Press Release

Merchants Bancorp Reports Record Full Year and Fourth Quarter 2019 Results

- Full year 2019 record net income of $77.3 million increased 23% compared to 2018

- Full year 2019 net income per common share of $2.37 increased 14% compared to 2018

- Fourth quarter 2019 net income of $30.1 million increased 95% compared to the fourth quarter of 2018 and increased 48% compared to the third quarter of 2019

- Fourth quarter net income per common share of $0.92 increased 80% compared to the fourth quarter of 2018 and increased 53% compared to the third quarter of 2019

- Total assets of $6.4 billion increased $2.5 billion, or 64%, compared to December 31, 2018, driven by record-setting loan growth

- Return on average assets reached 1.81% in the fourth quarter of 2019 compared to 1.61% in the fourth quarter of 2018 and 1.35% compared to the third quarter of 2019

- Return on average tangible common shareholders' equity reached 25.65% in the fourth quarter of 2019 compared to 16.24% in the fourth quarter of 2018 and 18.17% in the third quarter of 2019

Company Release - 1/30/2020 4:05 PM ET

CARMEL, Ind., Jan. 30, 2020 /PRNewswire/ -- Merchants Bancorp (the "Company" or "Merchants") (Nasdaq: MBIN), parent company of Merchants Bank of Indiana, today reported fourth quarter 2019 net income of $30.1 million, or $0.92 per common share.  This compared to $15.4 million, or $0.51 per common share, in the fourth quarter of 2018 and $20.3 million, or $0.60 per common share, in the third quarter of 2019.

(PRNewsfoto/Merchants Bancorp)

The 95% increase in net income for the fourth quarter 2019 compared to the fourth quarter of 2018 was primarily driven by a 56% increase in net interest income that reflected significant growth in mortgage warehouse loans, and a 31% increase in gain on sale of loans from significantly higher growth in multi-family loans.

The 48% increase in net income for the fourth quarter 2019 compared to the third quarter of 2019 was primarily driven by an 85% increase in gain on sale of loans from the multi-family business as well as a 15% increase in net interest income that benefited from 10% higher average loan balances and a 9 basis point increase in net interest margin.

"On many fronts, 2019 was an exceptional year at Merchants for record-setting results, as we grew total assets by 64%, raised over $171 million in net new capital, grew net income by 23%, and grew earnings per common share by 14%, compared to 2018.  The robust increases were fueled by significant growth in mortgage warehouse and multi-family loans, while we also maintained our reputation for high credit quality metrics and conservatively managed our expenses.  We continue to demonstrate that our business model, with its complementary portfolio of businesses, allows us to operate profitably across various interest rate environments and sets us apart from many of our peers," said Michael F. Petrie, Chairman and CEO of Merchants.   "As we move into 2020 with a top-notch team in place, I am optimistic that our model will continue to meet customer and community needs, which will lead us to achieve our growth and profit goals that will provide enhanced shareholder value," added Petrie.

Total Assets

Total assets of $6.4 billion at December 31, 2019 increased $2.5 billion, or 64%, compared to $3.9 billion at December 31, 2018 and increased $34.7 million, or 1%, compared to September 30, 2019.

The increase compared to December 31, 2018 was primarily due to growth in loans held for sale and net loans receivable, which increased a combined total of $2.2 billion.  The increase reflected the significant loan growth generated from mortgage warehouse business, primarily resulting from lower interest rates that increased the origination volume and refinancing in the single-family mortgage market, as well as higher loan volume generated in multi-family business. 

Return on average assets was 1.81% for the fourth quarter of 2019 compared to 1.61% for the fourth quarter of 2018 and 1.35% for the third quarter of 2019. 

Asset Quality

The allowance for loan losses of $15.8 million at December 31, 2019 increased $3.1 million compared to December 31, 2018 and increased $2.1 million compared to September 30, 2019, primarily reflecting increases associated with loan growth.  Non-performing loans were $4.7 million, or 0.15% of total loans at December 31, 2019, compared to $2.4 million, or 0.12% of total loans at December 31, 2018 and compared to $6.1 million, or 0.22% of total loans at September 30, 2019.

Total Deposits

Total deposits of $5.5 billion at December 31, 2019 increased $2.2 billion, or 70%, compared to December 31, 2018 and decreased $21.6 million, compared to September 30, 2019.

