Press Release

Merchants Bancorp Reports Third Quarter 2019 Results

- Net income of $20.3 million increased 21% compared to the third quarter of 2018 and increased 23% compared to the second quarter of 2019

- Total assets of $6.3 billion increased $2.5 billion, or 63%, compared to December 31, 2018 and increased $1.0 billion, or 20%, compared with June 30, 2019

- Loans held for sale of $2.5 billion increased 200% compared to December 31, 2018 and increased 30% compared with June 30, 2019

- Loans receivable of $2.7 billion increased 34% compared to December 31, 2018 and increased 17% compared with June 30, 2019

- Net interest income after provision for loan losses of $31.4 million increased $8.6 million, or 37%, compared to the third quarter of 2018 and increased $3.6 million, or 13%, compared to the second quarter of 2019

- Completed 6% preferred stock offering on August 19, 2019, raising approximately $120.9 million of capital to support the 63% growth in assets since December 31, 2018

- Redeemed 874,000 shares of 7% preferred stock on September 23, 2019 for $21.85 million

Company Release - 10/30/2019 4:05 PM ET

CARMEL, Ind., Oct. 30, 2019 /PRNewswire/ -- Merchants Bancorp (the "Company" or "Merchants") (Nasdaq: MBIN), parent company of Merchants Bank of Indiana, today reported third quarter 2019 net income of $20.3 million, or $0.60 per common share.  This compared to $16.7 million, or $0.55 per common share, in the third quarter of 2018 and $16.4 million, or $0.51 per common share, in the second quarter of 2019.

(PRNewsfoto/Merchants Bancorp)

"Our proactive approach to capital and asset management has generated superior results during the third quarter, including 63% growth in total assets since December 2018 and 21% growth in net income compared to the third quarter of 2018.  Our results reflected not only a 37% increase in net interest income compared to the same quarter last year, but also reinforced our expense control, as our efficiency ratio hit 35.7% despite the growth of our businesses during the year," said Michael Petrie, Chairman and CEO of Merchants.  "We are planning for continued momentum going forward and the success of our preferred stock offerings have positioned us well to capitalize on the strength of the growing loan pipelines in all of our businesses," added Petrie.

Total Assets

Total assets of $6.3 billion at September 30, 2019 increased $2.5 billion, or 63%, compared to $3.9 billion at December 31, 2018 and increased $1.0 billion, or 20%, compared to June 30, 2019. The increases compared to both periods were primarily due to growth in net loans receivable and loans held for sale, which increased $2.4 billion compared to December 30, 2018 and increased $1.0 billion compared to June 30, 2019.  Return on average assets was 1.35% for the third quarter of 2019 compared to 1.75% for the third quarter of 2018 and 1.41% for the second quarter of 2019.

Loans held for sale of $2.5 billion at September 30, 2019 increased $1.7 billion, or 200%, compared to December 31, 2018 and increased $580.4 million, or 30% compared to June 30, 2019.  For both periods, the increases were due to the significant loan growth generated from the mortgage warehouse business, primarily resulting from lower interest rates that increased the origination volume and refinancing in the single-family mortgage market. 

Net loans receivable of $2.7 billion at September 30, 2019 increased $696.7 million, or 34%, compared to December 31, 2018 and increased $394.2 million, or 17%, compared to June 30, 2019. These increases were primarily a result of growth in mortgage warehouse lines of credit, as well as multi-family and healthcare financing during both periods.

Asset Quality

The allowance for loan losses of $13.7 million at September 30, 2019 increased $1.0 million compared to December 31, 2018 and increased $1.1 million compared to June 30, 2019, primarily reflecting increases associated with loan growth.  Non-performing loans were $6.1 million, or 0.22% of total loans at September 30, 2019, compared to $2.4 million, or 0.12% of total loans at December 31, 2018 and compared to $3.8 million, or 0.16% of total loans at June 30, 2019.

Total Deposits

Total deposits of $5.5 billion at September 30, 2019 increased $2.3 billion, or 70%, compared to $3.2 billion at December 31, 2018 and increased $843.7 million, or 18%, compared to June 30, 2019. The increases were primarily due to higher brokered certificates of deposits to support the significant growth in loans and to match their expected duration.   Total brokered deposits increased $1.3 billion, to $2.3 billion at September 30, 2019 from $988.2 million at December 31, 2018 and increased $266.5 million from $2.0 billion at June 30, 2019.  The higher levels of brokered deposits were primarily to support the significant growth in warehouse loans and to appropriately match the expected duration.   Brokered deposits represented 41% of total deposits at September 30, 2019, 31% of total deposits at December 31, 2018, and 43% of total deposits at June 30, 2019. 

