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Merchants Bancorp Reports Second Quarter 2024 Results

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Merchants Bancorp (MBIN) reported strong Q2 2024 results, with net income of $76.4 million, up 17% year-over-year but down 12% quarter-over-quarter. Diluted EPS reached $1.49, a 14% increase from Q2 2023. The company achieved record-high total assets of $18.2 billion, up 2% from Q1 2024 and 7% from year-end 2023. A successful common stock offering raised $97.7 million, boosting the common equity tier I capital ratio to 8.7%. Tangible book value per share hit a record $31.27, up 30% year-over-year. The company maintains strong liquidity with $7.0 billion in unused borrowing capacity. Loan growth continued, with net loans receivable increasing 2% quarter-over-quarter and 8% from year-end 2023. The efficiency ratio improved to 31.59% from 32.71% in Q2 2023.

Merchants Bancorp (MBIN) ha riportato risultati solidi per il Q2 2024, con un utile netto di 76,4 milioni di dollari, in aumento del 17% rispetto all’anno precedente, ma in calo del 12% rispetto al trimestre precedente. L'EPS diluito ha raggiunto 1,49 dollari, con un incremento del 14% rispetto al Q2 2023. L'azienda ha raggiunto un massimo storico di attività totali pari a 18,2 miliardi di dollari, in aumento del 2% rispetto al Q1 2024 e del 7% rispetto alla fine del 2023. Un'offerta di azioni ordinarie di successo ha raccolto 97,7 milioni di dollari, aumentando il rapporto di capitale di base di livello I delle azioni ordinarie all'8,7%. Il valore di libro tangibile per azione ha raggiunto un record di 31,27 dollari, in aumento del 30% rispetto all’anno precedente. L'azienda mantiene una forte liquidità con 7,0 miliardi di dollari di capacità di prestito inutilizzata. La crescita dei prestiti è continuata, con un incremento dei prestiti netti del 2% rispetto al trimestre precedente e dell'8% rispetto alla fine del 2023. Il rapporto di efficienza è migliorato al 31,59% rispetto al 32,71% del Q2 2023.

Merchants Bancorp (MBIN) reportó resultados sólidos para el Q2 2024, con un ingreso neto de 76.4 millones de dólares, un aumento del 17% en comparación con el año anterior, pero una disminución del 12% respecto al trimestre anterior. El EPS diluido alcanzó 1.49 dólares, un aumento del 14% desde el Q2 2023. La compañía logró un máximo histórico de activos totales de 18.2 mil millones de dólares, un incremento del 2% desde el Q1 2024 y del 7% desde finales de 2023. Una exitosa oferta de acciones comunes recaudó 97.7 millones de dólares, aumentando la relación de capital de nivel I de acciones comunes al 8.7%. El valor contable tangible por acción alcanzó un récord de 31.27 dólares, un incremento del 30% en comparación con el año anterior. La empresa mantiene buena liquidez con 7.0 mil millones de dólares en capacidad de endeudamiento no utilizada. La crecimiento de préstamos continuó, con un aumento de préstamos netos del 2% en comparación con el trimestre anterior y del 8% respecto a finales de 2023. El índice de eficiencia mejoró al 31.59% desde el 32.71% en el Q2 2023.

Merchants Bancorp (MBIN)은 2024년 2분기 실적이 우수하다고 보고했습니다. 순이익은 7,640만 달러로, 전년 대비 17% 증가했지만 분기 대비 12% 감소했습니다. 희석 주당순이익(EPS)는 1.49달러로, 2023년 2분기 대비 14% 증가했습니다. 이 회사는 역대 최대 자산 총액인 182억 달러를 기록했고, 2024년 1분기 대비 2%, 2023년 연말 대비 7% 증가했습니다. 성공적인 보통주 발행을 통해 9,770만 달러를 모금하며 보통주 자본비율을 8.7%로 높였습니다. 주당 실질 장부가치는 31.27달러로, 전년 대비 30% 증가했습니다. 이 회사는 70억 달러의 미사용 차입 가능성이 있어 강력한 유동성을 유지하고 있습니다. 대출 성장은 계속되었으며, 순대출액은 분기 대비 2%, 2023년 연말 대비 8% 증가했습니다. 효율성 비율은 2023년 2분기 32.71%에서 31.59%로 개선되었습니다.

