Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [Mark One] ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number 001-38258 MERCHANTS BANCORP (Exact name of Registrant as specified in its charter) | INDIANA | 20-5747400 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 4 ...

Core Viewpoint - Merchants Bancorp has declared quarterly cash dividends for the first quarter of 2026, reflecting its commitment to returning value to shareholders [1] Dividend Announcements - A cash dividend of $0.11 per share on the common stock, payable to shareholders of record on March 13, 2026, and payable on April 1, 2026 [1] - A cash dividend of $15.00 per share on the 6% Series C preferred stock, equivalent to $0.375 per depositary share, also payable on the same dates [1] - A cash dividend of $20.625 per share on the 8.25% Series D preferred stock, equivalent to $0.5156 per depositary share, with the same payment schedule [1]

Merchants Bancorp Reports Fourth Quarter 2025 Results For Release January 28, 2026 · The Company reported another sequential quarter of higher net income and improved asset quality, reinforcing a positive trajectory for 2026. · Total assets ended the year at $19.4 billion, slightly higher than September 30, 2025, and up $643.2 million, or 3%, compared to December 31, 2024 - setting a new Company milestone. · Tangible book value per common share reached a new record-high of $37.51 and increased 10% compared ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _______________ Commission File No. 001-38258 MERCHANTS BANCORP (Exact name of registrant as specified in its charter) ...

Exhibit 99.1 PRESS RELEASE Merchants Bancorp Reports Third Quarter 2025 Results For Release October 28, 2025 · Third quarter 2025 net income of $54.7 million, decreased $6.6 million compared to third quarter of 2024 and increased $16.7 million compared to the second quarter 2025. · Third quarter 2025 diluted earnings per common share of $0.97 decreased 17% compared to the third quarter of 2024 and increased 62% compared to the second quarter of 2025. · The total provision for credit losses decreased 45%, or ...

Core Viewpoint - China Merchants Port Holdings reported mixed results for 1H25, with revenue growth but a significant decline in net profit attributable to shareholders, primarily due to lower investment income from Shanghai International Port Group [1] Financial Performance - Revenue increased by 11.4% YoY to HK$6.46 billion, while net profit attributable to shareholders fell by 19.5% YoY to HK$3.58 billion, resulting in an EPS of HK$0.854 [1] - Operating cash flow declined YoY, mainly due to a decrease in dividends received from associate companies, but steady cash flow growth was maintained when excluding this factor [2] - Profit from the port business rose by 11.7% YoY in 1H25, and investment income from ports in which the firm holds stakes increased by 38.0% YoY [4] Operational Highlights - Container throughput at controlled terminals rose by 11.3% YoY, with overall container throughput at controlled ports growing by 4.3% YoY [2] - By region, container cargo volume at controlled terminals in the Pearl River Delta, Yangtze River Delta, Bohai Rim, and overseas terminals increased by 7.8%, 5.9%, 0.1%, and 5.0% YoY, respectively [3] - Significant growth in overseas terminal throughput was noted, with container throughput at the HIPG terminal in Sri Lanka rising by 542.9% YoY [5] Cost Management - The firm's costs and expenses fell YoY in 1H25, with the gross margin increasing by 2.9 percentage points YoY to 51% and the administrative expense ratio decreasing by 0.8 percentage points YoY [4] Future Outlook - The long-term growth potential of cargo volume at overseas terminals is viewed positively, with expectations for rapid growth driven by economic development in the hinterlands of these ports [5] - The 2025 net profit forecast remains largely unchanged, with a new 2026 net profit forecast introduced at HK$7.7 billion [6] - The stock is currently trading at 8.2x 2025e and 8.0x 2026e P/E, with a target price raised by 13.8% to HK$16.5, implying a 12.8% upside [6]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The unaudited statements show a significant net income decrease due to higher credit loss provisions, despite moderate asset growth [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $19.14 billion, driven by loans, while shareholders' equity slightly decreased due to a preferred stock redemption Key Balance Sheet Items | Key Balance Sheet Items | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **$19,141,204** | **$18,805,732** | **+1.8%** | | Loans receivable, net | $10,432,117 | $10,354,002 | +0.8% | | Loans held for sale | $4,105,765 | $3,771,510 | +8.9% | | **Total Liabilities** | **$16,956,572** | **$16,562,422** | **+2.4%** | | Total Deposits | $12,686,835 | $11,919,976 | +6.4% | | Borrowings | $4,009,474 | $4,386,122 | -8.6% | | **Total Shareholders' Equity** | **$2,184,632** | **$2,243,310** | **-2.6%** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 net income fell 50% year-over-year to $38.0 million, primarily driven by a 432% surge in the provision for credit losses Three Months Ended June 30 | Metric (in thousands, except EPS) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $128,719 | $128,119 | +0.5% | | Provision for credit losses | $53,027 | $9,965 | +432.2% | | Noninterest Income | $50,480 | $31,351 | +61.0% | | Noninterest Expense | $77,337 | $50,380 | +53.5% | | **Net Income** | **$37,981** | **$76,393** | **-50.3%** | | **Diluted EPS** | **$0.60** | **$1.49** | **-59.7%** | Six Months Ended June 30 | Metric (in thousands, except EPS) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $250,915 | $255,175 | -1.7% | | Provision for credit losses | $60,754 | $14,691 | +313.5% | | Noninterest Income | $74,173 | $72,225 | +2.7% | | Noninterest Expense | $139,001 | $99,292 | +40.0% | | **Net Income** | **$96,220** | **$163,447** | **-41.1%** | | **Diluted EPS** | **$1.53** | **$3.29** | **-53.5%** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a higher Allowance for Credit Losses, two significant loan sales, a preferred stock redemption, and a new regulatory MOU - The Allowance for Credit Losses on Loans (ACL-Loans) increased to **$91.8 million** at June 30, 2025, from $84.4 million at year-end 2024, with a **$64.0 million** provision and **$56.6 million** in charge-offs for the six-month period[96](index=96&type=chunk)[308](index=308&type=chunk) - The company completed a **$373.3 million** multi-family loan securitization and a **$312.1 million** sale of home equity lines of credit in Q2 2025[134](index=134&type=chunk)[135](index=135&type=chunk) - All outstanding shares of 6% Series B Preferred Stock were redeemed on January 2, 2025, for **$125.0 million**[233](index=233&type=chunk)[234](index=234&type=chunk) - The Bank entered into a **confidential Memorandum of Understanding (MOU) with the FDIC and DFI** on June 30, 2025, and was in compliance with its terms as of the report date[268](index=268&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the net income decline from credit loss provisions, an improved funding mix, and a new regulatory MOU - The **50% decrease in Q2 2025 net income** is directly attributed to a **$43.1 million increase** in the provision for credit losses, linked to multi-family property values and mortgage fraud investigations[282](index=282&type=chunk)[325](index=325&type=chunk)[334](index=334&type=chunk) - The company's funding mix improved as **core deposits grew by $2.0 billion (22%)** since year-end 2024, while **brokered deposits were reduced by $1.3 billion (50%)**[287](index=287&type=chunk)[315](index=315&type=chunk)[316](index=316&type=chunk) - A **confidential MOU with the FDIC and DFI** was executed on June 30, 2025, which may limit or delay future expansion plans, though the bank currently exceeds required capital levels[280](index=280&type=chunk)[281](index=281&type=chunk) - Business volumes remain strong, with warehouse loan funding **increasing 49% YoY to $16.3 billion** and multi-family origination volume **increasing 33% YoY to $1.4 billion** in Q2[287](index=287&type=chunk)[419](index=419&type=chunk)[425](index=425&type-chunk) - A strong liquidity position is maintained with **$5.0 billion in unused borrowing capacity** from the FHLB and Federal Reserve Discount Window[282](index=282&type=chunk)[436](index=436&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=86&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with models showing an asset-sensitive position within policy limits Net Interest Income Sensitivity (12-Months Forward) | Net Interest Income Sensitivity (12-Months Forward) | -200 bps | -100 bps | +100 bps | +200 bps | | :--- | :--- | :--- | :--- | :--- | | **Dollar Change (in thousands)** | $(84,289) | $(44,357) | $42,895 | $85,982 | | **Percent Change** | (15.9)% | (8.3)% | 8.1% | 16.2% | Economic Value of Equity Sensitivity (Immediate Shock) | Economic Value of Equity Sensitivity (Immediate Shock) | -200 bps | -100 bps | +100 bps | +200 bps | | :--- | :--- | :--- | :--- | :--- | | **Dollar Change (in thousands)** | $54,849 | $36,112 | $2,604 | $4,897 | | **Percent Change** | 2.6% | 1.7% | 0.1% | 0.2% | [Item 4. Controls and Procedures](index=86&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that as of June 30, 2025, the Company's **disclosure controls and procedures were effective**[486](index=486&type=chunk) - **No material changes** to the Company's internal control over financial reporting occurred during the quarter[487](index=487&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=87&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings for the period - None[490](index=490&type=chunk) [Item 1A. Risk Factors](index=87&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported from the risk factors previously disclosed in the 2024 Annual Report - **No material changes** from the risk factors disclosed in the 2024 Form 10-K[491](index=491&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=87&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[492](index=492&type=chunk) [Item 6. Exhibits](index=88&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including Sarbanes-Oxley certifications and XBRL interactive data files - Exhibits filed include **CEO and CFO certifications** under Sarbanes-Oxley Sections 302 and 906, along with XBRL interactive data files[497](index=497&type=chunk)

