We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Merchants Bancorp | NASDAQ:MBIN | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.49 | -0.93% | 52.10 | 50.70 | 53.20 | 53.27 | 51.92 | 52.61 | 295,584 | 23:55:18 |
CARMEL, Ind., July 29, 2024 /PRNewswire/ -- Merchants Bancorp (the "Company" or "Merchants") (Nasdaq: MBIN), parent company of Merchants Bank, today reported second quarter 2024 net income of $76.4 million, or diluted earnings per common share of $1.49. This compared to $65.3 million, or diluted earnings per common share of $1.31 in the second quarter of 2023, and compared to $87.1 million, or diluted earnings per common share of $1.80 in the first quarter of 2024.
"Results for the second quarter demonstrate our success in serving customers while also increasing shareholder value in any interest rate environment. Loan growth continued as we reached a new record of $18.2 billion in assets and we also achieved a record-high tangible book value of $31.27 per share, which reflected a 30% increase over the prior year. Our originate-to-sell business model that minimizes interest rate risk has proven to be successful, and our priorities remain unchanged. We have also focused on effectively managing our capital to execute our strategies for future growth by issuing common stock, entering into credit risk transfer transactions, and participating in securitizations.," said Michael F. Petrie, Chairman and CEO of Merchants.
Michael J. Dunlap, President and Chief Operating Officer of Merchants, added, "The market leading positions we hold across our businesses is a testament to the resilience and creativity that our team has demonstrated while working with customers to find effective solutions to their lending needs. These strong relationships position us to be a lender of choice and provide us with significant growth opportunities."
Net income of $76.4 million for the second quarter 2024 increased by $11.1 million, or 17%, compared to the second quarter of 2023, primarily driven by:
Net income of $76.4 million for the second quarter 2024 decreased by $10.7 million, or 12%, compared to the first quarter of 2024, primarily driven by:
Total Assets
Total assets of $18.2 billion at June 30, 2024 increased $389.8 million, or 2%, compared to March 31, 2024, and increased $1.3 billion, or 7%, compared to December 31, 2023. The increase compared to December 31, 2023 was primarily due to growth in the warehouse, multi-family, and healthcare loan portfolios.
Return on average assets was 1.72% for the second quarter of 2024 compared to 1.78% for the second quarter of 2023 and 2.07% for the first quarter of 2024.
Asset Quality
The allowance for credit losses on loans of $81.0 million, as of June 30, 2024, increased $5.3 million, or 7%, compared to March 31, 2024, and increased $9.3 million, or 13%, compared to December 31, 2023. The increase compared to both periods was primarily due to loan charge-offs, increases in specific reserves, loan growth, and changes to qualitative loss factors to reflect changes in industry conditions.
The Company recorded three charge-offs, primarily in the multi-family portfolio, for $3.5 million and recorded $15,000 of recoveries during the second quarter 2024. This compares to $9.5 million in charge-offs and $2,000 in recoveries during the second quarter of 2023 and to $0.9 million in charge-offs and $1,000 of recoveries in the first quarter of 2024.
As of June 30, 2024, non-performing loans were $143.5 million, or 1.30% of gross loans receivable, compared to $131.8 million, or 1.22%, as of March 31, 2024, and $82.0 million, or 0.80%, as of December 31, 2023. The increase in non-performing loans compared to both periods was primarily driven by multi-family and healthcare customers with delinquent payments on variable rate loans that have required higher payments due to interest rates remaining at elevated levels.
Securities Available for Sale
Total securities available for sale of $1.0 billion as of June 30, 2024 decreased $44.3 million, or 4%, compared to March 31, 2024, and decreased $96.7 million, or 9%, compared to December 31, 2023. The decrease was primarily due to maturities, sales, and repayments that were partially offset by purchases.
As of June 30, 2024, Accumulated Other Comprehensive Losses ("AOCL") of $0.5 million, related to securities available for sale, decreased $0.7 million, or 57%, compared to March 31, 2024, and decreased $2.0 million, or 80%, compared to December 31, 2023. The $0.5 million of AOCL as of June 30, 2024 represented less than 1% of total equity and less than 1% of total investment securities.
Total Deposits
Total deposits of $14.9 billion at June 30, 2024 increased $941.4 million, or 7%, compared to March 31, 2024, and increased $855.6 million, or 6%, compared to December 31, 2023. The change compared to March 31, 2024 was primarily due to growth in core deposits, reflecting an increase in certificates of deposit and demand accounts. The change compared to December 31, 2023 was primarily due to growth in core deposit accounts, reflecting an increase in certificates of deposit accounts that was partially offset by a decrease in demand accounts.
Core deposits of $8.8 billion at June 30, 2024 increased $574.0 million, or 7%, from March 31, 2024 and increased $705.9 million, or 9%, from December 31, 2023. Core deposits represented 59% of total deposits at June 30, 2024 and March 31, 2024, and 58% of total deposits at December 31, 2023.
Total brokered deposits of $6.1 billion at June 30, 2024 increased $367.4 million, or 6%, from March 31, 2024 and increased $149.7 million, or 3%, from December 31, 2023. As of June 30, 2024, brokered certificates of deposit had a weighted average remaining duration of 70 days.
