of the sold loans. The servicing rights are recorded and carried at fair value based on the expected future cash flows. The fair value increase recorded during the three months ended March 31, 2026 was driven by higher escrow earnings rates in the multi-family and healthcare servicing portfolios, which increased the expected cash flows from servicing activities. Lower prepayment assumptions in the single-family and healthcare portfolios also contributed to the higher servicing values. The value of servicing rights generally increases in rising interest rate environments and declines in falling interest rate environments due to expected prepayments.
Current wording
Servicing rights are recognized in connection with salesof loans when we retain servicing of the sold loans. The servicing rights are recorded and carried at fair value based on the expected future cash flows. The fair value increase recorded during the six months ended June 30, 2026 was driven by higher escrow earnings rates in the multi-family and healthcare servicing portfolios, which increased the expected cash flows from servicing activities. Lower prepayment assumptions in the single-family and healthcare portfolios also contributed to the higher servicing values. The value of servicing rights generally increases in rising 10-year interest rate environments and declines in falling interest rate environments due to expected prepayments and earning rates that are influenced by projected future interest rates on escrow deposits.
Previous wording
Other Real Estate Owned. Other real estate owned of $60.2 million at March 31, 2026 increased $0.1 million compared to December 31, 2025.
Current wording
Other Real Estate Owned. Other real estate owned of $72.4 million at June 30, 2026 increased $12.2 million, or 20%, compared to December 31, 2025.
Previous wording
Other Assets and Receivables. Other assets and receivables of $744.2 million at March 31, 2026 increased by $30.9 million, or 4%, compared to December 31, 2025. The increase was primarily due to a $22.9 million increase in income tax receivable primarily related to tax credits purchased during the period.
Current wording
Other Assets and Receivables. Other assets and receivables of $751.0 million at June 30, 2026 increased $37.8 million, or 5%, compared to December 31, 2025. The increase was primarily due to an $11.8 million increase in LIHTC assets.
Previous wording
Deposits. Deposits of $13.0 billion at March 31, 2026 decreased $89.4 million, or 1%, compared to December 31, 2025. As of March 31, 2026, approximately 83% of the total deposits reprice within three months.
Current wording
Deposits. Deposits of $14.3 billion at June 30, 2026 increased $1.2 billion, or 9%, compared to December 31, 2025. As of June 30, 2026, approximately 85% of the total deposits reprice within three months.
Previous wording
Core deposits increased by $781.4 million, or 7%, to $12.1 billion at March 31, 2026 compared to $11.3 billion at December 31, 2025. Core deposits represented 93% of total deposits at March 31, 2026 compared to 87% of total deposits at December 31, 2025.
Current wording
Core deposits increased by $1.7 billion, or 15%, to $13.0 billion at June 30, 2026 compared to $11.3 billion at December 31, 2025. Core deposits represented 91% of total deposits at June 30, 2026 compared to 87% of total deposits at December 31, 2025.
Previous wording
We have decreased our use of total brokered deposits by $870.8 million, or 50%, to $886.5 million at March 31, 2026, compared to $1.8 billion at December 31, 2025. Brokered deposits represented 7% of total deposits at March 31, 2026, compared to 13% of total deposits at December 31, 2025. As of March 31, 2026, brokered certificates of deposit had a weighted average remaining duration of 88 days.
Current wording
We have decreased our use of total brokered deposits by $459.5 million, or 26%, to $1.3 billion at June 30, 2026 compared to $1.8 billion at December 31, 2025. Brokered deposits represented 9% of total deposits at June 30, 2026 compared to 13% of total deposits at December 31, 2025. As of June 30, 2026, brokered certificates of deposit had a weighted average remaining duration of 51 days.
Previous wording
Interest-bearing deposits at March 31, 2026 increased $12.8 million, to $12.4 billion compared to December 31, 2025, and noninterest-bearing deposits decreased $102.2 million, or 17%, to $501.9 million at March 31, 2026 compared to December 31, 2025.
Current wording
Interest-bearing deposits at June 30, 2026 increased $1.2 billion, or 10%, to $13.6 billion compared to $12.4 billion at December 31, 2025, and noninterest-bearing deposits increased $2.6 million, to $606.7 million at June 30, 2026 compared to $604.1 million at December 31, 2025. The increase in interest-bearing deposits is primarily related to custodial account relationships.
