- Third quarter 2023 net income of $81.5
million increased 39% compared to third quarter of 2022 and
increased 25% compared to the second quarter 2023.
- Third quarter 2023 diluted earnings per common share of
$1.68 increased 38% compared to the
third quarter of 2022 and increased 28% compared to the second
quarter of 2023.
- Total assets of $16.5 billion
increased 4% compared to June 30,
2023, and increased 31% compared to December 31, 2022.
- As of September 30, 2023, the
Company had $5.4 billion, or 32% 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
$10.7 billion, or 65%, of the
$16.5 billion in total assets as of
September 30, 2023.
- Uninsured deposits totaled approximately $2 billion as of September
30, 2023, representing less than 20% of total deposits.
- Loans receivable of $9.9 billion,
net of allowance for credit losses on loans, increased $56.7 million, or 1%, compared to June 30, 2023, and increased $2.5 billion, or 33%, compared to December 31, 2022.
- Efficiency ratio was 28.0% in the third quarter of 2023
compared to 30.5% in the third quarter of 2022 and 32.7% in the
second quarter of 2023.
- Tangible book value per common share of $25.82 increased 24% compared to $20.78 in the third quarter of 2022 and increased
7% compared to $24.14 in the second
quarter of 2023.
- On August 31, 2023, the Company
completed a $303.6 million
securitization of 11 multi-family mortgage loans through a Freddie
Mac-sponsored Q-Series transaction.
- On September 7, 2023, the Company
entered into an agreement with Bank of Pontiac to sell its Farmers-Merchants Bank of
Illinois branch locations in
Paxton, Melvin, and Piper
City, Illinois, and into an agreement with CBI Bank &
Trust, to sell its Farmers-Merchants Bank of Illinois branch located in Joy, Illinois.
CARMEL, Ind., Oct. 26, 2023 /PRNewswire/ --
Merchants Bancorp (the "Company" or "Merchants") (Nasdaq:
MBIN), parent company of Merchants Bank of Indiana, today reported third quarter 2023 net
income of $81.5 million, or diluted
earnings per common share of $1.68. This compared to $58.5 million, or diluted earnings per common
share of $1.22 in the third quarter
of 2022, and compared to $65.3
million, or diluted earnings per common share of
$1.31 in the second quarter of
2023.
"We could not be prouder to have achieved the highest earnings
and asset levels in company history during the third quarter, along
with tangible book value of $25.82
per share that grew 24% over the last year. Our focus on
growing our sales teams in new markets, conservative underwriting,
cost controls, and effectively matching our asset and liability
duration have positioned us well for sustainable earnings growth
for the remainder of 2023 and beyond," said Michael F. Petrie, Chairman and CEO of
Merchants.
Michael J. Dunlap, President and
Chief Operating Officer of Merchants, added, "Our team has
continued to maximize sources of liquidity and capital efficiencies
to ensure that our strong pipeline of loan growth can be
effectively executed in various interest rate environments so we
can meet the needs of our customers and continue to generate
ongoing profitability. We could not have achieved these
record-setting milestones during the third quarter without the hard
work and dedication of our entire team."
Net income of $81.5 million for
the third quarter 2023 increased by $23.0
million, or 39%, compared to the third quarter of 2022,
primarily driven by a $32.1 million,
or 38%, increase in net interest income. Results for the third
quarter 2023 included a $11.6 million
positive fair market value adjustment to servicing rights compared
to a $4.6 million positive adjustment
in the third quarter of 2022.
Net income of $81.5 million for
the third quarter 2023 increased by $16.2
million, or 25%, compared to the second quarter of 2023,
primarily driven by an $11.8 million,
or 11% increase, in net interest income, an $18.6 million decrease in provision for credit
losses related to credit events in the second quarter 2023, and a
$6.2 million, or 21% increase in
noninterest income. These increases to net income were partially
offset by a $21.8 million increase in
the provision for income taxes following the $13.0 million tax benefit related to tax refunds
and changes to state tax apportionment calculations that were
recognized in the second quarter 2023. Results for the third
quarter 2023 included a $11.6 million
positive fair market value adjustment to servicing rights compared
to a $3.4 million positive adjustment
in the second quarter of 2023.
Total Assets
Total assets of $16.5 billion at September
30, 2023 increased $620.4
million, or 4%, compared to June 30,
2023, and increased $3.9
billion, or 31%, compared to December
31, 2022. The increase compared to December 31, 2022 was primarily due to
significant growth in the healthcare, commercial lines of credit on
collateralized mortgage servicing rights, multi-family, and
warehouse loan portfolios.
Return on average assets was 2.03% for the third quarter of 2023
compared to 2.05% for the third quarter of 2022 and 1.78% for the
second quarter of 2023.
Asset Quality
The allowance for credit losses on loans
of $66.9 million, as of September 30, 2023, increased $3.9 million, or 6%, compared to June 30, 2023 and increased $22.9 million, or 52%, compared to December 31, 2022. The increase compared to
June 30, 2023 was primarily in the
multi-family, healthcare, and commercial portfolios due to a
combination of changes in qualitative loss factors and loan growth.
The increase compared to December 31,
2022 was primarily due to loan growth in the period, as well
as credit events and increases in qualitative factors and
forecasted loss rates to reflect changes in industry conditions
that were recorded during the second quarter 2023. The
Company experienced net recoveries of $10,000 during the third quarter 2023.