Liquidity
Cash balances of $540.9 million as of June 30, 2024 increased by $32.1 million compared to March 31, 2024 and decreased by $43.5 million compared to December 31, 2023. The Company continues to have significant borrowing capacity, with unused lines of credit totaling $7.0 billion as of June 30, 2024 compared to $5.6 billion at March 31, 2024 and $6.0 billion at December 31, 2023. Furthermore, its $2.8 billion line of credit with the Federal Reserve Board alone could fund 118% of its uninsured deposits, which represented approximately 15% of total deposits as of June 30, 2024.
This liquidity enhances the ability to effectively manage interest expense and asset levels in the future. Additionally, the Company's business model is designed to continuously sell or securitize a significant portion of its loans, which provides flexibility in managing its liquidity.
Comparison of Operating Results for the Three Months Ended
June 30, 2024 and 2023
Net Interest Income of $128.1 million increased $22.5 million, or 21%, compared to $105.6 million, primarily reflecting an increase in both average balances and yields on loans and loans held for sale, as well as higher average yields and balances of securities available for sale, which were partially offset by higher average balances and interest rates on deposits, as well as higher average balances on borrowings.
Interest Income of $328.3 million increased $70.2 million, or 27%, compared to $258.1 million, reflecting an increase in both average balances and higher yields of loans and loans held for sale, as well as securities available for sale.
Interest Expense of $200.2 million increased $47.7 million, or 31%, compared to $152.5 million. The increase reflected an increase in both average balances and rates on certificates of deposit and interest-bearing checking, as well as higher average balances on borrowings.
Noninterest Income of $31.4 million increased $1.5 million, or 5%, compared to $29.9 million, primarily due to a $2.2 million, or 26%, increase in net loan servicing fees and a $1.4 million, or 46%, increase in other income, partially offset by a $1.3 million, or 47%, decrease in mortgage warehouse fees.
Noninterest Expense of $50.4 million increased $6.1 million, or 14%, compared to $44.3 million reflecting increases in salaries and employee benefits to support business growth and increases in deposit insurance expenses. The higher noninterest expense also reflected a $1.6 million increase in other expenses primarily associated with ongoing premium expense for the credit default swap that was executed in March 2024.
Comparison of Operating Results for the Three Months Ended
June 30, 2024 and March 31, 2024
Net Interest Income of $128.1 million increased 1%, compared to $127.1 million, primarily due to higher average balances on loans and loans held for sale, partially offset by higher average balances of deposits and on borrowings.
Interest Income of $328.3 million increased $14.1 million, or 4%, compared to $314.2 million, reflecting an increase in average balances on loans and loans held for sale, interest earning deposits, and mortgage loans in process or securitization. The increases in interest income were partially offset by a decrease in average yields on loans and loans held for sale.
Interest Expense of $200.2 million increased 7% compared to $187.1 million. The increase was primarily driven by higher average balances on certificate of deposit accounts and borrowings. These were partially offset by lower rates on borrowings, as well as lower average balances on interest-bearing checking accounts.
Noninterest Income of $31.4 million decreased $9.5 million, or 23%, compared $40.9 million, primarily due to an $8.6 million, or 44%, decrease in net loan servicing fees and a $2.1 million, or 39%, decrease in syndication and asset management fees.
Noninterest Expense of $50.4 million increased $1.5 million, or 3%, compared to $48.9 million, driven by a $2.7 million, or 54%, increase in other expenses associated with ongoing premium expense for the credit default swap that was executed in March 2024. This increase was partially offset by a $1.2 million decrease in salaries and employee benefits
About Merchants Bancorp
Ranked as a top performing U.S. public bank by S&P Global Market Intelligence, Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple segments, including Multi-family Mortgage Banking that primarily offers multi-family housing and healthcare facility financing and servicing (through this segment it also serves as a syndicator of low-income housing tax credit and debt funds); Mortgage Warehousing that offers mortgage warehouse financing, commercial loans, and deposit services; and Banking that offers retail and correspondent residential mortgage banking, agricultural lending, and traditional community banking. Merchants Bancorp, with $18.2 billion in assets and $14.9 billion in deposits as of June 30, 2024, conducts its business primarily through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp., Merchants Capital Investments, LLC, Merchants Capital Servicing, LLC, Merchants Asset Management, LLC, and Merchants Mortgage, a division of Merchants Bank of Indiana. For more information and financial data, please visit Merchants' Investor Relations page at investors.merchantsbancorp.com.