Merchants Bancorp (MBIN) a annoncé des résultats solides pour le T2 2024, avec un bénéfice net de 76,4 millions de dollars, en hausse de 17 % par rapport à l'année précédente, mais en baisse de 12 % par rapport au trimestre précédent. Le BPA dilué a atteint 1,49 dollar, soit une augmentation de 14 % par rapport au T2 2023. La société a atteint un niveau record des actifs totaux de 18,2 milliards de dollars, en hausse de 2 % par rapport au T1 2024 et de 7 % par rapport à la fin de l'année 2023. Une émission réussie d'actions ordinaires a permis de récolter 97,7 millions de dollars, augmentant le ratio de capital de base de niveau I des actions ordinaires à 8,7 %. La valeur comptable tangible par action a atteint un record de 31,27 dollars, avec une augmentation de 30 % par rapport à l'année précédente. L'entreprise maintient une solide liquidité avec 7,0 milliards de dollars de capacité d'emprunt inutilisée. La croissance des prêts a continué, avec une augmentation des prêts nets de 2 % par rapport au trimestre précédent et de 8 % par rapport à la fin de l'année 2023. Le taux d'efficacité s'est amélioré à 31,59 % contre 32,71 % au T2 2023.

Merchants Bancorp (MBIN) berichtete über starke Ergebnisse für Q2 2024, mit einem Nettogewinn von 76,4 Millionen US-Dollar, was einem Anstieg von 17 % im Jahresvergleich entspricht, jedoch einem Rückgang von 12 % im Quartalsvergleich. Der verwässerte EPS erreichte 1,49 US-Dollar, was einem Anstieg von 14 % gegenüber Q2 2023 entspricht. Das Unternehmen erreichte einen Rekordwert bei den Gesamtkapitalien von 18,2 Milliarden US-Dollar, was einen Anstieg von 2 % gegenüber Q1 2024 und von 7 % gegenüber Ende 2023 bedeutet. Ein erfolgreicher Aktienangebot brachte 97,7 Millionen US-Dollar ein und erhöhte das Kapitalquote von Level I des gewöhnlichen Eigenkapitals auf 8,7 %. Der tangible Buchwert je Aktie erreichte einen Rekord von 31,27 US-Dollar, was einem Anstieg von 30 % im Jahresvergleich entspricht. Das Unternehmen bleibt mit 7,0 Milliarden US-Dollar an nicht genutzten Kreditlinien stark liquide. Das Kreditwachstum setzte sich fort, mit einer Steigerung der Netto-Kredite um 2 % im Quartalsvergleich und um 8 % im Vergleich zum Jahresende 2023. Die Effizienzquote verbesserte sich auf 31,59 % von 32,71 % im Q2 2023.

Positive
  • Net income increased 17% year-over-year to $76.4 million
  • Diluted EPS grew 14% year-over-year to $1.49
  • Total assets reached a record $18.2 billion, up 7% from year-end 2023
  • Tangible book value per share hit a record $31.27, up 30% year-over-year
  • Net loans receivable increased 8% from year-end 2023
  • Efficiency ratio improved to 31.59% from 32.71% in Q2 2023
  • Common stock offering raised $97.7 million, boosting capital ratios
Negative
  • Net income decreased 12% quarter-over-quarter
  • Non-performing loans increased to 1.30% of gross loans receivable, up from 0.80% at year-end 2023
  • Net interest margin decreased 15 basis points quarter-over-quarter to 2.99%
  • Noninterest income decreased 23% quarter-over-quarter

Insights

Merchants Bancorp's Q2 2024 results demonstrate solid performance amidst a challenging interest rate environment. The 17% year-over-year increase in net income to $76.4 million is impressive, though the 12% quarter-over-quarter decrease warrants attention. The company's ability to grow its asset base to a record $18.2 billion while maintaining a healthy efficiency ratio of 31.59% showcases operational strength.

The increase in tangible book value per share by 30% year-over-year to $31.27 is a significant positive, indicating substantial value creation for shareholders. The successful $97.7 million common stock offering has bolstered the company's capital position, with the common equity tier I capital ratio reaching 8.7%.

However, the rise in non-performing loans to 1.30% of gross loans receivable from 0.80% at the end of 2023 is concerning. This increase, primarily in multi-family and healthcare loans, suggests potential stress in these portfolios due to elevated interest rates. The company's proactive approach to managing credit risk through increased allowances for credit losses is prudent but may impact future earnings if the trend continues.

The company's liquidity position remains strong, with $7.0 billion in unused borrowing capacity and 69% of total assets in highly liquid form. This provides flexibility in managing interest expense and asset levels, which is important in the current volatile rate environment.

Overall, Merchants Bancorp's Q2 results reflect a resilient business model with strong growth potential, but investors should monitor credit quality and the impact of interest rate movements on the company's loan portfolio and net interest margin.

Merchants Bancorp's Q2 2024 results offer valuable insights into the current state of the banking sector, particularly in niche areas like multi-family and healthcare financing. The company's growth in total assets to $18.2 billion, representing a 7% increase from December 2023, suggests continued demand in these specialized lending segments despite broader economic uncertainties.

The increase in core deposits by 9% year-over-year to $8.8 billion is noteworthy, indicating the bank's ability to attract and retain customer funds in a competitive environment. This growth in core deposits, now representing 59% of total deposits, provides a stable funding base for the bank's operations.