The 70% increase in deposits compared to December 31, 2018 was 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 $1.2 billion, to $2.2 billion at December 31, 2019 from $988.2 million at December 31, 2018.   Brokered deposits represented 39% of total deposits at December 31, 2019 compared to 31% of total deposits at December 31, 2018.

The modest decrease in deposits compared to September 30, 2019 was primarily due to the reduced need for brokered certificates of deposits, matching the decrease in loans held for sale. Total brokered deposits of $2.2 billion at December 31, 2019 decreased $108.0 million from $2.3 billion at September 30, 2019.  Brokered deposits represented 39% of total deposits at December 31, 2019 compared to 41% of total deposits at September 30, 2019.

The Company increased its borrowing capacity, with unused lines of credit increasing from $634.6 million at September 30, 2019 to $1.5 billion at December 31, 2019.  This increase in liquidity further enhances the ability to effectively manage interest expense and assets levels in the future.

Net Interest Income

Net interest income of $37.6 million in the fourth quarter of 2019 increased $13.5 million, or 56%, compared to the fourth quarter of 2018 and increased $5.0 million, or 15%, compared to the third quarter of 2019. 

The 56% increase in net interest income compared to the fourth quarter of 2018 reflected significantly higher loan growth that offset lower margins.  The interest rate spread of 2.07% for the fourth quarter of 2019 decreased 21 basis points compared to 2.28% in the fourth quarter of 2018. The net interest margin of 2.31% for the fourth quarter of 2019 declined 29 basis points compared to 2.60% for the fourth quarter of 2018. The decline in net interest margin compared to the fourth quarter of 2018 reflected the flattening and inversion of the yield curve, 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 for the fourth quarter of 2019.

The 15% increase in net interest income compared to the third quarter of 2019 reflected an interest rate spread of 2.07% that increased 9 basis points compared to 1.98% in the third quarter of 2019. The net interest margin of 2.31% for the fourth quarter of 2019 also increased 9 basis points compared to 2.22% for the third quarter of 2019. 

Interest Income

Interest income of $63.8 million in the fourth quarter of 2019 increased $24.0 million, or 60%, compared to the fourth quarter of 2018 and increased $4.0 million, or 7%, compared to the third quarter of 2019. The increases for both periods were primarily due to loan growth. 

The 60% increase in interest income compared to the fourth quarter of 2018 reflected a $2.5 billion, or 89%, increase in the average balance of loans, including loans held for sale, which reached $5.2 billion for the fourth quarter of 2019. The average yield on loans and loans held for sale of 4.35% for the fourth quarter of 2019 decreased 58 basis points compared to 4.93% for the fourth quarter of 2018. The decline in average yields reflected the higher concentration of warehouse loans for the fourth quarter of 2019.

The 7% increase in interest income compared to the third quarter of 2019 reflected a $463.8 million, or 10%, increase in the average balance of loans, including loans held for sale, which reached $5.2 billion for the fourth quarter of 2019. The average yield on loans and loans held for sale of 4.35% for the fourth quarter of 2019 decreased 9 basis points compared to 4.44% for the third quarter of 2019. 

Interest Expense

Total interest expense of $26.2 million for the fourth quarter of 2019 increased $10.5 million, or 67%, compared to the fourth quarter of 2018 and decreased $1.0 million, or 4%, compared to the third quarter of 2019. Interest expense on deposits of $25.1 million for the fourth quarter of 2019 increased $11.3 million, or 82%, compared to the fourth quarter of 2018 and decreased $1.0 million, or 4%, compared to the third quarter of 2019.

The 82% increase in interest expense on deposits compared to the fourth quarter of 2018 was primarily due to the higher volume of custodial interest-bearing checking and brokered certificates of deposits. The average balance of interest-bearing deposits of $5.6 billion for the fourth quarter of 2019 increased $2.6 billion, or 85%, compared to the fourth quarter of 2018. The average cost of interest-bearing deposits was 1.78% for the fourth quarter of 2019, which was a 3 basis point decrease compared to 1.81% for the fourth quarter of 2018. 

The 4% decrease in interest expense on deposits compared to the third quarter of 2019 was primarily due to lower costs of deposits.  The average cost of interest-bearing deposits was 1.78% for the fourth quarter of 2019, which was a 24 basis point decrease compared to 2.02% in the third quarter of 2019.  The average balance of interest-bearing deposits of $5.6 billion for the fourth quarter of 2019 increased $466.9 million, or 9%, compared to the third quarter of 2019.

