Merchants Bancorp
For the period ended Sep 30, 2026. Filed Nov 6, 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.
Sep 30, 2026 · Filed Nov 6, 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 2026-06-30; filed 2026-08-07.
0001104659-26-092702
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001104659-26-123854
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 202 previous paragraphs and 200 current paragraphs.
69 unchanged; 107 reworded; 21 added; 19 removed; 7 previous and 3 current paragraphs rearranged.
Tables are not compared: 86 previous and 89 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 (21)
Current report
Goodwill. Goodwill of $19.1 million at September 30, 2026 increased $11.1 million, or 139%, compared to $8.0 million at December 31, 2025, due to the acquisition of The Loan Exchange in September 2026.
Current report
The Company has taken additional steps to reduce credit risk through loan sale and securitization activities since 2019. Since 2023, the Company has also entered into credit protection arrangements through credit default swaps and a credit-linked note to reduce potential loss exposure, with coverage ranging from 13% to 15% of the unpaid principal balance for each arrangement. Although these loans are subject to credit protection, the Company is required to
Current report
General. Net income of $105.2 million for the three months ended September 30, 2026 increased by $50.5 million, or 92%, compared to $54.7 million for the three months ended September 30, 2025. The increase was driven by a $37.8 million, or 88%, increase in noninterest income, and a $33.3 million, or 34%, increase in net interest income after provision for credit losses. These were partially offset by increases in provision for income taxes of $18.4 million, or 186%, and in noninterest expense of $2.3 million, or 3%.
Current report
Net Interest Income. Net interest income of $144.2 million for the three months ended September 30, 2026 increased $16.1 million, or 13%, compared with $128.1 million for the three months ended September 30, 2025. The increase reflected a $9.4 million, or 3%, increase in interest income and a $6.7 million, or 4%, decrease in interest expense.
Current report
Interest Income. Interest income of $311.2 million for the three months ended September 30, 2026 increased $9.4 million, or 3%, compared with $301.8 million for the three months ended September 30, 2025. The increase primarily reflected higher average balances of loans and loans held for sale and of interest-earning deposits, and other interest or dividends, partially offset by lower average yields.
Current report
Interest income of $261.8 million on loans and loans held for sale for the three months ended September 30, 2026 increased $7.7 million, or 3%, compared to $254.1 million for the three months ended September 30, 2025.
Current report
Noninterest income of $80.8 million for the three months ended September 30, 2026 increased $37.8 million, or 88%, compared to $43.0 million for the three months ended September 30, 2025. The increase was primarily due to an increase of $26.2 million, or 329%, in loan servicing fees, and an increase of $16.0 million, or 426%, in other noninterest income, partially offset by a $5.6 million, or 23%, decrease in gain on sale of loans.
Current report
Other noninterest income of $19.8 million for the three months ended September 30, 2026 increased $16.0 million, or 426%, compared to $3.8 million for the three months ended September 30, 2025.
Current report
Syndication and asset management fees of $6.1 million for the three months ended September 30, 2026 increased $1.2 million, or 24%, compared to $4.9 million for the three months ended September 30, 2025. The increase was attributable to the release of constrained revenue upon satisfaction of the performance obligation.
Current report
Noninterest expense of $79.5 million for the three months ended September 30, 2026 increased $2.3 million, or 3%, compared to the three months ended September 30, 2025. The increase primarily reflected a $2.9 million increase in credit risk transfer premium expense and higher other noninterest and technology expenses, partially offset by decreases of $3.4 million in deposit insurance expense and $1.6 million in professional fees.
Current report
Net Interest Income. Net interest income of $409.4 million for the nine months ended September 30, 2026 increased $30.4 million, or 8%, compared to $379.0 million for the nine months ended September 30, 2025. The increase reflected a $48.0 million, or 9%, decrease in interest expense that was partially offset by a $17.6 million, or 2%, decrease in interest income.
Current report
Interest income of $28.9 million on securities available for sale for the nine months ended September 30, 2026 decreased $7.5 million, or 21%, compared to the nine months ended September 30, 2025.
Current report
Interest income of $744.6 million on loans and loans held for sale for the nine months ended September 30, 2026 decreased $4.4 million, or 1%, compared to $749.0 million for the nine months ended September 30, 2025.