Forward-Looking Statements
This press release contains forward-looking statements which reflect management's current views with respect to, among other things, future events and financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, management cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated in these forward-looking statements, including the impacts of factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
Consolidated Balance Sheets | ||||||||||
(Unaudited) | ||||||||||
(In thousands, except share data) | ||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||
2024 | 2024 | 2023 | 2023 | 2023 | ||||||
Assets | ||||||||||
Cash and due from banks | $ 10,242 | $ 17,924 | $ 15,592 | $ 10,633 | $ 15,390 | |||||
Interest-earning demand accounts | 530,640 | 490,831 | 568,830 | 396,605 | 361,920 | |||||
Cash and cash equivalents | 540,882 | 508,755 | 584,422 | 407,238 | 377,310 | |||||
Securities purchased under agreements to resell | 3,304 | 3,329 | 3,349 | 3,385 | 3,412 | |||||
Mortgage loans in process of securitization | 209,244 | 142,629 | 110,599 | 476,047 | 298,907 | |||||
Securities available for sale ($682,774, $700,640 and $722,497 utilizing fair value option at June 30, 2024, March 31, 2024 and December 31, 2023) | 1,017,019 | 1,061,288 | 1,113,687 | 624,586 | 648,003 | |||||
Securities held to maturity ($1,291,960, $1,176,178, $1,203,535, $1,010,745 and $1,058,590 at fair value, respectively) | 1,291,110 | 1,175,167 | 1,204,217 | 1,012,801 | 1,062,017 | |||||
Federal Home Loan Bank (FHLB) stock | 67,499 | 64,215 | 48,578 | 48,219 | 39,130 | |||||
Loans held for sale (includes $102,873, $84,513, $86,663, $90,875 and $82,931 at fair value, respectively) | 3,483,076 | 3,503,131 | 3,144,756 | 3,477,036 | 3,058,013 | |||||
Loans receivable, net of allowance for credit losses on loans of $81,028, $75,712, $71,752, $66,864 and $62,986, respectively | 10,933,189 | 10,690,513 | 10,127,801 | 9,910,681 | 9,854,018 | |||||
Premises and equipment, net | 46,833 | 42,450 | 42,342 | 36,730 | 36,947 | |||||
Servicing rights | 178,776 | 172,200 | 158,457 | 162,141 | 147,288 | |||||
Interest receivable | 90,360 | 90,303 | 91,346 | 78,401 | 70,509 | |||||
Goodwill | 8,014 | 8,014 | 15,845 | 15,845 | 15,845 | |||||
Other assets and receivables | 343,116 | 360,582 | 307,117 | 242,126 | 263,473 | |||||
Total assets | $18,212,422 | $17,822,576 | $ 16,952,516 | $ 16,495,236 | $15,874,872 | |||||
Liabilities and Shareholders' Equity | ||||||||||
Liabilities | ||||||||||
Deposits | ||||||||||
Noninterest-bearing | $ 383,260 | $ 319,872 | $ 520,070 | $ 287,846 | $ 349,387 | |||||
Interest-bearing | 14,533,807 | 13,655,789 | 13,541,390 | 12,719,492 | 12,710,477 | |||||
Total deposits | 14,917,067 | 13,975,661 | 14,061,460 | 13,007,338 | 13,059,864 | |||||
Borrowings | 1,159,206 | 1,835,985 | 964,127 | 1,654,075 | 1,016,836 | |||||
Deferred and current tax liabilities, net | 25,098 | 43,935 | 19,923 | 18,006 | 16,084 | |||||
Other liabilities | 222,904 | 190,527 | 205,922 | 183,102 | 221,788 | |||||
Total liabilities | 16,324,275 | 16,046,108 | 15,251,432 | 14,862,521 | 14,314,572 | |||||
Commitments and Contingencies | ||||||||||
Shareholders' Equity | ||||||||||
Common stock, without par value | ||||||||||
Authorized - 75,000,000 shares | ||||||||||
Issued and outstanding - 45,757,567 shares, 43,354,718 shares, 43,242,928 shares, 43,240,212 shares and 43,237,300 shares | 238,492 | 139,950 | 140,365 | 139,609 | 138,853 | |||||
Preferred stock, without par value - 5,000,000 total shares authorized | ||||||||||
7% Series A Preferred stock - $25 per share liquidation preference | ||||||||||
Authorized - no shares at June 30, 2024 and 3,500,000 shares at March 31, 2024 and all prior periods presented | ||||||||||
Issued and outstanding - no shares at June 30, 2024 and 2,081,800 shares at March 31, 2024 and all prior periods presented | — | 50,221 | 50,221 | 50,221 | 50,221 | |||||
6% Series B Preferred stock - $1,000 per share liquidation preference | ||||||||||
Authorized - 125,000 shares | ||||||||||
Issued and outstanding - 125,000 shares (equivalent to 5,000,000 depositary shares) | 120,844 | 120,844 | 120,844 | 120,844 | 120,844 | |||||
6% Series C Preferred stock - $1,000 per share liquidation preference | ||||||||||
Authorized - 200,000 shares | ||||||||||
Issued and outstanding - 196,181 shares (equivalent to 7,847,233 depositary shares) | 191,084 | 191,084 | 191,084 | 191,084 | 191,084 | |||||