Noninterest Income

Noninterest income of $22.7 million for the fourth quarter of 2019 increased $8.0 million, or 54%, compared to the fourth quarter of 2018 and increased $11.9 million, or 109%, compared to the third quarter of 2019.

The 54% increase in noninterest income compared to the fourth quarter of 2018 was primarily due to a $3.6 million increase in gain on sale of loans and a $2.0 million increase in mortgage warehouse fees, reflecting the significant loan growth for these lines of business.  Included in noninterest income for the fourth quarter of 2019 was a $1.1 millionpositive fair market value adjustment in mortgage servicing rights, which compared to a $436,000positive fair market value adjustment for the fourth quarter of 2018.

The 109% increase in noninterest income compared to the third quarter of 2019 was primarily due to a $7.0 million, or 85%, increase in gain on sale of loans, and a $3.6 million increase in loan servicing fees.   Included in loan servicing fees for the fourth quarter of 2019 was a $1.1 millionpositive fair market value adjustment in mortgage servicing rights, which compared to a $1.5 millionnegative fair market value adjustment for the fourth quarter of 2018.

At December 31, 2019, the mortgage servicing rights asset was valued at $74.4 million, a decrease of 4% compared to December 31, 2018 and an increase of 3% compared to September 30, 2019.  The value of mortgage servicing rights generally declines in falling interest rate environments and increases in rising interest rate environments.

Noninterest Expense

Noninterest expense of $18.8 million for the fourth quarter of 2019 increased $2.7 million, or 16%, compared to the fourth quarter of 2018 and increased $3.3 million, or 21%, compared to the third quarter of 2019. 

The 16% increase in noninterest expense compared to the fourth quarter of 2018 was due primarily to a $1.1 million, or 410%, increase in deposit insurance related to the growth in deposits and assets and a $1.1 million increase in occupancy and equipment costs associated with the Company's move to its new corporate headquarters.    The efficiency ratio of 31.2% for the fourth quarter of 2019 compared to 41.6% for the fourth quarter of 2018.

The 21% increase in noninterest expense compared to the third quarter of 2019 was primarily due to a $1.3 million, or 14%, increase in salaries and employee benefits and a $799,000, or 80%, increase in occupancy and equipment costs associated with the company's move to its new corporate headquarters.  The increase in salaries and employee benefits was primarily due to the addition of new employees to support business growth, along with higher commission expense associated with higher loan growth during the fourth quarter of 2019.  The efficiency ratio of 31.2% for the fourth quarter of 2019 compared to 35.7% for the third quarter of 2019.

Segments

For the fourth quarter of 2019, net income for Mortgage Warehousing increased 177% compared to the fourth quarter of 2018 and increased 25% compared to the third quarter of 2019, primarily reflecting significant growth in net interest income during both periods. 

For the fourth quarter of 2019, net income for Multi-family Mortgage Banking increased 117% compared with the fourth quarter of 2018 and increased 273% compared to the third quarter of 2019.   The increases reflected higher gains on sale of loans for both periods.  The comparative performance was impacted by fair market value adjustments to mortgage servicing rights. The fourth quarter of 2019 included a positive fair market value adjustment of $1.1 million, which compared to a positive fair value adjustment of $436,000 for the fourth quarter of 2018 and a negative fair market value adjustment of $1.5 million for the third quarter of 2019.

For the fourth quarter of 2019, net income for Banking increased 5% compared to the fourth quarter of 2018 and decreased 8% compared to the third quarter of 2019, reflecting higher deposit insurance expense.

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 $6.4 billion in assets and $5.5 billion in deposits as of December 31, 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)














December 31,


September 30,


June 30,


March 31,


December 31,



2019


2019


2019


2019


2018

Assets











Cash and due from banks


$                13,909


$                15,614


$                15,176


$                19,554


$                25,855

Interest-earning demand accounts


492,800


349,362


445,713


293,897


310,669

Cash and cash equivalents


506,709


364,976


460,889


313,451


336,524

Securities purchased under agreements to resell


6,723


6,760


6,798


6,838


6,875

Trading securities


269,891


227,914


101,514


129,914


163,419

Available for sale securities


290,243


308,673


261,485


296,669


331,071

Federal Home Loan Bank (FHLB) stock


20,369


18,808


18,820


18,880


7,974

Loans held for sale (includes $19,592, $23,357, $9,592, $6,307, and $11,886 respectively, at fair value)


