- Second quarter 2023 net income of $65.3
million increased 21% compared to second quarter of 2022 and
increased 19% compared to the first quarter 2023.
- Second quarter 2023 diluted earnings per common share of
$1.31 increased 18% compared to the
second quarter of 2022 and increased 22% compared to the first
quarter of 2023.
- During the second quarter 2023, the Company recorded a
$13.0 million tax benefit related to
tax refunds and changes to its state tax apportionment
calculations, which was offset by credit events that totaled
approximately $14.8 million,
primarily for the impact of a multi-family loan charge-off, an
increase in specific reserves for a healthcare customer, and
changes to qualitative factors and forecasted loss rates.
- Total assets of $15.9 billion
increased 11% compared to March 31,
2023, and increased 26% compared to December 31, 2022.
- As of June 30, 2023, the Company
had $5.3 billion, or 34% of total
assets, in unused borrowing capacity with the Federal Home Loan
Bank and the Federal Reserve Discount window, based on available
collateral.
- The Company's most liquid assets are in unrestricted cash,
short-term investments, including interest-bearing demand deposits,
mortgage loans in process of securitization, loans held for
sale, and warehouse lines of credit included in loans
receivable. Taken together, with unused borrowing capacity,
these totaled $10.2 billion, or 64%,
of the $15.9 billion in total assets
as of June 30, 2023.
- Uninsured deposits totaled approximately $2 billion as of June 30,
2023, representing less than 20% of total deposits.
- Loans receivable of $9.9 billion,
net of allowance for credit losses on loans, increased $1.3 billion, or 15%, compared to March 31, 2023, and increased $2.4 billion, or 33%, compared to December 31, 2022.
- Efficiency ratio was 32.7% in the second quarter of 2023
compared to 29.6% in the second quarter of 2022 and 30.3% in the
first quarter of 2023.
- Tangible book value per common share of $24.14 increased 23% compared to $19.70 in the second quarter of 2022 and
increased 6% compared to $22.88 in
the first quarter of 2023.
CARMEL,
Ind., July 27, 2023 /PRNewswire/ -- Merchants
Bancorp (the "Company" or "Merchants") (Nasdaq: MBIN), parent
company of Merchants Bank of Indiana, today reported second quarter 2023
net income of $65.3 million, or
diluted earnings per common share of $1.31. This compared to $53.9 million, or diluted earnings per common
share of $1.11 in the second quarter
of 2022, and compared to $55.0
million, or diluted earnings per common share of
$1.07 in the first quarter of
2023.
"We have continued to garner accolades for our performance and
were honored to be named this month by American Banker
Magazine as the #1 top-performing bank with assets between
$10-50 billion. Our results in
the second quarter reflected that ongoing strength as we delivered
profitable loan growth and our noninterest income gained momentum
from diverse sources. We have effectively managed our
expenses and capital during this time of economic uncertainty,
while maintaining an expense ratio of 32.7%, a return on average
assets of 1.78%, and increasing tangible book value to $24.14 per share," said Michael F. Petrie, Chairman and CEO of
Merchants.
Michael J. Dunlap, President and
Chief Operating Officer of Merchants, added, "Our liquidity remains
strong, with unused borrowing capacity that increased to
$5.3 billion during the quarter,
which positions us well to execute our plans for future
growth. Our relationship-focused teams are working hard every
day to meet the needs of our loyal customers and improve
communities across the country."
Net income of $65.3 million for
the second quarter 2023 increased by $11.4
million, or 21%, compared to the second quarter of 2022,
driven by:
- a $33.6 million, or 47%, increase
in net interest income,
- a $14.8 million, or 82%, decrease
in the Provision for Income Tax, reflecting a $13.0 million tax benefit related to tax refunds
and changes to its state tax apportionment calculations described
in the Provision for Income Tax section,
- a $16.4 million, or 264%,
increase in provision for credit losses, primarily due to credit
events that totaled approximately $14.8
million for the impact of a multi-family loan charge-off, an
increase in specific reserves for a healthcare customer, and
changes to qualitative factors and forecasted loss rates, described
in the Asset Quality section,
- an $11.4 million, 34%, increase
in noninterest expense, and
- a $10.2 million, or 47%, decrease
in gain on sale of loans.
Net income of $65.3 million for
the second quarter 2023 increased by $10.3
million, or 19%, compared to the first quarter of 2023,
primarily driven by:
- a $15.6 million, or 109%,
increase in noninterest income reflecting higher gain on sale
of loans, loan servicing fees and syndication and asset management
fees,
- a $15.1 million, or 82%, decrease
in the Provision for Income Tax, reflecting a $13.0 million tax benefit related to tax refunds
and changes to its state tax apportionment calculations described
in the Provision for Income Tax section,
- a $4.9 million, or 5%, increase
in net interest income,
- a $15.7 million, or 229%,
increase in provision for credit losses, primarily due to credit
events that totaled approximately $14.8
million for the impact of a multi-family loan charge-off, an
increase in specific reserves for a healthcare customer, and
changes to qualitative factors and forecasted loss rates, described
in the Asset Quality section, and
- a $9.5 million, 27%, increase
in noninterest expense.
Total Assets
Total assets of $15.9 billion at June 30,
2023 increased $1.6 billion,
or 11%, compared to March 31, 2023,
and increased $3.3 billion, or 26%,
compared to December 31, 2022.
Increases compared to both periods were primarily due to
significant growth in the mortgage warehouse, multi-family and
healthcare loan portfolios.
Return on average assets was 1.78% for the second quarter of
2023 compared to 2.20% for the second quarter of 2022 and 1.71% for
the first quarter of 2023.
Asset Quality
The allowance for credit losses on loans
of $63.0 million as of June 30, 2023 increased $11.1 million, or 22%, compared to March 31, 2023 and increased $19.0 million, or 43%, compared to December 31, 2022. The increases were
primarily due to the following:
- replenishment of $8.2 million
related to the charge-off of a loan in the multi-family
portfolio,
- a $2.0 million increase in net
specific reserves, primarily related to a loan in the healthcare
portfolio,
- a $4.6 million increase related
to changes in qualitative factors and forecasted loss rates to
reflect changes in industry conditions, such as the impact of
higher interest rates, and
- loan growth in the period.
The increases to the allowance for credit losses were partially
offset by charge-offs of $9.5 million
during the second quarter of 2023, which compared to no charge-offs
in the first quarter of 2023 and $47
thousand of charge-offs in the second quarter of 2022.
