- Full year 2023 net income of $279.2
million set a new Company record, increasing 27% compared to
2022.
- Full year 2023 diluted earnings per common share of
$5.64 reached the highest level in
Company history and increased 26% compared to 2022.
- Fourth quarter 2023 net income of $77.5
million increased 36% compared to fourth quarter of 2022 and
decreased 5% compared to the third quarter 2023.
- Fourth quarter 2023 diluted earnings per common share of
$1.58 increased 41% compared to the
fourth quarter of 2022 and decreased 6% compared to the third
quarter of 2023.
- Total assets of $17.0 billion
surpassed any level previously reported by the Company, increasing
34% compared to December 31, 2022 and
increasing 3% compared to September 30,
2023.
- As of December 31, 2023, the
Company had a record-level of $6.0
billion in unused borrowing capacity with the Federal Home
Loan Bank and the Federal Reserve Discount window, representing 36%
of total assets.
- 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 repurchase agreements included in loans receivable.
Taken together, with unused borrowing capacity, these totaled
$10.6 billion, or 62%, of the
$17.0 billion in total assets as of
December 31, 2023.
- Loans receivable of $10.1
billion, net of allowance for credit losses on loans,
increased $217.1 million, or 2%,
compared to September 30, 2023, and
increased $2.7 billion, or 36%,
compared to December 31, 2022.
- Efficiency ratio was 33.1% in the fourth quarter of 2023
compared to 31.3% in the fourth quarter of 2022 and 28.0% in the
third quarter of 2023.
- Tangible book value per common share of $27.40 increased 25% compared to $21.88 in the fourth quarter of 2022 and
increased 6% compared to $25.82 in
the third quarter of 2023.
- The previously announced agreements to sell several
Illinois bank branches were
granted regulatory approval in January
2024 and the transactions were completed on January 26, 2024.
CARMEL,
Ind., Jan. 29, 2024 /PRNewswire/ -- Merchants
Bancorp (the "Company" or "Merchants") (Nasdaq: MBIN), parent
company of Merchants Bank of Indiana, today reported fourth quarter 2023
net income of $77.5 million, or
diluted earnings per common share of $1.58. This compared to $57.2 million, or diluted earnings per common
share of $1.12 in the fourth quarter
of 2022, and compared to $81.5
million, or diluted earnings per common share of
$1.68 in the third quarter of
2023.
"While 2023 was a turbulent environment for the financial
industry, we continued to deliver unmatched financial solutions
that improve the quality of life in the communities we serve.
Through the hard work of our entire Merchants team, we achieved
significant success, with 34% growth in assets, 26% growth in
earnings per share, and 25% growth in tangible book value that
reached a record level of $27.40 per
share, just to name a few. We strive to be at the forefront of
industry trends and are poised to be strategically positioned for
the future," said Michael F. Petrie,
Chairman and CEO of Merchants.
Michael J. Dunlap, President and
Chief Operating Officer of Merchants, added, "By continuously
executing on our vision, mission and values throughout 2023, we
achieved record results that surpassed our expectations. We are
grateful to all our employees for fostering long-term
relationships, providing innovative products, and delivering
unparalleled service that adds value to our customers."
Net income of $77.5 million for
the fourth quarter 2023 increased by $20.3
million, or 36%, compared to the fourth quarter of 2022,
primarily driven by a $28.9 million,
or 30%, increase in net interest income. Results for the fourth
quarter 2023 included a $7.6 million
negative fair market value adjustment to servicing rights compared
to a $0.2 million negative adjustment
in the fourth quarter of 2022.
Net income of $77.5 million for
the fourth quarter 2023 decreased by $4.0
million, or 5%, compared to the third quarter of 2023,
primarily driven by a $9.6 million,
or 22%, increase in noninterest expense and a $1.6 million, or 4%, decrease in noninterest
income that were partially offset by a $6.9
million, or 6%, increase in net interest income.
Noninterest income for the fourth quarter 2023 included a
$7.6 million negative fair market
value adjustment to servicing rights compared to a $11.6 million positive fair market value
adjustment to servicing rights in the third quarter 2023.
Total Assets
Total assets of $17.0 billion at December
31, 2023 increased $457.3
million, or 3%, compared to September
30, 2023, and increased $4.3
billion, or 34%, compared to December
31, 2022. The increase compared to December 31, 2022 was primarily due to
significant growth in the multi-family, healthcare, commercial
lines of credit on collateralized mortgage servicing rights, and
warehouse repurchase agreement portfolios.
Return on average assets was 1.86% for the fourth quarter of
2023 compared to 1.84% for the fourth quarter of 2022 and 2.03% for
the third quarter of 2023.
Asset Quality
The allowance for credit losses on loans
of $71.8 million, as of December 31, 2023, increased $4.9 million, or 7%, compared to September 30, 2023 and increased $27.7 million, or 63%, compared to December 31, 2022. The increase compared to
September 30, 2023 was primarily in
the healthcare financing portfolio, due to a combination of
specific reserves, loan growth, and changes in qualitative loss
factors. The increase compared to December 31, 2022 was primarily due to loan
growth in the period, as well as increases in qualitative factors
to reflect changes in industry conditions, in addition to credit
events that were recorded during the second quarter 2023. The
Company experienced charge offs of $238,000 and recoveries of $1,000 during the fourth quarter 2023.