Previous wording
Uninsured deposits totaled approximately $3.5 billion as of March 31, 2026, representing 27% of total deposits. Since 2018, the Company has offered its customers an opportunity to insure balances in excess of $250,000 through our insured cash sweep program that extends FDIC protection up to $100 million. The balance of deposits in this program was $1.5 billion and $1.4 billion as of March 31, 2026 and December 31, 2025, respectively.
Current wording
Uninsured deposits totaled approximately $4.2 billion as of June 30, 2026, representing 29% of total deposits. Since 2018, the Company has offered its customers an opportunity to insure balances in excess of $250,000 through our insured cash sweep program that extends FDIC protection up to $100 million. The balance of deposits in this program was $1.4 billion as of June 30, 2026 and December 31, 2025.
Previous wording
Borrowings. Borrowings of $4.8 billion at March 31, 2026 increased $930.9 million, or 24%, compared to December 31, 2025. The higher level of collateralized borrowing was primarily due to increased borrowings at FHLB. The Company primarily utilizes borrowing facilities from the FHLB, the Federal Reserve’s discount window, AFX, and Federal Funds, using the most cost-effective options available. SeeNote 10: Borrowings for further information.
Current wording
Borrowings. Borrowings of $4.3 billion at June 30, 2026 increased $440.0 million, or 11%, compared to December 31, 2025. The higher level of collateralized borrowing was due to increased borrowings at FHLB. The Company primarily utilizes borrowing facilities from the FHLB, the Federal Reserve’s discount window, AFX, and Federal Funds, using the most cost-effective options available. SeeNote 10: Borrowings for further information.
Previous wording
The Company continues to have significant borrowing capacity based on available collateral. As of March 31, 2026, unused lines of credit totaled $3.9 billion, compared to $5.3 billion at December 31, 2025. The Company’s ratio of total collateralized borrowing capacity to total assets was 42% at March 31, 2026, compared to 47% as of December 31, 2025.
Current wording
The Company continues to have significant borrowing capacity based on available collateral. As of June 30, 2026, unused lines of credit totaled $5.5 billion, an increase of 4%, compared to $5.3 billion at December 31, 2025. The Company’s ratio of total collateralized borrowing capacity to total assets was 46% at June 30, 2026 compared to 47% at December 31, 2025.
Previous wording
Other Liabilities. Other liabilities of $219.8 million at March 31, 2026 decreased $30.7 million, or 12%, compared to $250.5 million at December 31, 2025. The decrease in other liabilities was primarily in accrued expenses and unfunded commitments for low-income housing credit investments.
Current wording
Other Liabilities. Other Liabilities of$249.1 million at June 30, 2026 decreased $1.4 million, or 1%, compared to $250.5 million at December 31, 2025. The decrease in other liabilities was primarily in accrued expenses.
Previous wording
Total Shareholders’ Equity. Total shareholders’ equity was $2.3 billion as of March 31, 2026. The $49.5 million, or 2%, increase compared to December 31, 2025 resulted from net income of $67.7 million for the three months ended March 31, 2026. The increase was partially offset by dividends paid on common and preferred shares of $15.3 million during the period as well as repurchases of common stock totaling $2.2 million. SeeNote 13: Common Stock for more details on the common stock repurchases.
Current wording
Total Shareholders’ Equity. Total shareholders’ equity was $2.4 billion at June 30, 2026. The $113.0 million, or 5%, increase compared to December 31, 2025 resulted primarily from net income of $146.0 million for the six months ended June 30, 2026. The increase was partially offset by dividends paid on common and preferred shares of $30.6 million during the period, as well as repurchases of common stock totaling $2.2 million. SeeNote 13: Common Stockfor more details on the common stock repurchases.
Previous wording
During the three months ended March 31, 2026, the Company recorded charge-offs across seven relationships, primarily in the healthcare and multi-family loan portfolios totaling $23.0 million and had $616,000 of recoveries compared to $10.5 million of charge-offs and $28,000 of recoveries for the three months ended March 31, 2025. Nearly 75% of the charge-offs for the three months ended March 31, 2026 were related to two relationships.