8.25% Series D Preferred stock - $1,000 per share liquidation preference | ||||||||||
Authorized - 300,000 shares | ||||||||||
Issued and outstanding - 142,500 shares (equivalent to 5,700,000 depositary shares) | 137,459 | 137,459 | 137,459 | 137,459 | 137,459 | |||||
Retained earnings | 1,200,778 | 1,138,083 | 1,063,599 | 998,252 | 928,875 | |||||
Accumulated other comprehensive loss | (510) | (1,173) | (2,488) | (4,754) | (7,036) | |||||
Total shareholders' equity | 1,888,147 | 1,776,468 | 1,701,084 | 1,632,715 | 1,560,300 | |||||
Total liabilities and shareholders' equity | $18,212,422 | $17,822,576 | $ 16,952,516 | $ 16,495,236 | $15,874,872 |
Consolidated Statement of Income | |||||||||||||
(Unaudited) | |||||||||||||
(In thousands, except share data) | |||||||||||||
Three Months Ended | Change | ||||||||||||
June 30, | March 31, | June 30, | 2Q24 | 2Q24 | |||||||||
2024 | 2024 | 2023 | vs. 1Q24 | vs. 2Q23 | |||||||||
Interest Income | |||||||||||||
Loans | $ | 284,421 | $ | 271,998 | $ | 228,732 | 5 % | 24 % | |||||
Mortgage loans in process of securitization | 3,044 | 1,720 | 3,127 | 77 % | -3 % | ||||||||
Investment securities: | |||||||||||||
Available for sale | 14,784 | 14,388 | 5,564 | 3 % | 166 % | ||||||||
Held to maturity | 19,799 | 20,522 | 17,311 | -4 % | 14 % | ||||||||
Federal Home Loan Bank stock | 1,277 | 844 | 471 | 51 % | 171 % | ||||||||
Other | 4,948 | 4,701 | 2,864 | 5 % | 73 % | ||||||||
Total interest income | 328,273 | 314,173 | 258,069 | 4 % | 27 % | ||||||||
Interest Expense | |||||||||||||
Deposits | 179,651 | 171,022 | 137,801 | 5 % | 30 % | ||||||||
Borrowed funds | 20,503 | 16,095 | 14,651 | 27 % | 40 % | ||||||||
Total interest expense | 200,154 | 187,117 | 152,452 | 7 % | 31 % | ||||||||
Net Interest Income | 128,119 | 127,056 | 105,617 | 1 % | 21 % | ||||||||
Provision for credit losses | 9,965 | 4,726 | 22,603 | 111 % | -56 % | ||||||||
Net Interest Income After Provision for Credit Losses | 118,154 | 122,330 | 83,014 | -3 % | 42 % | ||||||||
Noninterest Income | |||||||||||||
Gain on sale of loans | 11,168 | 9,356 | 11,350 | 19 % | -2 % | ||||||||
Loan servicing fees, net | 10,827 | 19,402 | 8,616 | -44 % | 26 % | ||||||||
Mortgage warehouse fees | 1,524 | 982 | 2,865 | 55 % | -47 % | ||||||||
Loss on sale of investments available for sale (1) | — | (108) | — | -100 % | — | ||||||||
Syndication and asset management fees | 3,233 | 5,303 | 3,896 | -39 % | -17 % | ||||||||
Other income | 4,599 | 5,939 | 3,155 | -23 % | 46 % | ||||||||
Total noninterest income | 31,351 | 40,874 | 29,882 | -23 % | 5 % | ||||||||
Noninterest Expense | |||||||||||||
Salaries and employee benefits | 28,373 | 29,596 | 25,724 | -4 % | 10 % | ||||||||
Loan expenses | 993 | 956 | 907 | 4 % | 9 % | ||||||||
Occupancy and equipment | 2,239 | 2,237 | 2,456 | — | -9 % | ||||||||
Professional fees | 3,556 | 4,099 | 3,723 | -13 % | -4 % | ||||||||
Deposit insurance expense | 5,579 | 5,125 | 3,806 | 9 % | 47 % | ||||||||
Technology expense | 1,859 | 1,854 | 1,571 | — | 18 % | ||||||||
Other expense | 7,781 | 5,045 | 6,133 | 54 % | 27 % | ||||||||
Total noninterest expense | 50,380 | 48,912 | 44,320 | 3 % | 14 % | ||||||||
Income Before Income Taxes | 99,125 | 114,292 | 68,576 | -13 % | 45 % | ||||||||
Provision for income taxes (2) | 22,732 | 27,238 | 3,274 | -17 % | 594 % | ||||||||
Net Income | $ | 76,393 | $ | 87,054 | $ | 65,302 | -12 % | 17 % | |||||
Dividends on preferred stock | (7,757) | (8,667) | (8,668) | -10 % | -11 % | ||||||||
Impact of preferred stock redemption | (1,823) | — | — | -100 % | -100 % | ||||||||
Net Income Available to Common Shareholders | $ | 66,813 | $ | 78,387 | $ | 56,634 | -15 % | 18 % | |||||
Basic Earnings Per Share | $ | 1.50 | $ | 1.81 | $ | 1.31 | -17 % | 15 % | |||||
Diluted Earnings Per Share | $ | 1.49 | $ | 1.80 | $ | 1.31 | -17 % | 14 % | |||||
Weighted-Average Shares Outstanding | |||||||||||||
Basic | 44,569,345 | 43,305,985 | 43,235,398 | ||||||||||
Diluted | 44,698,324 | 43,466,647 | 43,309,393 |
(1) Includes $0, $(108), and $0 respectively, related to accumulated other comprehensive losses reclassifications. |
(2) Includes $0, $26, and $0 respectively, related to income tax benefit for reclassification items. |
Consolidated Statement of Income | ||||||||
(Unaudited) | ||||||||
(In thousands, except share data) | ||||||||
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2024 | 2023 | Change | ||||||
Interest Income | ||||||||
Loans | $ | 556,419 | $ | 418,182 | 33 % | |||