Non-performing loans were $68.4
million, or 0.69%, of loans receivable as of June 30, 2023, compared to 0.76% at March 31, 2023, and 0.36% at December 31, 2022. The increase in
non-performing loans compared to both periods was primarily due to
3 customers.
Securities Available for Sale
Total securities
available for sale of $648.0 million
as of June 30, 2023 decreased
$31.5 million, or 5%, compared to
March 31, 2023, and increased
$324.7 million, or 100%, compared to
December 31, 2022.
As of June 30, 2023, Accumulated
Other Comprehensive Losses ("AOCL") of $7.0
million, related to securities available for sale, decreased
$0.7 million, or 9%, compared to
March 31, 2023, and decreased
$3.5 million, or 33%, compared to
December 31, 2022. The
$7.0 million of AOCL as of
June 30, 2023 represented less than
1% of total equity and less than 1% of total investment
securities.
Total Deposits
Total deposits of $13.1 billion at June 30,
2023 increased $1.7 billion,
or 15%, compared to March 31, 2023,
and increased $3.0 billion, or 30%,
compared to December 31, 2022. The
increase for both periods was primarily due to an increase in
brokered certificates of deposit.
Total brokered deposits of $4.8
billion at June 30, 2023
increased $1.0 billion, or 27%, from
March 31, 2023 and increased
$2.0 billion, or 72%, from
December 31, 2022.
Brokered deposits represented 36% of total deposits at
June 30, 2023 compared to 33% of
total deposits at March 31, 2023 and
27% of total deposits at December 31,
2022. As of June 30, 2023,
brokered certificates of deposit had a weighted average remaining
duration of 51 days.
The Company continues to offer new products, such as
adjustable-rate certificates of deposits, to minimize interest rate
risks by aligning the rate and short duration characteristics of
its deposit and loan portfolios. Additionally, the Company
has offered its insured cash sweep program since 2018, which
extends FDIC protection up to $100
million. This program has contributed to the Company's
low level of uninsured deposits, which were below 20% of total
deposits as of June 30, 2023.
Liquidity
Cash balances of $377.3 million as of June
30, 2023 increased by $7.7
million compared to March 31,
2023 and increased by $151.1
million compared to December 31,
2022. The Company continues to have significant
borrowing capacity, with unused lines of credit totaling
$5.3 billion as of June 30, 2023 compared to $4.0 billion at March 31,
2023 and $3.1 billion at
December 31, 2022.
This liquidity enhances the ability to effectively manage
interest expense and asset levels in the future. Additionally, the
Company's business model is designed to continuously sell a
significant portion of its loans, which provides flexibility in
managing its liquidity.
Comparison of Operating Results for the Three
Months Ended
June 30, 2023
and 2022
Net Interest Income of $105.6
million increased $33.6
million, or 47%, compared to $72.0
million, reflecting higher yields and average balances on
loans and loans held for sale, and new balances of securities held
to maturity, which were partially offset by higher interest rates
on deposits and higher average rates on borrowings, primarily
related to the credit linked notes issued by the Company during the
first quarter of 2023.
- Interest rate spread of 2.41% decreased 49 basis points
compared to 2.90%.
- Net interest margin of 2.97% decreased 6 basis points compared
to 3.03%.
Interest Income of $258.1
million increased $168.8
million, or 189%, compared to $89.3
million, reflecting an increase in both yields and average
balances of loans and loans held for sale, as well as new balances
in securities held to maturity.
- Average balances of $12.0 billion
for loans and loans held for sale increased 38% compared to
$8.6 billion.
- Average yield on loans and loans held for sale of 7.67%
increased 368 basis points compared to 3.99%.
Interest Expense of $152.5
million increased 784% compared to $17.2 million. Interest expense on deposits
of $137.8 million increased
$123.0 million, or 833%, compared
$14.8 million, primarily reflecting
higher rates on certificates of deposit, interest-bearing checking,
and money market accounts, as well as higher average rates on
borrowings, primarily related to the credit linked notes issued by
the Company during the first quarter of 2023.
- Average balances of $12.0 billion
for interest-bearing deposits increased 63% compared to
$7.4 billion.
- Average interest rates of 4.60% for interest-bearing deposits
increased 379 basis points compared to 0.81%.
Provision for Credit Losses of $22.6 million increased $16.4 million compared to $6.2 million, primarily reflecting the impact of
charge-offs, an increase in specific reserves, changes to
qualitative and loss factors, as well as loan growth described in
the Asset Quality section above.
Noninterest Income of $29.9
million decreased $9.3
million, or 24%, compared to $39.2
million, primarily due to a $10.2
million, or 47%, decrease in gain on sale of loans.
- The decrease in gain on sale of loans was associated with a
business mix shift in multi-family lending, from volumes sold in
the secondary market towards those maintained on the balance
sheet.
- Loan servicing fees included a $3.4
million positive fair market value adjustment to servicing
rights, with a $1.3 million positive
adjustment in the Banking segment and a $2.1
million positive adjustment in the Multi-family Mortgage
Banking segment. This compared to a $7.7 million positive fair market value
adjustment to mortgage servicing rights, of which $1.1 million was in the Banking segment and
$6.6 million was in the Multi-family
Mortgage Banking segment.
Noninterest Expense of $44.3
million increased $11.4
million, or 34%, compared to $33.0
million, primarily due to increases in salaries and employee
benefits, deposit insurance expense, and professional fees.
- The efficiency ratio of 32.7% increased 307 basis points
compared to 29.6%.
Provision for Income Taxes of $3.3
million decreased $14.8
million compared to $18.1
million, reflecting a $13.0
million tax benefit related to tax refunds and changes to
state tax apportionment calculations.
During the second quarter of 2023, the Company received an
advisory letter it requested from the State of Indiana related to certain state tax
apportionment provisions in the Indiana Financial Institution Tax
Code and Regulations. The advisory letter provided guidance related
to the methodology used to determine and source the receipts in the
state of Indiana for the Company's
mortgage origination and warehousing service lines. In effect, the
guidance provided the Company the ability to revise its state
income tax apportionment calculation to reduce its Indiana tax and related deferred tax
liabilities. As such, the Company will amend several of its state
returns and request the respective refunds. Additionally, the
change in methodology is expected to result in a 1.0% to 1.5%
reduction in the Company's overall effective tax rate in the
future.
Comparison of Operating Results for the Three
Months Ended
June 30, 2023
and March 31, 2023
Net Interest Income of $105.6
million increased $4.9
million, or 5%, compared to $100.7
million, reflecting higher average balances and yields on
loans and loans held for sale, which were partially offset by
higher interest rates and average balances on deposits and
borrowings.