Current report
Interest income of $30.6 million on interest-earning deposits, and other interest or dividends for the nine months ended September 30, 2026 increased $6.9 million, or 29%, compared to $23.7 million for the nine months ended September 30, 2025.
Current report
Interest expense of $211.3 million on interest-bearing checking accounts for the nine months ended September 30, 2026 increased $24.5 million, or 13%, compared to the nine months ended September 30, 2025.
Current report
Interest expense on borrowings of $110.1 million for the nine months ended September 30, 2026 decreased $9.2 million, or 8%, compared to $119.3 million for the nine months ended September 30, 2025.
Current report
Loan servicing fees of $61.3 million for the nine months ended September 30, 2026 increased $43.2 million, or 238%, compared to $18.1 million for the nine months ended September 30, 2025. Loan servicing fees included a $43.1 million positive fair value adjustment to servicing rights for the nine months ended September 30, 2026, compared to a $1.6 million positive fair value adjustment to servicing rights for the nine months ended September 30, 2025.
Current report
The Multi-family Mortgage Banking segment reported net income of $30.8 million for the three months ended September 30, 2026, an increase of $18.7 million, or 155%, compared to net income of $12.1 million for the three months ended September 30, 2025. The results primarily reflect an increase in loan servicing fees from higher fair value adjustments of servicing rights.
Current report
Loan servicing fees included a $23.2 million positive fair value adjustment to servicing rights for the three months ended September 30, 2026 compared to a $2.5 million positive fair value adjustment for the three months ended September 30, 2025.
Current report
Noninterest income included a $5.0 million positive fair value adjustment to servicing rights for the three months ended September 30, 2026, compared to a $394,000 negative fair value adjustment for the three months ended September 30, 2025.
Current report
Noninterest income included a $8.0 million positive fair value adjustment to servicing rights for the nine months ended September 30, 2026, compared to a $2.1 million negative fair value adjustment for the nine months ended September 30, 2025.
Removed paragraphs (19)
Previous report
Goodwill. Goodwill of $8.0 million at June 30, 2026 was unchanged compared to December 31, 2025.
Previous 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.
Previous report
Interest Income. Interest income of $294.1 million for the three months ended June 30, 2026 decreased $10.3 million, or 3%, compared with $304.4 million for the three months ended June 30, 2025. The decrease was primarily attributable to lower average balances and yields on securities held to maturity, as well as lower average yields on higher average balances on loans and loans held for sale.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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.
Previous 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.
Previous report
Interest income of $19.5 million on securities available for sale for the six months ended June 30, 2026, decreased $4.9 million, or 20%, compared to the six months ended June 30, 2025.
Previous 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.
Previous 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.
Previous report
months ended June 30, 2025. The floor derivatives are associated with arrangements whereby there is a guaranteed minimum interest rate the Company will receive on certain assets bearing variable interest rates. The change in value was driven largely by the change in market interest rates during the period.
Previous 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.
Previous 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.
Previous report
Noninterest income included a $1.4 million positive fair market value adjustment to servicing rights for the three months ended June 30, 2026, compared to a $0.5 million negative fair market value adjustment for the three months ended June 30, 2025.
Previous report
Noninterest income included a $3.0 million positive fair market value adjustment to servicing rights for the six months ended June 30, 2026, compared to a $1.7 million negative fair market value adjustment for the six months ended June 30, 2025.
Reworded paragraphs (107)
Previous 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.
Current wording
Management’s discussion and analysis of the financial condition at September 30, 2026 and results of operations for the three and nine months ended September 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
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.
Current wording
As of September 30, 2026, we had approximately $20.9 billion in total assets, $15.0 billion in deposits, and $2.5 billion in total shareholders’ equity. Total assets as of September 30, 2026 included $12.2 billion of loans receivable, net of ACL-Loans, and $4.0 billion of loans held for sale. Assets also included $1.5 billion in securities held to maturity and $787.4 million in securities available for sale, the majority of which were acquired from a warehouse customer. Additionally, we had $447.9 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 $799.2 million, which primarily related to low-income housing tax credit investments, and $319.8 million of cash and cash equivalents. Servicing rights at September 30, 2026 were $267.6 million based on the fair value of the loan servicing, which primarily includes Ginnie Mae multi-family servicing rights with 10-year call protection at origination.