Non-performing loans were $82.0
million, or 0.80% of loans receivable before the allowance
for credit losses on loans, as of December
31, 2023 compared to $60.2
million, or 0.60%, as of September
30, 2023, and $26.7 million,
or 0.36%, as of December 31,
2022. The increase in non-performing loans compared to
September 30, 2023 was primarily due
to three customers.
Securities Available for Sale
Total securities
available for sale of $1.1 billion as
of December 31, 2023 increased
$489.1 million, or 78%, compared to
September 30, 2023, and increased
$790.4 million, or 244%, compared to
December 31, 2022.
The increases in securities available for sale compared to both
periods were primarily associated with the acquisition of certain
securities from a warehouse customer that provide protective put
options and interest rate floor derivatives to prevent losses in
value.
As of December 31, 2023,
Accumulated Other Comprehensive Losses ("AOCL") of $2.5 million, related to securities available for
sale, decreased $2.3 million, or 48%,
compared to September 30, 2023, and
decreased $8.0 million, or 76%,
compared to December 31, 2022.
The $2.5 million of AOCL as of
December 31, 2023 represented less
than 1% of total equity and less than 1% of total investment
securities.
Total Deposits
Total deposits of $14.1 billion at December
31, 2023 increased $1.1
billion compared to September 30,
2023, and increased $4.0
billion, or 40%, compared to December
31, 2022. The change compared to September 30, 2023 was primarily due to increases
in brokered demand deposit accounts. The change compared to
December 31, 2022 was primarily due
to increases in brokered certificates of deposit accounts.
Total brokered deposits of $6.0
billion at December 31, 2023
increased $1.6 billion, or 36%, from
September 30, 2023 and increased
$3.2 billion, or 116%, from
December 31, 2022.
Brokered deposits represented 42% of total deposits at
December 31, 2023 compared to 34% of
total deposits at September 30, 2023
and 27% of total deposits at December
31, 2022. As of December 31,
2023, brokered certificates of deposit had a weighted
average remaining duration of 55 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 December 31, 2023, deposit balances in Flex CD
products increased by $324.8 million,
or 222%, 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 $1.6
billion as of December 31,
2023 compared to $1.8 billion
at September 30, 2023 and
$1.5 billion at December 31, 2022, and has contributed to the
Company's low level of uninsured deposits, which were below 20% of
total deposits.
Liquidity
Cash balances of $584.4 million as of December 31, 2023 increased by $177.2 million compared to September 30, 2023 and increased by $358.3 million compared to December 31, 2022. The Company continues to
have significant borrowing capacity, with unused lines of credit
totaling $6.0 billion as of
December 31, 2023 compared to
$5.4 billion at September 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
December 31,
2023 and 2022
Net Interest Income of $124.3
million increased $28.9
million, or 30%, compared to $95.4
million, reflecting higher yields and average balances on
loans and loans held for sale, and higher average 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 2.48% decreased 21 basis points
compared to 2.69%.
- Net interest margin of 3.05% decreased 8 basis points compared
to 3.13%.
Interest Income of $311.8
million increased 72% compared to $181.4 million, reflecting an increase in both
yields and average balances of loans and loans held for sale, as
well as higher yields in securities held to maturity and securities
available for sale.
- Average balances of $13.7 billion
for loans and loans held for sale increased 33% compared to
$10.3 billion.
- Average yield on loans and loans held for sale of 7.98%
increased 164 basis points compared to 6.34%.
Interest Expense of $187.4
million increased $101.4
million, or 118%, compared to $86.0
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 interest-bearing checking accounts.
- Average balances of $13.7 billion
for interest-bearing deposits increased 37% compared to
$10.0 billion.
- Average interest rates of 4.98% for interest-bearing deposits
increased 176 basis points compared to 3.22%.
Noninterest Income of $34.5
million increased $11.5
million, or 50%, compared to $23.0
million, primarily due to an $8.1
million, or 72%, increase in gain on sale of loans and a
$6.7 million, or 180%, increase in
other income. These increases were partially offset by a
$4.9 million, or 180%, decrease in
loan servicing fees.
- The increase in gain on sale of loans was associated with
significant growth in production volume of multi-family loans that
were sold in the secondary market.
- The increase in other income reflected a $6.6 million benefit to record the value of a
protective interest rate floor derivative that was provided with
the acquisition of certain securities available for sale.
- Loan servicing fees included a $7.6
million negative fair market value adjustment to servicing
rights, with a $1.1 million negative
adjustment in the Banking segment and a $6.5
million negative adjustment in the Multi-family Mortgage
Banking segment. This compared to a $0.2
million negative fair market value adjustment to mortgage
servicing rights in the prior period, of which $0.6 million negative adjustment in the Banking
segment and $0.4 million positive
adjustment in the Multi-family Mortgage Banking segment.
Noninterest Expense of $52.6
million increased $15.5
million, or 42%, compared to $37.1
million primarily due to increases in salaries and employee
benefits associated with higher commissions on higher production
volume, as well as increases in deposit insurance expense.
- The efficiency ratio of 33.1% increased 177 basis points
compared to 31.3%.
Comparison of Operating Results for the Three
Months Ended
December 31,
2023 and September 30,
2023
Net Interest Income of $124.3
million increased $6.9
million, or 6%, compared to $117.4
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.
- Interest rate spread of 2.48% increased 4 basis points compared
to 2.44%.
- Net interest margin of 3.05% increased 6 basis points compared
to 2.99%.
Interest Income of $311.8
million increased $15.1
million, or 5%, compared to $296.7
million, reflecting an increase in average balances and
yields on loans and loans held for sale.
