Merchants Bancorp(US:MBIN)2025-10-28 20:10Financial Performance - Third quarter 2025 net income was $54.7 million, a decrease of $6.6 million, or 11%, compared to the third quarter of 2024, but an increase of $16.7 million, or 44%, compared to the second quarter of 2025[1][2][4][5] - Diluted earnings per common share for the third quarter 2025 were $0.97, down 17% from $1.17 in the third quarter of 2024, but up 62% from $0.60 in the second quarter of 2025[1][2] - Net income available to common shareholders increased by 60% to $44,436 in Q3 2025 compared to $27,715 in Q3 2024[43] - Net income for the nine months ended September 30, 2025, was $150,921, a decrease of 33% compared to $224,720 for the same period in 2024[55] - Total income for the nine months ended September 30, 2025, was $496,160, reflecting a 4% increase from $476,963 in 2024[55] Assets and Deposits - Total assets reached $19.4 billion, an increase of $213.4 million, or 1%, compared to June 30, 2025, and $548.9 million, or 3%, compared to December 31, 2024[1][7] - Total assets as of September 30, 2025, reached $19,354,647 million, a 1.1% increase from $19,141,204 million as of June 30, 2025[60] - Total deposits increased by $1.2 billion, or 10%, compared to June 30, 2025, and by $2.0 billion, or 17%, compared to December 31, 2024[1][16] - Total deposits stood at $1.39 trillion, compared to $1.26 trillion, marking a 10.4% increase[67] - Total core deposits were $1.27 trillion, up from $1.14 trillion, representing an increase of 11.4%[67] Income and Expenses - Noninterest income rose to $43.0 million, an increase of $26.3 million, or 157%, compared to $16.7 million, driven by significant growth in loan servicing fees and gains on loan sales[1][26] - Noninterest income decreased by 15% to $43,014 in Q3 2025 compared to $50,480 in Q2 2025[50] - Noninterest expense of $77.3 million remained essentially unchanged[34] - Noninterest expense increased by 35% to $216,251 for the nine months ended September 30, 2025, compared to $160,610 in 2024[55] Loans and Credit Quality - The provision for credit losses decreased by 45%, or $23.8 million, with loans receivable classified as special mention declining by 9% to $155.7 million compared to June 30, 2025[1][9][12] - Nonperforming loans totaled $298,268 million as of September 30, 2025, an increase from $251,532 million as of June 30, 2025, indicating a rise in nonperforming assets[65] - Delinquent loans to total loans ratio was 2.28% as of September 30, 2025, compared to 1.91% as of June 30, 2025, reflecting a deterioration in loan quality[66] - Loans held for sale increased to $4,129,329 million as of September 30, 2025, from $4,105,765 million as of June 30, 2025, marking a 0.6% increase[62] Interest Income and Margin - Interest Income of $301.8 million decreased $2.6 million, or 1%, compared to $304.4 million[31] - Total interest income for Q3 2025 was $301,779, a decrease of 11% compared to Q3 2024[43] - Net interest margin of 2.82% decreased 1 basis point compared to 2.83%[35] Shareholder Metrics - Average shareholders' equity increased by 1% from $2,201,836 in Q2 2025 to $2,221,677 in Q3 2025, and rose 14% year-over-year from $1,941,026 in Q3 2024[52] - Tangible book value per common share increased by 3% to $36.31 in Q3 2025 from $35.42 in Q2 2025[50] - Tangible book value per common share increased by 12% to $36.31 as of September 30, 2025, compared to $32.38 in 2024[56] Capital and Risk Management - The company executed a credit default swap on a $557.1 million pool of healthcare mortgage loans to enhance capital efficiency and reduce risk exposure[1][3] - The allowance for credit losses on loans was $93.3 million, reflecting a 2% increase compared to June 30, 2025, and an 11% increase compared to December 31, 2024[1][9]