Previous 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.
Current wording
Total Assets. Total assets of $20.9 billion at September 30, 2026 increased $1.4 billion, or 7%, 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 portfolio, revolving lines of credit collateralized by mortgage servicing rights that are included in the commercial and commercial real estate portfolio, as well as the warehouse 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 $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*.*
Current wording
Cash and Cash Equivalents. Cash and cash equivalents of $319.8 million at September 30, 2026 increased $107.6 million, or 51%, 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 $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.
Current wording
Mortgage Loans in Process of Securitization. Mortgage loans in process of securitization of $447.9 million at September 30, 2026 decreased $172.2 million, or 28%, compared to 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 $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.
Current wording
Securities Available for Sale. Securities available for sale of $787.4 million at September 30, 2026 decreased $77.6 million, or 9%, compared to December 31, 2025. The decrease in securities available for sale was primarily due to $338.0 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 $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.
Current wording
Included in securities available for sale were $496.6 million and $571.3 million of investments for which a fair value option was elected at September 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 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.
Current wording
As of September 30, 2026, AOCL of $2.5 million, related to securities available for sale increased $2.5 million from December 31, 2025. The $2.5 million of AOCL as of September 30, 2026 represented 0.10% of total equity and
Previous 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.
Current wording
Securities Held to Maturity. Securities held to maturity of $1.5 billion at September 30, 2026 decreased $8.3 million compared to December 31, 2025. The decrease was due to $409.9 million in repayments, net of accretion, partially offset by $401.6 million in purchases.
Previous 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.
Current wording
Loans Held for Sale. Loans held for sale of $4.0 billion at September 30, 2026 increased $170.9 million, or 4%, compared to $3.9 billion at December 31, 2025. The increase in loans held for sale was due primarily to an 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, healthcare, 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 $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:
Current wording
Loans Receivable, Net. Loans receivable, net of ACL-Loans, of $12.2 billion at September 30, 2026 increased $1.2 billion, or 11%, compared to $11.0 billion at December 31,2025. The increase in net loans was comprised primarily of:
Previous wording
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 wording
ACL-Loans. The ACL-Loans of $82.1 million at September 30, 2026 decreased $1.2 million, or 1%, compared to $83.3 million at December 31, 2025. The decrease compared to December 31, 2025 was driven by a $9.5 million decrease in specific reserves partially offset by a $8.3 million increase in the pooled loan reserve. For the nine months ended September 30, 2026, $43.4 million of net charge-offs were partially offset by a $5.6 million in provision for credit losses on loans. Additional details are provided in the Asset Quality portion of theComparison of Financial Condition at September 30, 2026 and December 31, 2025 and inNote 4: Loans and Allowance for Credit Losses on Loans.
Previous 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.
Current wording
Servicing Rights. Servicing rights of $267.6 million at September 30, 2026 increased $50.3 million, or 23%, compared to $217.3 million at December 31, 2025. During the nine months ended September 30, 2026, a positive fair value adjustment of $43.1 million and originated or purchased servicing of $15.4 million were partially offset by paydowns of $8.2 million. The $43.1 million positive fair value adjustment reflected a positive adjustment of $35.1 million for multi-family and healthcare mortgages and a positive adjustment of $8.0 million for single-family mortgages and SBA loans during the nine months ended September 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 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.
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. Higher interest rates increased the fair value of servicing rights during the three and nine months ended September 30, 2026, driven primarily by higher earnings on escrow and custodial balances. These earnings are an ongoing source of servicing income and represent a recurring economic benefit of a higher-rate environment. To a lesser degree, the increase also reflected slower expected prepayments on certain loans, which extend the period over which servicing income is earned.
Previous 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.
Current wording
Other Real Estate Owned. Other real estate owned of $91.7 million at September 30, 2026 increased $31.6 million, or 52%, compared to $60.1 million at December 31, 2025.
Previous 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.