- Interest rate spread of 2.41% decreased 35 basis points
compared to 2.76%.
- Net interest margin of 2.97% decreased 30 basis points compared
to 3.27%.
Interest Income of $258.1
million increased $46.8
million, or 22%, compared to $211.3
million, reflecting an increase in average balances and
yields on loans and loans held for sale.
- Average balances of $12.0 billion
for loans and loans held for sale increased 13%, compared to
$10.6 billion.
- Average yield on loans and loans held for sale of 7.67%
increased 42 basis points compared to 7.25%.
Interest Expense of $152.5
million increased $41.9
million, or 38%, compared to $110.6
million. Interest expense on deposits of $137.8 million increased $33.4 million, or 32%, compared to $104.4 million, primarily due to higher average
balances and interest rates on certificates of deposit and
interest-bearing checking, accounts, as well as higher average
rates on borrowings, primarily related to the credit linked notes
issued by the Company during the first quarter of 2023.
- Average balances of $12.0 billion
for interest-bearing deposits increased 15% compared to
$10.5 billion.
- Average interest rates of 4.60% for interest-bearing deposits
increased 55 basis points compared to 4.05%.
Provision for Credit Losses of $22.6 million increased $15.7 million compared to $6.9 million, primarily reflecting the impact of
charge-offs, an increase in specific reserves, changes to
qualitative and loss factors, as well as loan growth described in
the Asset Quality section above.
Noninterest Income of $29.9
million increased $15.6
million, or 109%, compared $14.3
million, primarily due to a $6.3
million, or 265%, increase in loan servicing fees, a
$4.6 million, or 69%, increase in
gain on sale of loans, and a $2.7
million, or 221% increase in syndication and asset
management fees.
- Loan servicing fees included a $3.4
million positive fair market value adjustment to servicing
rights, with a $1.3 million positive
adjustment in the Banking segment and a $2.1
million positive adjustment in the Multi-family Mortgage
Banking segment. This compared to a $2.9 million negative fair market value
adjustment to servicing rights, with a $0.7
million negative adjustment in the Banking segment and a
$2.2 million negative adjustment in
the Multi-family Mortgage Banking segment.
Noninterest Expense of $44.3
million increased $9.5
million, or 27%, compared to $34.8
million, primarily due to increases in salaries and employee
benefits, deposit insurance expense and professional fees.
- The efficiency ratio of 32.7% increased 246 basis points
compared to 30.3%.
Provision for Income Taxes of $3.3
million decreased $15.1
million compared to $18.4
million, reflecting the $13.0
million tax benefit related to the tax refunds and changes
to state tax apportionment calculations described in the Comparison
of Operating Results for the Three Months Ended June 30, 2023 and March
31, 2023 section above.
About Merchants Bancorp
Ranked as a top performing
U.S. public bank by S&P Global Market Intelligence, Merchants
Bancorp is a diversified bank holding company headquartered in
Carmel, Indiana operating multiple
segments, including Multi-family Mortgage Banking that primarily
offers multi-family housing and healthcare facility financing and
servicing. Through this segment it also serves as a syndicator of
low-income housing tax credit and debt funds; Mortgage Warehousing
that offers mortgage warehouse financing, commercial loans, and
deposit services; and Banking that offers retail and correspondent
residential mortgage banking, agricultural lending, and traditional
community banking. Merchants Bancorp, with $15.9 billion in assets and $13.1 billion in deposits as of June 30, 2023, conducts its business primarily
through its direct and indirect subsidiaries, Merchants Bank of
Indiana, Merchants Capital Corp.,
Merchants Capital Investments, LLC, Merchants Capital Servicing,
LLC, Merchants Asset Management, LLC, Farmers-Merchants Bank of
Illinois, and Merchants Mortgage,
a division of Merchants Bank of Indiana. For more information and financial
data, please visit Merchants' Investor Relations page
at investors.merchantsbancorp.com.
Forward-Looking Statements
This press release contains
forward-looking statements which reflect management's current views
with respect to, among other things, future events and financial
performance. These statements are often, but not always, made
through the use of words or phrases such as "may," "might,"
"should," "could," "predict," "potential," "believe," "expect,"
"continue," "will," "anticipate," "seek," "estimate," "intend,"
"plan," "projection," "goal," "target," "outlook," "aim," "would,"
"annualized" and "outlook," or the negative version of those words
or other comparable words or phrases of a future or forward-looking
nature. These forward-looking statements are not historical facts,
and are based on current expectations, estimates and projections
about the industry, management's beliefs and certain assumptions
made by management, many of which, by their nature, are inherently
uncertain and beyond our control. Accordingly, management cautions
that any such forward-looking statements are not guarantees of
future performance and are subject to risks, assumptions, estimates
and uncertainties that are difficult to predict. Although the
Company believes that the expectations reflected in these
forward-looking statements are reasonable as of the date made,
actual results may prove to be materially different from the
results expressed or implied by the forward-looking
statements. A number of important factors could cause actual
results to differ materially from those indicated in these
forward-looking statements, including the impacts of factors
identified in "Risk Factors" or "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the
Company's Annual Report on Form 10-K and other periodic filings
with the Securities and Exchange Commission. Any
forward-looking statements presented herein are made only as of the
date of this press release, and the Company does not undertake any
obligation to update or revise any forward-looking statements to
reflect changes in assumptions, the occurrence of unanticipated
events, or otherwise.