Mortgage loans in process of securitization | 4,764 | 4,775 | — | |||||
Investment securities: | ||||||||
Available for sale | 29,172 | 7,830 | 273 % | |||||
Held to maturity | 40,321 | 33,065 | 22 % | |||||
Federal Home Loan Bank stock | 2,121 | 898 | 136 % | |||||
Other | 9,649 | 4,613 | 109 % | |||||
Total interest income | 642,446 | 469,363 | 37 % | |||||
Interest Expense | ||||||||
Deposits | 350,673 | 242,243 | 45 % | |||||
Borrowed funds | 36,598 | 20,810 | 76 % | |||||
Total interest expense | 387,271 | 263,053 | 47 % | |||||
Net Interest Income | 255,175 | 206,310 | 24 % | |||||
Provision for credit losses | 14,691 | 29,470 | -50 % | |||||
Net Interest Income After Provision for Credit Losses | 240,484 | 176,840 | 36 % | |||||
Noninterest Income | ||||||||
Gain on sale of loans | 20,524 | 18,083 | 13 % | |||||
Loan servicing fees, net | 30,229 | 10,976 | 175 % | |||||
Mortgage warehouse fees | 2,506 | 3,893 | -36 % | |||||
Loss on sale of investments available for sale (1) | (108) | — | -100 % | |||||
Syndication and asset management fees | 8,536 | 5,108 | 67 % | |||||
Other income | 10,538 | 6,086 | 73 % | |||||
Total noninterest income | 72,225 | 44,146 | 64 % | |||||
Noninterest Expense | ||||||||
Salaries and employee benefits | 57,969 | 47,870 | 21 % | |||||
Loan expenses | 1,949 | 1,711 | 14 % | |||||
Occupancy and equipment | 4,476 | 4,688 | -5 % | |||||
Professional fees | 7,655 | 5,992 | 28 % | |||||
Deposit insurance expense | 10,704 | 5,984 | 79 % | |||||
Technology expense | 3,713 | 3,148 | 18 % | |||||
Other expense | 12,826 | 9,699 | 32 % | |||||
Total noninterest expense | 99,292 | 79,092 | 26 % | |||||
Income Before Income Taxes | 213,417 | 141,894 | 50 % | |||||
Provision for income taxes (2) | 49,970 | 21,637 | 131 % | |||||
Net Income | $ | 163,447 | $ | 120,257 | 36 % | |||
Dividends on preferred stock | (16,424) | (17,335) | -5 % | |||||
Impact of preferred stock redemption | (1,823) | — | -100 % | |||||
Net Income Available to Common Shareholders | $ | 145,200 | $ | 102,922 | 41 % | |||
Basic Earnings Per Share | $ | 3.30 | $ | 2.38 | 39 % | |||
Diluted Earnings Per Share | $ | 3.29 | $ | 2.38 | 38 % | |||
Weighted-Average Shares Outstanding | ||||||||
Basic | 43,937,665 | 43,207,655 | ||||||
Diluted | 44,082,485 | 43,300,240 |
(1) Includes $(108) and $0 respectively, related to accumulated other comprehensive earnings reclassifications. |
(2) Includes $26 and $0 respectively, related to income tax benefit for reclassification items. |
Key Operating Results | ||||||||||||
(Unaudited) | ||||||||||||
($ in thousands, except share data) | ||||||||||||
Three Months Ended | Change | |||||||||||
June 30, | March 31, | June 30, | 2Q24 | 2Q24 | ||||||||
2024 | 2024 | 2023 | vs. 1Q24 | vs. 2Q23 | ||||||||
Noninterest expense | $ 50,380 | $ 48,912 | $ 44,320 | 3 % | 14 % | |||||||
Net interest income (before provision for credit losses) | 128,119 | 127,056 | 105,617 | 1 % | 21 % | |||||||
Noninterest income | 31,351 | 40,874 | 29,882 | -23 % | 5 % | |||||||
Total income | $ 159,470 | $ 167,930 | $ 135,499 | -5 % | 18 % | |||||||
Efficiency ratio | 31.59 % | 29.13 % | 32.71 % | 246 | bps | (112) | bps | |||||
Average assets | $ 17,814,191 | $ 16,793,072 | $ 14,673,257 | 6 % | 21 % | |||||||
Net income | 76,393 | 87,054 | 65,302 | -12 % | 17 % | |||||||
Return on average assets before annualizing | 0.43 % | 0.52 % | 0.45 % | |||||||||
Annualization factor | 4.00 | 4.00 | 4.00 | |||||||||
Return on average assets | 1.72 % | 2.07 % | 1.78 % | (35) | bps | (6) | bps | |||||
Return on average tangible common shareholders' equity (1) | 19.55 % | 25.34 % | 22.03 % | (579) | bps | (248) | bps | |||||
Tangible book value per common share (1) | $ 31.27 | $ 29.26 | $ 24.14 | 7 % | 30 % | |||||||
Tangible common shareholders' equity/tangible assets (1) | 7.86 % | 7.12 % | 6.58 % | 74 | bps | 128 | bps | |||||
Consolidated ratios | ||||||||||||
Total capital/risk-weighted assets(2) | 12.0 | % | 11.7 | % | 11.3 | % | ||||||
Tier I capital/risk-weighted assets(2) | 11.4 | % | 11.2 | % | 10.8 | % | ||||||
Common Equity Tier I capital/risk-weighted assets(2) | 8.7 | % | 8.0 | % | 7.3 | % | ||||||
Tier I capital/average assets(2) | 10.6 | % | 10.5 | % | 10.6 | % | ||||||
(1) Non-GAAP financial measure - see "Reconciliation of Non-GAAP Measures" below: | ||||||||||||
(2) As defined by regulatory agencies; June 30, 2024 shown as estimates and prior periods shown as reported. | ||||||||||||
