Core Viewpoint - Robbins LLP is investigating Merchants Bancorp for potential violations of securities laws and breaches of fiduciary duties by its officers and directors [1] Group 1: Company Overview - Merchants Bancorp operates as a diversified bank holding company in the United States [1] Group 2: Legal Investigation - The investigation aims to determine if certain officers and directors of Merchants Bancorp have violated securities laws [1] - Shareholders who have lost money in their investment in Merchants Bancorp are encouraged to contact Robbins LLP for more information about their rights [1] Group 3: Robbins LLP Background - Robbins LLP is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses and improve corporate governance since 2002 [3] - The firm has obtained over $1 billion for shareholders since its inception [3]

Group 1 - The article discusses the importance of preferred stocks and their compliance scores, indicating that investors may have varying preferences for securities based on these scores [1] - Future articles will recap new IPOs and interesting preferred stock activities, suggesting ongoing monitoring of market developments [1]

Financial Performance - Net income for Q3 2024 was $61,273, a decrease of 24.8% compared to $81,504 in Q3 2023[9]. - Basic earnings per share for Q3 2024 was $1.17, down from $1.68 in Q3 2023, representing a decline of 30.4%[7]. - Total noninterest income for Q3 2024 was $16,742, a decrease of 53.5% from $36,068 in Q3 2023[7]. - Total noninterest expense increased to $61,318 in Q3 2024, up 42.5% from $42,930 in Q3 2023[7]. - Comprehensive income for Q3 2024 was $61,879, down from $83,786 in Q3 2023, reflecting a decrease of 26.1%[9]. - Net income for the nine months ended September 30, 2024, was $224.72 million, an increase from $201.76 million in the same period of 2023, representing an increase of approximately 11.4%[13]. - Net income available to common shareholders of $198.72 million for 2024, an increase from $175.76 million in 2023[192]. - Diluted earnings per share for 2024 were $4.45, compared to $4.06 in 2023, indicating a growth in profitability[192]. Asset and Liability Management - As of September 30, 2024, total assets increased to $18,652,976, up from $16,952,516 as of December 31, 2023, representing a growth of approximately 10.0%[5]. - Total liabilities increased to $16,713,869 from $15,251,432, representing a rise of about 9.6%[5]. - Total deposits decreased to $12,891,887 from $14,061,460, reflecting a decline of approximately 8.3%[5]. - Total shareholders' equity increased to $1.94 billion as of September 30, 2024, up from $1.63 billion a year earlier, reflecting a growth of approximately 18.8%[12]. - Cash and cash equivalents at the end of the period were $601.91 million, up from $407.24 million in the previous year, marking an increase of approximately 47.7%[13]. Loan Portfolio and Credit Quality - Loans held for sale rose to $3,808,234, compared to $3,144,756 at the end of 2023, indicating an increase of about 21.1%[5]. - Loans receivable totaled $10,261,890 thousand as of September 30, 2024, an increase from $10,127,801 thousand as of December 31, 2023[53]. - The allowance for credit losses on loans (ACL-Loans) increased to $84,549 thousand as of September 30, 2024, from $71,752 thousand as of December 31, 2023[53]. - The total charge-offs for the year were reported as $6,437 thousand, compared to $870 thousand in 2023, showing a significant increase[90]. - The total past due loans amounted to $257,459 thousand as of September 30, 2024, with $30,410 thousand in the 30-59 days past due category[95]. - The company reported a provision for credit losses of $21.6 million for the nine months ended September 30, 2024, which included $19.2 million for ACL-Loans[80]. Capital and Regulatory Compliance - The Company and Merchants Bank were categorized as well capitalized by the Federal Reserve and FDIC as of September 30, 2024, meeting all capital adequacy requirements[127]. - The Company’s total capital to risk-weighted assets ratio was 12.2% as of September 30, 2024, exceeding the minimum requirement of 10.5%[129]. - The Company’s Tier I capital to risk-weighted assets ratio was 11.6% as of September 30, 2024, above the minimum requirement of 8.5%[129]. - The Company’s Common Equity Tier I capital to risk-weighted assets ratio was 8.9% as of September 30, 2024, surpassing the minimum requirement of 7.0%[129]. - The Company’s total capital increased to $2.03 billion as of September 30, 2024, from $1.75 billion on December 31, 2023, reflecting a growth of 16.3%[129]. Securities and Investments - Securities available for sale decreased to $953,063 from $1,113,687, indicating a decline of approximately 14.4%[5]. - The Company reported a net unrealized gain on investment securities available for sale of $606 in Q3 2024, compared to $2,282 in Q3 2023[9]. - The Company recognized a $10.1 million deposit premium and extinguished $7.8 million in goodwill during the first quarter of 2024[21]. - The Company’s low-income housing tax credit investments totaled $147.5 million as of September 30, 2024, compared to $142.4 million on December 31, 2023, reflecting a 3.9% increase[117]. Derivative Instruments and Risk Management - The Company entered into a credit default swap to manage credit risk on multifamily mortgage loans, with collateral of $76.1 million posted by the protection seller[137]. - The Company reported a net loss of $3,196 from derivative instruments in the three months ended September 30, 2024[143]. - The fair value of derivative assets and liabilities related to back-to-back derivatives on behalf of customers was recorded at $723,966 as of September 30, 2024[145]. - The Company pledged $260,000 in collateral to secure its obligations under swap contracts as of September 30, 2024[147]. Shareholder Activities - The Company issued 2,400,000 shares of common stock at a public offering price of $43.00 per share, raising gross proceeds of $103.2 million, with net proceeds of $97.7 million after expenses[193]. - The Company redeemed all outstanding shares of Series A Preferred Stock on April 1, 2024, at a total cost of $52 million[195]. - The Company issued 5,200,000 shares of Series D Preferred Stock, raising gross proceeds of $130.0 million, with net proceeds of $125.4 million after expenses[201].