- Average balances of $13.7 billion
for loans and loans held for sale increased 2% compared to
$13.4 billion.
- Average yield on loans and loans held for sale of 7.98%
increased 9 basis points compared to 7.89%.
Interest Expense of $187.4
million increased $8.2
million, or 5%, compared to $179.2
million. The increase was primarily due to higher average
balances and rates on interest-bearing checking accounts, as well
as higher rates on certificates of deposit. The increases
were partially offset by lower average balances of certificates of
deposits and lower rates on borrowings.
- Average balances of $13.7 billion
for interest-bearing deposits increased 4% compared to $13.2 billion.
- Average interest rates of 4.98% for interest-bearing deposits
increased 8 basis points compared to 4.90%.
Noninterest Income of $34.5
million decreased $1.6
million, or 4%, compared $36.1
million, primarily due to a $19.6
million, or 112%, decrease in loan servicing fees, partially
offset by an increase of $8.6
million, or 80%, in gain on sale and a $6.7 million, or 182%, increase in other
income.
- Loan servicing fees included a $7.6
million negative fair market value adjustment to servicing
rights, with a $1.1 million negative
adjustment in the Banking segment and a $6.5
million negative adjustment in the Multi-family Mortgage
Banking segment. This compared to a $11.6
million positive fair market value adjustment to servicing
rights in the prior period, 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.
- The increase in gain on sale of loans was associated with
significant growth in production volume of multi-family loans that
were sold in the secondary market.
- The increase in other income reflected a $6.6 million benefit to record the value of a
protective interest rate floor derivative that was provided with
the acquisition of certain securities available for sale.
Noninterest Expense of $52.6
million increased $9.6
million, or 22%, primarily due to increases in salaries and
employee benefits associated with higher commissions on higher
production volume, as well as increases in professional fees.
- The efficiency ratio of 33.1% increased 514 basis points
compared to 28.0%.
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 $17.0 billion in assets and $14.1 billion in deposits as of December 31, 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, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
15,592
|
|
$
10,633
|
|
$
15,390
|
|
$
19,002
|
|
$
22,170
|
Interest-earning demand
accounts
|
|
568,830
|
|
396,605
|
|
361,920
|
|
350,584
|
|
203,994
|
Cash and cash
equivalents
|
|
584,422
|
|
407,238
|
|
377,310
|
|
369,586
|
|
226,164
|
Securities purchased
under agreements to resell
|
|
3,349
|
|
3,385
|
|
3,412
|
|
3,438
|
|
3,464
|
Mortgage loans in
process of securitization
|
|
110,599
|
|
476,047
|
|
298,907
|
|
197,074
|
|
154,194
|
Securities available
for sale ($722,497 utilizing fair value option at
December 31, 2023)
|
|
1,113,687
|
|
624,586
|
|
648,003
|
|
679,518
|
|
323,337
|
Securities held to
maturity ($1,203,535, $1,010,745, $1,058,590,
$1,106,582 and $1,118,966 at fair value, respectively)
|
|
1,204,217
|
|
1,012,801
|
|
1,062,017
|
|
1,104,835
|
|
1,119,078
|
Federal Home Loan Bank
(FHLB) stock
|
|
48,578
|
|
48,219
|
|
39,130
|
|
39,130
|
|
39,130
|
Loans held for sale
(includes $86,663, $90,875, $82,931, $85,516
and $82,192 at fair value, respectively)
|
|
3,144,756
|
|
3,477,036
|
|
3,058,013
|
|
2,855,250
|
|
2,910,576
|
Loans receivable, net
of allowance for credit losses on loans of
$71,752, $66,864, $62,986, $51,838 and $44,014,
respectively
|
|
10,127,801
|
|
9,910,681
|
|
9,854,018
|
|
8,575,210
|
|
7,426,858
|
Premises and equipment,
net
|
|
42,342
|
|
36,730
|
|
36,947
|
|
35,793
|
|
35,438
|
Servicing
rights
|
|
158,457
|
|
162,141
|
|
147,288
|
|
143,867
|
|
146,248
|
Interest
receivable
|
|
91,346
|
|
78,401
|
|
70,509
|
|
64,282
|
|
56,262
|
Goodwill
|
|
15,845
|
|
15,845
|
|
15,845
|
|
15,845
|
|
15,845
|
Intangible assets,
net
|
|
742
|
|
831
|
|
949
|
|
1,068
|
|
1,186
|
Other assets and
receivables
|
|
306,375
|
|
241,295
|
|
262,524
|
|
156,070
|
|
157,447
|
Total assets
|
|
$
16,952,516
|
|
$
16,495,236
|
|
$
15,874,872
|
|
$
14,240,966
|
|
$
12,615,227
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
520,070
|
|
$
287,846
|
|
$
349,387
|
|
$
313,733
|
|
$
326,875
|
Interest-bearing
|
|
13,541,390
|
|
12,719,492
|
|
12,710,477
|
|
11,031,498
|
|
9,744,470
|
Total
deposits
|
|
14,061,460
|
|
13,007,338
|
|
13,059,864
|
|
11,345,231
|
|
10,071,345
|
Borrowings
|
|
964,127
|
|
1,654,075
|
|
1,016,836
|
|
1,233,762
|
|
930,392
|
Deferred and current
tax liabilities, net
|
|
19,923
|
|
18,006
|
|
16,084
|
|
32,827
|
|
19,613
|
Other
liabilities
|
|
205,922
|
|
183,102
|
|
221,788
|
|
123,462
|
|
134,138
|
Total
liabilities
|
|
15,251,432
|
|
14,862,521
|
|
14,314,572
|
|
12,735,282
|
|
11,155,488
|
Commitments
and Contingencies
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
Common stock, without
par value
|
|
|
|
|
|
|
|
|
|
|
Authorized - 75,000,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and
outstanding - 43,242,928 shares, 43,240,212 shares,
43,237,300 shares, 43,233,618 shares and 43,113,127
shares
|
|
140,365
|
|
139,609
|
|
138,853
|
|
138,105
|
|
137,781
|
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
|
|
137,459
|
Retained
earnings
|
|
1,063,599
|
|
998,252
|
|
928,875
|
|
875,700
|
|
832,871
|
Accumulated other
comprehensive loss
|
|
(2,488)
|
|
(4,754)
|
|
(7,036)
|
|
(7,729)
|
|
(10,521)
|
Total shareholders'
equity
|
|
1,701,084
|
|
1,632,715
|
|
1,560,300
|
|
1,505,684
|
|
1,459,739
|
Total liabilities and
shareholders' equity
|
|
$
16,952,516
|
|
$
16,495,236
|
|
$
15,874,872
|
|
$
14,240,966
|
|
$
12,615,227
|
Consolidated
Statement of Income
|
(Unaudited)
|
(In thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Change
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
4Q23
|
|
4Q23
|
|
|
2023
|
|
2023
|
|
2022
|
|
vs.
