Merchants Bancorp(US:MBIN)2019-08-09 20:06Financial Performance - Net income for the three months ended June 30, 2019, was $16,439 thousand, compared to $15,652 thousand for the same period in 2018, reflecting a growth of 5%[9]. - Comprehensive income for the three months ended June 30, 2019, was $16,925 thousand, compared to $15,749 thousand for the same period in 2018, an increase of approximately 7%[9]. - Net income for the six months ended June 30, 2019, was $27.0 million, a decrease from $30.7 million in the same period of 2018, representing a decline of approximately 8.8%[15]. - Net income for the three months ended June 30, 2019, was $16,439,000, compared to $15,652,000 for the same period in 2018, showing a growth of 5%[151]. - Income before income taxes for the three months ended June 30, 2019, was $21,767,000, compared to $20,838,000 in 2018, showing an increase of 4%[151]. Assets and Liabilities - Total assets increased to $5,287,390 thousand as of June 30, 2019, up from $3,884,163 thousand at December 31, 2018, representing a growth of approximately 36%[7]. - Total liabilities increased to $4,772,377 thousand as of June 30, 2019, from $3,462,926 thousand at December 31, 2018, an increase of approximately 38%[7]. - Total assets as of June 30, 2019, were $5,287,390,000, compared to $3,786,682,000 as of June 30, 2018, marking an increase of 40%[151]. - Total shareholders' equity increased by $93.8 million, or 22%, to $515.0 million at June 30, 2019[196]. Deposits - Total deposits rose to $4,655,990 thousand as of June 30, 2019, from $3,231,086 thousand at December 31, 2018, marking an increase of approximately 44%[7]. - Brokered deposits increased by $1.0 billion, or 102%, to $2.0 billion at June 30, 2019, from $988.2 million at December 31, 2018, representing 43% of total deposits[193]. - Certificates of deposit accounts surged by $1.1 billion, or 155%, to $1.7 billion at June 30, 2019[192]. - Interest-bearing deposits rose by $1.4 billion, or 46%, to $4.5 billion at June 30, 2019[194]. Loans - Total loans receivable amounted to $2,360,510, an increase of 14.7% from $2,058,127 on December 31, 2018[48]. - Loans held for sale amounted to $1,908,526,000 as of June 30, 2019, compared to $820,569,000 as of December 31, 2018, indicating a significant increase of approximately 132%[144]. - The net change in deposits for the six months ended June 30, 2019, was $1.42 billion, compared to $195.9 million in 2018, showing significant growth[15]. - The average balance of loans increased by $1.1 billion, or 46%, to $3.6 billion for the three months ended June 30, 2019[200]. Interest Income and Expense - Net interest income for the three months ended June 30, 2019, was $27,922 thousand, a 26% increase from $22,206 thousand in the same period of 2018[8]. - Total interest income for the three months ended June 30, 2019, was $48,761,000, an increase from $34,123,000 in the same period of 2018, representing a growth of 43%[151]. - Total interest expense for the three months ended June 30, 2019, was $20,839,000, an increase from $11,917,000 in 2018, representing a rise of 75%[151]. - Interest expense on deposits increased by $9.6 million, or 99%, to $19.3 million for the three months ended June 30, 2019[205]. Acquisitions - The Company acquired Farmers-Merchants National Bank of Paxton on October 1, 2018, enhancing its market presence and deposit base[18]. - On October 1, 2018, the Company acquired FM Bancorp, Inc. for a total purchase price of $21.9 million, compensating shareholders $795.29 per share[28]. - The Company recorded goodwill and intangible assets totaling $1.47 million in connection with the acquisition of FMBI[27]. - The acquisition of FM Bancorp did not materially impact the Company's financial position, results of operations, or cash flows[30]. Securities - The fair value of available-for-sale securities as of June 30, 2019, was $261.5 million, with gross unrealized gains of $915,000 and losses of $109,000[35]. - The fair value of trading securities was $101,514, a decrease from $163,419 on December 31, 2018, representing a decline of approximately 38%[106]. - The fair value of available-for-sale securities, including federal agencies, was $208,868 as of June 30, 2019, down from $236,930 at the end of 2018, indicating a decrease of about 12%[106]. Loan Losses and Impairments - The provision for loan losses for the three months ended June 30, 2019, was $105 thousand, significantly lower than $998 thousand in the same period of 2018[8]. - The allowance for loan losses at the end of the period was $12,604, a slight decrease from $12,704 at the end of 2018[48]. - The provision for loan losses for the six months ended June 30, 2019, was $754,000, compared to a provision of $2,404,000 for the same period in 2018, indicating improved credit quality[70]. - The total past due loans as of June 30, 2019, were $5,642,000, with a significant portion being current loans at $2,354,868,000[79].