Merchants Bancorp Reports First Quarter 2020 Results

CARMEL, Ind., April 23, 2020 /PRNewswire/ -- Merchants Bancorp (the "Company" or "Merchants") MBIN, parent company of Merchants Bank of Indiana, today reported first quarter 2020 net income of $24.6 million, or $0.73 per common share.  This compared to $10.6 million, or $0.34 per common share in the first quarter of 2019, and $30.1 million, or $0.92 per common share, in the fourth quarter of 2019.

The $14.0 million, or 133%, increase in net income for the first quarter 2020 compared to the first quarter of 2019 was primarily driven by a 701% increase in gain on sale of loans from significantly higher growth in multi-family loans, and a 59% increase in net interest income that reflected significant growth in mortgage warehouse loans.  These increases more than offset a $6.5 million negative valuation adjustment for mortgage servicing rights in the first quarter 2020 that compared to a $1.5 negative adjustment in the first quarter of 2019.

The $5.5 million, or 18%, decrease in net income for the first quarter 2020 compared to the fourth quarter of 2019 was primarily driven by a $6.5 million negative valuation adjustment for mortgage servicing rights in the first quarter 2020 that compared to a $1.1 positive adjustment in the fourth quarter of 2019.   The negative valuation adjustment was partially offset by a 38% increase in gain on sale of loans and a 2% increase in net interest income, reflecting a 9 basis point increase in net interest margin, to 2.40% compared to the fourth quarter of 2019.

"Merchants continued to produce solid results in the first quarter, and the benefits of our business model have never been clearer as we navigate these times of global economic uncertainty and lower interest rates.  We have continued to focus on short-duration loans in low-risk assets that are underwritten to, and backed by, federal agencies.  Our short-duration funding strategy has allowed us to maintain a net interest margin that benefits from our loan growth.  Additionally, our investments in technology have allowed us to reduce our cost structure and migrate our employees to a work-from-home status that is executing for the needs of our customers," said Michael F. Petrie, Chairman and CEO of Merchants.

"The strategic decision to expand our Small Business Administration ("SBA") team at the end of 2019 has positioned us well to support small businesses in our communities who could benefit from the Coronavirus Aid, Relief and Economic Security ("CARES") Act, particularly in the SBA's Paycheck Protection Program ("PPP").  We stand ready to assist our customers in their time of need," said Michael J. Dunlap, President and Chief Operating Officer of Merchants.

Total Assets

Total assets of $7.9 billion at March 31, 2020 increased $3.9 billion, or 99%, compared to $4.0 billion at March 31, 2019 and increased $1.5 billion, or 24%, compared to December 31, 2019.

The increase compared to December 31, 2019 was primarily due to growth in loans held for sale and net loans receivable, which increased a combined total of $1.2 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 1.49% for the first quarter of 2020 compared to 1.14% for the first quarter of 2019 and 1.81% for the fourth quarter of 2019. 

Asset Quality

The allowance for loan losses of $18.9 million at March 31, 2020 increased $5.5 million compared to March 31, 2019 and increased $3.0 million compared to December 31, 2019, primarily reflecting increases associated with loan growth and uncertainties surrounding COVID-19.  While it is too early to know the full extent of potential future losses associated with the impact of COVID-19, the Company continues to monitor the situation and may need to adjust future expectations as developments occur throughout the remainder of 2020.

The Company has minimal exposure to consumer, commercial and other small businesses that may be negatively impacted by COVID-19 but continues to assist customers facing financial setbacks.  As of March 31, 2020, Merchants granted customer requests to defer payments on 24 loans with unpaid balances of $23.6 million.

Non-performing loans were $6.6 million, or 0.19% of total loans at March 31, 2020, compared to $2.6 million, or 0.12% of total loans at March 31, 2019 and compared to $4.7 million, or 0.15% of total loans at December 31, 2019.  The increase in non-performing loans compared to December 31, 2019 was primarily related to one collateralized agricultural loan that is delinquent greater than 90 days late, with repayment still anticipated.