However, the rise in non-performing loans to 1.30% of gross loans from 0.80% at year-end 2023 warrants attention. This trend, particularly in variable rate loans in the multi-family and healthcare sectors, could be an early indicator of stress in these markets due to persistent high interest rates. It may also signal broader challenges in the commercial real estate sector that investors should monitor closely.

The company's focus on an originate-to-sell model and its participation in securitizations, such as the $324.6 million Freddie Mac-sponsored Q-Series transaction, demonstrates adaptability to market conditions and effective risk management. This approach allows Merchants Bancorp to maintain liquidity and manage interest rate risk effectively.

In conclusion, Merchants Bancorp's performance provides valuable insights into niche lending markets and highlights the importance of flexible business models in navigating the current banking landscape. The company's results suggest continued opportunities in specialized lending, but also underscore the need for vigilance in credit risk management as the high-rate environment persists.

  • Second quarter 2024 net income of $76.4 million, increased 17% compared to second quarter of 2023 and decreased 12% compared to the first quarter 2024.
  • Second quarter 2024 diluted earnings per common share of $1.49 increased 14% compared to the second quarter of 2023 and decreased 17% compared to the first quarter of 2024.
  • Total assets of $18.2 billion surpassed any level previously reported by the Company, increasing 2% compared to March 31, 2024 and increasing 7% compared to December 31, 2023.
  • On May 13, 2024, the Company completed a common stock offering of 2.4 million shares, resulting in net proceeds of $97.7 million, which contributed to the estimated 70 basis point increase in the common equity tier I capital ratio that reached 8.7% as of June 30, 2024.
  • Tangible book value per common share reached a record-high of $31.27 and increased 30% compared to $24.14 in the second quarter of 2023 and increased 7% compared to $29.26 in the first quarter of 2024.
  • As of June 30, 2024, the Company had $7.0 billion in unused borrowing capacity with the Federal Home Loan Bank and the Federal Reserve Discount window, representing 39% of total assets.
  • The Company's most liquid assets are in unrestricted cash, short-term investments, including interest-earning demand deposits, mortgage loans in process of securitization, loans held for sale, and warehouse repurchase agreements included in loans receivable. Taken together, with unused borrowing capacity, these totaled $12.6 billion, or 69%, of the $18.2 billion in total assets as of June 30, 2024.
  • Loans receivable of $10.9 billion, net of allowance for credit losses on loans, increased $242.7 million, or 2%, compared to March 31, 2024, and increased $805.4 million, or 8%, compared to December 31, 2023.
  • The efficiency ratio was 31.59% in the second quarter of 2024 compared to 32.71% in the second quarter of 2023 and 29.13% in the first quarter of 2024.
  • On April 30, 2024, the Company completed a $324.6 million securitization of 13 multi-family mortgage loans through a Freddie Mac-sponsored Q-Series transaction.
  • The Company redeemed all outstanding shares of the Series A Preferred Stock for $52 million on April 1, 2024, at the liquidation preference of $25.00 per share.

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:

  • a $22.5 million, or 21%, increase in net interest income, and
  • a $12.6 million, or 56%, decrease in the provision for credit losses related to lower loan charge-offs and relative changes to qualitative factors, which were partially offset by
  • a $19.5 million, or 594%, increase in the provision for income tax, primarily due to a $13.0 million tax benefit recorded in the second quarter of 2023 that was related to tax refunds and changes in state tax apportionment calculations.

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:

  • an $8.9 million lower fair market value positive adjustment to servicing rights. Results for the second quarter of 2024 included a $5.1 million positive fair market value adjustment to servicing rights compared to a $14.0 million positive fair market value adjustment to servicing rights in the first quarter of 2024, and
  • a $5.2 million increase in the provision for credit losses that reflected higher loan charge-offs and specific reserves, as well as an increase in qualitative loss factors in the multi-family loan portfolio, which were offset by a decrease in loss rates of other portfolios during the second quarter of 2024.

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.

  • Net interest margin of 2.99% increased 2 basis points compared to 2.97%. The margin was negatively impacted by approximately 6 basis points in the second quarter of 2024 from the net reversal of $2.5 million in accrued interest income associated with the movement of loans into nonaccrual status.
  • Interest rate spread of 2.45% increased 4 basis points compared to 2.41%.

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.

  • Average balances of $14.3 billion for loans and loans held for sale increased 20% compared to $12.0 billion.
  • Average yield on loans and loans held for sale of 7.97% increased 30 basis points compared to 7.67%.
  • Average balances of $1.0 billion for securities available for sale increased 54% compared to $672.9 million.
  • Average yield on securities available for sale of 5.72% increased 240 basis points compared to 3.32%.

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.