Core Insights - Merchants Bancorp (MBIN) reported a revenue of $149.56 million for Q3 2024, reflecting a year-over-year decline of 2.6% and an EPS of $1.17, down from $1.68 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $156.13 million by 4.21%, while the EPS missed the consensus estimate of $1.42 by 17.61% [1] Financial Performance Metrics - Net interest margin stood at 3%, matching the three-analyst average estimate [3] - Average earning assets were reported at $17.70 billion, slightly above the three-analyst average estimate of $17.62 billion [3] - Total capital/risk-weighted assets ratio was 12.4%, exceeding the two-analyst average estimate of 12.1% [3] - Tier I capital/risk-weighted assets ratio was 11.7%, compared to the 11.6% average estimate from two analysts [3] - Loan servicing fees (costs), net, were -$1.51 million, significantly lower than the $2.94 million estimated by three analysts [3] - Syndication and asset management fees were $1.83 million, below the $3.24 million average estimate [3] - Other income reported was -$1.93 million, compared to the $4.47 million estimated by three analysts [3] - Mortgage warehouse fees were $1.62 million, below the $2.03 million average estimate [3] - Total noninterest income was $16.74 million, significantly lower than the three-analyst average estimate of $24.05 million [3] - Gain on sale of loans was $16.73 million, exceeding the three-analyst average estimate of $11.70 million [3] - Net interest income was reported at $132.82 million, slightly above the three-analyst average estimate of $132.42 million [3] Stock Performance - Shares of Merchants Bancorp have declined by 3.5% over the past month, contrasting with a 2% increase in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Core Viewpoint - Merchants Bancorp reported quarterly earnings of $1.17 per share, missing the Zacks Consensus Estimate of $1.42 per share, and down from $1.68 per share a year ago, indicating a -17.61% earnings surprise [1][2] Financial Performance - The company posted revenues of $149.56 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 4.21%, and down from $153.5 million year-over-year [2] - Over the last four quarters, Merchants Bancorp has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Merchants Bancorp shares have increased by approximately 0.9% since the beginning of the year, while the S&P 500 has gained 21.8% [3] - The current Zacks Rank for the stock is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $1.35 on revenues of $155.1 million, and for the current fiscal year, it is $6.08 on revenues of $638.3 million [7] - The estimate revisions trend for Merchants Bancorp is currently unfavorable, which may impact future stock movements [6] Industry Context - The Banks - Northeast industry, to which Merchants Bancorp belongs, is currently in the top 14% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Third quarter 2024 net income was $61.3 million, a decrease of 25% compared to the third quarter of 2023 and a decrease of 20% compared to the second quarter of 2024[1][8]. - Diluted earnings per common share for the third quarter 2024 were $1.17, down 30% year-over-year and down 21% sequentially[2][8]. - Net income for Q3 2024 was $61,273 thousand, representing a 20% decline compared to Q2 2024 and a 25% decline compared to Q3 2023[55]. - Net income available to common shareholders was $198,716,000, reflecting a 13% increase from $175,758,000 year-over-year[52]. - Net income for the nine months ended September 30, 2024, was $224,720,000, representing an 11% increase from $201,761,000 in the same period of 2023[58]. Assets and Liabilities - Total assets reached a record-high of $18.7 billion, increasing 2% from June 30, 2024, and 10% from December 31, 2023[3][13]. - Total liabilities increased to $16,713,869 thousand, compared to $16,324,275 thousand in the previous quarter, an increase