Certain non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company's financial condition, results of operations and cash flows computed in accordance with GAAP; however, they do have a number of limitations. As such, the reader should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. A reconciliation of GAAP to non-GAAP financial measures is below. Net Income Available to Common Shareholders excludes preferred stock. Tangible common shareholders' equity is calculated by excluding the balance of goodwill and other intangible assets and preferred stock from the calculation of total equity. Tangible Assets is calculated by excluding the balance of goodwill and intangible assets. Tangible book value per share is calculated by dividing tangible common shareholders' equity by the number of shares outstanding. | ||||||||||||
Three Months Ended | Change | |||||||||||
June 30, | March 31, | June 30, | 2Q24 | 2Q24 | ||||||||
2024 | 2024 | 2023 | vs. 1Q24 | vs. 2Q23 | ||||||||
Net income | $ 76,393 | $ 87,054 | $ 65,302 | -12 % | 17 % | |||||||
Less: preferred stock dividends | (7,757) | (8,667) | (8,668) | -10 % | -11 % | |||||||
Less: preferred stock redemption | (1,823) | - | - | -100 % | -100 % | |||||||
Net income available to common shareholders | $ 66,813 | $ 78,387 | $ 56,634 | -15 % | 18 % | |||||||
Average shareholders' equity | $ 1,824,730 | $ 1,747,660 | $ 1,544,976 | 4 % | 18 % | |||||||
Less: average goodwill & intangibles | (8,140) | (10,494) | (16,858) | -22 % | -52 % | |||||||
Less: average preferred stock | (449,387) | (499,608) | (499,608) | -10 % | -10 % | |||||||
Average tangible common shareholders' equity | $ 1,367,203 | $ 1,237,558 | $ 1,028,510 | 10 % | 33 % | |||||||
Annualization factor | 4.00 | 4.00 | 4.00 | |||||||||
Return on average tangible common shareholders' equity | 19.55 % | 25.34 % | 22.03 % | (579) | bps | (248) | bps | |||||
Total equity | $ 1,888,147 | $ 1,776,468 | $ 1,560,300 | 6 % | 21 % | |||||||
Less: goodwill and intangibles | (8,108) | (8,163) | (16,794) | -1 % | -52 % | |||||||
Less: preferred stock | (449,387) | (499,608) | (499,608) | -10 % | -10 % | |||||||
Tangible common shareholders' equity | $ 1,430,652 | $ 1,268,697 | $ 1,043,898 | 13 % | 37 % | |||||||
Assets | $ 18,212,422 | $ 17,822,576 | $ 15,874,872 | 2 % | 15 % | |||||||
Less: goodwill and intangibles | (8,108) | (8,163) | (16,794) | -1 % | -52 % | |||||||
Tangible assets | $ 18,204,314 | $ 17,814,413 | $ 15,858,078 | 2 % | 15 % | |||||||
Ending common shares | 45,757,567 | 43,354,718 | 43,237,300 | |||||||||
Tangible book value per common share | $ 31.27 | $ 29.26 | $ 24.14 | 7 % | 30 % | |||||||
Tangible common shareholders' equity/tangible assets | 7.86 % | 7.12 % | 6.58 % | 74 | bps | 128 | bps |
Key Operating Results | ||||||||
(Unaudited) | ||||||||
($ in thousands, except share data) | ||||||||
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2024 | 2023 | Change | ||||||
Noninterest expense | $ 99,292 | $ 79,092 | 26 % | |||||
Net interest income (before provision for credit losses) | 255,175 | 206,310 | 24 % | |||||
Noninterest income | 72,225 | 44,146 | 64 % | |||||
Total income | $ 327,400 | $ 250,456 | 31 % | |||||
Efficiency ratio | 30.33 % | 31.58 % | (125) | bps | ||||
Average assets | $ 17,303,632 | $ 13,784,434 | 26 % | |||||
Net income | 163,447 | 120,257 | 36 % | |||||
Return on average assets before annualizing | 0.94 % | 0.87 % | ||||||
Annualization factor | 2.00 | 2.00 | ||||||
Return on average assets | 1.89 % | 1.74 % | 15 | bps | ||||
Return on average tangible common shareholders' equity (1) | 22.30 % | 20.49 % | 181 | bps | ||||
Tangible book value per common share (1) | $ 31.27 | $ 24.14 | 30 % | |||||
Tangible common shareholders' equity/tangible assets (1) | 7.86 % | 6.58 % | 128 | bps | ||||
(1) Non-GAAP financial measure - see "Reconciliation of Non-GAAP Measures" below: | ||||||||
Certain non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company's financial condition, results of operations and cash flows computed in accordance with GAAP; however, they do have a number of limitations. As such, the reader should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. A reconciliation of GAAP to non-GAAP financial measures is below. Net Income Available to Common Shareholders excludes preferred stock. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets and preferred stock from the calculation of total assets. Tangible Assets is calculated by excluding the balance of goodwill and intangible assets. Tangible book value per share is calculated by dividing tangible common equity by the number of shares outstanding. | ||||||||