3Q23
|
|
vs.
4Q22
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
274,971
|
|
$
|
266,561
|
|
$
|
164,682
|
|
3 %
|
|
67 %
|
Mortgage loans in
process of securitization
|
|
|
5,294
|
|
|
2,583
|
|
|
2,551
|
|
105 %
|
|
108 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for
sale
|
|
|
7,609
|
|
|
6,182
|
|
|
704
|
|
23 %
|
|
981 %
|
Held to
maturity
|
|
|
19,491
|
|
|
17,427
|
|
|
11,412
|
|
12 %
|
|
71 %
|
Federal Home Loan Bank
stock
|
|
|
735
|
|
|
572
|
|
|
288
|
|
28 %
|
|
155 %
|
Other
|
|
|
3,659
|
|
|
3,351
|
|
|
1,802
|
|
9 %
|
|
103 %
|
Total interest
income
|
|
|
311,759
|
|
|
296,676
|
|
|
181,439
|
|
5 %
|
|
72 %
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
172,061
|
|
|
162,906
|
|
|
81,062
|
|
6 %
|
|
112 %
|
Borrowed
funds
|
|
|
15,373
|
|
|
16,334
|
|
|
4,967
|
|
-6 %
|
|
210 %
|
Total interest
expense
|
|
|
187,434
|
|
|
179,240
|
|
|
86,029
|
|
5 %
|
|
118 %
|
Net Interest
Income
|
|
|
124,325
|
|
|
117,436
|
|
|
95,410
|
|
6 %
|
|
30 %
|
Provision for credit
losses
|
|
|
6,747
|
|
|
4,014
|
|
|
6,407
|
|
68 %
|
|
5 %
|
Net Interest Income
After Provision for Credit Losses
|
|
|
117,578
|
|
|
113,422
|
|
|
89,003
|
|
4 %
|
|
32 %
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
loans
|
|
|
19,342
|
|
|
10,758
|
|
|
11,267
|
|
80 %
|
|
72 %
|
Loan servicing fees,
net
|
|
|
(2,162)
|
|
|
17,384
|
|
|
2,691
|
|
-112 %
|
|
-180 %
|
Mortgage warehouse
fees
|
|
|
1,950
|
|
|
1,858
|
|
|
1,081
|
|
5 %
|
|
80 %
|
Syndication and asset
management fees
|
|
|
4,879
|
|
|
2,368
|
|
|
4,207
|
|
106 %
|
|
16 %
|
Other income
|
|
|
10,445
|
|
|
3,700
|
|
|
3,736
|
|
182 %
|
|
180 %
|
Total noninterest
income
|
|
|
34,454
|
|
|
36,068
|
|
|
22,982
|
|
-4 %
|
|
50 %
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
33,259
|
|
|
27,052
|
|
|
22,290
|
|
23 %
|
|
49 %
|
Loan
expenses
|
|
|
660
|
|
|
1,038
|
|
|
1,082
|
|
-36 %
|
|
-39 %
|
Occupancy and
equipment
|
|
|
2,336
|
|
|
2,196
|
|
|
2,377
|
|
6 %
|
|
-2 %
|
Professional
fees
|
|
|
4,157
|
|
|
2,555
|
|
|
3,739
|
|
63 %
|
|
11 %
|
Deposit insurance
expense
|
|
|
4,030
|
|
|
3,568
|
|
|
1,279
|
|
13 %
|
|
215 %
|
Technology
expense
|
|
|
1,758
|
|
|
1,609
|
|
|
1,417
|
|
9 %
|
|
24 %
|
Other
expense
|
|
|
6,379
|
|
|
4,912
|
|
|
4,925
|
|
30 %
|
|
30 %
|
Total noninterest
expense
|
|
|
52,579
|
|
|
42,930
|
|
|
37,109
|
|
22 %
|
|
42 %
|
Income Before Income
Taxes
|
|
|
99,453
|
|
|
106,560
|
|
|
74,876
|
|
-7 %
|
|
33 %
|
Provision for income
taxes
|
|
|
21,980
|
|
|
25,056
|
|
|
17,720
|
|
-12 %
|
|
24 %
|
Net
Income
|
|
$
|
77,473
|
|
$
|
81,504
|
|
$
|
57,156
|
|
-5 %
|
|
36 %
|
Dividends
on preferred stock
|
|
|
(8,667)
|
|
|
(8,668)
|
|
|
(8,797)
|
|
—
|
|
-1 %
|
Net Income Allocated
to Common Shareholders
|
|
$
|
68,806
|
|
$
|
72,836
|
|
$
|
48,359
|
|
-6 %
|
|
42 %
|
Basic Earnings Per
Share
|
|
$
|
1.59
|
|
$
|
1.68
|
|
$
|
1.12
|
|
-5 %
|
|
42 %
|
Diluted Earnings Per
Share
|
|
$
|
1.58
|
|
$
|
1.68
|
|
$
|
1.12
|
|
-6 %
|
|
41 %
