Merchants Bancorp(US:MBIN)2021-05-10 20:07Financial Performance - Net income for the three months ended March 31, 2021, was $61,983 thousand, a significant increase of 152% compared to $24,583 thousand for the same period in 2020[9]. - Basic earnings per share for Q1 2021 was $2.02, compared to $0.73 in Q1 2020, indicating a growth of 176%[9]. - The company reported a comprehensive income of $61,858 thousand for Q1 2021, compared to $25,051 thousand in Q1 2020, an increase of 146%[10]. - Net income for the three months ended March 31, 2021, was $61,983,000, compared to $24,583,000 for the same period in 2020, representing a 152% increase[13]. - The Banking segment reported net income of $23,025,000 for Q1 2021, compared to $7,950,000 in Q1 2020, representing a growth of 189%[133]. - Net income for the three months ended March 31, 2021, was $62.0 million, a 152% increase compared to the same period in 2020[167]. Asset and Liability Management - Total assets increased to $9,705,260 thousand as of March 31, 2021, up from $9,645,375 thousand at December 31, 2020, representing a growth of 0.62%[8]. - Total liabilities decreased to $8,694,005 thousand from $8,834,754 thousand, a reduction of 1.58%[8]. - Total shareholders' equity increased by $200.6 million, or 25%, to $1.0 billion at March 31, 2021, primarily due to a Series C preferred stock offering raising $144.9 million[201]. Deposits and Loans - Total deposits reached $8,063,181 thousand, an increase of 8.8% from $7,408,066 thousand at the end of 2020[8]. - The net change in deposits for the quarter was $653,011,000, compared to $1,244,630,000 in the same quarter of the previous year[13]. - As of March 31, 2021, total loans receivable amounted to $5,710,291, an increase from $5,507,926 as of December 31, 2020, representing a growth of approximately 3.7%[42]. - The total recorded investment in loans reached $5,739,382,000 as of March 31, 2021, compared to $5,535,426,000 at December 31, 2020, indicating a growth of 3.7%[70]. - Total loans greater than 30 days past due were $6.6 million at March 31, 2021, down from $47.8 million at December 31, 2020[206]. Income and Interest - Net interest income after provision for loan losses rose to $70,300 thousand, up from $35,355 thousand year-over-year, reflecting an increase of 99%[9]. - Net interest income for Q1 2021 was $71,963,000, compared to $38,353,000 in Q1 2020, marking an increase of 88%[133]. - Interest paid decreased to $6,972,000 in Q1 2021 from $23,782,000 in Q1 2020, reflecting lower borrowing costs[13]. - The interest rate spread increased by 74 basis points to 2.93% compared to 2.19% for the same period in 2020[167]. Loan Quality and Provisions - The company reported a provision for loan losses of $1,663,000 in Q1 2021, down from $2,998,000 in Q1 2020, indicating improved asset quality[13]. - The allowance for loan losses increased to $29,091,000 as of March 31, 2021, up from $18,883,000 at the end of March 2020, reflecting a year-over-year increase of 54.3%[62]. - Nonperforming loans decreased to 0.08% of loans receivable, down from 0.19% a year earlier[167]. - The total amount of loans classified as "Special Mention (Watch)" was $135,228,000 as of March 31, 2021, compared to $152,939,000 at December 31, 2020, showing a decline of 11.6%[70]. Capital and Regulatory Compliance - As of March 31, 2021, Merchants Bancorp's CBLR (Tier 1) capital was $993,392 thousand, representing a leverage ratio of 10.1%, exceeding the required threshold of 8.5%[91]. - The company met all regulatory capital adequacy requirements to be classified as well-capitalized as of March 31, 2021[88]. - The CBLR threshold was temporarily reduced to 8% under the CARES Act in response to the COVID-19 pandemic, increasing to 8.5% in 2021 and returning to 9% in 2022[90]. Market and Economic Conditions - The company anticipates potential risks from the COVID-19 pandemic affecting its operations and demand across its businesses[159]. - The company is focused on managing credit risk and ensuring the sufficiency of its allowance for loan loss[159]. - The company is committed to executing its strategic plan and managing growth effectively[159].