  • Average balances of $6.5 billion for certificates of deposit increased 38% compared to $4.7 billion.
  • Average interest rates of 5.43% for certificates of deposit increased 45 basis points compared to 4.98%.
  • Average balances of $4.9 billion for interest-bearing checking increased 15% compared to $4.3 billion.
  • Average interest rates of 4.74% for interest-bearing checking increased 24 basis points compared to 4.50%.
  • Average balances of $1.0 billion for borrowings increased 74% compared to $591.3 million.

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.    

  • Loan servicing fees included a $5.1 million positive fair market value adjustment to servicing rights, with a $0.6 million positive adjustment in the Banking segment and a $4.5 million positive adjustment in the Multi-family Mortgage Banking segment. This compared to a $3.4 million positive fair market value adjustment to mortgage servicing rights in the prior period, of which $1.3 million positive adjustment in the Banking segment and $2.1 million positive adjustment in the Multi-family Mortgage Banking segment.

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.

  • The efficiency ratio of 31.59% decreased 112 basis points compared to 32.71%.

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.

  • Net interest margin of 2.99% decreased 15 basis points compared to 3.14%, primarily due to a shift in business mix that reflected significant growth in the mortgage warehouse portfolio. The margin was also negatively impacted by approximately 6 basis points in the second quarter of 2024 from the net reversal of $2.5 million in accrued interest income associated with the movement of loans into nonaccrual status.
  • Interest rate spread of 2.45% decreased 13 basis points compared to 2.58%.

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.

  • Average balances of $14.3 billion for loans and loans held for sale increased 6% compared to $13.5 billion.
  • Average balances of $438.4 million on interest earning deposits increased 27% compared to $346.2 million.
  • Average balances of $234.7 million for mortgage loans in process of securitization increased 70% compared to $137.9 million.
  • Average yields on loans and loans held for sale of 7.97% decreased 14 basis points compared to 8.11%, reflecting a net $2.5 million reversal of accrued interest income associated with the movement of loans into nonaccrual status during the quarter.

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.  

  • Average balances of $6.5 billion for certificate of deposit accounts increased 15% compared to $5.7 billion.
  • Average balances of $1.0 billion for borrowings increased 44% compared to $716.9 million.
  • Average interest rates of 8.00% for borrowings decreased 103 basis points compared to 9.03%.
  • Average balances of $4.9 billion for interest-bearing checking accounts decreased 3% compared to $5.1 billion.

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.

  • Loan servicing fees included a $5.1 million positive fair market value adjustment to servicing rights, with a $0.6 million positive adjustment in the Banking segment and a $4.5 million positive adjustment in the Multi-family Mortgage Banking segment. This compared to a $14.0 million positive fair market value adjustment to servicing rights in the prior period, with a $0.8 million positive adjustment in the Banking segment and a $13.2 million positive adjustment in the Multi-family Mortgage Banking segment.

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

  • The efficiency ratio of 31.59% increased 246 basis points compared to 29.13%.

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. 

 

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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 %


 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-2024-results-302209008.html

SOURCE Merchants Bancorp

FAQ

What was Merchants Bancorp's (MBIN) net income for Q2 2024?

Merchants Bancorp (MBIN) reported net income of $76.4 million for Q2 2024, representing a 17% increase compared to Q2 2023.

How did Merchants Bancorp's (MBIN) total assets change in Q2 2024?

Merchants Bancorp's (MBIN) total assets reached a record $18.2 billion in Q2 2024, increasing 2% compared to Q1 2024 and 7% compared to year-end 2023.

What was Merchants Bancorp's (MBIN) tangible book value per share in Q2 2024?

Merchants Bancorp's (MBIN) tangible book value per share reached a record-high of $31.27 in Q2 2024, increasing 30% year-over-year and 7% quarter-over-quarter.

How did Merchants Bancorp's (MBIN) loan portfolio perform in Q2 2024?

Merchants Bancorp's (MBIN) net loans receivable increased by $242.7 million (2%) compared to Q1 2024, and by $805.4 million (8%) compared to year-end 2023.

What was Merchants Bancorp's (MBIN) efficiency ratio in Q2 2024?

Merchants Bancorp's (MBIN) efficiency ratio was 31.59% in Q2 2024, improving from 32.71% in Q2 2023 but increasing from 29.13% in Q1 2024.

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Merchants Bancorp

NASDAQ:MBIN

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MBIN Latest News

Nov 26, 2024
Merchants Bancorp Announces Redemption of Its Series B Preferred Stock and Declares Quarterly Preferred Dividends on Series E Preferred Shares
Nov 25, 2024
Merchants Bancorp Closes Depositary Share Offering
Nov 18, 2024
Merchants Bancorp Prices Depositary Share Offering
Oct 28, 2024
Merchants Bancorp Reports Third Quarter 2024 Results
Sep 11, 2024
Merchants Bancorp Appoints Sean Sievers as Chief Financial Officer

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33.02%
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