Consolidated Balance Sheets
|
(Unaudited)
|
(In thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
15,390
|
|
$
19,002
|
|
$
22,170
|
|
$
13,796
|
|
$
10,714
|
Interest-earning demand
accounts
|
|
361,920
|
|
350,584
|
|
203,994
|
|
310,165
|
|
247,432
|
Cash and cash
equivalents
|
|
377,310
|
|
369,586
|
|
226,164
|
|
323,961
|
|
258,146
|
Securities purchased
under agreements to resell
|
|
3,412
|
|
3,438
|
|
3,464
|
|
3,497
|
|
3,520
|
Mortgage loans in
process of securitization
|
|
298,907
|
|
197,074
|
|
154,194
|
|
137,448
|
|
323,046
|
Securities available
for sale
|
|
648,003
|
|
679,518
|
|
323,337
|
|
322,069
|
|
336,814
|
Securities held to
maturity (includes $1,058,590, $1,106,582,
$1,118,966, $1,005,487 and $0 at fair value,
respectively)
|
|
1,062,017
|
|
1,104,835
|
|
1,119,078
|
|
1,005,487
|
|
—
|
Federal Home Loan Bank
(FHLB) stock
|
|
39,130
|
|
39,130
|
|
39,130
|
|
39,130
|
|
39,130
|
Loans held for sale
(includes $82,931, $85,516, $82,192, $68,785
and $41,991 at fair value, respectively)
|
|
3,058,013
|
|
2,855,250
|
|
2,910,576
|
|
2,844,750
|
|
2,759,116
|
Loans receivable, net
of allowance for credit losses on loans of
$62,986, $51,838, $44,014, $38,996 and $37,474,
respectively
|
|
9,854,018
|
|
8,575,210
|
|
7,426,858
|
|
6,919,128
|
|
7,033,203
|
Premises and equipment,
net
|
|
36,947
|
|
35,793
|
|
35,438
|
|
35,492
|
|
35,085
|
Servicing
rights
|
|
147,288
|
|
143,867
|
|
146,248
|
|
144,984
|
|
130,710
|
Interest
receivable
|
|
70,509
|
|
64,282
|
|
56,262
|
|
40,170
|
|
26,184
|
Goodwill
|
|
15,845
|
|
15,845
|
|
15,845
|
|
15,845
|
|
15,845
|
Intangible assets,
net
|
|
949
|
|
1,068
|
|
1,186
|
|
1,307
|
|
1,441
|
Other assets and
receivables
|
|
262,524
|
|
156,070
|
|
157,447
|
|
145,454
|
|
123,815
|
Total assets
|
|
$
15,874,872
|
|
$
14,240,966
|
|
$
12,615,227
|
|
$
11,978,722
|
|
$
11,086,055
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
349,387
|
|
$
313,733
|
|
$
326,875
|
|
$
315,868
|
|
$
444,461
|
Interest-bearing
|
|
12,710,477
|
|
11,031,498
|
|
9,744,470
|
|
10,003,611
|
|
7,855,277
|
Total
deposits
|
|
13,059,864
|
|
11,345,231
|
|
10,071,345
|
|
10,319,479
|
|
8,299,738
|
Borrowings
|
|
1,016,836
|
|
1,233,762
|
|
930,392
|
|
97,279
|
|
1,440,904
|
Deferred and current
tax liabilities, net
|
|
16,084
|
|
32,827
|
|
19,613
|
|
19,124
|
|
19,414
|
Other
liabilities
|
|
221,788
|
|
123,462
|
|
134,138
|
|
130,250
|
|
97,460
|
Total
liabilities
|
|
14,314,572
|
|
12,735,282
|
|
11,155,488
|
|
10,566,132
|
|
9,857,516
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Common stock, without
par value
|
|
|
|
|
|
|
|
|
|
|
Authorized - 75,000,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and
outstanding - 43,237,300 shares, 43,233,618 shares,
43,113,127 shares, 43,109,578 shares and 43,106,505
shares
|
|
138,853
|
|
138,105
|
|
137,781
|
|
137,226
|
|
136,671
|
Preferred stock,
without par value - 5,000,000 total shares
authorized
|
|
|
|
|
|
|
|
|
|
|
7% Series A Preferred
stock - $25 per share liquidation
preference
|
|
|
|
|
|
|
|
|
|
|
Authorized - 3,500,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding
- 2,081,800 shares
|
|
50,221
|
|
50,221
|
|
50,221
|
|
50,221
|
|
50,221
|
6% Series B Preferred
stock - $1,000 per share liquidation
preference
|
|
|
|
|
|
|
|
|
|
|
Authorized - 125,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding
- 125,000 shares (equivalent to
5,000,000 depositary shares)
|
|
120,844
|
|
120,844
|
|
120,844
|
|
120,844
|
|
120,844
|
6% Series C Preferred
stock - $1,000 per share liquidation
preference
|
|
|
|
|
|
|
|
|
|
|
Authorized - 200,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding
- 196,181 shares (equivalent to
7,847,233 depositary shares)
|
|
191,084
|
|
191,084
|
|
191,084
|
|
191,084
|
|
191,084
|
8.25% Series D
Preferred stock - $1,000 per share liquidation
preference
|
|
|
|
|
|
|
|
|
|
|
Authorized - 300,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding
- 142,500 shares (equivalent to
5,700,000 depositary shares)
|
|
137,459
|
|
137,459
|
|
137,459
|
|
137,371
|
|
—
|
Retained
earnings
|
|
928,875
|
|
875,700
|
|
832,871
|
|
787,530
|
|
737,789
|
Accumulated other
comprehensive loss
|
|
(7,036)
|
|
(7,729)
|
|
(10,521)
|
|
(11,686)
|
|
(8,070)
|
Total shareholders'
equity
|
|
1,560,300
|
|
1,505,684
|
|
1,459,739
|
|
1,412,590
|
|
1,228,539
|
Total liabilities and
shareholders' equity
|
|
$
15,874,872
|
|
$
14,240,966
|
|
$
12,615,227
|
|
$
11,978,722
|
|
$
11,086,055
|
Consolidated Statement of
Income
|
(Unaudited)
|
(In thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Change
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
2Q23
|
|
2Q23
|
|
|
2023
|
|
2023
|
|
2022
|
|
vs. 1Q23
|
|
vs. 2Q22
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
228,732
|
|
$
|
189,450
|
|
$
|
85,994
|
|
21 %
|
|
166 %
|
Mortgage loans in
process of securitization
|
|
|
3,127
|
|
|
1,648
|
|
|
1,449
|
|
90 %
|
|
116 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale -
taxable
|
|
|
5,564
|
|
|
2,266
|
|
|
917
|
|
146 %
|
|
507 %
|
Held to
maturity
|
|
|
17,311
|
|
|
15,754
|
|
|
—
|
|
10 %
|
|
100 %
|
Federal Home Loan Bank
stock
|
|
|
471
|
|
|
427
|
|
|