2,093,789


2,498,538


1,918,118


882,071


832,455

Loans receivable, net of allowance for loan losses of $15,842, $13,705, $12,604, $13,356, and $12,704, respectively


3,012,468


2,742,088


2,347,906


2,168,256


2,045,423

Premises and equipment, net


29,274


29,211


26,580


21,078


15,136

Mortgage servicing rights


74,387


71,989


74,550


76,249


77,844

Interest receivable


18,359


18,780


17,415


14,365


13,827

Goodwill 


15,845


15,574


15,574


17,144


17,477

Intangible assets, net


3,799


4,182


4,567


3,381


3,542

Other assets and receivables


30,072


29,693


33,174


28,429


32,596

Total assets


$           6,371,928


$           6,337,186


$           5,287,390


$           3,976,725


$           3,884,163

Liabilities and Shareholders' Equity











  Liabilities











   Deposits











   Noninterest-bearing


$              272,037


$              198,843


$              192,521


$              128,029


$              182,879

   Interest-bearing


5,206,038


5,300,806


4,463,469


2,992,998


3,048,207

  Total deposits


5,478,075


5,499,649


4,655,990


3,121,027


3,231,086

Borrowings 


181,439


159,673


62,225


338,031


195,453












Deferred and current tax liabilities, net


16,917


15,347


16,716


18,274


15,444

Other liabilities


41,769


33,078


37,446


21,562


20,943

Total liabilities


5,718,200


5,707,747


4,772,377


3,498,894


3,462,926

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, 28,706,438 shares, 28,704,163 shares, and 28,694,036 shares, respectively


135,640


135,507


135,374


135,190


135,057

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, 2,081,800 shares, 2,955,800 shares, and 2,000,000 shares, respectively


50,221


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 and 125,000 shares, respectively (both equivalent to 5,000,000 depositary shares)


120,844


120,863




Retained earnings


304,984


280,551


265,323


252,637


244,909

Accumulated other comprehensive income (loss)


458


692


640


154


(310)

Total shareholders' equity


653,728


629,439


515,013


477,831


421,237

Total liabilities and shareholders' equity


$           6,371,928


$           6,337,186


$           5,287,390


$           3,976,725


$           3,884,163

 

Consolidated Statement of Income

(Unaudited)

(In thousands, except share data)



















Three Months Ended


Twelve Months Ended



December 31,


September 30,


December 31,


December 31,


December 31,



2019


2019


2018


2019


2018

Interest Income















Loans


$

56,829


$

52,779


$

33,999


$

186,428


$

119,457

Investment securities:
















Trading



2,256



1,422



1,235



6,690



5,012

Available for sale - taxable



1,576



1,604



1,740



6,208



6,448

Available for sale - tax exempt



55



68





272



Federal Home Loan Bank stock



190



262



88



932



385

Other



2,893



3,626



2,763



11,465



9,261

Total interest income



63,799



59,761



39,825



211,995



140,563

Interest Expense
















Deposits



25,051



26,039



13,789



84,661



42,216

Borrowed funds



1,127



1,098



1,861



5,036



8,376

Total interest expense



26,178



27,137



15,650



89,697



50,592

Net Interest Income



37,621



32,624



24,175



122,298



89,971

Provision for loan losses



1,993



1,193



1,608



3,940



4,629

Net Interest Income After Provision for Loan Losses


35,628



31,431



22,567



118,358



85,342

Noninterest Income
















Gain on sale of loans



15,352



8,312



11,718



35,411



39,266

Loan servicing fees, net



2,200



(1,410)



1,657



(1,118)



5,741

Mortgage warehouse fees



2,555



2,699



602



7,145



2,550

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


352







476



Other income



2,244



1,251



758



5,175



2,028

Total noninterest income



22,703



10,852



14,735



47,089



49,585

Noninterest Expense
















Salaries and employee benefits



10,422



9,139



10,643



38,093



32,240

Loan expenses



1,007



1,248



1,109



4,534



4,621

Occupancy and equipment



1,793



994



726



4,609



2,788

Professional fees



826



508



830



2,326



2,585

Deposit insurance expense



1,393



859



273



2,747



1,024

Technology expense



848



674



548



2,623



1,544

Other expense



2,547



2,100



2,052



8,381



6,098

Total noninterest expense



18,836



15,522



16,181



63,313



50,900

Income Before Income Taxes



39,495



26,761



21,121



102,134



84,027

Provision for income taxes (2)