Non-performing loans were $60.2
million, or 0.60%, of loans receivable as of September 30, 2023, compared to 0.69% at
June 30, 2023, and 0.36% at
December 31, 2022. The increase
in non-performing loans compared to December
31, 2022 was primarily due to 3 customers.
Securities Available for Sale
Total securities
available for sale of $624.6 million
as of September 30, 2023 decreased
$23.4 million, or 4%, compared to
June 30, 2023, and increased
$301.2 million, or 93%, compared to
December 31, 2022.
As of September 30, 2023,
Accumulated Other Comprehensive Losses ("AOCL") of $4.8 million, related to securities available for
sale, decreased $2.3 million, or 32%,
compared to June 30, 2023, and
decreased $5.8 million, or 55%,
compared to December 31, 2022.
The $4.8 million of AOCL as of
September 30, 2023 represented less
than 1% of total equity and less than 1% of total investment
securities.
Total Deposits
Total deposits of $13.0 billion at September
30, 2023 decreased $52.5
million compared to June 30,
2023, and increased $2.9
billion, or 29%, compared to December
31, 2022. The changes for both periods were primarily due to
changes in brokered certificates of deposit.
Total brokered deposits of $4.4
billion at September 30, 2023
decreased $350.8 million, or 7%, from
June 30, 2023 and increased
$1.6 billion, or 59%, from
December 31, 2022.
Brokered deposits represented 34% of total deposits at
September 30, 2023 compared to 36% of
total deposits at June 30, 2023 and
27% of total deposits at December 31,
2022. As of September 30, 2023,
brokered certificates of deposit had a weighted average remaining
duration of 49 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. As of September 30, 2023, deposit balances in Flex CD
products increased by $294.3 million,
or 201%, compared to December 31,
2022. Additionally, the Company has offered an insured
cash sweep program since 2018, which extends FDIC protection up to
$100 million per depositor. The
balance of deposits in this program was $1.8
billion as of September 30,
2023 and has contributed to the Company's low level of
uninsured deposits, which were below 20% of total deposits.
Liquidity
Cash balances of $407.2 million as of September 30, 2023 increased by $29.9 million compared to June 30, 2023 and increased by $181.1 million compared to December 31, 2022. The Company continues to
have significant borrowing capacity, with unused lines of credit
totaling $5.4 billion as of
September 30, 2023 compared to
$5.3 billion at June 30, 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 or
securitize a significant portion of its loans, which provides
flexibility in managing its liquidity.
Comparison of Operating Results for the Three
Months Ended
September 30,
2023 and 2022
Net Interest Income of $117.4
million increased $32.1
million, or 38%, reflecting higher yields and average
balances on loans and loans held for sale, and higher balances of
securities held to maturity, which were partially offset by higher
rates and average balances on deposits, as well as higher rates on
borrowings that were primarily related to the credit linked notes
issued by the Company during the first quarter of 2023.
- Interest rate spread of 2.44% decreased 33 basis points
compared to 2.77%.
- Net interest margin of 2.99% decreased 6 basis points compared
to 3.05%.
Interest Income of $296.7
million increased $162.6
million, or 121%, compared to $134.1
million, reflecting an increase in both yields and average
balances of loans and loans held for sale, as well as higher
balances in securities held to maturity.
- Average balances of $13.4 billion
for loans and loans held for sale increased 31% compared to
$10.2 billion.
- Average yield on loans and loans held for sale of 7.89%
increased 289 basis points compared to 5.00%.
Interest Expense of $179.2
million increased $130.5
million, or 268%, compared to $48.7
million. The increase was primarily due to higher
rates on certificates of deposit, interest-bearing checking, and
money market accounts, as well higher average balances of
certificates of deposit and higher rates on borrowings.
- Average balances of $13.2 billion
for interest-bearing deposits increased 46% compared to
$9.0 billion.
- Average interest rates of 4.90% for interest-bearing deposits
increased 292 basis points compared to 1.98%.
Noninterest Income of $36.1
million increased $6.9
million, or 24%, compared to $29.2
million, primarily due to a $9.2
million, or 113%, increase in loan servicing fees that was
offset by a $2.6 million, or 19%,
decrease in gain on sale of loans.
- Loan servicing fees included a $11.6
million positive fair market value adjustment to servicing
rights, with a $1.2 million positive
adjustment in the Banking segment and a $10.4 million positive adjustment in the
Multi-family Mortgage Banking segment. This compared to a
$4.6 million positive fair market
value adjustment to mortgage servicing rights in the prior period,
of which $0.9 million was in the
Banking segment and $3.7 million was
in the Multi-family Mortgage Banking segment.
- 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.
Noninterest Expense of $42.9
million increased $8.0
million, or 23%, primarily due to increases in salaries and
employee benefits and deposit insurance expense.
- The efficiency ratio of 28.0% decreased 253 basis points
compared to 30.5%.
Comparison of Operating Results for the Three
Months Ended
September 30,
2023 and June 30, 2023
Net Interest Income of $117.4
million increased $11.8
million, or 11%, compared to $105.6
million, reflecting higher average balances and yields on
loans and loans held for sale, which were partially offset by
higher average balances and rates and on deposits, as well as
higher average balances on borrowings.
- Interest rate spread of 2.44% increased 3 basis points compared
to 2.41%.
- Net interest margin of 2.99% increased 2 basis points compared
to 2.97%.