Net Interest Income

Net interest income of $32.6 million in the third quarter of 2019 increased $9.1 million, or 39%, compared to the third quarter of 2018 and increased $4.7 million, or 17%, compared to the second quarter of 2019.  The increases for both periods were primarily due to the growth in loans and loans held for sale that offset declining interest rate margins.   The interest rate spread of 1.98% for the third quarter of 2019 increased 4 basis points compared to 1.94% in the third quarter of 2018 and decreased 24 basis points compared to 2.22% in the second quarter of 2019. 

The net interest margin of 2.22% for the third quarter of 2019 declined 31 basis points compared to 2.53% for the third quarter of 2018 and declined 27 basis points compared to 2.49% for the second quarter of 2019.  The declines in net interest margin reflected the flattening and inversion of the yield curve compared to prior periods, and reflects the shift in business mix to a higher concentration of warehouse loans that typically are funded for a shorter duration and earn interest based on longer term rates.  Profitability in this business, which also includes fees classified as noninterest income, made the most significant contribution to net income growth during the third quarter of 2019 compared to both the third quarter of 2018 and the second quarter of 2019.

Interest Income

Interest income of $59.8 million in the third quarter of 2019 increased $22.2 million, or 59%, compared to the third quarter of 2018 and increased $11.0 million, or 23%, compared to the second quarter of 2019. The increases for both periods were primarily due to loan growth.  The average balance of loans, including loans held for sale, was $4.7 billion for the third quarter of 2019.  This represented an increase of $2.0 billion, or 76%, compared to $2.7 billion for the third quarter of 2018 and an increase of $1.1 billion, or 32% compared to the second quarter of 2019.  The average yield on loans and loans held for sale of 4.44% for the third quarter of 2019 decreased 31 basis points compared to 4.75% for both the third quarter 2018 and the second quarter of 2019.  The decline in average yields reflected the higher concentration of warehouse loans for the third quarter of 2019.

Interest Expense

Total interest expense of $27.1 million for the third quarter of 2019 increased $13.0 million, or 93%, compared to the third quarter of 2018 and increased $6.3 million, or 30%, compared to the second quarter of 2019. Interest expense on deposits of $26.0 million for the third quarter of 2019 increased $14.4 million, or 123%, compared to the third quarter of 2018 and increased $6.7 million, or 35%, compared to the second quarter of 2019. The increase in the cost of deposits for both periods was primarily due to the higher volume of interest-bearing checking and certificates of deposits. The average balance of interest-bearing deposits of $5.1 billion for the third quarter of 2019 increased $2.5 billion, or 99%, compared to the third quarter of 2018 and increased $1.3 million, or 34%, compared to the second quarter of 2019. The average cost of interest-bearing deposits was 2.02% for the third quarter of 2019, which was a 22 basis point increase compared to 1.80% for the third quarter of 2018, and a 2 basis point decrease compared to 2.04% in the second quarter of 2019. 

Noninterest Income

Noninterest income of $10.9 million for the third quarter of 2019 decreased $1.1 million, or 9%, compared to the third quarter of 2018 and increased $982,000, or 10%, compared to the second quarter of 2019. The 9% decrease compared to the third quarter of 2018 was primarily due to a $3.3 million decrease in loan servicing fees, which reflected a $1.5 million negative fair market value adjustment in mortgage servicing rights during the third quarter of 2019 compared to a $500,000 positive fair market adjustment in mortgage servicing rights for the third quarter of 2018.  Partially offsetting the lower loan servicing fees from a negative fair market value adjustment in the third quarter of 2019 was a $1.9 million, or 247%, increase in mortgage warehouse fees, reflecting the significant loan growth for this line of business.

The 10% increase in noninterest income for the third quarter of 2019 compared to the second quarter of 2019 was primarily due to a $1.6 million, or 137%, increase in mortgage warehouse fees, which was partially offset by a $792,000 decrease in gain on sale of loans.  

