Merchants Bancorp(US:MBIN)2025-04-28 20:06Financial Performance - First quarter 2025 net income was $58.2 million, a decrease of $28.8 million or 33% compared to the first quarter of 2024, and a decrease of $37.4 million or 39% compared to the fourth quarter of 2024[1][5] - Diluted earnings per common share for the first quarter 2025 were $0.93, down 48% from $1.80 in the first quarter of 2024 and down 50% from $1.85 in the fourth quarter of 2024[2] - Net income available to common shareholders decreased by 50% to $42,603,000, reflecting a 46% decline year-over-year[54] - Net income for the three months ended March 31, 2025, was $58.24 million, down from $95.67 million in the previous quarter[59] Asset and Deposit Growth - Total assets increased by $975.2 million or 5% year-over-year to $18.8 billion as of March 31, 2025, remaining essentially unchanged from December 31, 2024[8] - Total deposits increased to $12,406,165 as of March 31, 2025, compared to $11,919,976 on December 31, 2024, representing a growth of approximately 4.1%[46] - Core deposits rose to $10.7 billion, an increase of $2.5 billion or 30% compared to March 31, 2024, and $1.3 billion or 14% compared to December 31, 2024, representing 86% of total deposits[21] - Cash and cash equivalents increased to $521,296 as of March 31, 2025, up from $476,610 on December 31, 2024, reflecting a growth of about 9.3%[46] Loan Performance - Non-performing loans increased to $284.6 million or 2.73% of loans receivable, compared to $131.8 million or 1.22% a year earlier[14] - Loans receivable, net of allowance for credit losses, stood at $10,343,724 as of March 31, 2025, showing a decrease from $10,354,002 on December 31, 2024[46] - The allowance for credit losses on loans increased by $7.7 million or 10% year-over-year to $83.4 million as of March 31, 2025[10] - The percentage of special mention loans rose to 3.9% from 3.6% in the previous quarter[63] Interest Income and Expense - Net interest income decreased by $4.9 million or 4% to $122.2 million, reflecting lower interest income and higher interest expense on borrowings[27] - Interest Expense decreased by $22.1 million, or 12%, to $165.0 million compared to $187.1 million, reflecting lower average balances at lower rates on certificates of deposit[30] - Interest Income decreased by $34.1 million, or 11%, to $287.2 million, reflecting a decrease in average yield and balances on loans[36] - Total interest income decreased by 11% to $287,204,000 compared to the previous quarter and by 9% year-over-year[49] Noninterest Income and Expense - Noninterest Income decreased by $17.2 million, or 42%, to $23.7 million, primarily due to a $19.3 million change in valuation adjustments[31] - Noninterest Income decreased by $35.5 million, or 60%, primarily due to a $13.4 million decrease in gain on sale of loans[39] - Noninterest Expense increased by $12.8 million, or 26%, to $61.7 million, driven by a $6.8 million increase in salaries and employee benefits[32] Equity and Liabilities - Total liabilities increased to $16,637,065 as of March 31, 2025, compared to $16,562,422 on December 31, 2024[46] - Shareholders' equity remained stable at $2,160,735 as of March 31, 2025, compared to $2,243,310 on December 31, 2024[46] - Total shareholders' equity stands at $2,160,735,000, indicating a strong financial position[47] Operational Efficiency - The efficiency ratio worsened to 42.27%, up from 32.62% in the previous quarter and 29.13% a year ago, reflecting increased operational costs[52] - Return on average tangible common shareholders' equity fell to 10.65%, down from 22.10% in the previous quarter and 25.34% a year ago[52] Miscellaneous - The company redeemed all outstanding shares of Series B Preferred Stock for approximately $125.0 million on January 2, 2025[7] - The accumulated other comprehensive loss in income is noted at $77,000,000, which may impact future earnings[47] - The company has issued and outstanding shares equivalent to 5,700,000,000 depositary shares[47]