Interest Income of $296.7
million increased $38.6
million, or 15%, compared to $258.1
million, reflecting an increase in average balances and
yields on loans and loans held for sale.
- Average balances of $13.4 billion
for loans and loans held for sale increased 12%, compared to
$12.0 billion.
- Average yield on loans and loans held for sale of 7.89%
increased 22 basis points compared to 7.67%.
Interest Expense of $179.2
million increased 18% compared to $152.5 million. The increase was primarily due to
higher average balances and rates on certificates of deposit and
interest-bearing checking accounts, as well as higher average
balances on borrowings.
- Average balances of $13.2 billion
for interest-bearing deposits increased 10% compared to
$12.0 billion.
- Average interest rates of 4.90% for interest-bearing deposits
increased 30 basis points compared to 4.60%.
Noninterest Income of $36.1
million increased $6.2
million, or 21%, compared $29.9
million, primarily due to a $8.8
million, or 102%, increase in loan servicing fees.
- Loan servicing fees included a $11.6
million positive fair market value adjustment to servicing
rights, with a $1.2 million positive
adjustment in the Banking segment and a $10.4 million positive adjustment in the
Multi-family Mortgage Banking segment. This compared to a
$3.4 million positive fair market
value adjustment to servicing rights in the prior period, 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.
Noninterest Expense of $42.9
million decreased $1.4
million, or 3%, primarily due to a decrease in professional
fees and other miscellaneous expenses that were partially offset by
higher salaries and employee benefits.
- The efficiency ratio of 28.0% decreased 474 basis points
compared to 32.7%.
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 $16.5 billion in assets and $13.0 billion in deposits as of September 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
10,633
|
|
$
15,390
|
|
$
19,002
|
|
$
22,170
|
|
$
13,796
|
Interest-earning demand
accounts
|
|
396,605
|
|
361,920
|
|
350,584
|
|
203,994
|
|
310,165
|
Cash and cash
equivalents
|
|
407,238
|
|
377,310
|
|
369,586
|
|
226,164
|
|
323,961
|
Securities purchased
under agreements to resell
|
|
3,385
|
|
3,412
|
|
3,438
|
|
3,464
|
|
3,497
|
Mortgage loans in
process of securitization
|
|
476,047
|
|
298,907
|
|
197,074
|
|
154,194
|
|
137,448
|
Securities available
for sale
|
|
624,586
|
|
648,003
|
|
679,518
|
|
323,337
|
|
322,069
|
Securities held to
maturity (includes $1,010,745, $1,058,590,
$1,106,582, $1,118,966 and $1,005,487 at fair value,
respectively)
|
|
1,012,801
|
|
1,062,017
|
|
1,104,835
|
|
1,119,078
|
|
1,005,487
|
Federal Home Loan Bank
(FHLB) stock
|
|
48,219
|
|
39,130
|
|
39,130
|
|
39,130
|
|
39,130
|
Loans held for sale
(includes $90,875, $82,931, $85,516, $82,192
and $68,785 at fair value, respectively)
|
|
3,477,036
|
|
3,058,013
|
|
2,855,250
|
|
2,910,576
|
|
2,844,750
|
Loans receivable, net
of allowance for credit losses on loans of
$66,864, $62,986, $51,838, $44,014 and $38,996,
respectively
|
|
9,910,681
|
|
9,854,018
|
|
8,575,210
|
|
7,426,858
|
|
6,919,128
|
Premises and equipment,
net
|
|
36,730
|
|
36,947
|
|
35,793
|
|
35,438
|
|
35,492
|
Servicing
rights
|
|
162,141
|
|
147,288
|
|
143,867
|
|
146,248
|
|
144,984
|
Interest
receivable
|
|
78,401
|
|
70,509
|
|
64,282
|
|
56,262
|
|
40,170
|
Goodwill
|
|
15,845
|
|
15,845
|
|
15,845
|
|
15,845
|
|
15,845
|
Intangible assets,
net
|
|
831
|
|
949
|
|
1,068
|
|
1,186
|
|
1,307
|
Other assets and
receivables
|
|
241,295
|
|
262,524
|
|
156,070
|
|
157,447
|
|
145,454
|
Total assets
|
|
$
16,495,236
|
|
$
15,874,872
|
|
$
14,240,966
|
|
$
12,615,227
|
|
$
11,978,722
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
287,846
|
|
$
349,387
|
|
$
313,733
|
|
$
326,875
|
|
$
315,868
|
Interest-bearing
|
|
12,719,492
|
|
12,710,477
|
|
11,031,498
|
|
9,744,470
|
|
10,003,611
|
Total
deposits
|
|
13,007,338
|
|
13,059,864
|
|
11,345,231
|
|
10,071,345
|
|
10,319,479
|
Borrowings
|
|
1,654,075
|
|
1,016,836
|
|
1,233,762
|
|
930,392
|
|
97,279
|
Deferred and current
tax liabilities, net
|
|
18,006
|
|
16,084
|
|
32,827
|
|
19,613
|
|
19,124
|
Other
liabilities
|
|
183,102
|
|
221,788
|
|
123,462
|
|
134,138
|
|
130,250
|
Total
liabilities
|
|
14,862,521
|
|
14,314,572
|
|
12,735,282
|
|
11,155,488
|
|
10,566,132
|
Commitments
and Contingencies
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
Common stock, without
par value
|
|
|
|
|
|
|
|
|
|
|
Authorized - 75,000,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and
outstanding - 43,240,212 shares, 43,237,300 shares,
43,233,618 shares, 43,113,127 shares and 43,109,578
shares
|
|
139,609
|
|
138,853
|
|
138,105
|
|
137,781
|
|
137,226
|
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
|
|
137,459
|
|
137,371
|
Retained
earnings
|
|
998,252
|
|
928,875
|
|
875,700
|
|
832,871
|
|
787,530
|
Accumulated other
comprehensive loss
|
|
(4,754)
|
|
(7,036)
|
|
(7,729)
|
|
(10,521)
|
|
(11,686)
|
Total shareholders'
equity
|
|
1,632,715
|
|
1,560,300
|
|
1,505,684
|
|
1,459,739
|
|
1,412,590
|
Total liabilities and
shareholders' equity
|
|
$
16,495,236
|
|
$
15,874,872
|
|
$
14,240,966
|
|
$
12,615,227
|
|
$
11,978,722
|
Consolidated
Statement of Income
|
(Unaudited)
|
(In thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Change
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
3Q23
|
|
3Q23
|
|
|
2023
|
|
2023
|
|
2022
|
|
vs.