Current wording
Other Assets and Receivables. Other assets and receivables of $799.2 million at September 30, 2026 increased $85.9 million, or 12%, compared to December 31, 2025. The increase was primarily due to a $61.6 million increase in derivative assets.
Previous 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.
Current wording
Deposits. Deposits of $15.0 billion at September 30, 2026 increased $2.0 billion, or 15%, compared to $13.0 billion at December 31, 2025. As of September 30, 2026, approximately 85% of the total deposits reprice within three months.
Previous 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.
Current wording
Core deposits increased by $3.0 billion, or 27%, to $14.3 billion at September 30, 2026 compared to $11.3 billion at December 31, 2025. Core deposits represented 95% of total deposits at September 30, 2026 compared to 87% of total deposits at December 31, 2025.
Previous 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.
Current wording
We have decreased our use of total brokered deposits by $1.0 billion, or 59%, to $723.5 million at September 30, 2026 compared to $1.8 billion at December 31, 2025. Brokered deposits represented 5% of total deposits at September 30, 2026 compared to 13% of total deposits at December 31, 2025. As of September 30, 2026, brokered certificates of deposit had a weighted average remaining duration of 41 days.
Previous 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.
Current wording
Interest-bearing deposits at September 30, 2026 increased $2.1 billion, or 17%, to $14.5 billion compared to $12.4 billion at December 31, 2025, and noninterest-bearing deposits decreased $73.0 million, to $531.1 million at September 30, 2026 compared to $604.1 million at December 31, 2025. The increase in interest-bearing deposits is primarily related to higher custodial and commercial account relationships.
Previous 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.
Current wording
Uninsured deposits totaled approximately $4.7 billion as of September 30, 2026, representing 31% 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 September 30, 2026 and December 31, 2025, respectively.
Previous 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.
Current wording
Borrowings. Borrowings of $3.0 billion at September 30, 2026 decreased $825.0 million, or 21%, compared to $3.8 billion at December 31, 2025. The lower level of collateralized borrowing was due to decreased borrowings at FHLB as funding shifted to core deposits. 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 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.
Current wording
The Company continues to have significant borrowing capacity based on available collateral. As of September 30, 2026, unused lines of credit totaled $6.3 billion, an increase of 19%, compared to $5.3 billion at December 31, 2025. The Company’s ratio of total collateralized borrowing capacity to total assets was 45% at September 30, 2026 compared to 47% at December 31, 2025.
Previous wording
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 wording
Deferred and Current Tax Liabilities.** **Deferred and current tax liabilities of $60.5 million at September 30, 2026 increased $26.6 million, or 78%, compared to $33.9 million at December 31, 2025. The increase is primarily due to growth in servicing assets and other derivative activity.
Previous 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.
Current wording
Other Liabilities. Other Liabilities of$280.4 million at September 30, 2026 increased $29.9 million, or 12%, compared to $250.5 million at December 31, 2025. The increase in other liabilities was primarily in accrued expenses and payables related to an acquisition.
Previous 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.
Current wording
Total Shareholders’ Equity. Total shareholders’ equity was $2.5 billion at September 30, 2026. The $202.5 million, or 9%, increase compared to $2.3 billion at December 31, 2025 resulted primarily from net income of $251.2 million for the nine months ended September 30, 2026. The increase was partially offset by dividends paid on common
Previous wording
Loans are generally underwritten to strict Freddie Mac, Fannie Mae, HUD, or other agency guidelines. We continually strive to strengthen our various levels of credit and risk management.
Current wording
Mortgage loans are generally underwritten to strict Freddie Mac, Fannie Mae, HUD, or other agency guidelines. We continually strive to strengthen our various levels of credit and risk management.
Previous wording
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 wording
The ACL-Loans of $82.1 million, as of September 30, 2026 decreased by $1.2 million, or 1%, compared to $83.3 million as of December 31, 2025. The decrease compared to December 31, 2025 was driven by a $9.5 million decrease in specific reserves partially offset by a $8.3 million increase in the pooled loan reserve.
Previous 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.
Current wording
During the three months ended September 30, 2026, the Company recorded charge-offs totaling $3.9 million and had $207,000 of recoveries compared to $29.5 million of charge-offs and $23,000 of recoveries for the three months ended September 30, 2025.