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,241,600
|
|
|
43,238,724
|
|
|
43,111,353
|
|
|
|
|
Diluted
|
|
|
43,430,973
|
|
|
43,351,208
|
|
|
43,274,758
|
|
|
|
|
Consolidated
Statement of Income
|
(Unaudited)
|
(In thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
Interest
Income
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
959,714
|
|
$
|
451,973
|
|
112 %
|
Mortgage loans in
process of securitization
|
|
|
12,652
|
|
|
8,407
|
|
50 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
Available for
sale
|
|
|
21,621
|
|
|
2,807
|
|
670 %
|
Held to
maturity
|
|
|
69,983
|
|
|
12,382
|
|
465 %
|
Federal Home Loan Bank
stock
|
|
|
2,205
|
|
|
1,220
|
|
81 %
|
Other
|
|
|
11,623
|
|
|
4,044
|
|
187 %
|
Total interest
income
|
|
|
1,077,798
|
|
|
480,833
|
|
124 %
|
Interest
Expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
577,210
|
|
|
149,645
|
|
286 %
|
Borrowed
funds
|
|
|
52,517
|
|
|
12,637
|
|
316 %
|
Total interest
expense
|
|
|
629,727
|
|
|
162,282
|
|
288 %
|
Net Interest
Income
|
|
|
448,071
|
|
|
318,551
|
|
41 %
|
Provision for credit
losses
|
|
|
40,231
|
|
|
17,295
|
|
133 %
|
Net Interest Income
After Provision for Credit Losses
|
|
|
407,840
|
|
|
301,256
|
|
35 %
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
Gain on sale of
loans
|
|
|
48,183
|
|
|
64,150
|
|
-25 %
|
Loan servicing fees,
net
|
|
|
26,198
|
|
|
30,198
|
|
-13 %
|
Mortgage warehouse
fees
|
|
|
7,701
|
|
|
5,394
|
|
43 %
|
Syndication and asset
management fees
|
|
|
12,355
|
|
|
9,493
|
|
30 %
|
Other income
|
|
|
20,231
|
|
|
16,701
|
|
21 %
|
Total noninterest
income
|
|
|
114,668
|
|
|
125,936
|
|
-9 %
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
108,181
|
|
|
89,085
|
|
21 %
|
Loan
expenses
|
|
|
3,409
|
|
|
4,703
|
|
-28 %
|
Occupancy and
equipment
|
|
|
9,220
|
|
|
8,169
|
|
13 %
|
Professional
fees
|
|
|
12,704
|
|
|
9,065
|
|
40 %
|
Deposit insurance
expense
|
|
|
13,582
|
|
|
3,463
|
|
292 %
|
Technology
expense
|
|
|
6,515
|
|
|
5,282
|
|
23 %
|
Other
expense
|
|
|
20,990
|
|
|
16,283
|
|
29 %
|
Total noninterest
expense
|
|
|
174,601
|
|
|
136,050
|
|
28 %
|
Income Before Income
Taxes
|
|
|
347,907
|
|
|
291,142
|
|
19 %
|
Provision for income
taxes
|
|
|
68,673
|
|
|
71,421
|
|
-4 %
|
Net
Income
|
|
$
|
279,234
|
|
$
|
219,721
|
|
27 %
|
Dividends
on preferred stock
|
|
|
(34,670)
|
|
|
(25,983)
|
|
33 %
|
Net Income Allocated
to Common Shareholders
|
|
$
|
244,564
|
|
$
|
193,738
|
|
26 %
|
Basic Earnings Per
Share
|
|
$
|
5.66
|
|
$
|
4.49
|
|
26 %
|
Diluted Earnings Per
Share
|
|
$
|
5.64
|
|
$
|
4.47
|
|
26 %
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,224,042
|
|
|
43,164,477
|
|
|
Diluted
|
|
|
43,345,799
|
|
|
43,316,904
|
|
|
Key Operating
Results
|
(Unaudited)
|
($ in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Change
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
4Q23
|
|
4Q23
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
vs.
3Q23
|
|
vs.
