Merchants Bancorp(MBIN) - 2024 Q4 - Annual Results

Financial Performance - Full year 2024 net income reached $320.4 million, a 15% increase compared to 2023[1] - Fourth quarter 2024 net income was $95.7 million, up 23% from the fourth quarter of 2023 and 56% from the third quarter of 2024[2] - Net income for Q4 2024 reached $95,666, representing a 56% increase from Q3 2024 and a 23% increase from Q4 2023[47] - Net income available to common shareholders for the twelve months ended December 31, 2024, was $283,654,000, reflecting a 16% increase compared to $244,564,000 in 2023[56] - Total net income for the three months ended December 31, 2024, was $95,666 thousand, an increase from $61,273 thousand in the previous quarter[60] Assets and Liabilities - Total assets increased to $18.8 billion, an 11% rise compared to December 31, 2023[1] - Total assets increased to $18,805,732 thousand as of December 31, 2024, up from $16,952,516 thousand a year earlier, representing a growth of 10.9%[44] - Total liabilities decreased slightly to $16,562,422 thousand from $15,251,432 thousand, indicating a year-over-year increase of 8.6%[44] - Shareholders' equity increased to $2,243,310 thousand, up from $1,701,084 thousand, marking a growth of 31.9% year-over-year[45] Deposits and Loans - Core deposits increased by $1.3 billion to $9.4 billion compared to December 31, 2023, while brokered deposits decreased by $3.4 billion to $2.5 billion[1] - Total deposits decreased to $11,919,976 thousand from $14,061,460 thousand, a decline of 15.3% compared to the previous year[44] - Non-performing loans increased to $279.7 million, or 2.68% of gross loans receivable, compared to 0.80% as of December 31, 2023[12] - Loans receivable, net of allowance, increased to $10,354,002 thousand as of December 31, 2024, from $10,261,890 thousand in the previous quarter[62] Income and Expenses - Noninterest income for the fourth quarter of 2024 increased by $24.7 million, or 72%, primarily driven by higher loan servicing fees and gains on loan sales[4] - Noninterest Expense increased by $10.6 million, or 20%, to $63.2 million, primarily due to higher salaries and a 61% increase in deposit insurance expenses[30] - Net Interest Income rose by $1.8 million, or 1%, to $134.6 million, driven by higher average balances on borrowings at lower interest rates[32] - Total interest income for Q4 2024 was $321,346, a decrease of 5% from Q3 2024 but an increase of 3% from Q4 2023[47] - Total interest expense decreased to $186,722 in Q4 2024, down 9% from Q3 2024[47] Efficiency and Ratios - The efficiency ratio improved to 32.62%, a decrease of 838 basis points compared to 41.00%[38] - Return on average tangible common shareholders' equity for the twelve months ended December 31, 2024, was 20.16%, down 276 basis points from 22.92% in 2023[56] - Efficiency ratio for the twelve months ended December 31, 2024, was 33.37%, an increase of 234 basis points from 31.03% in 2023[55] Other Key Metrics - Tangible book value per common share reached $34.15, a 25% increase from $27.40 in the fourth quarter of 2023[1] - Noninterest income surged to $59,145 in Q4 2024, a 253% increase from Q3 2024 and a 72% increase from Q4 2023[51] - Provision for credit losses significantly decreased by 61% to $2,689 in Q4 2024 compared to Q3 2024[47] - The company executed a credit default swap on a $1.2 billion pool of warehouse loans to reduce risk-based capital requirements[5]