Exhibit 99.1 PRESS RELEASE Merchants Bancorp Reports Second Quarter 2025 Results For Release July 28, 2025 Total assets of $19.1 billion at June 30, 2025 increased by $343.4 million, or 2%, compared to March 31, 2025, and $335.5 million compared to December 31, 2024. The increase compared to both periods was primarily driven by higher balances in the mortgage warehouse portfolios. Total loan balances grew by 2% even with two loan sale transactions in the second quarter totaling over $685.4 million related t ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, income, comprehensive income, equity, and cash flows [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets remained stable at $18.8 billion, with increased loans held for sale and deposits, offset by reduced borrowings and preferred stock redemption Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$18,797,800** | **$18,805,732** | **-0.04%** | | Loans receivable, net | $10,343,724 | $10,354,002 | -0.10% | | Loans held for sale | $3,983,452 | $3,771,510 | +5.62% | | **Total Liabilities** | **$16,637,065** | **$16,562,422** | **+0.45%** | | Total deposits | $12,406,165 | $11,919,976 | +4.08% | | Borrowings | $4,001,744 | $4,386,122 | -8.76% | | **Total Shareholders' Equity** | **$2,160,735** | **$2,243,310** | **-3.68%** | - The company redeemed all outstanding shares of its **6% Series B Preferred Stock** in Q1 2025, which reduced total shareholders' equity[12](index=12&type=chunk) [Condensed Consolidated Statements of Income](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2025 net income significantly decreased to $58.2 million, driven by lower net interest and noninterest income, and higher expenses Consolidated Statements of Income Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $122,196 | $127,056 | -3.8% | | Provision for credit losses | $7,727 | $4,726 | +63.5% | | Total noninterest income | $23,693 | $40,874 | -42.0% | | Total noninterest expense | $61,664 | $48,912 | +26.1% | | **Net Income** | **$58,239** | **$87,054** | **-33.1%** | | **Diluted EPS** | **$0.93** | **$1.80** | **-48.3%** | - A significant factor in the noninterest income decline was a sharp drop in loan servicing fees, which fell from **$19.4 million in Q1 2024 to $4.0 million in Q1 2025**[15](index=15&type=chunk) - The company incurred a **$5.4 million impact** from preferred stock redemption in Q1 2025, which reduced net income allocated to common shareholders[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating activities generated $148.0 million cash, reversing a prior-year outflow, leading to a $44.7 million increase in cash Consolidated Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $148,038 | $(383,772) | | Net cash used in investing activities | $(903) | $(695,019) | | Net cash (used in) provided by financing activities | $(102,449) | $1,003,124 | | **Net Change in Cash and Cash Equivalents** | **$44,686** | **$(75,667)** | [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed disclosures on financial statements, including asset sales, loan composition, credit losses, and regulatory capital - On January 26, 2024, the company completed the sale of its Farmers-Merchants Bank of Illinois (FMBI) branches, resulting in a net gain of **$715,000**[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) - The company holds restricted cash of **$33.4 million** as of March 31, 2025, as collateral for senior credit linked notes[40](index=40&type=chunk) Loan Portfolio Composition (in thousands) | Loan Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Mortgage warehouse repurchase agreements | $1,408,239 | $1,446,068 | | Residential real estate | $1,332,601 | $1,322,853 | | Multi-family financing | $4,600,117 | $4,624,299 | | Healthcare financing | $1,583,290 | $1,484,483 | | Commercial and commercial real estate | $1,418,741 | $1,476,211 | | **Total Loans Receivable** | **$10,427,137** | **$10,438,388** | Allowance for Credit Losses (ACL) Activity - Q1 2025 (in thousands) | Activity | Amount | | :--- | :--- | | Beginning Balance (Jan 1, 2025) | $84,386 | | Provision for credit losses | $9,506 | | Charge-offs | $(10,507) | | Recoveries | $28 | | **Ending Balance (Mar 31, 2025)** | **$83,413** | - Nonaccrual loans increased to **$284.0 million** at March 31, 2025, from $279.7 million at December 31, 2024, primarily within the Multi-family financing portfolio[106](index=106&type=chunk) - The company redeemed all outstanding shares of its **6.00% Series B Preferred Stock** on January 2, 2025, for **$125.0 million**[197](index=197&type=chunk) Segment Net Income (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Multi-family Mortgage Banking | $3,413 | $16,609 | | Mortgage Warehousing | $15,398 | $20,190 | | Banking | $47,107 | $56,425 | | Other | $(7,679) | $(6,170) | | **Total Net Income** | **$58,239** | **$87,054** | - As of March 31, 2025, both the Company and Merchants Bank were categorized as **well capitalized** under regulatory frameworks[223](index=223&type=chunk)[225](index=225&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=91&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2025 net income declined due to market uncertainty, lower noninterest income, higher expenses, and increased credit losses, despite strong liquidity - Net income for Q1 2025 was **$58.2 million**, a decrease of **$28.8 million** from Q1 2024, with diluted EPS falling **48% to $0.93**[237](index=237&type=chunk) - Of the **$28.8 million decrease** in net income, management attributes **$19.3 million** (or **$0.34 per diluted share**) to changes in valuation adjustments[237](index=237&type=chunk) - Core deposits grew **30% year-over-year to $10.7 billion**, representing **86% of total deposits**, while brokered deposits decreased by **70% to $1.7 billion**[237](index=237&type=chunk) Key Performance Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Margin | 2.89% | 3.14% | | Efficiency Ratio | 42.27% | 29.13% | | Tangible Book Value per Share | $34.90 | $29.26 | [Financial Condition](index=95&type=section&id=Financial%20Condition) Total assets stable at $18.8 billion, with increased loans held for sale and core deposits, reduced brokered deposits and borrowings, and lower shareholders' equity - Loans held for sale increased by **$211.9 million (6%) to $4.0 billion**, mainly due to higher volume in warehouse participations[254](index=254&type=chunk) - Core deposits increased by **$1.3 billion (14%) to $10.7 billion**, now comprising **86% of total deposits**, up from 79% at year-end 2024[271](index=271&type=chunk) - Brokered deposits were reduced by **$815.7 million (32%) to $1.7 billion**, representing **14% of total deposits** compared to 21% at year-end 2024[272](index=272&type=chunk) - Shareholders' equity decreased by **$82.6 million**, largely due to the **$125.0 million redemption of Series B Preferred Stock**, partially offset by **$58.2 million in net income**[277](index=277&type=chunk) [Asset Quality](index=98&type=section&id=Asset%20Quality) Asset quality deteriorated with nonperforming loans rising to 2.73% of total loans, primarily in multi-family and healthcare portfolios, leading to higher net charge-offs - Nonperforming loans were **$284.6 million (2.73% of total loans)** at Q1 2025, compared to $279.7 million (2.68%) at Q4 2024 and $131.8 million (1.22%) at Q1 2024[279](index=279&type=chunk) - The increase in nonperforming loans is attributed to multi-family and healthcare customers with variable-rate loans facing higher payments due to elevated interest rates[279](index=279&type=chunk)[281](index=281&type=chunk) - The company executed credit protection arrangements (credit linked notes and credit default swaps) covering a loan balance of **$2.2 billion** as of March 31, 2025, to mitigate credit risk[283](index=283&type=chunk) - Net charge-offs for Q1 2025 were **$10.5 million**, primarily from five customers in the multi-family portfolio[287](index=287&type=chunk) [Results of Operations](index=100&type=section&id=Results%20of%20Operations) Q1 2025 net income fell 33% due to decreased net interest income, a 42% drop in noninterest income, and a 26% rise in noninterest expense - Net interest margin decreased to **2.89%** from 3.14% in Q1 2024, negatively impacted by a business mix shift towards lower-margin loans held for sale[293](index=293&type=chunk) - Noninterest income decreased by **$17.2 million (42%)**, primarily due to a **$15.4 million drop in loan servicing fees**, including a negative fair value adjustment of **$0.8 million** on servicing rights in Q1 2025[316](index=316&type=chunk)[317](index=317&type=chunk) - Noninterest expense increased by **$12.8 million (26%)**, driven by a **$6.8 million increase in salaries** and a new **$3.9 million expense** for credit risk transfer premiums[321](index=321&type=chunk) - The provision for credit losses increased **63% to $7.7 million**, with **$9.5 million** allocated for loans, primarily in the multi-family portfolio[313](index=313&type=chunk)[314](index=314&type=chunk)[315](index=315&type=chunk) [Our