284
|
|
10 %
|
|
66 %
|
Other
|
|
|
2,864
|
|
|
1,749
|
|
|
626
|
|
64 %
|
|
358 %
|
Total interest
income
|
|
|
258,069
|
|
|
211,294
|
|
|
89,270
|
|
22 %
|
|
189 %
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
137,801
|
|
|
104,442
|
|
|
14,768
|
|
32 %
|
|
833 %
|
Borrowed
funds
|
|
|
14,651
|
|
|
6,159
|
|
|
2,471
|
|
138 %
|
|
493 %
|
Total interest
expense
|
|
|
152,452
|
|
|
110,601
|
|
|
17,239
|
|
38 %
|
|
784 %
|
Net Interest Income
|
|
|
105,617
|
|
|
100,693
|
|
|
72,031
|
|
5 %
|
|
47 %
|
Provision for credit
losses
|
|
|
22,603
|
|
|
6,867
|
|
|
6,212
|
|
229 %
|
|
264 %
|
Net Interest Income After Provision for Credit
Losses
|
|
|
83,014
|
|
|
93,826
|
|
|
65,819
|
|
-12 %
|
|
26 %
|
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
loans
|
|
|
11,350
|
|
|
6,733
|
|
|
21,564
|
|
69 %
|
|
-47 %
|
Loan servicing fees,
net
|
|
|
8,616
|
|
|
2,360
|
|
|
9,607
|
|
265 %
|
|
-10 %
|
Mortgage warehouse
fees
|
|
|
2,865
|
|
|
1,028
|
|
|
1,350
|
|
179 %
|
|
112 %
|
Syndication and asset
management fees
|
|
|
3,896
|
|
|
1,212
|
|
|
1,599
|
|
221 %
|
|
144 %
|
Other income
|
|
|
3,155
|
|
|
2,931
|
|
|
5,051
|
|
8 %
|
|
-38 %
|
Total noninterest
income
|
|
|
29,882
|
|
|
14,264
|
|
|
39,171
|
|
109 %
|
|
-24 %
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
25,724
|
|
|
22,146
|
|
|
22,475
|
|
16 %
|
|
14 %
|
Loan
expenses
|
|
|
907
|
|
|
804
|
|
|
1,184
|
|
13 %
|
|
-23 %
|
Occupancy and
equipment
|
|
|
2,456
|
|
|
2,232
|
|
|
2,011
|
|
10 %
|
|
22 %
|
Professional
fees
|
|
|
3,723
|
|
|
2,269
|
|
|
1,594
|
|
64 %
|
|
134 %
|
Deposit insurance
expense
|
|
|
3,806
|
|
|
2,178
|
|
|
670
|
|
75 %
|
|
468 %
|
Technology
expense
|
|
|
1,571
|
|
|
1,577
|
|
|
1,304
|
|
—
|
|
20 %
|
Other
expense
|
|
|
6,133
|
|
|
3,566
|
|
|
3,719
|
|
72 %
|
|
65 %
|
Total noninterest
expense
|
|
|
44,320
|
|
|
34,772
|
|
|
32,957
|
|
27 %
|
|
34 %
|
Income Before Income Taxes
|
|
|
68,576
|
|
|
73,318
|
|
|
72,033
|
|
-6 %
|
|
-5 %
|
Provision for income
taxes
|
|
|
3,274
|
|
|
18,363
|
|
|
18,098
|
|
-82 %
|
|
-82 %
|
Net Income
|
|
$
|
65,302
|
|
$
|
54,955
|
|
$
|
53,935
|
|
19 %
|
|
21 %
|
Dividends
on preferred stock
|
|
|
(8,668)
|
|
|
(8,667)
|
|
|
(5,729)
|
|
—
|
|
51 %
|
Net Income Allocated to Common
Shareholders
|
|
$
|
56,634
|
|
$
|
46,288
|
|
$
|
48,206
|
|
22 %
|
|
17 %
|
Basic Earnings Per Share
|
|
$
|
1.31
|
|
$
|
1.07
|
|
$
|
1.12
|
|
22 %
|
|
17 %
|
Diluted Earnings Per Share
|
|
$
|
1.31
|
|
$
|
1.07
|
|
$
|
1.11
|
|
22 %
|
|
18 %
|
Weighted-Average Shares
Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,235,398
|
|
|
43,179,604
|
|
|
43,209,824
|
|
|
|
|
Diluted
|
|
|
43,309,393
|
|
|
43,290,779
|
|
|
43,335,211
|
|
|
|
|
Consolidated Statement of
Income
|
(Unaudited)
|
(In thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
Interest Income
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
418,182
|
|
$
|
158,190
|
|
164 %
|
Mortgage loans in
process of securitization
|
|
|
4,775
|
|
|
3,694
|
|
29 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
Available for sale -
taxable
|
|
|
7,830
|
|
|
1,618
|
|
384 %
|
Held to
maturity
|
|
|
33,065
|
|
|
—
|
|
100 %
|
Federal Home Loan Bank
stock
|
|
|
898
|
|
|
553
|
|
62 %
|
Other
|
|
|
4,613
|
|
|
1,227
|
|
276 %
|
Total interest
income
|
|
|
469,363
|
|
|
165,282
|
|
184 %
|
Interest Expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
242,243
|
|
|
23,581
|
|
927 %
|
Borrowed
funds
|
|
|
20,810
|
|
|
3,945
|
|
428 %
|
Total interest
expense
|
|
|
263,053
|
|
|
27,526
|
|
856 %
|
Net Interest Income
|
|
|
206,310
|
|
|
137,756
|
|
50 %
|
Provision for credit
losses
|
|
|
29,470
|
|
|
8,663
|
|
240 %
|
Net Interest Income After Provision for Credit
Losses
|
|
|
176,840
|
|
|
129,093
|
|
37 %
|
Noninterest Income
|
|
|
|
|
|
|
|
|
Gain on sale of
loans
|
|
|
18,083
|
|
|
39,529
|
|
-54 %
|
Loan servicing fees,
net
|
|
|
10,976
|
|
|
19,338
|
|
-43 %
|
Mortgage warehouse
fees
|
|
|
3,893
|
|
|
3,208
|
|
21 %
|
Syndication and asset
management fees
|
|
|
5,108
|
|
|
2,213
|
|
131 %
|
Other income
|
|
|
6,086
|
|
|
9,480
|
|
-36 %
|
Total noninterest
income
|
|
|
44,146
|
|
|
73,768
|
|
-40 %
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
47,870
|
|
|
43,768
|
|
9 %
|
Loan
expenses
|
|
|
1,711
|
|
|
2,395
|
|
-29 %
|
Occupancy and
equipment
|
|
|
4,688
|
|
|
3,825
|
|
23 %
|
Professional
fees
|
|
|
5,992
|
|
|
2,897
|
|
107 %
|
Deposit insurance
expense
|
|
|
5,984
|
|
|
1,429
|
|
319 %
|
Technology
expense
|
|
|
3,148
|
|
|
2,540
|
|
24 %
|
Other
expense
|
|
|
9,699
|
|
|
7,136
|
|
36 %
|
Total noninterest
expense
|
|
|
79,092
|
|
|
63,990
|
|
24 %
|
Income Before Income Taxes
|
|
|
141,894
|
|
|
138,871
|
|
2 %
|
Provision for income
taxes
|
|
|
21,637
|
|
|
34,794
|
|
-38 %
|
Net Income
|
|
$
|
120,257
|
|
$
|
104,077
|
|
16 %
|
Dividends
on preferred stock
|
|
|
(17,335)
|
|
|
(11,457)
|
|
51 %
|
Net Income Allocated to Common
Shareholders
|
|
$
|
102,922
|
|
$
|
92,620
|
|
11 %
|
Basic Earnings Per Share
|
|
$
|
2.38
|
|
$
|
2.14
|
|
11 %
|
Diluted Earnings Per Share
|
|
$
|
2.38
|
|
$
|
2.14
|
|
11 %
|
Weighted-Average Shares
Outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,207,655