At September 30, 2019, the mortgage servicing rights asset was valued at $72.0 million, a decrease of 8% compared to December 31, 2018 and a decrease of 3% compared to June 30, 2019.  The value of mortgage servicing rights generally declines in falling interest rate environments and increase in rising interest rate environments.

Noninterest Expense

Noninterest expense of $15.5 million for the third quarter of 2019 increased $3.1 million, or 25%, compared to the third quarter of 2018 and decreased $398,000, or 3%, compared to the second quarter of 2019.  The 25% increase compared to the third quarter of 2018 was due primarily to a $1.3 million, or 17%, increase in salaries and employee benefits and a $590,000, or 219%, increase in deposit insurance related to the growth in deposits and assets.  The increase in salaries and employee benefits was due primarily to an increase in the number of employees resulting from business growth and acquisitions that occurred during the fourth quarter of 2018. 

The 3% decrease in noninterest expense for the third quarter of 2019 compared to the second quarter of 2019 was primarily due to a $826,000, or 8%, decrease in salaries and employee benefits that was partially offset by a $641,000, or 294% increase in deposit insurance expense related to the growth in deposits and assets.  The decrease in salaries and employee benefits was primarily due to lower commission expense for the third quarter of 2019.

The efficiency ratio of 35.7% for the third quarter of 2019 compared to 35.2% for the third quarter of 2018 and 42.1% for the second quarter of 2019.

Segments

For the third quarter of 2019, net income for Mortgage Warehousing increased 93% compared to the third quarter of 2018 and increased 73% compared to the second quarter of 2019, reflecting significant growth in loans and loans held for sale during both periods. 

For the third quarter of 2019, net income for Banking increased 8% compared to the third quarter of 2018 and decreased 9% compared to the second quarter of 2019, reflecting higher deposit insurance expense compared to both periods.

For the third quarter of 2019, net income for Multi-family Mortgage Banking decreased 44% compared with the third quarter of 2018 and increased 9% compared to the second quarter of 2019. The comparative performance was impacted by fair market value adjustments. The third quarter of 2019 included a negative fair market value adjustment of $1.5 million, which compared to a positive fair value adjustment of $500,000 for the third quarter of 2018 and a negative fair market value adjustment of $2.9 million for the second quarter of 2019.

About Merchants Bancorp

Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple lines of business, including Federal Housing Administration ("FHA") multi-family housing and healthcare facility financing and servicing; mortgage warehouse financing; retail and correspondent residential mortgage banking; agricultural lending; and traditional community banking.  Merchants Bancorp, with $6.3 billion in assets and $5.5 billion in deposits as of September 30, 2019, conducts its business through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp., Farmers-Merchants Bank of Illinois, Merchants Capital Servicing, 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.merchantsbankofindiana.com.

Forward-Looking Statements 

This press release contains forward-looking statements which reflect our current views with respect to, among other things, future events and our 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 our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution 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 we believe 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 our actual results to differ materially from those indicated in these forward-looking statements, including those factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 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 we do 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,



2019


2019


2019


2018


2018

Assets











Cash and due from banks


$           15,614


$          15,176


$          19,554


$          25,855


$          20,069

Interest-earning demand accounts


349,362


445,713


293,897


310,669


390,687

Cash and cash equivalents


364,976


460,889


313,451


336,524


410,756

Securities purchased under agreements to resell


6,760


6,798


6,838


6,875


6,913

Trading securities


227,914


101,514


129,914


163,419


74,116

Available for sale securities


308,673


261,485


296,669


331,071


269,709

Federal Home Loan Bank (FHLB) stock


18,808


18,820


18,880


7,974


7,608

Loans held for sale (includes $23,357, $9,592, $6,307,
$11,886 and $5,888, respectively at fair value)


2,498,538


1,918,118


882,071


832,455


1,004,402

Loans receivable, net of allowance for loan losses of
$13,705, $12,604, $13,356, $12,704, and $11,243,
respectively