2Q23
|
|
vs.
3Q22
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
266,561
|
|
$
|
228,732
|
|
$
|
129,101
|
|
17 %
|
|
106 %
|
Mortgage loans in
process of securitization
|
|
|
2,583
|
|
|
3,127
|
|
|
2,162
|
|
-17 %
|
|
19 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale -
taxable
|
|
|
6,182
|
|
|
5,564
|
|
|
485
|
|
11 %
|
|
1175 %
|
Held to
maturity
|
|
|
17,427
|
|
|
17,311
|
|
|
970
|
|
1 %
|
|
1697 %
|
Federal Home Loan Bank
stock
|
|
|
572
|
|
|
471
|
|
|
379
|
|
21 %
|
|
51 %
|
Other
|
|
|
3,351
|
|
|
2,864
|
|
|
1,015
|
|
17 %
|
|
230 %
|
Total interest
income
|
|
|
296,676
|
|
|
258,069
|
|
|
134,112
|
|
15 %
|
|
121 %
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
162,906
|
|
|
137,801
|
|
|
45,002
|
|
18 %
|
|
262 %
|
Borrowed
funds
|
|
|
16,334
|
|
|
14,651
|
|
|
3,725
|
|
11 %
|
|
338 %
|
Total interest
expense
|
|
|
179,240
|
|
|
152,452
|
|
|
48,727
|
|
18 %
|
|
268 %
|
Net Interest
Income
|
|
|
117,436
|
|
|
105,617
|
|
|
85,385
|
|
11 %
|
|
38 %
|
Provision for credit
losses
|
|
|
4,014
|
|
|
22,603
|
|
|
2,225
|
|
-82 %
|
|
80 %
|
Net Interest Income
After Provision for Credit Losses
|
|
|
113,422
|
|
|
83,014
|
|
|
83,160
|
|
37 %
|
|
36 %
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
loans
|
|
|
10,758
|
|
|
11,350
|
|
|
13,354
|
|
-5 %
|
|
-19 %
|
Loan servicing fees,
net
|
|
|
17,384
|
|
|
8,616
|
|
|
8,169
|
|
102 %
|
|
113 %
|
Mortgage warehouse
fees
|
|
|
1,858
|
|
|
2,865
|
|
|
1,105
|
|
-35 %
|
|
68 %
|
Syndication and asset
management fees
|
|
|
2,368
|
|
|
3,896
|
|
|
3,073
|
|
-39 %
|
|
-23 %
|
Other income
|
|
|
3,700
|
|
|
3,155
|
|
|
3,485
|
|
17 %
|
|
6 %
|
Total noninterest
income
|
|
|
36,068
|
|
|
29,882
|
|
|
29,186
|
|
21 %
|
|
24 %
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
27,052
|
|
|
25,724
|
|
|
23,027
|
|
5 %
|
|
17 %
|
Loan
expenses
|
|
|
1,038
|
|
|
907
|
|
|
1,226
|
|
14 %
|
|
-15 %
|
Occupancy and
equipment
|
|
|
2,196
|
|
|
2,456
|
|
|
1,967
|
|
-11 %
|
|
12 %
|
Professional
fees
|
|
|
2,555
|
|
|
3,723
|
|
|
2,429
|
|
-31 %
|
|
5 %
|
Deposit insurance
expense
|
|
|
3,568
|
|
|
3,806
|
|
|
755
|
|
-6 %
|
|
373 %
|
Technology
expense
|
|
|
1,609
|
|
|
1,571
|
|
|
1,325
|
|
2 %
|
|
21 %
|
Other
expense
|
|
|
4,912
|
|
|
6,133
|
|
|
4,222
|
|
-20 %
|
|
16 %
|
Total noninterest
expense
|
|
|
42,930
|
|
|
44,320
|
|
|
34,951
|
|
-3 %
|
|
23 %
|
Income Before Income
Taxes
|
|
|
106,560
|
|
|
68,576
|
|
|
77,395
|
|
55 %
|
|
38 %
|
Provision for income
taxes
|
|
|
25,056
|
|
|
3,274
|
|
|
18,907
|
|
665 %
|
|
33 %
|
Net
Income
|
|
$
|
81,504
|
|
$
|
65,302
|
|
$
|
58,488
|
|
25 %
|
|
39 %
|
Dividends
on preferred stock
|
|
|
(8,668)
|
|
|
(8,668)
|
|
|
(5,729)
|
|
—
|
|
51 %
|
Net Income Allocated
to Common Shareholders
|
|
$
|
72,836
|
|
$
|
56,634
|
|
$
|
52,759
|
|
29 %
|
|
38 %
|
Basic Earnings Per
Share
|
|
$
|
1.68
|
|
$
|
1.31
|
|
$
|
1.22
|
|
28 %
|
|
38 %
|
Diluted Earnings Per
Share
|
|
$
|
1.68
|
|
$
|
1.31
|
|
$
|
1.22
|
|
28 %
|
