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 ( ...

Merchants Bancorp (MBIN) is well-positioned for growth on its diversified client base and revenue streams, strong liquidity and capital base. Moreover, a decent loan pipeline and initiatives to reduce interest rate risks are positives. Over the past week, the Zacks Consensus Estimate for 2024 and 2025 earnings has remained unchanged at $6.38 and $6.14, respectively. MBIN currently sports a Zacks Rank #1 (Strong Buy). Over the past six months, shares of Merchants Bancorp have gained 8.5% against the industry ...

Understanding Hammer Chart and the Technique to Trade It Here's What Makes the Trend Reversal More Likely for MBIN An upward trend in earnings estimate revisions that MBIN has been witnessing lately can certainly be considered a bullish indicator on the fundamental side. That's because empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. The formation of a hammer pattern is considered a technical indication of nearing a bottom with ...

CARMEL, Ind., May 16, 2024 /PRNewswire/ -- Merchants Bancorp ("Merchants") (Nasdaq: MBIN), parent company and registered bank holding company of Merchants Bank of Indiana ("Merchants Bank"), today announced that its Board of Directors declared the following quarterly cash dividends for the second quarter of 2024, in each case to shareholders of record on June 14, 2024, payable on July 1, 2024: A dividend of $0.09 per share on the Company's outstanding shares of its common stock (NASDAQ:MBIN); A dividend of ...

CARMEL, Ind., May 13, 2024 /PRNewswire/ -- Merchants Bancorp (Nasdaq: MBIN) ("Merchants" or the "Company"), a holding company that operates through its wholly owned banking subsidiary, Merchants Bank of Indiana (the "Bank"), announced today the pricing of the previously announced underwritten public offering of 2,400,000 shares of its common stock, without par value, at a public offering price of $43.00 per share. The expected proceeds to the Company, after deducting underwriting discounts and commissions b ...