9,434



6,502



5,699



24,805



21,153

Net Income


$

30,061


$

20,259


$

15,422


$

77,329


$

62,874

   Dividends on preferred stock



(3,618)



(3,022)



(832)



(9,216)



(3,330)

Net Income Allocated to Common Shareholders


26,443



17,237



14,590



68,113



59,544

Basic Earnings Per Share


$

0.92


$

0.60


$

0.51


$

2.37


$

2.08

Diluted Earnings Per Share


$

0.92


$

0.60


$

0.51


$

2.37


$

2.07

Weighted-Average Shares Outstanding
















Basic



28,706,438



28,706,438



28,694,036



28,705,125



28,692,955

Diluted



28,754,078



28,744,953



28,727,822



28,745,707



28,724,419

















(1) Includes $352, $0, $0, $476, and $0, respectively, related to accumulated other comprehensive earnings reclassifications.

(2) Includes $(86), $0, $0, $(117) and $0, respectively, related to income tax (expense)/benefit for reclassification items.

 

Key Operating Results

(Unaudited)

($ in thousands)
















Three Months Ended


Twelve Months Ended




December 31,


September 30,


December 31,


December 31,


December 31,




2019


2019


2018


2019


2018













Noninterest expense



18,836


15,522


16,181


63,313


50,900













Net interest income (before provision for losses)



37,621


32,624


24,175


122,298


89,971

Noninterest income



22,703


10,852


14,735


47,089


49,585

Total income



60,324


43,476


38,910


169,387


139,556













Efficiency ratio



31.22%


35.70%


41.59%


37.38%


36.47%

























Average assets



6,639,736


6,009,840


3,839,594


5,262,300


3,680,934

Net income



30,061


20,259


15,422


77,329


62,874

Return on average assets before annualizing



0.45%


0.34%


0.40%


1.47%


1.71%

Annualization factor



4.00


4.00


4.00


1.00


1.00

Return on average assets



1.81%


1.35%


1.61%


1.47%


1.71%













Return on average tangible common shareholders' equity (1)

25.65%


18.17%


16.24%


17.56%


17.23%













Tangible book value per common share (1)



$               14.68


$                 13.83


$              12.50


$               14.68


$               12.50













Tangible common shareholders' equity/tangible assets (1)

6.63%


6.28%


9.28%


6.63%


9.28%













(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


Twelve Months Ended




December 31,


September 30,


December 31,


December 31,


December 31,




2019


2019


2018


2019


2018













Net income



30,061


20,259


15,422


77,329


62,874

Less: preferred stock dividends  



(3,618)


(3,022)


(832)


(9,216)


(3,330)

Net income available to common shareholders



26,443


17,237


14,590


68,113


59,544













Average shareholders' equity



644,588


567,732


417,072


537,946


396,350

Less: average goodwill & intangibles



(19,607)


(20,005)


(16,127)


(20,243)


(9,265)

Less: average preferred stock



(212,675)


(168,266)


(41,581)


(129,881)


(41,581)

Average tangible common shareholders' equity



412,306


379,461


359,364


387,822


345,504













Annualization factor



4.00


4.00


4.00


1.00


1.00

Return on average tangible common shareholders' equity

25.65%


18.17%


16.24%


17.56%


17.23%

























Total equity



653,728


629,439


421,237


653,728


421,237

Less: goodwill and intangibles



(19,644)


(19,756)


(21,019)


(19,644)


(21,019)

Less: preferred stock



(212,646)


(212,689)


(41,581)


(212,646)


(41,581)

Tangible common shareholders' equity



421,438


396,994


358,637


421,438


358,637













Assets



6,371,928


6,337,186


3,884,163


6,371,928


3,884,163

Less: goodwill and intangibles



(19,644)


(19,756)


(21,019)


(19,644)


(21,019)

Tangible assets



6,352,284


6,317,430


3,863,144


6,352,284


3,863,144













Ending common shares



28,706,438


28,706,438


28,694,036


28,706,438


28,694,036













Tangible book value per common share



$               14.68


$                 13.83


$              12.50


$               14.68


$               12.50

Tangible common shareholders' equity/tangible assets

6.63%


6.28%


9.28%


6.63%


9.28%

 

Merchants Bancorp

Average Balance Analysis

($ in thousands)