Previous wording
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 wording
For the nine months ended September 30, 2026, the Company recorded charge-offs totaling $43.4 million and had $5.6 million of recoveries compared to $86.1 million of charge-offs and $51,000 of recoveries for the nine months ended September 30, 2025.
Previous 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.
Current wording
Total nonperforming loans (nonaccrual and greater than 90 days late but still accruing) were $180.3 million, or 1.47%, of total loans receivable, at September 30, 2026, compared to $197.8 million, or 1.79%, at December 31, 2025 and $298.3 million, or 2.81%, at September 30, 2025.
Previous 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.
Current wording
As a percentage of nonperforming loans, the ACL-Loans was 46% at September 30, 2026 compared to 42% at December 31, 2025 and 31% at September 30, 2025. The changes in percentage was primarily due to fluctuations in nonperforming loans.
Previous 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.
Current wording
Overall, criticized loans receivable of $460.1 million decreased $122.1 million, or 21%, compared to $582.2 million at September 30, 2025 and decreased $48.1 million, or 9%, compared to $508.2 million at December 31, 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 September 30, 2026, 6% of the criticized loans were covered by credit default swaps.
Previous 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.
Current wording
As of September 30, 2026, all Substandard loans have been individually evaluated for expected credit losses, resulting in specific reserves of $6.6 million. Based on its current evaluations, the Company believes that the loan portfolio remains well-collateralized overall.
Previous 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.
Current wording
Loans receivable classified as Special Mention, which often serve as an earlier-stage indicator of potential credit deterioration, declined to $181.4 million at September 30, 2026, decreasing $23.5 million, or 11%, compared to $204.9 million at December 31, 2025, and increasing $25.7 million, or 16%, compared to $155.7 million at September 30, 2025. Loans receivable classified as Substandard totaled $278.7 million at September 30, 2026, down $147.8 million, or 35%, from September 30, 2025, and declining $24.6 million, or 8%, compared to December 31, 2025.
Previous 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.
Current wording
Loans receivable greater than 30 days past due were $215.6 million at September 30, 2026, compared to $206.6 million at December 31, 2025, and $324.6 million at September 30, 2025. As of September 30, 2026, 10% of delinquent loans were covered by credit default swaps.
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 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.
Current wording
maintain an allowance for credit losses on loans held for investment. As of September 30, 2026, the unpaid principal balances of loans protected by credit default swaps was $2.1 billion, compared to $2.8 billion as of December 31, 2025. 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 301% from December 31, 2025 to June 30, 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 295% from December 31, 2025 to September 30, 2026, respectively.
Previous wording
Interest income of $9.4 million on interest-earning deposits, and other interest or dividends for the three months ended June 30, 2026, increased $1.2 million, or 15%, compared to $8.2 million for the three months ended June 30, 2025.
Current wording
Interest income of $14.7 million on interest-earning deposits, and other interest or dividends for the three months ended September 30, 2026 increased $6.7 million, or 83%, compared to the three months ended September 30, 2025.
Previous wording
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 wording
Interest income of $9.4 million on securities available for sale for the three months ended September 30, 2026 decreased $2.5 million, or 21%, compared to $11.9 million for the three months ended September 30, 2025.
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Current report — wording carried from elsewhere
0.32% of total securities available for sale, reflecting our interest rate risk policy of maintaining short duration on assets and liabilities.
Current report — wording carried from elsewhere
and preferred shares of $46.0 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.
Current report — wording carried from elsewhere
2025, which was declared effective on June 4, 2025, under which we can issue up to $500 million aggregate offering amount of registered securities to finance our growth objectives. The Company has demonstrated its ability to raise capital or utilize securitization transactions to free up capital as needed.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
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 report — wording carried 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.
Previous report — wording carried elsewhere
compared to the same period in 2025, according to an estimate of industry volume by the Mortgage Bankers Association.
Previous report — wording carried 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
Previous report — wording carried 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.
Previous report — wording carried elsewhere
were subject. For additional information regarding dividend restrictions, see the Company’s 2025 Annual Report on Form 10–K.
Previous report — wording carried 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.