Segments](index=111&type=section&id=Our%20Segments) All primary segments experienced year-over-year net income declines in Q1 2025, impacted by lower servicing fees, negative derivative adjustments, and reduced net interest income Segment Net Income (in thousands) | Segment | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Multi-family Mortgage Banking | $3,413 | $16,609 | -79% | | Mortgage Warehousing | $15,398 | $20,190 | -24% | | Banking | $47,107 | $56,425 | -17% | - The Multi-family Mortgage Banking segment's decline was primarily due to a **$12.5 million decrease in loan servicing fees** and a **$5.0 million increase in noninterest expense**[336](index=336&type=chunk) - Despite a **49% increase in loan funding volume to $11.9 billion**, the Mortgage Warehousing segment's net income fell due to a negative swing in derivative fair value adjustments[340](index=340&type=chunk)[341](index=341&type=chunk) [Liquidity and Capital Resources](index=115&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with $4.7 billion in unused borrowing capacity and capital ratios well above regulatory minimums, despite preferred stock redemption - The company had **$4.7 billion** in available unused borrowing capacity with the FHLB and Federal Reserve discount window as of March 31, 2025[346](index=346&type=chunk) - Uninsured deposits totaled approximately **$3.0 billion**, representing **24% of total Bank deposits**, with an insured cash sweep program holding **$1.5 billion**[273](index=273&type=chunk)[348](index=348&type=chunk) - The company redeemed all outstanding shares of its **6% Series B Preferred Stock** on January 2, 2025, for **$125.0 million**[361](index=361&type=chunk) Company Capital Ratios | Ratio | March 31, 2025 | Minimum to be Well Capitalized | | :--- | :--- | :--- | | Total capital (to risk-weighted assets) | 13.0% | 10.5% (with buffer) | | Tier I capital (to risk-weighted assets) | 12.4% | 8.5% (with buffer) | | Common Equity Tier I capital | 9.2% | 7.0% (with buffer) | | Tier I capital (to average assets) | 12.1% | 5.0% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=121&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is asset-sensitive, with NII and EVE within policy limits under various interest rate shock scenarios as of March 31, 2025 Net Interest Income (NII) Sensitivity (Twelve Months Forward) | Rate Change (bps) | Dollar Change (in thousands) | Percent Change | | :--- | :--- | :--- | | +200 | $73,001 | 13.9% | | +100 | $36,422 | 6.9% | | -100 | $(35,378) | -6.7% | | -200 | $(66,284) | -12.6% | Economic Value of Equity (EVE) Sensitivity (Immediate Shock) | Rate Change (bps) | Dollar Change (in thousands) | Percent Change | | :--- | :--- | :--- | | +200 | $(10,228) | -0.5% | | +100 | $(5,088) | -0.2% | | -100 | $8,370 | 0.4% | | -200 | $(1,762) | -0.1% | - The company's interest rate risk management policy limits the change in NII to **20% for a +/-100 bps move** and **30% for a +/-200 bps move**, remaining within these limits as of March 31, 2025[388](index=388&type=chunk) [Item 4. Controls and Procedures](index=126&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that as of March 31, 2025, the Company's disclosure controls and procedures were effective[396](index=396&type=chunk) - No material changes to the Company's internal control over financial reporting occurred during the first quarter of 2025[397](index=397&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=127&type=section&id=Item%201.%20Legal%20Proceedings) No legal proceedings were reported during the period - There are no legal proceedings to report[399](index=399&type=chunk) [Item 1A. Risk Factors](index=127&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors occurred - No material changes from the risk factors disclosed in the 2024 Annual Report on Form 10-K have occurred[400](index=400&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=127&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported - There were no unregistered sales of equity securities to report[401](index=401&type=chunk) [Item 6. Exhibits](index=128&type=section&id=Item%206.%20Exhibits) Lists exhibits including corporate governance documents and CEO/CFO certifications - Exhibits filed include corporate governance documents and CEO/CFO certifications as required by Sections 302 and 906 of the Sarbanes-Oxley Act[406](index=406&type=chunk)

Net income of $58.2 million for the first quarter of 2025 decreased by $28.8 million, or 33%, compared to the first quarter of 2024, reflecting market uncertainty that delayed origination closings and permanent loan conversions in a growing pipeline, which negatively impacted the recognition of gain on sale and net interest margin. The decrease in net income was primarily driven by a $17.2 million, or 42%, decrease in noninterest income, a $12.8 million, or 26%, increase in noninterest expense, a $4.9 milli ...