Merchants Bancorp(MBIN) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2024 was $76.4 million, an increase of $11.1 million, or 17%, compared to Q2 2023, but a decrease of $10.7 million, or 12%, compared to Q1 2024[24][55]. - Second quarter 2024 diluted earnings per common share were $1.49, a 14% increase compared to Q2 2023, but a 17% decrease from Q1 2024[64]. - Net income for the six months ended June 30, 2024, was $163,447, a 36% increase compared to the same period in 2023[80]. - Net income available to common shareholders increased by 41% to $145,200 thousand compared to $102,922 thousand in the prior year[89]. - Net income available to common shareholders decreased by 15% to $66,813 compared to Q1 2024, but increased by 18% from Q2 2023[78]. Assets and Deposits - Total assets reached $18.2 billion, an increase of $389.8 million, or 2%, from March 31, 2024, and $1.3 billion, or 7%, from December 31, 2023[27][56]. - Total deposits reached $14.9 billion as of June 30, 2024, increasing by $941.4 million, or 7%, from March 31, 2024, and by $855.6 million, or 6%, from December 31, 2023[5]. - As of June 30, 2024, the Company reported total assets of $18.2 billion, with liquid assets totaling $12.6 billion, representing 69% of total assets[58]. - Total assets increased to $18,212,422 thousand as of June 30, 2024, up from $17,822,576 thousand in March 2024, representing a growth of 2.2%[86]. Loans and Credit Quality - Average balances for loans and loans held for sale increased to $14.3 billion, a 20% increase compared to $12.0 billion[14]. - Loans receivable increased by $242.7 million, or 2%, compared to Q1 2024, and by $805.4 million, or 8%, compared to December 31, 2023[67]. - The allowance for credit losses on loans was $81.0 million, an increase of $5.3 million, or 7%, compared to March 31, 2024[28]. - Nonperforming loans totaled $143,452, which is 1.30% of loans receivable, compared to 0.80% in the previous quarter[84]. - The allowance for credit losses on loans increased to $81,028 from $75,712 in the previous quarter[84]. Income and Expenses - Net interest income for Q2 2024 was $128.1 million, an increase of $22.5 million, or 21%, compared to $105.6 million in Q2 2023[11]. - Noninterest expense was $50.4 million, an increase of $6.1 million, or 14%, compared to $44.3 million, driven by higher salaries and employee benefits[45]. - Total noninterest expense increased by 26% to $99,292 thousand compared to $79,092 thousand in the prior year[89]. - Net interest income after provision for credit losses rose by 36% to $240,484 thousand from $176,840 thousand year-over-year[89]. Capital and Equity - Tangible book value per common share reached a record-high of $31.27, increasing 30% compared to $24.14 in Q2 2023[57]. - Total equity increased by 6% to $1,888,147 compared to Q1 2024 and by 21% year-over-year from Q2 2023[78]. - Average tangible common shareholders' equity increased by 10% to $1,367,203 compared to Q1 2024 and by 33% year-over-year from Q2 2023[78]. - The Company completed a common stock offering of 2.4 million shares, resulting in net proceeds of $97.7 million, contributing to an increase in the common equity tier I capital ratio to 8.7%[65]. Efficiency and Ratios - The efficiency ratio improved to 31.59%, a decrease of 112 basis points compared to 32.71%[46]. - The efficiency ratio improved to 31.59% in Q2 2024 from 32.71% in Q2 2023, but increased from 29.13% in Q1 2024[59]. - Return on average tangible common shareholders' equity decreased to 19.55%, down 579 basis points from Q1 2024 and 248 basis points from Q2 2023[78]. - Return on average assets decreased to 1.72% from 2.07% year-over-year[90].