|
|
|
43,220,198
|
|
|
Diluted
|
|
|
43,300,240
|
|
|
43,367,875
|
|
|
Key Operating Results
|
(Unaudited)
|
($ in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Change
|
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
2Q23
|
|
2Q23
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
vs. 1Q23
|
|
vs. 2Q22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
$
44,320
|
|
$
34,772
|
|
$
32,957
|
|
27 %
|
|
34 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(before provision for credit losses)
|
|
|
105,617
|
|
100,693
|
|
72,031
|
|
5 %
|
|
47 %
|
|
Noninterest
income
|
|
|
29,882
|
|
14,264
|
|
39,171
|
|
109 %
|
|
-24 %
|
|
Total income
|
|
|
$
135,499
|
|
$
114,957
|
|
$
111,202
|
|
18 %
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
|
|
|
32.71 %
|
|
30.25 %
|
|
29.64 %
|
|
246
|
bps
|
307
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
$
14,673,257
|
|
$
12,885,735
|
|
$ 9,820,878
|
|
14 %
|
|
49 %
|
|
Net income
|
|
|
65,302
|
|
54,955
|
|
53,935
|
|
19 %
|
|
21 %
|
|
Return on average
assets before annualizing
|
|
|
0.45 %
|
|
0.43 %
|
|
0.55 %
|
|
|
|
|
|
Annualization
factor
|
|
|
4.00
|
|
4.00
|
|
4.00
|
|
|
|
|
|
Return on average assets
|
|
|
1.78 %
|
|
1.71 %
|
|
2.20 %
|
|
7
|
bps
|
(42)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible common shareholders'
equity (1)
|
|
|
22.03 %
|
|
18.89 %
|
|
23.05 %
|
|
314
|
bps
|
(102)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per common share
(1)
|
|
|
$
24.14
|
|
$
22.88
|
|
$
19.70
|
|
6 %
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common shareholders' equity/tangible assets
(1)
|
|
|
6.58 %
|
|
6.95 %
|
|
7.67 %
|
|
(37)
|
bps
|
(109)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
capital/risk-weighted assets(2)
|
|
|
11.3
|
%
|
12.4
|
%
|
N/A
|
|
|
|
|
|
Tier I
capital/risk-weighted assets(2)
|
|
|
10.8
|
%
|
11.9
|
%
|
N/A
|
|
|
|
|
|
Common Equity
Tier I capital/risk-weighted assets(2)
|
|
|
7.3
|
%
|
7.9
|
%
|
N/A
|
|
|
|
|
|
Tier I
capital/average assets(2)
|
|
|
10.6
|
%
|
11.6
|
%
|
12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial
measure - see "Reconciliation of Non-GAAP Measures"
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) As defined by
regulatory agencies; March 31, 2023 shown as estimates and prior
periods shown as reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain non-GAAP
financial measures provide useful information to management and
investors that is supplementary to the company's financial
condition, results of operations
and cash flows computed in accordance with GAAP; however, they do
have a number of limitations. As such, the reader should not
view these disclosures as a substitute for
results determined in accordance with GAAP, and they are not
necessarily comparable to non-GAAP financial measures that
other companies use. A reconciliation of GAAP to
non-GAAP financial measures is below. Net Income Available to
Common Shareholders excludes preferred stock. Tangible common
equity is calculated by excluding the
balance of goodwill and other intangible assets and preferred stock
from the calculation of total assets. Tangible Assets is
calculated by excluding the balance of goodwill and
intangible assets. Tangible book value per share is
calculated by dividing tangible common equity by the number of
shares outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Change
|
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
2Q23
|
|
2Q23
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
vs. 1Q23
|
|
vs. 2Q22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
65,302
|
|
$
54,955
|
|
$
53,935
|
|
19 %
|
|
21 %
|
|
Less: preferred stock
dividends
|
|
|
(8,668)
|
|
(8,667)
|
|
(5,729)
|
|
—
|
|
51 %
|
|
Net income available to
common shareholders
|
|
|
$
56,634
|
|
$
46,288
|
|
$
48,206
|
|
22 %
|
|
17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
$
1,544,976
|
|
$
1,496,610
|
|
$ 1,215,891
|
|
3 %
|
|
27 %
|
|
Less: average goodwill
& intangibles
|
|
|
(16,858)
|
|
(16,980)
|
|
(17,361)
|
|
-1 %
|
|
-3 %
|
|
Less: average preferred
stock
|
|
|
(499,608)
|
|
(499,608)
|
|
(362,149)
|
|
—
|
|
38 %
|
|
Average tangible common
shareholders' equity
|
|
|
$
1,028,510
|
|
$
980,022
|
|
$
836,381
|
|
5 %
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualization
factor
|
|
|
4.00
|
|
4.00
|
|
4.00
|
|
|
|
|
|
Return on average
tangible common shareholders' equity
|
|
|
22.03 %
|
|
18.89 %
|
|
23.05 %
|
|
314
|
bps
|
(102)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
$
1,560,300
|
|
$
1,505,684
|
|
$ 1,228,539
|
|
4 %
|
|
27 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,794)
|
|
(16,913)
|
|
(17,286)
|
|
-1 %
|
|
-3 %
|
|
Less: preferred
stock
|
|
|
(499,608)
|
|
(499,608)
|
|
(362,149)
|
|
—
|
|
38 %
|
|
Tangible common
shareholders' equity
|
|
|
$
1,043,898
|
|
$
989,163
|
|
$
849,104
|
|
6 %
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
$
15,874,872
|
|
$
14,240,966
|
|
$
11,086,055
|
|
11 %
|
|
43 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,794)
|
|
(16,913)
|
|
(17,286)
|
|
-1 %
|
|
-3 %
|
|
Tangible
assets
|
|
|
$
15,858,078
|
|
$
14,224,053
|
|
$
11,068,769
|
|
11 %
|
|