|
38 %
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,238,724
|
|
|
43,235,398
|
|
|
43,107,975
|
|
|
|
|
Diluted
|
|
|
43,351,208
|
|
|
43,309,393
|
|
|
43,258,925
|
|
|
|
|
Consolidated
Statement of Income
|
(Unaudited)
|
(In thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
Interest
Income
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
684,743
|
|
$
|
287,291
|
|
138 %
|
Mortgage loans in
process of securitization
|
|
|
7,358
|
|
|
5,856
|
|
26 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
Available for sale -
taxable
|
|
|
14,012
|
|
|
2,103
|
|
566 %
|
Held to
maturity
|
|
|
50,492
|
|
|
970
|
|
5105 %
|
Federal Home Loan Bank
stock
|
|
|
1,470
|
|
|
932
|
|
58 %
|
Other
|
|
|
7,964
|
|
|
2,242
|
|
255 %
|
Total interest
income
|
|
|
766,039
|
|
|
299,394
|
|
156 %
|
Interest
Expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
405,149
|
|
|
68,583
|
|
491 %
|
Borrowed
funds
|
|
|
37,144
|
|
|
7,670
|
|
384 %
|
Total interest
expense
|
|
|
442,293
|
|
|
76,253
|
|
480 %
|
Net Interest
Income
|
|
|
323,746
|
|
|
223,141
|
|
45 %
|
Provision for credit
losses
|
|
|
33,484
|
|
|
10,888
|
|
208 %
|
Net Interest Income
After Provision for Credit Losses
|
|
|
290,262
|
|
|
212,253
|
|
37 %
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
Gain on sale of
loans
|
|
|
28,841
|
|
|
52,883
|
|
-45 %
|
Loan servicing fees,
net
|
|
|
28,360
|
|
|
27,507
|
|
3 %
|
Mortgage warehouse
fees
|
|
|
5,751
|
|
|
4,313
|
|
33 %
|
Syndication and asset
management fees
|
|
|
7,476
|
|
|
5,286
|
|
41 %
|
Other income
|
|
|
9,786
|
|
|
12,965
|
|
-25 %
|
Total noninterest
income
|
|
|
80,214
|
|
|
102,954
|
|
-22 %
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
74,922
|
|
|
66,795
|
|
12 %
|
Loan
expenses
|
|
|
2,749
|
|
|
3,621
|
|
-24 %
|
Occupancy and
equipment
|
|
|
6,884
|
|
|
5,792
|
|
19 %
|
Professional
fees
|
|
|
8,547
|
|
|
5,326
|
|
60 %
|
Deposit insurance
expense
|
|
|
9,552
|
|
|
2,184
|
|
337 %
|
Technology
expense
|
|
|
4,757
|
|
|
3,865
|
|
23 %
|
Other
expense
|
|
|
14,611
|
|
|
11,358
|
|
29 %
|
Total noninterest
expense
|
|
|
122,022
|
|
|
98,941
|
|
23 %
|
Income Before Income
Taxes
|
|
|
248,454
|
|
|
216,266
|
|
15 %
|
Provision for income
taxes
|
|
|
46,693
|
|
|
53,701
|
|
-13 %
|
Net
Income
|
|
$
|
201,761
|
|
$
|
162,565
|
|
24 %
|
Dividends
on preferred stock
|
|
|
(26,003)
|
|
|
(17,186)
|
|
51 %
|
Net Income Allocated
to Common Shareholders
|
|
$
|
175,758
|
|
$
|
145,379
|
|
21 %
|
Basic Earnings Per
Share
|
|
$
|
4.07
|
|
$
|
3.37
|
|
21 %
|
Diluted Earnings Per
Share
|
|
$
|
4.06
|
|
$
|
3.36
|
|
21 %
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,218,125
|
|
|
43,182,380
|
|
|
Diluted
|
|
|
43,317,343
|
|
|
43,331,148
|
|
|
Key Operating
Results
|
(Unaudited)
|
($ in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Change
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
3Q23
|
|
3Q23
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
vs.
2Q23
|
|
vs.