Total Deposits

Total deposits of $6.7 billion at March 31, 2020 increased $3.6 billion, or 115%, compared to March 31, 2019 and increased $1.2 billion, or 23%, compared to December 31, 2019.

The increase in deposits compared to both March 31, 2019 and December 31,2019 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 of $2.8 billion at March 31, 2020 increased $2.1 billion from March 31, 2019 and increased $671.2 million from December 31, 2019.   Brokered deposits represented 42% of total deposits at March 31, 2020 compared to 24% of total deposits at March 31, 2019 and 39% of total deposits at December 31, 2019.

Liquidity

The Company maintained its available borrowing capacity, with unused lines of credit at $1.2 billion compared to $1.5 billion at December 31, 2019.  This liquidity enhances the ability to effectively manage interest expense and assets levels in the future.  The Company has also applied to utilize the Federal Reserve's discount window, should the need arise.

Net Interest Income

Net interest income of $38.4 million in the first quarter of 2020 increased $14.2 million, or 59%, compared to the first quarter of 2019 and increased $732,000, or 2%, compared to the fourth quarter of 2019. 

The 59% increase in net interest income compared to the first quarter of 2019 reflected significantly higher loan growth that offset lower margins.  The interest rate spread of 2.19% for the first quarter of 2020 decreased 31 basis points compared to 2.50% in the first quarter of 2019. The net interest margin of 2.40% for the first quarter of 2020 declined 37 basis points compared to 2.77% for the first quarter of 2019. The decline in net interest margin compared to the first quarter of 2019 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 underlying mortgage rates or LIBOR.   Furthermore, interest rate floors are used in the Mortgage Warehousing segment to support net interest margin.   Profitability in this business, which also includes fees classified as noninterest income, made the most significant contribution to net income for the first quarter of 2020.

The 2% increase in net interest income compared to the fourth quarter of 2019 reflected an interest rate spread of 2.19% that increased 12 basis points compared to 2.07% in the fourth quarter of 2019. 

The net interest margin of 2.40% for the first quarter of 2020 also increased 9 basis points compared to 2.31% for the fourth quarter of 2019. 

Interest Income

Interest income of $60.4 million in the first quarter of 2020 increased $20.7 million, or 52%, compared to the first quarter of 2019 and decreased $3.4 million, or 5%, compared to the fourth quarter of 2019. 

The 52% increase in interest income compared to the first quarter of 2019 was primarily due to significant loan growth that was partially offset by lower rates.  The higher interest income reflected a $2.3 billion, or 82%, increase in the average balance of loans, including loans held for sale, which reached $5.0 billion for the first quarter of 2020. The average yield on loans and loans held for sale of 4.30% for the first quarter of 2020 decreased 79 basis points compared to 5.09% for the first quarter of 2019. The decline in average yields reflected a higher concentration of warehouse loans for the first quarter of 2020.

The 5% lower interest income compared to the fourth quarter of 2019 reflected a $170.2 million, or 3%, decrease in the average balance of loans, including loans held for sale, which was $5.0 billion for the first quarter of 2020. The average yield on loans and loans held for sale of 4.30% for the first quarter of 2020 also decreased 5 basis points compared to 4.35% for the fourth quarter of 2019. 

Interest Expense

Total interest expense of $22.1 million for the first quarter of 2020 increased $6.5 million, or 42%, compared to the first quarter of 2019 and decreased $4.1 million, or 16%, compared to the fourth quarter of 2019. Interest expense on deposits of $20.6 million for the first quarter of 2020 increased $6.4 million, or 45%, compared to the first quarter of 2019 and decreased $4.4 million, or 18%, compared to the fourth quarter of 2019.

The 45% increase in interest expense on deposits compared to the first quarter of 2019 was primarily due to the higher volume of brokered certificates of deposits and custodial interest-bearing checking. The average balance of interest-bearing deposits of $5.3 billion for the first quarter of 2020 increased $2.4 billion, or 79%, compared to the first quarter of 2019. The average cost of interest-bearing deposits was 1.55% for the first quarter of 2020, which was a 39 basis point decrease compared to 1.94% for the first quarter of 2019. 

