Merchants Bancorp(MBIN) - 2020 Q2 - Quarterly Report

Interest Rate Sensitivity - The company reported a net interest income sensitivity of $25,577 thousand for a +100 basis point shift in interest rates as of June 30, 2020, reflecting a 10.7% increase[304] - For a +200 basis point shift, the net interest income sensitivity increased to $51,574 thousand, representing a 21.6% increase[304] - The company maintains a policy limit that restricts changes in net interest income to 20% for a +/- 100 basis point move in interest rates[304] - The company is within policy limits for both net interest income and EVE under various interest rate scenarios as of June 30, 2020[304][306] Economic Value of Equity (EVE) - The Economic Value of Equity (EVE) decreased by $48,270 thousand, or 6.7%, under a -200 basis point scenario as of June 30, 2020[306] - The EVE management policy limits changes to 15% for a +/- 100 basis point move in interest rates[306] Market Risks - The company has identified interest rate risk and price risk related to market demand as primary sources of market risk[296] - The Asset-Liability Committee (ALCO) meets quarterly to monitor interest rate risk sensitivity and ensure compliance with risk limits[300] Operational Risks - The company faces risks from the COVID-19 pandemic, affecting operations and demand across its businesses[149] - The company is subject to compliance with governmental and regulatory requirements, including the Dodd-Frank Act[149]