Financial 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 compared to the previous quarter and 46% compared to the same quarter last year[54]. - The efficiency ratio increased to 42.27%, up 965 basis points from the previous quarter and 1,314 basis points from the same quarter last year[52]. - Net interest income decreased by $4.9 million or 4% to $122.2 million, primarily due to lower interest income and higher interest expense on borrowings[27]. - Noninterest income decreased by $17.2 million, or 42%, to $23.7 million compared to $40.9 million, primarily due to a $15.4 million decrease in loan servicing fees[31]. - Noninterest income fell by 60% to $23,693,000 compared to the previous quarter and 42% compared to the same quarter last year[52]. - The company reported a net interest income of $122.20 million for the quarter, down from $134.62 million in the previous quarter[57]. 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]. - Core deposits reached $10.7 billion, an increase of $2.5 billion or 30% compared to March 31, 2024, and an increase of $1.3 billion or 14% compared to December 31, 2024, representing 86% of total deposits[21]. - Total deposits increased to $12,406,165 as of March 31, 2025, compared to $11,919,976 on December 31, 2024, reflecting a growth of approximately 4.1%[46]. - Cash balances increased by $12.5 million or 2% to $521.3 million as of March 31, 2025, with significant borrowing capacity remaining[23]. - Noninterest-bearing deposits rose to $313,296 as of March 31, 2025, from $239,005 on December 31, 2024, marking a significant increase of approximately 31%[46]. - Interest-bearing deposits increased to $12,092,869 as of March 31, 2025, compared to $11,680,971 on December 31, 2024, reflecting a growth of about 3.5%[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% as of March 31, 2024[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 amount of special mention loans is $407,895, which is 3.9% of total loans[63]. - The total nonperforming assets amount to $291,653, which is 1.55% of total assets[63]. - The percentage of nonaccrual loans is $284,019, with a slight increase from the previous quarter[63]. Interest Income and Expense - Interest Income decreased by $34.1 million, or 11%, to $287.2 million compared to $321.3 million, reflecting a decrease in average yield and balances on loans[36]. - Interest Expense decreased by $22.1 million, or 12%, to $165.0 million compared to $187.1 million[30]. - Total interest income decreased by 11% to $287,204,000 compared to the previous quarter and 9% compared to the same quarter last year[49]. - The net interest margin was 2.89%, a decrease of 25 basis points compared to 3.14% in the previous year[29]. - The company reported a net interest spread of 2.38% for the quarter, down from 2.46% in the previous quarter[57]. Equity and Shareholder Information - Shareholders' equity increased to $2,160,735 as of March 31, 2025, compared to $2,243,310 on December 31, 2024, reflecting a decrease of about 3.7%[46]. - Total equity of shareholders was reported at $2,160,735,000, with total liabilities and shareholders' equity amounting to $18,797,800[47]. - Issued and outstanding shares totaled 196,181,000, with equivalent to 78,470,000 depositary shares[47]. - Authorized shares reached 300,000,000, with issued and outstanding shares at 142,500,000[47]. - Tangible book value per common share increased by 2% to $34.90 compared to the previous quarter and 19% compared to the same quarter last year[55]. Future Outlook - The company maintained a solid liquidity position with a focus on future growth strategies[47]. - Future outlook includes potential market expansion and new product development initiatives[47].
Merchants Bancorp(MBINL) - 2025 Q1 - Quarterly Results