3Q22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
$
42,930
|
|
$
44,320
|
|
$
34,951
|
|
-3 %
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(before provision for credit losses)
|
|
|
117,436
|
|
105,617
|
|
85,385
|
|
11 %
|
|
38 %
|
|
Noninterest
income
|
|
|
36,068
|
|
29,882
|
|
29,186
|
|
21 %
|
|
24 %
|
|
Total income
|
|
|
$
153,504
|
|
$
135,499
|
|
$
114,571
|
|
13 %
|
|
34 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
27.97 %
|
|
32.71 %
|
|
30.51 %
|
|
(474)
|
bps
|
(254)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
$
16,031,015
|
|
$
14,673,257
|
|
$ 11,437,805
|
|
9 %
|
|
40 %
|
|
Net income
|
|
|
81,504
|
|
65,302
|
|
58,488
|
|
25 %
|
|
39 %
|
|
Return on average
assets before annualizing
|
|
|
0.51 %
|
|
0.45 %
|
|
0.51 %
|
|
|
|
|
|
Annualization
factor
|
|
|
4.00
|
|
4.00
|
|
4.00
|
|
|
|
|
|
Return on average
assets
|
|
|
2.03 %
|
|
1.78 %
|
|
2.05 %
|
|
25
|
bps
|
(2)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common shareholders' equity (1)
|
|
|
26.69 %
|
|
22.03 %
|
|
23.92 %
|
|
466
|
bps
|
277
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share (1)
|
|
|
$
25.82
|
|
$
24.14
|
|
$
20.78
|
|
7 %
|
|
24 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity/tangible assets (1)
|
|
|
6.78 %
|
|
6.58 %
|
|
7.49 %
|
|
20
|
bps
|
(71)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
capital/risk-weighted assets(2)
|
|
|
11.4
|
%
|
11.3
|
%
|
12.5
|
%
|
|
|
|
Tier I
capital/risk-weighted assets(2)
|
|
|
10.9
|
%
|
10.8
|
%
|
12.1
|
%
|
|
|
|
Common Equity
Tier I capital/risk-weighted assets(2)
|
|
|
7.5
|
%
|
7.3
|
%
|
7.8
|
%
|
|
|
|
Tier I
capital/average assets(2)
|
|
|
10.1
|
%
|
10.6
|
%
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial
measure - see "Reconciliation of Non-GAAP Measures"
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) As defined by
regulatory agencies; September 30, 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
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
3Q23
|
|
3Q23
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
vs.
2Q23
|
|
vs.
3Q22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
81,504
|
|
$
65,302
|
|
$
58,488
|
|
25 %
|
|
39 %
|
|
Less: preferred stock
dividends
|
|
|
(8,668)
|
|
(8,668)
|
|
(5,729)
|
|
—
|
|
51 %
|
|
Net income available to
common shareholders
|
|
|
$
72,836
|
|
$
56,634
|
|
$
52,759
|
|
29 %
|
|
38 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
$
1,607,779
|
|
$
1,544,976
|
|
$
1,267,160
|
|
4 %
|
|
27 %
|
|
Less: average goodwill
& intangibles
|
|
|
(16,742)
|
|
(16,858)
|
|
(17,228)
|
|
-1 %
|
|
-3 %
|
|
Less: average preferred
stock
|
|
|
(499,608)
|
|
(499,608)
|
|
(367,726)
|
|
—
|
|
36 %
|
|
Average tangible common
shareholders' equity
|
|
|
$
1,091,429
|
|
$
1,028,510
|
|
$
882,206
|
|
6 %
|
|
24 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualization
factor
|
|
|
4.00
|
|
4.00
|
|
4.00
|
|
|
|
|
|
Return on average
tangible common shareholders' equity
|
|
|
26.69 %
|
|
22.03 %
|
|
23.92 %
|
|
466
|
bps
|
277
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
$
1,632,715
|
|
$
1,560,300
|
|
$
1,412,590
|
|
5 %
|
|
16 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,676)
|
|
(16,794)
|
|
(17,152)
|
|
-1 %
|
|
-3 %
|
|
Less: preferred
stock
|
|
|
(499,608)
|
|
(499,608)
|
|
(499,520)
|
|
—
|
|
—
|
|
Tangible common
shareholders' equity
|
|
|
$
1,116,431
|
|
$
1,043,898
|
|
$
895,918
|
|
7 %
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
$
16,495,236
|
|
$
15,874,872
|
|
$ 11,978,722
|
|
4 %
|
|
38 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,676)
|
|
(16,794)
|
|
(17,152)
|
|
-1 %
|
|
-3 %
|
|
Tangible
assets
|
|
|
$
16,478,560
|
|
$
15,858,078
|
|
$ 11,961,570
|
|
4 %
|
|
38 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending common
shares
|
|
|
43,240,212
|
|
43,237,300
|
|
43,109,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
|
$
25.82
|
|
$
24.14
|
|
$
20.78
|
|
7 %
|
|
24 %
|
|
Tangible common
shareholders' equity/tangible assets
|
|
|
6.78 %
|
|
6.58 %
|
|
7.49 %
|
|
20
|
bps
|
(71)
|
bps
|
Key Operating
Results
|
(Unaudited)
|
($ in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
$
122,022
|
|
$
98,941
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(before provision for credit losses)
|
|
|
323,746
|
|
223,141
|
|
45 %
|
|
Noninterest