4Q22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
$
52,579
|
|
$
42,930
|
|
$
37,109
|
|
22 %
|
|
42 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(before provision for credit losses)
|
|
|
124,325
|
|
117,436
|
|
95,410
|
|
6 %
|
|
30 %
|
|
Noninterest
income
|
|
|
34,454
|
|
36,068
|
|
22,982
|
|
-4 %
|
|
50 %
|
|
Total income
|
|
|
$
158,779
|
|
$
153,504
|
|
$
118,392
|
|
3 %
|
|
34 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
33.11 %
|
|
27.97 %
|
|
31.34 %
|
|
514
|
bps
|
177
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
$
16,671,484
|
|
$
16,031,015
|
|
$
12,457,893
|
|
4 %
|
|
34 %
|
|
Net income
|
|
|
77,473
|
|
81,504
|
|
57,156
|
|
-5 %
|
|
36 %
|
|
Return on average
assets before annualizing
|
|
|
0.46 %
|
|
0.51 %
|
|
0.46 %
|
|
|
|
|
|
Annualization
factor
|
|
|
4.00
|
|
4.00
|
|
4.00
|
|
|
|
|
|
Return on average
assets
|
|
|
1.86 %
|
|
2.03 %
|
|
1.84 %
|
|
(17)
|
bps
|
2
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common shareholders' equity (1)
|
|
|
23.60 %
|
|
26.69 %
|
|
20.81 %
|
|
(309)
|
bps
|
279
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share (1)
|
|
|
$
27.40
|
|
$
25.82
|
|
$
21.88
|
|
6 %
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity/tangible assets (1)
|
|
|
7.00 %
|
|
6.78 %
|
|
7.49 %
|
|
22
|
bps
|
(49)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
capital/risk-weighted assets(2)
|
|
|
11.6
|
%
|
11.5
|
%
|
12.2
|
%
|
|
|
|
Tier I
capital/risk-weighted assets(2)
|
|
|
11.1
|
%
|
10.9
|
%
|
11.7
|
%
|
|
|
|
Common Equity
Tier I capital/risk-weighted assets(2)
|
|
|
7.8
|
%
|
7.6
|
%
|
7.7
|
%
|
|
|
|
Tier I
capital/average assets(2)
|
|
|
10.1
|
%
|
10.1
|
%
|
11.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial
measure - see "Reconciliation of Non-GAAP Measures"
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) As defined by
regulatory agencies; December 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
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
4Q23
|
|
4Q23
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
vs.
3Q23
|
|
vs.
4Q22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
77,473
|
|
$
81,504
|
|
$
57,156
|
|
-5 %
|
|
36 %
|
|
Less: preferred stock
dividends
|
|
|
(8,667)
|
|
(8,668)
|
|
(8,797)
|
|
—
|
|
-1 %
|
|
Net income available to
common shareholders
|
|
|
$
68,806
|
|
$
72,836
|
|
$
48,359
|
|
-6 %
|
|
42 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
$
1,682,270
|
|
$
1,607,779
|
|
$ 1,445,995
|
|
5 %
|
|
16 %
|
|
Less: average goodwill
& intangibles
|
|
|
(16,629)
|
|
(16,742)
|
|
(17,094)
|
|
-1 %
|
|
-3 %
|
|
Less: average preferred
stock
|
|
|
(499,608)
|
|
(499,608)
|
|
(499,529)
|
|
—
|
|
—
|
|
Average tangible common
shareholders' equity
|
|
|
$
1,166,033
|
|
$
1,091,429
|
|
$
929,372
|
|
7 %
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualization
factor
|
|
|
4.00
|
|
4.00
|
|
4.00
|
|
|
|
|
|
Return on average
tangible common shareholders' equity
|
|
|
23.60 %
|
|
26.69 %
|
|
20.81 %
|
|
(309)
|
bps
|
279
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
$
1,701,084
|
|
$
1,632,715
|
|
$ 1,459,739
|
|
4 %
|
|
17 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,587)
|
|
(16,676)
|
|
(17,031)
|
|
-1 %
|
|
-3 %
|
|
Less: preferred
stock
|
|
|
(499,608)
|
|
(499,608)
|
|
(499,608)
|
|
—
|
|
—
|
|
Tangible common
shareholders' equity
|
|
|
$
1,184,889
|
|
$
1,116,431
|
|
$
943,100
|
|
6 %
|
|
26 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
$
16,952,516
|
|
$
16,495,236
|
|
$
12,615,227
|
|
3 %
|
|
34 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,587)
|
|
(16,676)
|
|
(17,031)
|
|
-1 %
|
|
-3 %
|
|
Tangible
assets
|
|
|
$
16,935,929
|
|
$
16,478,560
|
|
$
12,598,196
|
|
3 %
|
|
34 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending common
shares
|
|
|
43,242,928
|
|
43,240,212
|
|
43,113,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
|
$
27.40
|
|
$
25.82
|
|
$
21.88
|
|
6 %
|
|
25 %
|
|
Tangible common
shareholders' equity/tangible assets
|
|
|
7.00 %
|
|
6.78 %
|
|
7.49 %
|
|
22
|
bps
|
(49)
|
bps
|
Key Operating
Results
|
(Unaudited)
|
($ in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
$
174,601
|
|
$
136,050
|
|
28 %
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(before provision for credit losses)
|
|
|
448,071
|
|
318,551
|
|
41 %
|
|
Noninterest
income
|
|
|
114,668
|
|
125,936
|
|
-9 %
|
|
Total income