(Unaudited)














Three Months Ended


Three Months Ended


Three Months Ended


December 31, 2019


September 30, 2019


December 31, 2018


Average


Yield/


Average


Yield/


Average


Yield/


Balance

Interest

Rate 


Balance

Interest

Rate 


Balance

Interest

Rate 

Assets:
























Interest-bearing deposits, and other

$      702,706

$   3,083

1.74%


$      670,399

$    3,888

2.30%


$        490,189

$    2,851

2.31%

Securities available for sale - taxable

288,935

1,576

2.16%


278,314

1,604

2.29%


331,613

1,740

2.08%

Securities available for sale - tax exempt

7,527

55

2.90%


9,032

68

2.99%


-

-

-

Trading securities

286,712

2,256

3.12%


162,915

1,422

3.46%


125,582

1,235

3.90%

Loans and loans held for sale

5,182,530

56,829

4.35%


4,718,771

52,779

4.44%


2,736,228

33,999

4.93%

     Total interest-earning assets

6,468,410

63,799

3.91%


5,839,431

59,761

4.06%


3,683,612

39,825

4.29%

Allowance for loan losses

(14,126)




(12,990)




(11,495)



Noninterest-earning assets

185,452




183,399




167,477















Total assets

$    6,639,736




$   6,009,840




$     3,839,594



























Liabilities & Shareholders' Equity:
























Interest-bearing checking

1,971,710

7,652

1.54%


1,951,613

9,253

1.88%


1,335,051

6,122

1.82%

Savings deposits

154,997

76

0.19%


152,509

85

0.22%


159,724

100

0.25%

Money market 

1,000,971

4,339

1.72%


977,228

4,698

1.91%


904,838

4,234

1.86%

Certificates of deposit

2,453,211

12,984

2.10%


2,032,619

12,003

2.34%


617,659

3,333

2.14%

    Total interest-bearing deposits

5,580,889

25,051

1.78%


5,113,969

26,039

2.02%


3,017,272

13,789

1.81%













Borrowings

69,556

1,127

6.43%


59,585

1,098

7.31%


74,072

1,861

9.97%

    Total interest-bearing liabilities

5,650,445

26,178

1.84%


5,173,554

27,137

2.08%


3,091,344

15,650

2.01%













Noninterest-bearing deposits

278,447




198,832




293,197



Noninterest-bearing liabilities

66,256




69,722




37,981















    Total liabilities

5,995,148




5,442,108




3,422,522















    Shareholders' equity

644,588




567,732




417,072















Total liabilities and shareholders' equity

$    6,639,736




$   6,009,840




$     3,839,594















Net interest income


$  37,621




$   32,624




$   24,175














Net interest spread



2.07%




1.98%




2.28%













Net interest-earning assets

$      817,965




$      665,877




$        592,268















Net interest margin



2.31%




2.22%




2.60%













Average interest-earning assets to average interest-bearing liabilities



114.48%




112.87%




119.16%

 

Segment Results

(Unaudited)

($ in thousands)





































Net Income


Net Income





Three Months Ended


Twelve Months Ended


Total Assets



December 31,


September 30,


December 31,


December 31,


December 31,


September 30,


December 31,



2019


2019


2018


2019


2018


2019


2019


2018

Segment

















Multi-family Mortgage Banking

$          10,217


$           2,741


$            4,698


$   14,763


$    19,810


$        188,866


$       169,283


$       166,102

Mortgage Warehousing


13,690


10,924


4,942


34,766


21,000


3,124,684


3,529,267


1,430,776

Banking


7,028


7,649


6,703


31,854


26,269


3,018,568


2,596,313


2,256,687

Other


(874)


(1,055)


(921)


(4,054)


(4,205)


39,810


42,323


30,598

Total


$          30,061


$         20,259


$          15,422


$   77,329


$    62,874


$      6,371,928


$    6,337,186


$     3,884,163

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/merchants-bancorp-reports-record-full-year-and-fourth-quarter-2019-results-300996344.html

SOURCE Merchants Bancorp

You are leaving merchantsbankofindiana.com

You are now leaving the merchantsbankofindiana.com site and being redirected to the website: . Note that the third party's privacy policy and security practices apply and may differ from Merchants Bank of Indiana standards. Merchants Bank of Indiana assumes no responsibility for, nor does it control, endorse or guarantee any aspect of, your use of this linked site.

Cancel Continue to External Site