income
|
|
|
80,214
|
|
102,954
|
|
-22 %
|
|
Total income
|
|
|
$
403,960
|
|
$
326,095
|
|
24 %
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
30.21 %
|
|
30.34 %
|
|
(13)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
$ 14,541,523
|
|
$ 10,568,712
|
|
38 %
|
|
Net income
|
|
|
201,761
|
|
162,565
|
|
24 %
|
|
Return on average
assets before annualizing
|
|
|
1.39 %
|
|
1.54 %
|
|
|
|
Annualization
factor
|
|
|
1.33
|
|
1.33
|
|
|
|
Return on average
assets
|
|
|
1.85 %
|
|
2.05 %
|
|
(20)
|
bps
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common shareholders' equity (1)
|
|
|
22.61 %
|
|
23.08 %
|
|
(47)
|
bps
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share (1)
|
|
|
$
25.82
|
|
$
20.78
|
|
24 %
|
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity/tangible assets (1)
|
|
|
6.78 %
|
|
7.49 %
|
|
(71)
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
201,761
|
|
$
162,565
|
|
24 %
|
|
Less: preferred stock
dividends
|
|
|
(26,003)
|
|
(17,186)
|
|
51 %
|
|
Net income available to
common shareholders
|
|
|
$
175,758
|
|
$
145,379
|
|
21 %
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
$
1,550,196
|
|
$
1,219,305
|
|
27 %
|
|
Less: average goodwill
& intangibles
|
|
|
(16,859)
|
|
(17,360)
|
|
-3 %
|
|
Less: average preferred
stock
|
|
|
(499,608)
|
|
(364,028)
|
|
37 %
|
|
Average tangible common
shareholders' equity
|
|
|
$
1,033,729
|
|
$
837,917
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
Annualization
factor
|
|
|
1.33
|
|
1.33
|
|
|
|
Return on average
tangible common shareholders' equity
|
|
|
22.61 %
|
|
23.08 %
|
|
(47)
|
bps
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
$
1,632,715
|
|
$
1,412,590
|
|
16 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,676)
|
|
(17,152)
|
|
-3 %
|
|
Less: preferred
stock
|
|
|
(499,608)
|
|
(499,520)
|
|
—
|
|
Tangible common
shareholders' equity
|
|
|
$
1,116,431
|
|
$
895,918
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
$ 16,495,236
|
|
$ 11,978,722
|
|
38 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,676)
|
|
(17,152)
|
|
-3 %
|
|
Tangible
assets
|
|
|
$ 16,478,560
|
|
$ 11,961,570
|
|
38 %
|
|
|
|
|
|
|
|
|
|
|
Ending common
shares
|
|
|
43,240,212
|
|
43,109,578
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
|
$
25.82
|
|
$
20.78
|
|
24 %
|
|
Tangible common
shareholders' equity/tangible assets
|
|
|
6.78 %
|
|
7.49 %
|
|
(71)
|
bps
|
Merchants
Bancorp
|
Average Balance
Analysis
|
($ in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Septmeber 30,
2023
|
|
June 30,
2023
|
|
September 30,
2022
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits, and other
|
$ 259,630
|
$ 3,923
|
5.99 %
|
|
$ 249,722
|
$
3,335
|
5.36 %
|
|
$
211,653
|
$
1,394
|
2.61 %
|
Securities available
for sale - taxable
|
656,561
|
6,182
|
3.74 %
|
|
672,887
|
5,564
|
3.32 %
|
|
331,796
|
485
|
0.58 %
|
Securities held to
maturity
|
1,040,070
|
17,427
|
6.65 %
|
|
1,093,018
|
17,311
|
6.35 %
|
|
98,363
|
970
|
3.91 %
|
Mortgage loans in
process of securitization
|
208,767
|
2,583
|
4.91 %
|
|
280,092
|
3,127
|
4.48 %
|
|
235,230
|
2,162
|
3.65 %
|
Loans and loans held
for sale
|
13,399,854
|
266,561
|
7.89 %
|
|
11,968,565
|
228,732
|
7.67 %
|
|
10,245,294
|
129,101
|
5.00 %
|
Total interest-earning
assets
|
15,564,882
|
296,676
|
7.56 %
|
|
14,264,284
|
258,069
|
7.26 %
|
|
11,122,336
|
134,112
|
4.78 %
|
Allowance for credit
losses on loans
|
(63,449)
|
|
|
|
(54,411)
|
|
|
|
(39,325)
|
|
|
Noninterest-earning
assets
|
529,582
|
|
|
|
463,384
|
|
|
|
354,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
16,031,015
|
|
|
|
$
14,673,257
|
|
|
|
$
11,437,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
checking
|
4,882,727
|
58,642
|
4.76 %
|
|
4,307,736
|
48,296
|
4.50 %
|
|
4,207,217
|
21,980
|
2.07 %
|
Savings
deposits
|
241,861
|
340
|
0.56 %
|
|
236,012
|
299
|
0.51 %
|
|
239,262
|
162
|
0.27 %
|
Money
market
|
2,798,325
|
33,235
|
4.71 %
|
|
2,749,594
|
30,521
|
4.45 %
|
|
2,523,315
|
13,094
|
2.06 %
|
Certificates of
deposit
|
5,255,573
|
70,689
|
5.34 %
|
|
4,729,242
|
58,685
|
4.98 %
|
|
2,030,152
|
9,766
|
1.91 %
|
Total interest-bearing deposits
|
13,178,486
|
162,906
|
4.90 %
|
|
12,022,584
|
137,801
|
4.60 %
|
|
8,999,946
|
45,002
|
1.98 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
711,948
|
16,334
|
9.10 %
|
|
591,333
