Merchants Bancorp(US:MBIN)2020-11-09 21:07Interest Rate Sensitivity - The company reported a net interest income sensitivity of $(18,684) thousand for a -200 basis point shift, representing a 7.2% decrease [310]. - For a +200 basis point shift, the net interest income is projected to increase by $47,980 thousand, or 18.5% [310]. - The Economic Value of Equity (EVE) is expected to decrease by $(23,327) thousand for a +200 basis point shift, reflecting a 3.2% decline [312]. - The company maintains a policy limit of 20% change in net interest income for a +/- 100 basis point move in interest rates [310]. - The company is within policy limits for all interest rate scenarios as of September 30, 2020 [310]. - The company’s Asset-Liability Committee (ALCO) meets quarterly to monitor interest rate risk sensitivity and compliance with risk limits [304]. Risk Management - The company faces risks from the COVID-19 pandemic, affecting operations and demand across its businesses [149]. - The company emphasizes the importance of managing credit risk and maintaining sufficient loan loss allowances [149]. - The company is subject to regulatory compliance risks, including those related to the Dodd-Frank Act [149]. - The company has identified market risk primarily from interest rate risk and price risk related to market demand [303].