2,742,088


2,347,906


2,168,256


2,045,423


1,905,859

Premises and equipment, net


29,211


26,580


21,078


15,136


10,846

Mortgage servicing rights


71,989


74,550


76,249


77,844


71,490

Interest receivable


18,780


17,415


14,365


13,827


12,289

Goodwill 


15,574


15,574


17,144


17,477


5,302

Intangible assets, net


4,182


4,567


3,381


3,542


1,763

Other assets and receivables


29,693


33,174


28,429


32,596


25,896

Total assets


$      6,337,186


$     5,287,390


$     3,976,725


$     3,884,163


$     3,806,949

Liabilities and Shareholders' Equity











  Liabilities











Deposits











Noninterest-bearing


$         198,843


$        192,521


$        128,029


$        182,879


$        336,940

Interest-bearing


5,300,806


4,463,469


2,992,998


3,048,207


2,965,429

Total deposits


5,499,649


4,655,990


3,121,027


3,231,086


3,302,369

Borrowings 


159,673


62,225


338,031


195,453


67,279

Other liabilities


48,425


54,162


39,836


36,387


29,955

Total liabilities


5,707,747


4,772,377


3,498,894


3,462,926


3,399,603

Commitments and  Contingencies











Shareholders' Equity











Common stock, without par value











Authorized - 50,000,000 shares











Issued and outstanding - 28,706,438 shares, 28,706,438
shares, 28,704,163 shares, 28,694,036 shares, and
28,694,036 shares, respectively


135,507


135,374


135,190


135,057


135,021

Preferred stock, without par value - 5,000,000 total
shares authorized











8% Preferred stock - $1,000 per share liquidation
preference











Authorized - 50,000 shares











Issued and outstanding - 41,625 shares


41,581


41,581


41,581


41,581


41,581

7% Series A Preferred stock - $25 per share liquidation
preference











Authorized - 3,500,000 shares











Issued and outstanding - 2,081,800 shares, 2,955,800
shares, and 2,000,000 shares, respectively


50,245


72,095


48,269



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)


120,863





Retained earnings


280,551


265,323


252,637


244,909


232,041

Accumulated other comprehensive income (loss)


692


640


154


(310)


(1,297)

Total shareholders' equity


629,439


515,013


477,831


421,237


407,346

Total liabilities and shareholders' equity


$      6,337,186


$     5,287,390


$     3,976,725


$     3,884,163


$     3,806,949

 

 

Consolidated Statement of Income

(Unaudited)

(In thousands, except share data)



















Three Months Ended


Nine Months Ended



September 30,


June 30,


September 30,


September 30,


September 30,



2019


2019


2018


2019


2018

Interest Income















Loans


$

52,779


$

42,365


$

32,056


$

129,599


$

85,458

Investment securities:
















Trading



1,422



1,967



1,299



4,434



3,777

Available for sale - taxable



1,604



1,477



1,541



4,632



4,708

Available for sale - tax exempt



68



53





217



Federal Home Loan Bank stock



262



257



87



742



297

Other



3,626



2,642



2,594



8,572



6,498

Total interest income



59,761



48,761



37,577



148,196



100,738

Interest Expense
















Deposits



26,039



19,344



11,670



59,610



28,427

Borrowed funds



1,098



1,495



2,425



3,909



6,515

Total interest expense



27,137



20,839



14,095



63,519



34,942

Net Interest Income



32,624



27,922



23,482



84,677



65,796

Provision for loan losses



1,193



105



617



1,947



3,021

Net Interest Income After Provision for Loan Losses



31,431



27,817



22,865



82,730



62,775

Noninterest Income
















Gain on sale of loans



8,312



9,104



8,825



20,059



27,548

Loan servicing fees, net



(1,410)



(1,561)



1,851



(3,318)



4,084

Mortgage warehouse fees



2,699



1,138



778



4,590



1,948

Gains/(losses) on sale of investments available for sale (1)





(3)





124



Other income



1,251



1,192



453



2,931



1,270

Total noninterest income



10,852



9,870



11,907



24,386



34,850

Noninterest Expense
















Salaries and employee benefits



9,139



9,965



7,842



27,671



21,597

Loan expenses



1,248



1,345



1,254



3,527



3,512

Occupancy and equipment



994



946



736



2,816



2,062

Professional fees



508



453



590



1,500



1,755

Deposit insurance expense



859



218



269



1,354



751

Technology expense



674



629



412



1,775



996

Other expense



2,100



2,364



1,346



5,834



4,046

Total noninterest expense



15,522



15,920



12,449



44,477



34,719

Income Before Income Taxes



26,761



21,767



22,323



62,639



62,906

Provision for income taxes (2)