|
14,651
|
9.94 %
|
|
588,582
|
3,725
|
2.51 %
|
Total interest-bearing liabilities
|
13,890,434
|
179,240
|
5.12 %
|
|
12,613,917
|
152,452
|
4.85 %
|
|
9,588,528
|
48,727
|
2.02 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
333,155
|
|
|
|
346,837
|
|
|
|
474,925
|
|
|
Noninterest-bearing
liabilities
|
199,647
|
|
|
|
167,527
|
|
|
|
107,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
14,423,236
|
|
|
|
13,128,281
|
|
|
|
10,170,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
1,607,779
|
|
|
|
1,544,976
|
|
|
|
1,267,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
16,031,015
|
|
|
|
$
14,673,257
|
|
|
|
$
11,437,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$ 117,436
|
|
|
|
$ 105,617
|
|
|
|
$
85,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
2.44 %
|
|
|
|
2.41 %
|
|
|
|
2.77 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets
|
$
1,674,448
|
|
|
|
$
1,650,367
|
|
|
|
$ 1,533,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.99 %
|
|
|
|
2.97 %
|
|
|
|
3.05 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to
average interest-bearing liabilities
|
|
|
112.05 %
|
|
|
|
113.08 %
|
|
|
|
116.00 %
|
Supplemental
Results
|
(Unaudited)
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
Net
Income
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family Mortgage
Banking
|
|
|
|
$
14,685
|
|
$
11,242
|
|
$
13,366
|
|
$
27,893
|
|
$
44,414
|
|
Mortgage
Warehousing
|
|
|
|
19,926
|
|
18,596
|
|
11,801
|
|
47,163
|
|
36,828
|
|
Banking
|
|
|
|
52,445
|
|
42,650
|
|
39,344
|
|
144,402
|
|
94,040
|
|
Other
|
|
|
|
(5,552)
|
|
(7,186)
|
|
(6,023)
|
|
(17,697)
|
|
(12,717)
|
|
Total
|
|
|
|
$
81,504
|
|
$
65,302
|
|
$
58,488
|
|
$
201,761
|
|
$
162,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family Mortgage
Banking
|
|
|
|
$
392,754
|
|
$
373,680
|
|
$
351,274
|
|
|
|
|
|
Mortgage
Warehousing
|
|
|
|
4,757,817
|
|
4,474,832
|
|
2,519,810
|
|
|
|
|
|
Banking
|
|
|
|
11,135,651
|
|
10,784,596
|
|
9,587,544
|
|
|
|
|
|
Other
|
|
|
|
209,014
|
|
241,764
|
|
156,599
|
|
|
|
|
|
Total
|
|
|
|
$
16,495,236
|
|
$ 15,874,872
|
|
$
12,615,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Sale of
Loans
|
|
Gain on Sale of
Loans
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Loan
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
|
8,616
|
|
$
10,361
|
|
$
12,002
|
|
$
23,897
|
|
$
46,578
|
|
Single-family
|
|
|
|
951
|
|
202
|
|
138
|
|
1,430
|
|
1,001
|
|
Small Business
Association (SBA)
|
|
|
|
1,191
|
|
787
|
|
1,214
|
|
3,514
|
|
5,304
|
|
Total
|
|
|
|
$
10,758
|
|
$
11,350
|
|
$
13,354
|
|
$
28,841
|
|
$
52,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable and
Loans Held for Sale
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage warehouse
lines of credit
|
|
|
|
$
1,022,692
|
|
$
1,201,932
|
|
$
464,785
|
|
|
|
|
|
Residential real
estate
|
|
|
|
1,358,908
|
|
1,342,586
|
|
1,178,401
|
|
|
|
|
|
Multi-family
financing
|
|
|
|
3,709,320
|
|
3,746,333
|
|
3,135,535
|
|
|
|
|
|
Healthcare
financing
|
|
|
|
2,218,559
|
|
2,128,378
|
|
1,604,341
|
|
|
|
|
|
Commercial and
commercial real estate (1)(2)
|
|
|
|
1,560,031
|
|
1,394,256
|
|
978,661
|
|
|
|
|
|
Agricultural production
and real estate
|
|
|
|
96,490
|
|
91,599
|
|
95,651
|
|
|
|
|
|
Consumer and margin
loans
|
|
|
|
11,545
|
|
11,920
|
|
13,498
|
|
|
|
|
|
|
|
|
|
9,977,545
|
|
9,917,004
|
|
7,470,872
|
|
|
|
|
|
Less: Allowance for credit losses on loans
|
|
|
66,864
|
|
62,986
|
|
44,014
|
|
|
|
|
|
Loans
receivable
|
|
|
|
$
9,910,681
|
|
$
9,854,018
|
|
$
7,426,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
|
|
3,477,036
|
|
3,058,013
|
|
2,910,576
|
|
|
|
|
|
Total loans, net of
allowance
|
|
|
|
$
13,387,717
|
|
$ 12,912,031
|
|
$
10,337,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $1.0 billion,
$894.7 million and $497.0 million of revolving lines of
credit collateralized primarily by mortgage servicing rights as of
September 30, 2023, June 30, 2023 and December 31, 2022,
respectively.
|
|
(2) Includes only $8.1
million, $8.3 million and $12.8 million of non-owner occupied
commerical real estate as of September 30, 2023, June 30, 2023 and
December 31, 2022, respectively.
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/merchants-bancorp-reports-third-quarter-2023-results-301969179.html
SOURCE Merchants Bancorp