Current wording
During the three months ended June 30, 2026, the Company recorded charge-offs across five relationships, primarily in the multi-family loan portfolio totaling $16.5 million and had $4.8 million of recoveries compared to $46.1 million of charge-offs and no recoveries for the three months ended June 30, 2025.
Previous wording
Overall criticized loans receivable of $505.5 million declined by $2.7 million, or 1%, compared to December 31, 2025 and $226.0 million, or 31%, compared to March 31, 2025. These declines reinforce the view that the frequency of migration to criticized status would stabilize and eventually subside, driven by favorable market conditions and our efforts with proactive portfolio management.
Current wording
Overall criticized loans receivable of $444.7 million declined by $63.5 million, or 12%, compared to $508.2 million at December 31, 2025 and decreased $144.4 million, or 25%, compared to June 30, 2025. These declines are consistent with the Company’s expectation that migration to criticized status would stabilize and eventually subside, and workout efforts would yield an increase in resolutions. As of June 30, 2026, 6% of the criticized loans were covered by credit default swaps.
Previous wording
Loans receivable classified as Special Mention totaled $234.3 million at March 31, 2026, compared to $204.9 million at December 31, 2025 and $407.9 million at March 31, 2025. Loans receivable classified as Substandard totaled $271.2 million at March 31, 2026, compared to $303.3 million at December 31, 2025 and $323.6 million at March 31, 2025.
Current wording
Loans receivable classified as Special Mention totaled $214.8 million at June 30, 2026, increased $9.9 million, or 5%, compared to $204.9 million at December 31, 2025, and increased $43.3 million, or 25%, compared to $171.5 million at June 30, 2025. Loans receivable classified as Substandard totaled $229.9 million at June 30, 2026, declining $73.3 million, or 24%, compared to December 31, 2025, and down $187.7 million, or 45%, from June 30, 2025.
Previous wording
As of March 31, 2026, all Substandard loans have been evaluated for impairment, and these loans have specific reserves of $11.7 million. The Company believes that the remaining loans are well collateralized.
Current wording
As of June 30, 2026, all Substandard loans have been evaluated for impairment, and these loans have specific reserves of $3.9 million. The Company believes that the remaining loans are well collateralized.
Previous wording
Total nonperforming loans (nonaccrual and greater than 90 days late but still accruing) were $247.5 million, or 2.16% of total loans receivable, at March 31, 2026, compared to $197.8 million, or 1.79%, of total loans receivable at December 31, 2025 and $284.6 million, or 2.73%, at March 31, 2025.
Current wording
Total nonperforming loans (nonaccrual and greater than 90 days late but still accruing) were $205.6 million, or 1.67%, of total loans receivable, at June 30, 2026, compared to $197.8 million, or 1.79%, at December 31, 2025 and $251.5 million, or 2.39%, at June 30, 2025.
Previous wording
Loans receivable greater than 30 days past due were $242.3 million at March 31, 2026 compared to $206.6 million at December 31, 2025 and $304.6 million at March 31, 2025. As of March 31, 2026, 11% of the delinquent loans were covered by credit default swaps.
Current wording
Loans receivable greater than 30 days past due were $207.7 million at June 30, 2026, compared to $206.6 million at December 31, 2025, and $279.0 million at June 30, 2025. As of June 30, 2026, 10% of delinquent loans were covered by credit default swaps.
Previous wording
As a percentage of nonperforming loans, the ACL-Loans was 31% at March 31, 2026 compared to 42% at December 31, 2025 and 29% at March 31, 2025. The changes in percentage was primarily due to fluctuations in nonperforming loans.
Current wording
As a percentage of nonperforming loans, the ACL-Loans was 37% at June 30, 2026 compared to 42% at December 31, 2025 and 37% at June 30, 2025. The changes in percentage was primarily due to fluctuations in nonperforming loans.
Previous wording
The Company continues to reduce its credit risk through loan sales and securitization activities. Since 2024, the Company has strategically executed credit protection arrangements through credit default swaps to reduce risk of losses. The coverage ranges from 13-15% of the unpaid principal balances for each arrangement. As of March 31, 2026, the unpaid principal balance of loans protected by credit default swaps was $2.5 billion, compared to $2.8 billion as of December 31, 2025. Despite having credit protection on these loans, the Company is required to carry an allowance for credit losses on loans receivable. For additional information seeNote 11: Derivative Financial Instrumentsand the Company’s 2025 Annual Report on Form 10–K.
