Merchants Bancorp(US:MBIN)2020-05-04 20:24Financial Performance - Net income for the three months ended March 31, 2020, was $24,583 thousand, a significant increase of 132.5% compared to $10,570 thousand for the same period in 2019[8]. - Basic earnings per share for Q1 2020 was $0.73, up from $0.34 in Q1 2019, reflecting a growth of 114.7%[8]. - Net income for the three months ended March 31, 2020, was $24,583,000, compared to $10,570,000 for the same period in 2019, representing an increase of 132%[16]. - Net income for the three months ended March 31, 2020, was $24.6 million, a 133% increase from $10.6 million for the same period in 2019[192]. Asset Growth - Total assets increased to $7,908,398 thousand as of March 31, 2020, up from $6,371,928 thousand at December 31, 2019, representing a growth of 24.1%[7]. - Total assets increased by $1.5 billion, or 24%, to $7.9 billion as of March 31, 2020, driven by record-setting loan growth[158]. - Total available-for-sale securities increased to $339,053,000 as of March 31, 2020, from $290,243,000 at the end of 2019, showing growth in the investment portfolio[27]. Loan and Deposit Activity - Total deposits increased to $6,722,705 thousand as of March 31, 2020, a rise of 22.7% from $5,478,075 thousand at December 31, 2019[7]. - The net change in deposits was $1,244,630,000, compared to a decrease of $110,031,000 in the same period last year, indicating strong deposit growth[16]. - Loans held for sale increased from $2,074,197,000 at December 31, 2019, to $2,777,070,000 at March 31, 2020, a rise of 34%[120]. - Total loans receivable amounted to $3,501,770,000, an increase from $3,012,468,000 as of December 31, 2019, representing a growth of approximately 16.2%[40]. Income Sources - Total interest income rose to $60,417 thousand for Q1 2020, up 52.3% from $39,674 thousand in Q1 2019[8]. - Net interest income after provision for loan losses was $35,355 thousand for Q1 2020, up 50.5% from $23,482 thousand in Q1 2019[8]. - Noninterest income surged to $19,902 thousand in Q1 2020, compared to $3,664 thousand in Q1 2019, marking an increase of 442.5%[8]. Risk Management - The provision for loan losses was $2,998 thousand for Q1 2020, compared to $649 thousand in Q1 2019, indicating a focus on risk management amid market conditions[8]. - The allowance for loan losses increased to $18,883,000 as of March 31, 2020, compared to $15,842,000 as of December 31, 2019, indicating a rise of about 19.3%[40]. - The company’s risk assessment for loans includes factors such as the deteriorating financial condition of borrowers and declining collateral values, which are critical for determining the allowance for loan losses[38]. Capital and Equity - Shareholders' equity rose to $672,969 thousand as of March 31, 2020, compared to $653,728 thousand at December 31, 2019, reflecting a growth of 2.4%[7]. - The Company maintained a Tier 1 capital ratio of 9.9% as of March 31, 2020, exceeding the minimum requirement of 9%[86]. - The leverage ratio threshold was temporarily reduced to 8% under the CARES Act in response to the COVID-19 pandemic, with plans to increase to 9% in 2022[83]. Securities and Derivatives - The fair value of trading securities increased from $269,891 thousand as of December 31, 2019, to $465,157 thousand as of March 31, 2020[99]. - The fair value of available-for-sale securities, including Treasury notes and Federal agencies, totaled $314,069 thousand as of March 31, 2020[99]. - The Company recorded gross swap gains of $2,703 thousand and gross swap losses of $(2,703) thousand for the three months ended March 31, 2020, resulting in no net swap gains or losses[96]. Future Outlook - Forward-looking statements indicate that the company anticipates potential impacts from external factors, including the COVID-19 pandemic, which may affect future performance[149]. - The company is evaluating the impact of adopting new accounting standards, including ASU 2016-02 and ASU 2016-13, which may affect financial reporting and credit loss estimates[142][143].