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2024 | 2023 | Change | ||||||
Net income | $ 163,447 | $ 120,257 | 36 % | |||||
Less: preferred stock dividends | (16,424) | (17,335) | -5 % | |||||
Less: preferred stock redemption | (1,823) | - | -100 % | |||||
Net income available to common shareholders | $ 145,200 | $ 102,922 | 41 % | |||||
Average shareholders' equity | $ 1,786,195 | $ 1,520,927 | 17 % | |||||
Less: average goodwill & intangibles | (9,317) | (16,918) | -45 % | |||||
Less: average preferred stock | (474,497) | (499,608) | -5 % | |||||
Average tangible common shareholders' equity | $ 1,302,381 | $ 1,004,401 | 30 % | |||||
Annualization factor | 2.00 | 2.00 | ||||||
Return on average tangible common shareholders' equity | 22.30 % | 20.49 % | 181 | bps | ||||
Total equity | $ 1,888,147 | $ 1,560,300 | 21 % | |||||
Less: goodwill and intangibles | (8,108) | (16,794) | -52 % | |||||
Less: preferred stock | (449,387) | (499,608) | -10 % | |||||
Tangible common shareholders' equity | $ 1,430,652 | $ 1,043,898 | 37 % | |||||
Assets | $ 18,212,422 | $ 15,874,872 | 15 % | |||||
Less: goodwill and intangibles | (8,108) | (16,794) | -52 % | |||||
Tangible assets | $ 18,204,314 | $ 15,858,078 | 15 % | |||||
Ending common shares | 45,757,567 | 43,237,300 | ||||||
Tangible book value per common share | $ 31.27 | $ 24.14 | 30 % | |||||
Tangible common shareholders' equity/tangible assets | 7.86 % | 6.58 % | 128 | bps |
Merchants Bancorp | |||||||||||
Average Balance Analysis | |||||||||||
($ in thousands) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||
Assets: | |||||||||||
Interest-bearing deposits, and other | $ 438,445 | $ 6,225 | 5.71 % | $ 346,150 | $ 5,545 | 6.44 % | $ 249,722 | $ 3,335 | 5.36 % | ||
Securities available for sale | 1,039,388 | 14,784 | 5.72 % | 1,085,114 | 14,388 | 5.33 % | 672,887 | 5,564 | 3.32 % | ||
Securities held to maturity | 1,160,170 | 19,799 | 6.86 % | 1,196,633 | 20,522 | 6.90 % | 1,093,018 | 17,311 | 6.35 % | ||
Mortgage loans in process of securitization | 234,706 | 3,044 | 5.22 % | 137,890 | 1,720 | 5.02 % | 280,092 | 3,127 | 4.48 % | ||
Loans and loans held for sale | 14,347,165 | 284,421 | 7.97 % | 13,494,961 | 271,998 | 8.11 % | 11,968,565 | 228,732 | 7.67 % | ||
Total interest-earning assets | 17,219,874 | 328,273 | 7.67 % | 16,260,748 | 314,173 | 7.77 % | 14,264,284 | 258,069 | 7.26 % | ||
Allowance for credit losses on loans | (76,456) | (71,544) | (54,411) | ||||||||
Noninterest-earning assets | 670,773 | 603,868 | 463,384 | ||||||||
Total assets | $ 17,814,191 | $ 16,793,072 | $ 14,673,257 | ||||||||
Liabilities & Shareholders' Equity: | |||||||||||
Interest-bearing checking | $ 4,935,123 | 58,128 | 4.74 % | $ 5,070,393 | 60,688 | 4.81 % | $ 4,307,736 | 48,296 | 4.50 % | ||
Savings deposits | 145,262 | 19 | 0.05 % | 201,860 | 219 | 0.44 % | 236,012 | 299 | 0.51 % | ||
Money market | 2,788,335 | 33,207 | 4.79 % | 2,817,382 | 33,644 | 4.80 % | 2,749,594 | 30,521 | 4.45 % | ||
Certificates of deposit | 6,535,651 | 88,297 | 5.43 % | 5,694,933 | 76,471 | 5.40 % | 4,729,242 | 58,685 | 4.98 % | ||
Total interest-bearing deposits | 14,404,371 | 179,651 | 5.02 % | 13,784,568 | 171,022 | 4.99 % | 12,022,584 | 137,801 | 4.60 % | ||
Borrowings | 1,031,180 | 20,503 | 8.00 % | 716,853 | 16,095 | 9.03 % | 591,333 | 14,651 | 9.94 % | ||
Total interest-bearing liabilities | 15,435,551 | 200,154 | 5.22 % | 14,501,421 | 187,117 | 5.19 % | 12,613,917 | 152,452 | 4.85 % | ||
Noninterest-bearing deposits | 331,246 | 332,172 | 346,837 | ||||||||
Noninterest-bearing liabilities | 222,664 | 211,819 | 167,527 | ||||||||
Total liabilities | 15,989,461 | 15,045,412 | 13,128,281 | ||||||||
Shareholders' equity | 1,824,730 | 1,747,660 | 1,544,976 | ||||||||
Total liabilities and shareholders' equity | $ 17,814,191 | $ 16,793,072 | $ 14,673,257 | ||||||||
Net interest income | $ 128,119 | $ 127,056 | $ 105,617 | ||||||||
Net interest spread | 2.45 % | 2.58 % | 2.41 % | ||||||||
Net interest-earning assets | $ 1,784,323 | $ 1,759,327 | $ 1,650,367 | ||||||||
Net interest margin | 2.99 % | 3.14 % | 2.97 % | ||||||||
Average interest-earning assets to average interest-bearing liabilities | 111.56 % | 112.13 % | 113.08 % |
Supplemental Results | ||||||||||||||||
(Unaudited) | ||||||||||||||||
($ in thousands) | ||||||||||||||||