Current wording
The Company continues to reduce its credit risk through loan sales and securitization activities. Since 2024, the Company has strategically executed credit protection arrangements through credit default swaps to reduce potential loss exposure, with coverage ranging from 13-15% of the unpaid principal balances for each arrangement. As of June 30, 2026, the unpaid principal balances of loans protected by credit default swaps was $2.2 billion, compared to $2.8 billion as of December 31, 2025. Despite having credit protection on these loans, the Company is required to carry an allowance for credit losses on loans receivable. For additional information seeNote 11: Derivative Financial Instrumentsand the Company’s 2025 Annual Report on Form 10–K.
Previous wording
The percentage of commercial real estate loans as a percentage of total Tier I risk-based capital, including the ACL-Loans, has declined from 324% to 309% from December 31, 2025 to March 31, 2026, respectively.
Current wording
The percentage of commercial real estate loans as a percentage of total Tier I risk-based capital, including the ACL-Loans, has declined from 324% to 301% from December 31, 2025 to June 30, 2026, respectively.
Previous wording
Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in weighted average interest rates (rate). The following table sets forth the effects of changing volumes and rates on our net interest income during the periods shown. Information is provided with respect to (i) effects on interest income attributable to changes in volume (changes in volume multiplied by prior rate) and (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume). Yields have been calculated on a pre-tax basis.
Current wording
Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in weighted average interest rates (rate). The following table sets forth the effects of changing rates and volumes on our net interest income during the periods shown. Information is provided with respect to (i) effects on interest income attributable to changes in volume (changes in volume multiplied by prior rate) and (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume). Yields have been calculated on a pre-tax basis.
Previous wording
The following table summarizes the increases and decreases in interest income and interest expense resulting from changes in average balances (volume) and changes in average interest rates (rate).
Current wording
The following table summarizes the increases and decreases in interest income and interest expense resulting from changes in average balances (volume) and changes in average interest rates:
Previous wording
Net Interest Income. Net interest income of $128.6 million for the three months ended March 31, 2026 increased $6.5 million, or 5%, compared with the three months ended March 31, 2025. The increase reflected lower interest expense on certificates of deposits and borrowings, partially offset by higher interest expense on interest-bearing checking accounts and lower interest income on loans and loans held for sale.
Current wording
Net Interest Income. Net interest income of $136.5 million for the three months ended June 30, 2026 increased $7.8 million, or 6%, compared with $128.7 million for the three months ended June 30, 2025. The increase reflected lower interest expense on certificates of deposit, partially offset by higher interest expense on interest-bearing checking accounts and lower interest income on securities held to maturity.
Showing the first 40 of 81 pairs. Open the source sections for the rest.
Rearranged current paragraphs (19)
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, the Company recorded charge-offs totaling $39.5 million and had $5.4 million of recoveries compared to $56.6 million of charge-offs and $28,000 of recoveries for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Interest expense on deposits of $116.8 million decreased $14.5 million, or 11%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.
Current report — wording carried from elsewhere
The $9.2 million provision for credit losses consisted of $10.7 million for the ACL-Loans, net of a $1.5 million release for the ACL-OBCE’s and net of a $6,000 release for the ACL-Guarantees. Approximately half of the provision was associated with loan growth.
Current report — wording carried from elsewhere
The ACL-Loans was $75.8 million, or 0.61% of total loans, at June 30, 2026, compared to $83.3 million, or 0.75% of total loans, at December 31, 2025, and $91.8 million, or 0.87%, at June 30, 2025. The decrease compared to December 31, 2025 and June 30, 2025 was primarily related to charge-offs on loans with specific reserves. Additional details are provided in the Asset Quality portion of theComparison of Financial Conditionat June 30, 2026 and December 31, 2025 and inNote 4: Loans and Allowance for Credit Losses on Loans.
Current report — wording carried from elsewhere
Comparison of Operating Results for the Six Months Ended June 30, 2026 and 2025
Current report — wording carried from elsewhere
The following table presents, for the periods indicated, information about (i) average balances, the total dollar amount of interest income from interest-earning assets and the resultant average yields; (ii) average balances, the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rates; (iii) net interest income; (iv) the interest rate spread; and (v) the net interest margin. Yields have been calculated on a pre-tax basis. Nonaccrual loans are included in loans and loans held for sale.
Current report — wording carried from elsewhere
Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in weighted average interest rates (rate). The following table sets forth the effects of changing rates and volumes on our net interest income during the periods shown. Information is provided with respect to (i) effects on interest income attributable to changes in volume (changes in volume multiplied by prior rate) and (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume). Yields have been calculated on a pre-tax basis.
Current report — wording carried from elsewhere
The following table summarizes the increases and decreases in interest income and interest expense resulting from changes in average balances (volume) and changes in average interest rates:
Current report — wording carried from elsewhere
Net Interest Income. Net interest income of $265.2 million for the six months ended June 30, 2026 increased $14.3 million, or 6%, compared to $250.9 million for the six months ended June 30, 2025. The increase reflected lower interest expense on certificates of deposits and borrowings, partially offset by higher interest expense on interest-bearing checking accounts and lower interest income on loans and loans held for sale and securities, both held to maturity and available for sale.
Current report — wording carried from elsewhere
Included in interest expense on borrowings, our warehouse structured financing agreements provide for an additional interest payment for a portion of the earnings generated. As a result, the cost of borrowings increased from a base rate of 3.89% and 5.00%, to an effective rate of 4.10% and 5.23% for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
A summary of the gain on sale of loans for the six months ended June 30, 2026 and 2025 is below:
Current report — wording carried from elsewhere
Syndication and asset management fees of $10.1 million for the six months ended June 30, 2026, decreased $3.0 million, or 23%, compared to $13.1 million for the six months ended June 30, 2025. The decrease was attributable to less equity raised by our LIHTC syndication platform during the six months ended June 30, 2026 than the prior year.
Current report — wording carried from elsewhere
The total volume of loans originated and acquired through our Multi-family business was $2.7 billion, an increase of $345.1 million, or 15%, compared to $2.4 billion for the six months ended June 30, 2025. It included construction loans coupled with agreements for future permanent loan refinancing, as well as bridge loans housed in our Banking segment, while borrowers await conversion to permanent financing. It also includes loans originated and acquired for sale in the secondary market.
Current report — wording carried from elsewhere
The volume of loans funded during the three months ended June 30, 2026 amounted to $22.9 billion, an increase of $6.6 billion, or 41%, compared to $16.3 billion for the three months ended June 30, 2025. This compared to the 10% industry-wide increase in single-family residential loan volumes for the three months ended June 30, 2026
Current report — wording carried from elsewhere
compared to the same period in 2025, according to an estimate of industry volume by the Mortgage Bankers Association.
Current report — wording carried from elsewhere
Certificates of deposit that are scheduled to mature in less than one year from June 30, 2026 totaled $1.3 billion, or 97%, of total certificates of deposit. Of the $1.4 billion in total certificates of deposit, including those that will mature
Current report — wording carried from elsewhere
agency, at the liquidation preference, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the date of redemption.
Current report — wording carried from elsewhere
were subject. For additional information regarding dividend restrictions, see the Company’s 2025 Annual Report on Form 10–K.
Current report — wording carried from elsewhere
to generate lower net interest income, as rates paid on our interest-bearing liabilities would reprice upward more quickly than rates earned on our interest-earning assets, thus compressing our net interest margin.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
As of March 31, 2026, we had approximately $20.3 billion in total assets, $13.0 billion in deposits, and $2.3 billion in total shareholders’ equity. Total assets as of March 31, 2026 included $11.4 billion of loans receivable, net of
Previous report — wording carried elsewhere
On January 28, 2026, the Company announced a stock repurchase program, up to $100,000,000 of common stock, expiring December 31, 2027. On February 26, 2026, the Company entered into a Rule 10b5-1 plan (the “10b5-1
Previous report — wording carried elsewhere
Overview. Interest rate risk is the risk to earnings and value arising from changes in market interest rates. Interest rate risk arises from timing differences in the repricings and maturities of interest-earning assets and
Previous report — wording carried elsewhere
-100, +100 and +200 basis point parallel shifts in market interest rates, implied by the forward yield curve over the next one-year period.