Merchants Bancorp(MBIN) - 2024 Q1 - Quarterly Results

Financial Performance - First quarter 2024 net income reached $87.1 million, a 58% increase compared to $55.0 million in the first quarter of 2023[2] - Diluted earnings per common share for the first quarter 2024 were $1.80, up 68% from $1.07 in the first quarter of 2023[2] - Net income for Q1 2024 reached $87,054,000, representing a 12% increase from Q4 2023 and a 58% increase from Q1 2023[40] - The company reported a net income allocated to common shareholders of $78,387,000, a 14% increase from Q4 2023 and a 69% increase from Q1 2023[40] - Net income for the three months ended March 31, 2024, was $87,054 million, a 12.4% increase from $77,473 million in the previous quarter and a 58.5% increase from $54,955 million in the same quarter last year[49] Asset and Loan Growth - Total assets increased to $17.8 billion, a 25% rise compared to $14.2 billion as of March 31, 2023[7] - Loans receivable amounted to $10.7 billion, reflecting a $2.1 billion increase, or 25%, compared to March 31, 2023[7] - Total assets as of March 31, 2024, reached $17,822,576 million, up from $16,952,516 million at the end of the previous quarter and $14,240,966 million a year ago, reflecting a year-over-year growth of 25.5%[49] - Loans receivable as of March 31, 2024, totaled $10,690,513 million, an increase of 5.5% from $10,127,801 million in the previous quarter and a 24.7% increase from $8,575,210 million a year ago[49] - Total loans, net of allowance for credit losses, reached $14,193,644 million as of March 31, 2024, compared to $13,272,557 million in the previous quarter and $11,430,460 million a year ago, reflecting a year-over-year growth of 23.5%[49] Income and Expense Analysis - Noninterest income surged to $40.9 million, a 187% increase compared to $14.3 million in the prior year[23] - Noninterest Income increased by $6.4 million, or 19%, to $40.9 million, driven by a $21.6 million, or 997%, rise in loan servicing fees[31] - Total noninterest expense decreased by 7% to $48,912,000 compared to Q4 2023, while increasing by 41% from Q1 2023[40] - Noninterest Expense decreased by $3.7 million, or 7%, to $48.9 million, primarily due to lower salaries and employee benefits[32] Efficiency and Ratios - The efficiency ratio improved to 29.1% in the first quarter of 2024, down from 30.3% in the first quarter of 2023[25] - The efficiency ratio improved to 29.1%, a decrease of 398 basis points from 33.1%[32] - Efficiency ratio improved to 29.13%, down from 33.11% in Q4 2023 and 30.25% in Q1 2023[42] - Return on average tangible common shareholders' equity rose to 25.34%, up 174 basis points from Q4 2023 and 645 basis points from Q1 2023[44] Deposits and Cash Management - Total deposits reached $14.0 billion, an increase of $2.6 billion compared to March 31, 2023[14] - Brokered deposits rose to $5.8 billion, a 54% increase from $3.8 billion as of March 31, 2023[15] - Cash balances stood at $508.8 million, an increase of $139.2 million compared to March 31, 2023[17] - Total deposits decreased to $13.98 billion from $14.06 billion, with noninterest-bearing deposits dropping significantly[37] Credit Losses and Risk Management - The allowance for credit losses on loans was $75.7 million, a 46% increase compared to $51.8 million as of March 31, 2023[9] - Provision for credit losses was $4,726,000, a 30% decrease from Q4 2023 and a 31% decrease from Q1 2023[40] - The company reported an allowance for credit losses on loans of $75,712 million as of March 31, 2024, compared to $71,752 million in the previous quarter and $51,838 million a year ago, indicating a proactive approach to risk management[49] Segment Performance - Merchants Bancorp operates multiple segments, including Multi-family Mortgage Banking and Mortgage Warehousing, contributing to its diversified business model[33] - Multi-family mortgage banking segment net income rose to $16,609 million for the three months ended March 31, 2024, compared to $8,580 million in the previous quarter and $1,966 million a year ago, indicating significant growth[49] - Mortgage warehousing segment net income decreased to $20,190 million for the three months ended March 31, 2024, down from $26,362 million in the previous quarter but up from $8,641 million a year ago[49] - The banking segment reported net income of $56,425 million for the three months ended March 31, 2024, an increase from $49,996 million in the previous quarter and $49,307 million a year ago[49]