|
|
|
$
562,739
|
|
$
444,487
|
|
27 %
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
31.03 %
|
|
30.61 %
|
|
42
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
$
15,078,390
|
|
$
11,044,889
|
|
37 %
|
|
Net income
|
|
|
279,234
|
|
219,721
|
|
27 %
|
|
Return on average
assets before annualizing
|
|
|
1.85 %
|
|
1.99 %
|
|
|
|
Annualization
factor
|
|
|
1.00
|
|
1.00
|
|
|
|
Return on average
assets
|
|
|
1.85 %
|
|
1.99 %
|
|
(14)
|
bps
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common shareholders' equity (1)
|
|
|
22.92 %
|
|
22.50 %
|
|
42
|
bps
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share (1)
|
|
|
$
27.40
|
|
$
21.88
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity/tangible assets (1)
|
|
|
7.00 %
|
|
7.49 %
|
|
(49)
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
279,234
|
|
$
219,721
|
|
27 %
|
|
Less: preferred stock
dividends
|
|
|
(34,670)
|
|
(25,983)
|
|
33 %
|
|
Net income available to
common shareholders
|
|
|
$
244,564
|
|
$
193,738
|
|
26 %
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
$ 1,583,485
|
|
$ 1,276,443
|
|
24 %
|
|
Less: average goodwill
& intangibles
|
|
|
(16,801)
|
|
(17,293)
|
|
-3 %
|
|
Less: average preferred
stock
|
|
|
(499,608)
|
|
(398,182)
|
|
25 %
|
|
Average tangible common
shareholders' equity
|
|
|
$ 1,067,076
|
|
$
860,968
|
|
24 %
|
|
|
|
|
|
|
|
|
|
|
Annualization
factor
|
|
|
1.00
|
|
1.00
|
|
|
|
Return on average
tangible common shareholders' equity
|
|
|
22.92 %
|
|
22.50 %
|
|
42
|
bps
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
$ 1,701,084
|
|
$ 1,459,739
|
|
17 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,587)
|
|
(17,031)
|
|
-3 %
|
|
Less: preferred
stock
|
|
|
(499,608)
|
|
(499,608)
|
|
—
|
|
Tangible common
shareholders' equity
|
|
|
$ 1,184,889
|
|
$
943,100
|
|
26 %
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
$
16,952,516
|
|
$
12,615,227
|
|
34 %
|
|
Less: goodwill and
intangibles
|
|
|
(16,587)
|
|
(17,031)
|
|
-3 %
|
|
Tangible
assets
|
|
|
$
16,935,929
|
|
$
12,598,196
|
|
34 %
|
|
|
|
|
|
|
|
|
|
|
Ending common
shares
|
|
|
43,242,928
|
|
43,113,127
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
|
$
27.40
|
|
$
21.88
|
|
25 %
|
|
Tangible common
shareholders' equity/tangible assets
|
|
|
7.00 %
|
|
7.49 %
|
|
(49)
|
bps
|
Merchants
Bancorp
|
Average Balance
Analysis
|
($ in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2023
|
|
September 30,
2023
|
|
December 31,
2022
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits, and other
|
$
268,083
|
$ 4,394
|
6.50 %
|
|
$ 259,630
|
$ 3,923
|
5.99 %
|
|
$
225,274
|
$ 2,090
|
3.68 %
|
Securities available
for sale
|
716,315
|
7,609
|
4.21 %
|
|
656,561
|
6,182
|
3.74 %
|
|
323,510
|
704
|
0.86 %
|
Securities held to
maturity
|
1,141,664
|
19,491
|
6.77 %
|
|
1,040,070
|
17,427
|
6.65 %
|
|
1,002,446
|
11,412
|
4.52 %
|
Mortgage loans in
process of securitization
|
380,645
|
5,294
|
5.52 %
|
|
208,767
|
2,583
|
4.91 %
|
|
234,248
|
2,551
|
4.32 %
|
Loans and loans held
for sale
|
13,674,793
|
274,971
|
7.98 %
|
|
13,399,854
|
266,561
|
7.89 %
|
|
10,299,795
|
164,682
|
6.34 %
|
Total interest-earning
assets
|
16,181,500
|
311,759
|
7.64 %
|
|
15,564,882
|
296,676
|
7.56 %
|
|
12,085,273
|
181,439
|
5.96 %
|
Allowance for credit
losses on loans
|
(67,114)
|
|
|
|
(63,449)
|
|
|
|
(40,339)
|
|
|
Noninterest-earning
assets
|
557,098
|
|
|
|
529,582
|
|
|
|
412,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
16,671,484
|
|
|
|
$
16,031,015
|
|
|
|
$
12,457,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
checking
|
5,607,744
|
68,899
|
4.87 %
|
|
4,882,727
|
58,642
|
4.76 %
|
|
4,520,785
|
37,929
|
3.33 %
|
Savings
deposits
|
242,788
|
346
|
0.57 %
|
#
|
241,861
|
340
|
0.56 %
|
|
252,787
|
304
|
0.48 %
|
Money
market
|
2,825,051
|
34,058
|
4.78 %
|
#
|
2,798,325
|
33,235
|
4.71 %
|
|
2,745,904
|
23,958
|
3.46 %
|
Certificates of
deposit
|
5,023,434
|
68,758
|
5.43 %
|
#
|
5,255,573
|
70,689
|
5.34 %
|
|
2,474,427
|
18,871
|
3.03 %
|
Total interest-bearing deposits
|
13,699,017
|
172,061
|
4.98 %
|
|
13,178,486
|
162,906
|
4.90 %
|
|
9,993,903
|
81,062
|
3.22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
720,521
|
15,373
|
8.46 %
|
|
711,948
|
16,334
|
9.10 %
|
|
451,467
|
4,967
|
4.36 %
|
Total interest-bearing liabilities
|
14,419,538
|
187,434
|
5.16 %
|
|
13,890,434
|
179,240
|
5.12 %
|
|