6,502



5,328



5,584



15,371



15,454

Net Income


$

20,259


$

16,439


$

16,739


$

47,268


$

47,452

   Dividends on preferred stock



(3,022)



(1,743)



(833)



(5,598)



(2,498)

Net Income Allocated to Common Shareholders



17,237



14,696



15,906



41,670



44,954

Basic Earnings Per Share


$

0.60


$

0.51


$

0.55


$

1.45


$

1.57

Diluted Earnings Per Share


$

0.60


$

0.51


$

0.55


$

1.45


$

1.57

Weighted-Average Shares Outstanding
















Basic



28,706,438



28,705,313



28,694,036



28,704,682



28,692,591

Diluted



28,744,953



28,746,297



28,727,822



28,742,911



28,719,740

















(1)Includes $0, $(3), $0, $124, and $0, respectively, related to accumulated other comprehensive earnings reclassifications.






(2) Includes $0, $1, $0, $(31) and $0, respectively, related to income tax (expense)/benefit for reclassification items.







 

 

Key Operating Results

(Unaudited)

($ in thousands)
















Three Months Ended


Nine Months Ended




September 30,


June 30,


September 30,


September 30,


September 30,




2019


2019


2018


2019


2018













Noninterest expense



15,522


15,920


12,449


44,477


34,719













Net interest income (before provision for losses)



32,624


27,922


23,482


84,677


65,796

Noninterest income



10,852


9,870


11,907


24,386


34,850

Total income



43,476


37,792


35,389


109,063


100,646













Efficiency ratio



35.70%


42.13%


35.18%


40.78%


34.50%

























Average assets



6,009,840


4,661,138


3,829,172


4,798,110


3,627,861

Net income



20,259


16,439


16,739


47,268


47,452

Return on average assets before annualizing



0.34%


0.35%


0.44%


0.99%


1.31%

Annualization factor



4.00


4.00


4.00


1.33


1.33

Return on average assets



1.35%


1.41%


1.75%


1.31%


1.74%













Return on average tangible common shareholders' equity (1)


18.17%


15.38%


17.92%


14.75%


17.52%













Tangible book value per common share (1)



$               13.83


$                 13.28


$              12.50


$               13.83


$               12.50













Tangible common shareholders' equity/tangible assets (1)


6.28%


7.24%


9.44%


6.28%


9.44%













(1) Non-GAAP financial measure - see "Reconciliation of Non-GAAP Measures" 





















(1) Reconciliation of Non-GAAP Financial Measures


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


Nine Months Ended




September 30,


June 30,


September 30,


September 30,


September 30,




2019


2019


2018


2019


2018













Net income



20,259


16,439


16,739


47,268


47,452

Less: preferred stock dividends  



(3,022)


(1,743)


(833)


(5,598)


(2,498)

Net income available to common shareholders



17,237


14,696


15,906


41,670


44,954













Average shareholders' equity



567,732


495,789


403,757


498,091


389,760

Less: average goodwill & intangibles



(20,005)


(20,396)


(7,120)


(20,458)


(6,961)

Less: average preferred stock



(168,266)


(93,108)


(41,581)


(101,979)


(41,581)

Average tangible common shareholders' equity



379,461


382,285


355,056


375,654


341,218













Annualization factor



4.00


4.00


4.00


1.33


1.33

Return on average tangible common shareholders' equity



18.17%


15.38%


17.92%


14.75%


17.52%

























Total equity



629,439


515,013


407,346


629,439


407,346

Less: goodwill and intangibles



(19,756)


(20,141)


(7,065)


(19,756)


(7,065)

Less: preferred stock



(212,689)


(113,676)


(41,581)


(212,689)


(41,581)

Tangible common shareholders' equity



396,994


381,196


358,700


396,994


358,700













Assets



6,337,186


5,287,390


3,806,949


6,337,186


3,806,949

Less: goodwill and intangibles



(19,756)


(20,141)


(7,065)


(19,756)


(7,065)

Tangible assets



6,317,430


5,267,249


3,799,884


6,317,430


3,799,884













Ending common shares



28,706,438


28,706,438


28,694,036


28,706,438


28,694,036













Tangible book value per common share



$               13.83


$                 13.28


$              12.50


$               13.83


$               12.50

Tangible common shareholders' equity/tangible assets



6.28%


7.24%


9.44%


6.28%


9.44%

 