43 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending common
shares
|
|
|
43,237,300
|
|
43,233,618
|
|
43,106,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
|
$
24.14
|
|
$
22.88
|
|
$
19.70
|
|
6 %
|
|
23 %
|
|
Tangible common
shareholders' equity/tangible assets
|
|
|
6.58 %
|
|
6.95 %
|
|
7.67 %
|
|
(37)
|
bps
|
(109)
|
bps
|
Key Operating Results
|
(Unaudited)
|
($ in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
$
79,092
|
|
$
63,990
|
|
24 %
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(before provision for credit losses)
|
|
|
206,310
|
|
137,756
|
|
50 %
|
|
Noninterest
income
|
|
|
44,146
|
|
73,768
|
|
-40 %
|
|
Total income
|
|
|
$
250,456
|
|
$
211,524
|
|
18 %
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
|
|
|
31.58 %
|
|
30.25 %
|
|
133
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
$
13,784,434
|
|
$
10,126,963
|
|
36 %
|
|
Net income
|
|
|
120,257
|
|
104,077
|
|
16 %
|
|
Return on average
assets before annualizing
|
|
|
0.87 %
|
|
1.03 %
|
|
|
|
Annualization
factor
|
|
|
2.00
|
|
2.00
|
|
|
|
Return on average assets
|
|
|
1.74 %
|
|
2.06 %
|
|
(32)
|
bps
|
|
|
|
|
|
|
|
|
|
Return on average tangible common shareholders'
equity (1)
|
|
|
20.49 %
|
|
22.72 %
|
|
(223)
|
bps
|
|
|
|
|
|
|
|
|
|
Tangible book value per common share
(1)
|
|
|
$
24.14
|
|
$
19.70
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
Tangible common shareholders' equity/tangible assets
(1)
|
|
|
6.58 %
|
|
7.67 %
|
|
(109)
|
bps
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial
measure - see "Reconciliation of Non-GAAP Measures"
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain non-GAAP
financial measures provide useful information to management and
investors that is supplementary to the company's
financial condition, results of operations and cash flows computed
in accordance with GAAP; however, they do have a number of
limitations.
As such, the reader should not view these disclosures as a
substitute for results determined in accordance with GAAP, and they
are not
necessarily comparable to non-GAAP financial measures that
other companies use. A reconciliation of GAAP to non-GAAP
financial
measures is below. Net Income Available to Common
Shareholders excludes preferred stock. Tangible common equity
is calculated by
excluding the balance of goodwill and other intangible assets and
preferred stock from the calculation of total assets.
Tangible Assets is
calculated by excluding the balance of goodwill and intangible
assets. Tangible book value per share is calculated by
dividing tangible
common equity by the number of shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
120,257
|
|
$
104,077
|
|
16 %
|
|
Less: preferred stock
dividends
|
|
|
(17,335)
|
|
(11,457)
|
|
51 %
|
|
Net income available to
common shareholders
|
|
|
$
102,922
|
|
$
92,620
|
|
11 %
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
$ 1,520,927
|
|
$ 1,194,981
|
|
27 %
|
|
Less: average goodwill
& intangibles
|
|
|
(16,918)
|
|
(17,428)
|
|
-3 %
|
|
Less: average preferred
stock
|
|
|
(499,608)
|
|
(362,149)
|
|
38 %
|
|
Average tangible common
shareholders' equity
|
|
|
$ 1,004,401
|
|
$
815,404
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
Annualization
factor
|
|
|
2.00
|
|
2.00
|
|
|
|
Return on average
tangible common shareholders' equity
|
|
|
20.49 %
|
|
22.72 %
|
|
(223)
|
bps
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
$ 1,560,300
|
|
$ 1,228,539
|
|
27 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,794)
|
|
(17,286)
|
|
-3 %
|
|
Less: preferred
stock
|
|
|
(499,608)
|
|
(362,149)
|
|
38 %
|
|
Tangible common
shareholders' equity
|
|
|
$ 1,043,898
|
|
$
849,104
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
$
15,874,872
|
|
$
11,086,055
|
|
43 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,794)
|
|
(17,286)
|
|
-3 %
|
|
Tangible
assets
|
|
|
$
15,858,078
|
|
$
11,068,769
|
|
43 %
|
|
|
|
|
|
|
|
|
|
|
Ending common
shares
|
|
|
43,237,300
|
|
43,106,505
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
|
$
24.14
|
|
$
19.70
|
|
23 %
|
|
Tangible common
shareholders' equity/tangible assets
|
|
|
6.58 %
|
|
7.67 %
|
|
(109)
|
bps
|
Merchants Bancorp
|
Average Balance Analysis
|
($ in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits, and other
|
$
249,722
|
$ 3,335
|
5.36 %
|
|
$ 184,470
|
$ 2,176
|
4.78 %
|
|
$
367,540
|
$ 910
|
0.99 %
|
Securities available
for sale - taxable
|
672,887
|
5,564
|
3.32 %
|
|
445,614
|
2,266
|
2.06 %
|
|
330,759
|
917
|
1.11 %
|
Securities held to
maturity
|
1,093,018
|
17,311
|
6.35 %
|
|
1,115,243
|
15,754
|
5.73 %
|
|
—
|
—
|
|
Mortgage loans in
process of securitization
|
280,092
|
3,127
|
4.48 %
|
|
159,333
|
1,648
|
4.19 %
|
|
198,349
|
1,449
|
2.93 %
|
Loans and loans held
for sale
|
11,968,565
|
228,732
|
7.67 %
|
|
10,595,669
|
189,450
|
7.25 %
|
|
8,643,276
|
85,994
|
3.99 %
|
Total interest-earning
assets
|
14,264,284
|
258,069
|
7.26 %
|
|
12,500,329
|
211,294
|
6.86 %
|
|
9,539,924
|
89,270
|
3.75 %
|
Allowance for credit
losses on loans
|
(54,411)
|
|
|
|
(45,190)
|
|
|
|
(33,401)
|
|
|
Noninterest-earning
assets
|
463,384
|
|
|
|
430,596
|
|
|
|