10,445,370
|
86,029
|
3.27 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
366,152
|
|
|
|
333,155
|
|
|
|
419,008
|
|
|
Noninterest-bearing
liabilities
|
203,524
|
|
|
|
199,647
|
|
|
|
147,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
14,989,214
|
|
|
|
14,423,236
|
|
|
|
11,011,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
1,682,270
|
|
|
|
1,607,779
|
|
|
|
1,445,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
16,671,484
|
|
|
|
$
16,031,015
|
|
|
|
$
12,457,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
124,325
|
|
|
|
$ 117,436
|
|
|
|
$
95,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
2.48 %
|
|
|
|
2.44 %
|
|
|
|
2.69 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets
|
$
1,761,962
|
|
|
|
$
1,674,448
|
|
|
|
$ 1,639,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.05 %
|
|
|
|
2.99 %
|
|
|
|
3.13 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to average
interest-bearing liabilities
|
|
|
112.22 %
|
|
|
|
112.05 %
|
|
|
|
115.70 %
|
Supplemental
Results
|
(Unaudited)
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
Net
Income
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family Mortgage
Banking
|
|
|
|
$
8,580
|
|
$
14,685
|
|
$
10,228
|
|
$
36,473
|
|
$
54,642
|
|
Mortgage
Warehousing
|
|
|
|
26,362
|
|
19,926
|
|
11,776
|
|
73,525
|
|
48,604
|
|
Banking
|
|
|
|
49,996
|
|
52,445
|
|
40,181
|
|
194,398
|
|
134,221
|
|
Other
|
|
|
|
(7,465)
|
|
(5,552)
|
|
(5,029)
|
|
(25,162)
|
|
(17,746)
|
|
Total
|
|
|
|
$
77,473
|
|
$
81,504
|
|
$
57,156
|
|
$
279,234
|
|
$
219,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family Mortgage
Banking
|
|
|
|
$
411,097
|
|
$
392,754
|
|
$
351,274
|
|
|
|
|
|
Mortgage
Warehousing
|
|
|
|
4,522,175
|
|
4,757,817
|
|
2,519,810
|
|
|
|
|
|
Banking
|
|
|
|
11,760,943
|
|
11,135,651
|
|
9,587,544
|
|
|
|
|
|
Other
|
|
|
|
258,301
|
|
209,014
|
|
156,599
|
|
|
|
|
|
Total
|
|
|
|
$ 16,952,516
|
|
$
16,495,236
|
|
$ 12,615,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Sale of
Loans
|
|
Gain on Sale of
Loans
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Loan
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
|
19,082
|
|
$
8,616
|
|
$
10,241
|
|
$
42,979
|
|
$
56,819
|
|
Single-family
|
|
|
|
(183)
|
|
951
|
|
132
|
|
1,247
|
|
1,133
|
|
Small Business
Association (SBA)
|
|
|
|
443
|
|
1,191
|
|
894
|
|
3,957
|
|
6,198
|
|
Total
|
|
|
|
$
19,342
|
|
$
10,758
|
|
$
11,267
|
|
$
48,183
|
|
$
64,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable and
Loans Held for Sale
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage warehouse
repurchase agreements
|
|
|
|
$
752,468
|
|
$ 1,022,692
|
|
$
464,785
|
|
|
|
|
|
Residential real estate
(1)
|
|
|
|
1,324,305
|
|
1,358,908
|
|
1,178,401
|
|
|
|
|
|
Multi-family
financing
|
|
|
|
4,006,160
|
|
3,709,320
|
|
3,135,535
|
|
|
|
|
|
Healthcare
financing
|
|
|
|
2,356,689
|
|
2,218,559
|
|
1,604,341
|
|
|
|
|
|
Commercial and
commercial real estate (2)(3)
|
|
|
|
1,643,081
|
|
1,560,031
|
|
978,661
|
|
|
|
|
|
Agricultural production
and real estate
|
|
|
|
103,150
|
|
96,490
|
|
95,651
|
|
|
|
|
|
Consumer and margin
loans
|
|
|
|
13,700
|
|
11,545
|
|
13,498
|
|
|
|
|
|
|
|
|
|
10,199,553
|
|
9,977,545
|
|
7,470,872
|
|
|
|
|
|
Less: Allowance for credit losses on loans
|
|
|
|
71,752
|
|
66,864
|
|
44,014
|
|
|
|
|
|
Loans
receivable
|
|
|
|
$ 10,127,801
|
|
$ 9,910,681
|
|
$
7,426,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
|
|
3,144,756
|
|
3,477,036
|
|
2,910,576
|
|
|
|
|
|
Total loans, net of
allowance
|
|
|
|
$ 13,272,557
|
|
$
13,387,717
|
|
$ 10,337,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $1.2 billion,
$1.2 billion and $1.1 billion of All-In-One © first-lien home
equity lines of credit as of December 31, 2023, September 30, 2023
and
December 31, 2022, respectively.
|
|
(2) Includes $1.1 billion,
$1.0 billion and $497.0 million of revolving lines of credit
collateralized primarily by mortgage servicing rights as of
December 31,
2023, September 30, 2023 and December 31, 2022,
respectively.
|
|
(3) Includes only $8.4
million, $8.1 million and $12.8 million of non-owner occupied
commercial real estate as of December 31, 2023, September 30, 2023
and
December 31, 2022, respectively.
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/merchants-bancorp-reports-fourth-quarter-2023-results-302047122.html
SOURCE Merchants Bancorp