PART I – FINANCIAL INFORMATION [Item 1. Interim Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20Interim%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the period ending March 31, 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $17.82 billion, driven by increases in loans, while liabilities rose due to higher borrowings Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$17,822,576** | **$16,952,516** | | Cash and cash equivalents | $508,755 | $584,422 | | Loans held for sale | $3,503,131 | $3,144,756 | | Loans receivable, net | $10,690,513 | $10,127,801 | | **Total Liabilities** | **$16,046,108** | **$15,251,432** | | Total deposits | $13,975,661 | $14,061,460 | | Borrowings | $1,835,985 | $964,127 | | **Total Shareholders' Equity** | **$1,776,468** | **$1,701,084** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income increased to $87.1 million for the quarter, driven by growth in both net interest and noninterest income Condensed Consolidated Statements of Income Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Total Interest Income | $314,173 | $211,294 | | Total Interest Expense | $187,117 | $110,601 | | **Net Interest Income** | **$127,056** | **$100,693** | | Provision for credit losses | $4,726 | $6,867 | | Total Noninterest Income | $40,874 | $14,264 | | Total Noninterest Expense | $48,912 | $34,772 | | **Net Income** | **$87,054** | **$54,955** | | **Diluted Earnings Per Share** | **$1.80** | **$1.07** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail key events including a branch sale, loan portfolio composition, and the redemption of Series A Preferred Stock - On January 26, 2024, the company completed the sale of its Farmers-Merchants Bank of Illinois branches, selling approximately **$60.8 million in assets** and **$230.6 million in liabilities**, recognizing a **net gain of $715,000**[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - The Allowance for Credit Losses on Loans (ACL-Loans) increased to **$75.7 million** at March 31, 2024, from $71.8 million at year-end 2023[82](index=82&type=chunk) - The company redeemed all outstanding shares of its **7% Series A Preferred Stock** on April 1, 2024, at its liquidation preference of **$25.00 per share**[196](index=196&type=chunk)[214](index=214&type=chunk) Loan Portfolio Summary (in thousands) | Loan Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Mortgage warehouse repurchase agreements | $1,142,994 | $752,468 | | Residential real estate | $1,321,300 | $1,324,305 | | Multi-family financing | $4,096,606 | $4,006,160 | | Healthcare financing | $2,464,685 | $2,356,689 | | Commercial and commercial real estate | $1,666,751 | $1,643,081 | | **Total Loans** | **$10,766,225** | **$10,199,553** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=63&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2024 performance, highlighting significant net income growth, balance sheet expansion, and strong liquidity - **Net income for Q1 2024 was $87.1 million**, a **58% increase** from Q1 2023, driven by a $26.4 million increase in net interest income and a $17.0 million increase in loan servicing fees[226](index=226&type=chunk)[267](index=267&type=chunk) - **Total assets reached $17.8 billion**, a **5% increase** from December 31, 2023, primarily due to growth in warehouse, healthcare, and multi-family loan portfolios[235](index=235&type=chunk) - The company maintains strong liquidity with **$10.9 billion in liquid assets** and unused borrowing capacity, representing **61% of total assets**[311](index=311&type=chunk)[312](index=312&type=chunk) - **Nonperforming loans increased to $131.8 million**, or **1.22% of loans receivable**, up from 0.80% at year-end 2023, attributed to three specific customers[263](index=263&type=chunk) [Financial Condition](index=65&type=section&id=Financial%20Condition) Total assets grew 5% to $17.8 billion, funded by a 6% increase in loans and a 90% surge in borrowings - The increase in net loans was driven by a **$390.5 million (52%) rise** in mortgage warehouse repurchase agreements and growth in healthcare and multi-family financing[244](index=244&type=chunk)[245](index=245&type=chunk)[248](index=248&type=chunk) - The significant increase in borrowings was primarily due to a **$654.9 million rise in FHLB advances** and new borrowings used as a liquidity management alternative[260](index=260&type=chunk) Key Balance Sheet Changes (Q1 2024 vs YE 2023) | Account | Change ($M) | Change (%) | | :--- | :--- | :--- | | Total Assets | +$870.1 | +5% | | Loans Receivable, Net | +$562.7 | +6% | | Loans Held for Sale | +$358.4 | +11% | | Deposits | -$85.8 | -1% | | Borrowings | +$871.9 | +90% | | Shareholders' Equity | +$75.4 | +4% | [Results of Operations](index=68&type=section&id=Results%20of%20Operations) Q1 2024 net income rose 58% year-over-year, fueled by a 26% increase in net interest income and a 187% surge in noninterest income - The significant increase in noninterest income was primarily driven by a **$17.0 million rise in loan servicing fees**, which included a **$14.0 million positive fair market value adjustment** on servicing rights[290](index=290&type=chunk)[291](index=291&type=chunk) - The **41% increase in noninterest expense** was mainly due to a **$7.5 million rise in salaries and benefits** from higher production commissions and a **$2.9 million increase in FDIC deposit insurance expenses**[293](index=293&type=chunk) Key Operating Results (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $127.1M | $100.7M | +26% | | Net Interest Margin | 3.14% | 3.27% | -13 bps | | Provision for Credit Losses | $4.7M | $6.9M | -31% | | Noninterest Income | $40.9M | $14.3M | +187% | | Noninterest Expense | $48.9M | $34.8M | +41% | | Net Income | $87.1M | $55.0M | +58% | [Segment Performance](index=75&type=section&id=Segment%20Performance) All business segments reported significant year-over-year net income growth, led by mortgage banking and warehousing - The Multi-family Mortgage Banking segment's performance was boosted by a **$13.2 million positive fair value adjustment** on servicing rights in Q1 2024[303](index=303&type=chunk) - The Mortgage Warehousing segment's loan volume **grew 46% to $7.9 billion**, significantly outperforming the 13% industry average increase[305](index=305&type=chunk) Net Income by Segment (in thousands) | Segment | Q1 2024 | Q1 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Multi-family Mortgage Banking | $16,609 | $1,966 | +745% | | Mortgage Warehousing | $20,190 | $8,641 | +134% | | Banking | $56,425 | $49,307 | +14% | | **Total Net Income** | **$87,054** | **$54,955** | **+58%** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=84&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk using NII and EVE models, with all simulations remaining within policy limits - The company's strategy to mitigate interest rate risk involves originating fixed-rate loans for sale while retaining adjustable-rate loans for investment[344](index=344&type=chunk) Net Interest Income (NII) Sensitivity at March 31, 2024 | Rate Change (bps) | Dollar Change ($ thousands) | Percent Change | | :--- | :--- | :--- | | +200 | $56,508 | +10.9% | | +100 | $29,134 | +5.6% | | -100 | $(37,381) | -7.2% | | -200 | $(75,217) | -14.5% | Economic Value of Equity (EVE) Sensitivity at March 31, 2024 | Rate Change (bps) | Dollar Change ($ thousands) | Percent Change | | :--- | :--- | :--- | | +200 | $(77,259) | -4.6% | | +100 | $(31,781) | -1.9% | | -100 | $90,058 | +5.3% | | -200 | $173,967 | +10.2% | [Item 4. Controls and Procedures](index=87&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[358](index=358&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[359](index=359&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=88&type=section&id=Item%201%20Legal%20Proceedings) No material legal proceedings were reported during the period - None[362](index=362&type=chunk) [Item 1A. Risk Factors](index=88&type=section&id=Item%201A%20Risk%20Factors) No material changes were made to the risk factors disclosed in the 2023 Annual Report on Form 10-K - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[363](index=363&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=88&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds occurred during the period - None[364](index=364&type=chunk) [Item 5. Other Information](index=88&type=section&id=Item%205%20Other%20Information) No other material information was required to be disclosed for the period - None[367](index=367&type=chunk) [Item 6. Exhibits](index=89&type=section&id=Item%206%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required CEO and CFO certifications - The report includes CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, along with XBRL interactive data files[369](index=369&type=chunk)