of 2.4%[49]. - Total assets grew by 13% to $18,652,976,000 from $16,495,236,000 in the previous year[58]. Deposits and Loans - Total deposits were $12.9 billion, a decrease of $2.0 billion, or 14%, from June 30, 2024, and a decrease of $1.2 billion, or 8%, from December 31, 2023[24][25]. - Loans receivable totaled $10.3 billion, a decrease of $671.3 million, or 6%, compared to June 30, 2024, but an increase of $134.1 million, or 1%, compared to December 31, 2023[6][10]. - Total loans receivable as of September 30, 2024, were $10,261,890, a decrease from $10,933,189 as of June 30, 2024[62]. Income and Expenses - Noninterest Income decreased to $16.7 million, down $19.3 million or 54% from $36.1 million, primarily due to a $18.9 million decrease in net loan servicing fees[33]. - Net Interest Income increased to $132.8 million, up $4.7 million or 4% compared to $128.1 million, driven by higher average balances on borrowings[37]. - Noninterest Expense rose to $61.3 million, an increase of $18.4 million or 43% from $42.9 million, mainly due to higher salaries and employee benefits[35]. - Total noninterest expense increased by 32% to $160,610,000 compared to $122,022,000 in the previous year[52]. Credit Quality - The allowance for credit losses on loans was $84.5 million, an increase of $3.5 million, or 4%, from June 30, 2024[15][16]. - Non-performing loans increased to $210.9 million, or 2.04% of gross loans receivable, compared to 1.30% as of June 30, 2024[18][19]. - The company reported a year-to-date charge-off of $6,437 as of September 30, 2024, compared to $4,377 for the previous period[63]. Equity and Book Value - Tangible book value per common share increased to $32.38, a 25% rise from the third quarter of 2023[3][9]. - Shareholders' equity reached $1,939,107 thousand, up from $1,888,147 thousand, representing a growth of 2.7%[50]. - Average tangible common shareholders' equity rose by 32% to $1,363,210,000 compared to $1,033,729,000 in the previous year[58]. Efficiency and Ratios - The efficiency ratio increased to 41.00%, up 1,303 basis points from 27.97%[36]. - Return on average tangible common shareholders' equity for Q3 2024 was 14.43%, down 512 basis points from Q2 2024 and 1,226 basis points from Q3 2023[55]. - The company reported a tangible common shareholders' equity to tangible assets ratio of 7.95% for Q3 2024, an increase of 9 basis points from Q2 2024 and 117 basis points from Q3 2023[56].

CARMEL, Ind., Aug. 1, 2024 /PRNewswire/ -- (Nasdaq: MBIN) Leading financial services provider Merchants Capital today announced the execution of a $543.5 million Credit Risk Transfer (CRT), secured by 41 performing multifamily bridge loans. This is the second multifamily CRT and the third overall completed by Merchants' Capital Markets platform, which has executed nearly $4 billion in securitizations. The transaction, which closed in March, was structured as a Credit Default Swap (CDS), with $76 million in ...

The reported revenue represents a surprise of -0.77% over the Zacks Consensus Estimate of $160.7 million. With the consensus EPS estimate being $1.57, the EPS surprise was -5.10%. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Efficiency Ratio: 31.6% compared to the 31.7% average estimate based on two analysts. Average Earning Assets: $17.22 billion versus $17 ...

This quarterly report represents an earnings surprise of -5.10%. A quarter ago, it was expected that this bank holding company would post earnings of $1.38 per share when it actually produced earnings of $1.80, delivering a surprise of 30.43%. What's Next for Merchants Bancorp? Ahead of this earnings release, the estimate revisions trend for Merchants Bancorp: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status ...

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%. Page | 7 Page | 3 As of June 30, 2024, Accumulated Other Comprehensive Losses ( ...