Net Income | Net Income | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Segment | ||||||||||||||||
Multi-family Mortgage Banking | $ 9,037 | $ 16,609 | $ 11,242 | $ 25,646 | $ 13,208 | |||||||||||
Mortgage Warehousing | 22,270 | 20,190 | 18,596 | 42,460 | 27,237 | |||||||||||
Banking | 52,378 | 56,425 | 42,650 | 108,803 | 91,957 | |||||||||||
Other | (7,292) | (6,170) | (7,186) | (13,462) | (12,145) | |||||||||||
Total | $ 76,393 | $ 87,054 | $ 65,302 | $ 163,447 | $ 120,257 | |||||||||||
Total Assets | ||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||
Segment | ||||||||||||||||
Multi-family Mortgage Banking | $ 428,299 | 2 % | $ 416,454 | 2 % | $ 411,097 | 2 % | ||||||||||
Mortgage Warehousing | 5,626,055 | 31 % | 5,369,299 | 30 % | 4,522,175 | 27 % | ||||||||||
Banking | 11,885,484 | 65 % | 11,760,028 | 66 % | 11,760,943 | 69 % | ||||||||||
Other | 272,584 | 2 % | 276,795 | 2 % | 258,301 | 2 % | ||||||||||
Total | $ 18,212,422 | 100 % | $ 17,822,576 | 100 % | $ 16,952,516 | 100 % | ||||||||||
Gain on Sale of Loans | Gain on Sale of Loans | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, | June 30, | |||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Loan Type | ||||||||||||||||
Multi-family | $ 9,083 | $ 8,423 | $ 10,361 | $ 17,506 | $ 15,281 | |||||||||||
Single-family | 524 | 280 | 202 | 804 | 479 | |||||||||||
Small Business Association (SBA) | 1,561 | 653 | 787 | 2,214 | 2,323 | |||||||||||
Total | $ 11,168 | $ 9,356 | $ 11,350 | $ 20,524 | $ 18,083 |
Supplemental Results | ||||||||||||
(Unaudited) | ||||||||||||
($ in thousands) | ||||||||||||
Loans Receivable and Loans Held for Sale | ||||||||||||
June 30, | March 31, | December 31, | ||||||||||
2024 | 2024 | 2023 | ||||||||||
Mortgage warehouse repurchase agreements | $ 1,369,965 | $ 1,142,994 | $ 752,468 | |||||||||
Residential real estate (1) | 1,345,656 | 1,321,300 | 1,324,305 | |||||||||
Multi-family financing | 4,160,420 | 4,096,606 | 4,006,160 | |||||||||
Healthcare financing | 2,495,910 | 2,464,685 | 2,356,689 | |||||||||
Commercial and commercial real estate (2)(3) | 1,566,809 | 1,666,751 | 1,643,081 | |||||||||
Agricultural production and real estate | 70,244 | 65,977 | 103,150 | |||||||||
Consumer and margin loans | 5,213 | 7,912 | 13,700 | |||||||||
11,014,217 | 10,766,225 | 10,199,553 | ||||||||||
Less: Allowance for credit losses on loans | 81,028 | 75,712 | 71,752 | |||||||||
Loans receivable | $ 10,933,189 | $ 10,690,513 | $ 10,127,801 | |||||||||
Loans held for sale | 3,483,076 | 3,503,131 | 3,144,756 | |||||||||
Total loans, net of allowance | $ 14,416,265 | $ 14,193,644 | $ 13,272,557 |
(1) Includes $1.2 billion, $1.2 billion and $1.2 billion of All-In-One © first-lien home equity lines of credit as of June 30, 2024, March 31, 2024 and December 31, 2023, respectively. |
(2) Includes $1.0 billion, $1.1 billion and $1.1 billion of revolving lines of credit collateralized primarily by mortgage servicing rights as of June 30, 2024, March 31, 2024 and December 31, 2023, respectively. |
(3) Includes only $6.8 million, $6.8 million and $8.4 million of non-owner occupied commercial real estate as of June 30, 2024, March 31, 2024 and December 31, 2023, respectively. |
Loan Credit Risk Profile | |||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||
Amount | % | Amount | % | Amount | % | ||||||
Pass | $ 10,523,378 | 95.6 % | $ 10,410,748 | 96.7 % | $ 9,879,659 | 96.9 % | |||||
Special mention | 244,000 | 2.2 % | 232,122 | 2.2 % | 191,267 | 1.9 % | |||||
Substandard | 246,839 | 2.2 % | 123,355 | 1.1 % | 128,577 | 1.2 % | |||||
Doubtful | — | — | — | — | 50 | — | |||||
Loans receivable | $ 11,014,217 | 100.0 % | $ 10,766,225 | 100.0 % | $ 10,199,553 | 100.0 % | |||||
Charge-offs (year-to-date) | $ 4,377 | $ 925 | $ 9,791 | ||||||||
Recoveries (year-to-date) | $ 16 | $ 1 | $ 41 | ||||||||
Nonperforming Loans | |||||||||||
June 30, | March 31, | December 31, | |||||||||
2024 | 2024 | 2023 | |||||||||
Nonaccrual loans | $ 143,319 | $ 78,804 | $ 73,847 | ||||||||
90 days past due and still accruing | 133 | 52,982 | 8,168 | ||||||||
Total nonperforming loans | $ 143,452 | $ 131,786 | $ 82,015 | ||||||||
As a percentage of loans receivable | 1.30 % | 1.22 % | 0.80 % |
View original content to download multimedia:https://www.prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-2024-results-302209008.html
SOURCE Merchants Bancorp
Copyright 2024 PR Newswire
1 Year Merchants Bancorp Chart |
1 Month Merchants Bancorp Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions