Merchants Bancorp(US:MBIN)2024-10-28 20:05Financial 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].