314,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
14,673,257
|
|
|
|
$
12,885,735
|
|
|
|
$ 9,820,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
checking
|
4,307,736
|
48,296
|
4.50 %
|
|
4,052,081
|
40,647
|
4.07 %
|
|
3,849,876
|
6,945
|
0.72 %
|
Savings
deposits
|
236,012
|
299
|
0.51 %
|
#
|
237,289
|
265
|
0.45 %
|
|
238,944
|
62
|
0.10 %
|
Money market
|
2,749,594
|
30,521
|
4.45 %
|
#
|
2,848,500
|
28,608
|
4.07 %
|
|
2,626,973
|
6,567
|
1.00 %
|
Certificates of
deposit
|
4,729,242
|
58,685
|
4.98 %
|
#
|
3,322,991
|
34,922
|
4.26 %
|
|
639,556
|
1,194
|
0.75 %
|
Total interest-bearing deposits
|
12,022,584
|
137,801
|
4.60 %
|
|
10,460,861
|
104,442
|
4.05 %
|
|
7,355,349
|
14,768
|
0.81 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
591,333
|
14,651
|
9.94 %
|
|
482,723
|
6,159
|
5.17 %
|
|
749,628
|
2,471
|
1.32 %
|
Total interest-bearing liabilities
|
12,613,917
|
152,452
|
4.85 %
|
|
10,943,584
|
110,601
|
4.10 %
|
|
8,104,977
|
17,239
|
0.85 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
346,837
|
|
|
|
304,119
|
|
|
|
402,328
|
|
|
Noninterest-bearing
liabilities
|
167,527
|
|
|
|
141,422
|
|
|
|
97,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
13,128,281
|
|
|
|
11,389,125
|
|
|
|
8,604,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
1,544,976
|
|
|
|
1,496,610
|
|
|
|
1,215,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
14,673,257
|
|
|
|
$
12,885,735
|
|
|
|
$ 9,820,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
105,617
|
|
|
|
$ 100,693
|
|
|
|
$
72,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread
|
|
|
2.41 %
|
|
|
|
2.76 %
|
|
|
|
2.90 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets
|
$
1,650,367
|
|
|
|
$
1,556,745
|
|
|
|
$ 1,434,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
2.97 %
|
|
|
|
3.27 %
|
|
|
|
3.03 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets to average
interest-bearing liabilities
|
|
|
113.08 %
|
|
|
|
114.23 %
|
|
|
|
117.70 %
|
Supplemental Results
|
|
|
(Unaudited)
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
Net Income
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family Mortgage
Banking
|
|
|
|
$
11,242
|
|
$
1,966
|
|
$
19,556
|
|
$
13,208
|
|
$
31,048
|
|
|
|
Mortgage
Warehousing
|
|
|
|
18,596
|
|
8,641
|
|
11,868
|
|
27,237
|
|
25,027
|
|
|
|
Banking
|
|
|
|
42,650
|
|
49,307
|
|
25,932
|
|
91,957
|
|
54,696
|
|
|
|
Other
|
|
|
|
(7,186)
|
|
(4,959)
|
|
(3,421)
|
|
(12,145)
|
|
(6,694)
|
|
|
|
Total
|
|
|
|
$
65,302
|
|
$
54,955
|
|
$
53,935
|
|
$
120,257
|
|
$
104,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family Mortgage
Banking
|
|
|
|
$
373,680
|
|
$
341,487
|
|
$
351,274
|
|
|
|
|
|
|
|
Mortgage
Warehousing
|
|
|
|
4,474,832
|
|
3,318,491
|
|
2,519,810
|
|
|
|
|
|
|
|
Banking
|
|
|
|
10,784,596
|
|
10,430,293
|
|
9,587,544
|
|
|
|
|
|
|
|
Other
|
|
|
|
241,764
|
|
150,695
|
|
156,599
|
|
|
|
|
|
|
|
Total
|
|
|
|
$ 15,874,872
|
|
$
14,240,966
|
|
$ 12,615,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Sale of Loans
|
|
Gain on Sale of Loans
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
Loan Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
|
10,361
|
|
$
4,920
|
|
$
19,623
|
|
$
15,281
|
|
$
34,576
|
|
|
|
Single-family
|
|
|
|
202
|
|
277
|
|
406
|
|
479
|
|
863
|
|
|
|
Small Business
Association (SBA)
|
|
|
|
787
|
|
1,536
|
|
1,535
|
|
2,323
|
|
4,090
|
|
|
|
Total
|
|
|
|
$
11,350
|
|
$
6,733
|
|
$
21,564
|
|
$
18,083
|
|
$
39,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable and Loans Held for
Sale
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage warehouse
lines of credit
|
|
|
|
$
1,201,932
|
|
$
604,445
|
|
$
464,785
|
|
|
|
|
|
|
|
Residential real
estate
|
|
|
|
1,342,586
|
|
1,215,252
|
|
1,178,401
|
|
|
|
|
|
|
|
Multi-family
financing
|
|
|
|
3,746,333
|
|
3,566,530
|
|
3,135,535
|
|
|
|
|
|
|
|
Healthcare
financing
|
|
|
|
2,128,378
|
|
1,941,204
|
|
1,604,341
|
|
|
|
|
|
|
|
Commercial and
commercial real estate (1)(2)
|
|
|
|
1,394,256
|
|
1,194,320
|
|
978,661
|
|
|
|
|
|
|
|
Agricultural production
and real estate
|
|
|
|
91,599
|
|
89,516
|
|
95,651
|
|
|
|
|
|
|
|
Consumer and margin
loans
|
|
|
|
11,920
|
|
15,781
|
|
13,498
|
|
|
|
|
|
|
|
|
|
|
|
9,917,004
|
|
8,627,048
|
|
7,470,872
|
|
|
|
|
|
|
|
Less: Allowance for credit losses on loans
|
|
|
|
62,986
|
|
51,838
|
|
44,014
|
|
|
|
|
|
|
|
Loans
receivable
|
|
|
|
$
9,854,018
|
|
$ 8,575,210
|
|
$
7,426,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
|
|
3,058,013
|
|
2,855,250
|
|
2,910,576
|
|
|
|
|
|
|
|
Total loans, net of
allowance
|
|
|
|
$ 12,912,031
|
|
$
11,430,460
|
|
$ 10,337,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $894.7 million,
$672.9 million and $497.0 million of revolving lines of
credit collateralized primarily by mortgage servicing rights as of
June 30,
2023, March 31, 2023 and December 31, 2022, respectively
|
|
|
|
(2) Includes only $8.3
million, $9.1 million and $12.8 million of non-owner occupied
commercial real estate as of June 30, 2023, March 31, 2023 and
December 31, 2022, respectively
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-2023-results-301887547.html
SOURCE Merchants Bancorp