 


Merchants Bancorp


Average Balance Analysis


($ in thousands)


(Unaudited)
















Three Months Ended


Three Months Ended


Three Months Ended



September 30, 2019


June 30, 2019


September 30, 2018



Average


Yield/


Average


Yield/


Average


Yield/



Balance

Interest

Rate 


Balance

Interest

Rate 


Balance

Interest

Rate 


Assets:


























Interest-bearing deposits, and other

$      670,399

$   3,888

2.30%


$      440,502

$    2,899

2.64%


$        510,115

$    2,681

2.09%


Securities available for sale - taxable

278,314

1,604

2.29%


266,950

1,477

2.22%


355,564

1,541

1.72%


Securities available for sale - tax exempt

9,032

68

2.99%


9,052

53

2.35%


-

-

-


Trading securities

162,915

1,422

3.46%


194,411

1,967

4.06%


137,351

1,299

3.75%


Loans and loans held for sale

4,718,771

52,779

4.44%


3,580,620

42,365

4.75%


2,677,449

32,056

4.75%


     Total interest-earning assets

5,839,431

59,761

4.06%


4,491,535

48,761

4.35%


3,680,479

37,577

4.05%


Allowance for loan losses

(12,990)




(13,466)




(10,695)




Noninterest-earning assets

183,399




183,069




159,388

















Total assets

$    6,009,840




$   4,661,138




$     3,829,172






























Liabilities & Shareholders' Equity:


























Interest-bearing checking

1,951,613

9,253

1.88%


1,527,971

7,567

1.99%


853,066

4,471

2.08%


Savings deposits

152,509

85

0.22%


144,315

81

0.23%


148,348

109

0.29%


Money market 

977,228

4,698

1.91%


959,296

4,725

1.98%


997,046

4,294

1.71%


Certificates of deposit

2,032,619

12,003

2.34%


1,174,106

6,971

2.38%


577,233

2,796

1.92%


    Total interest-bearing deposits

5,113,969

26,039

2.02%


3,805,688

19,344

2.04%


2,575,693

11,670

1.80%















Borrowings

59,585

1,098

7.31%


117,647

1,495

5.10%


74,227

2,425

12.96%


    Total interest-bearing liabilities

5,173,554

27,137

2.08%


3,923,335

20,839

2.13%


2,649,920

14,095

2.11%















Noninterest-bearing deposits

198,832




194,530




748,312




Noninterest-bearing liabilities

69,722




47,484




27,183

















    Total liabilities

5,442,108




4,165,349




3,425,415

















    Shareholders' equity

567,732




495,789




403,757

















Total liabilities and shareholders' equity

$    6,009,840




$   4,661,138




$     3,829,172

















Net interest income


$  32,624




$   27,922




$   23,482
















Net interest spread



1.98%




2.22%




1.94%















Net interest-earning assets

$      665,877




$      568,200




$     1,030,559

















Net interest margin



2.22%




2.49%




2.53%















Average interest-earning assets to average
interest-bearing liabilities



112.87%




114.48%




138.89%

 

 

Segment Results

(Unaudited)

($ in thousands)











































Net Income


Net Income







Three Months Ended


Nine Months Ended


Total Assets





September 30,


June 30,


September 30,


September 30,


September 30,


June 30,


December 31,





2019


2019


2018


2019


2018


2019


2019


2018

Segment



















Multi-family Mortgage Banking


$            2,741


$           2,517


$            4,863


$     4,546


$    15,112


$        169,283


$       164,990


$       166,102

Mortgage Warehousing


10,924


6,320


5,654


21,076


16,058


3,529,267


2,661,836


1,430,776

Banking




7,649


8,408


7,101


24,826


19,566


2,596,313


2,412,026


2,256,687

Other




(1,055)


(806)


(879)


(3,180)


(3,284)


42,323


48,538


30,598

Total




$          20,259


$         16,439


$          16,739


$   47,268


$    47,452


$      6,337,186


$    5,287,390


$     3,884,163

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/merchants-bancorp-reports-third-quarter-2019-results-300948174.html

SOURCE Merchants Bancorp

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