Merchants Bancorp(US:MBIN)2022-08-08 20:07Interest Rate Risk Management - The company reported a net interest income sensitivity of $41,524 thousand for a +100 basis point shift in interest rates as of June 30, 2022, reflecting a 10.4% increase [361]. - For the same period, the company projected a dollar change of $(63,986) thousand for a -200 basis point shift, indicating a 16.0% decrease in net interest income [362]. - The Economic Value of Equity (EVE) sensitivity showed a dollar change of $60,871 thousand for a -200 basis point shift, representing a 5.0% increase [364]. - The company maintains a policy limit that restricts changes in net interest income to 20% for a +/- 100 basis point move in interest rates [362]. - As of June 30, 2022, the company was within policy limits for all interest rate scenarios analyzed [362]. - The Asset-Liability Committee (ALCO) meets quarterly to monitor interest rate risk sensitivity and ensure compliance with established risk limits [354]. - The company utilizes two approaches to model interest rate risk: Net Interest Income at Risk (NII at Risk) and Economic Value of Equity (EVE) [360]. - The company emphasizes the importance of effective management of interest rate risk to minimize the impact on net interest income and asset values [355]. Market Risks - The company faces market risks primarily from interest rate changes and price risks related to market demand [352]. - The company is subject to various risks, including impacts from the COVID-19 pandemic and changes in economic conditions affecting the financial services industry [196].