The 18% decrease in interest expense on deposits compared to the fourth quarter of 2019 was due to both lower costs of deposits and lower average balances.  The average cost of interest-bearing deposits was 1.55% for the first quarter of 2020, which was a 23 basis point decrease compared to 1.78% in the fourth quarter of 2019.  The average balance of interest-bearing deposits of $5.3 billion for the first quarter of 2020 also decreased $244.9 million, or 4%, compared to the fourth quarter of 2019.

Noninterest Income

Noninterest income of $19.9 million for the first quarter of 2020 increased $16.2 million, or 443%, compared to the first quarter of 2019 and decreased $2.8 million, or 12%, compared to the fourth quarter of 2019.

The 443% increase in noninterest income compared to the first quarter of 2019 was primarily due to a $18.5 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. Also included in noninterest income for the first quarter of 2020 was a $6.5 million negative fair market value adjustment to mortgage servicing rights, which compared to a $1.5 million negative fair market value adjustment for the first quarter of 2019.

The 12% decrease in noninterest income compared to the fourth quarter of 2019 was primarily due to an $8.0 million decrease in loan servicing fees that was partially offset by a $5.8 million, or 38%, increase in gain on sale of loans.   Included in loan servicing fees for the first quarter of 2020 was a $6.5 million negative fair market value adjustment to mortgage servicing rights, which compared to a $1.1 million positive fair market value adjustment for the fourth quarter of 2019.

At March 31, 2020, the mortgage servicing rights asset was valued at $70.0 million, a decrease of 8% compared to March 31, 2019 and a decrease of 6% compared to December 31, 2019.  The value of mortgage servicing rights generally declines in falling interest rate environments and increases in rising interest rate environments.  Call protections on the Company's Ginnie Mae multi-family servicing rights help to minimize valuation declines as compared to the single-family market.

Noninterest Expense

Noninterest expense of $22.3 million for the first quarter of 2020 increased $9.3 million, or 71%, compared to the first quarter of 2019 and increased $3.5 million, or 18%, compared to the fourth quarter of 2019. 

The 71% increase in noninterest expense compared to the first quarter of 2019 was due primarily to a $5.7 million, or 66%, increase in salaries and employee benefits to support business growth and a $1.5 million, or 545%, increase in deposit insurance related to the growth in deposits and assets.    The efficiency ratio of 38.3% for the first quarter of 2020 compared to 46.9% for the first quarter of 2019.

The 18% increase in noninterest expense compared to the fourth quarter of 2019 was primarily due to a $3.8 million, or 37%, increase in salaries and employee benefits to support business growth.  The efficiency ratio of 38.3% for the first quarter of 2020 compared to 31.2% for the fourth quarter of 2019.

Segments

For the first quarter of 2020, net income for Mortgage Warehousing increased 225% compared to the first quarter of 2019, reflecting significant growth in net interest income from higher volume.  Net income decreased 9% compared to the fourth quarter of 2019, primarily reflecting lower interest income from moderating loan growth and rates. 

For the first quarter of 2020, net income for Multi-family Mortgage Banking increased 858% compared with the first quarter of 2019 and decreased 47% compared to the fourth quarter of 2019, reflecting higher gains on sale of loans compared to both periods. The results also included fair market value adjustments to mortgage servicing rights. The first quarter of 2020 included a negative fair market value adjustment of $6.5 million, which compared to a negative fair value adjustment of $1.5 million for the first quarter of 2019 and a positive fair market value adjustment of $1.1 million for the fourth quarter of 2019.  

For the first quarter of 2020, net income for Banking decreased 9% compared to the first quarter of 2019, reflecting higher deposit insurance expense, and increased 13% compared to the fourth 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 $7.9 billion in assets and $6.7 billion in deposits as of March 31, 2020, conducts its business primarily 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 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, such as the potential impacts of the COVID-19 pandemic. 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 the COVID-19 pandemic, such as the severity, magnitude, duration and businesses' and governments' responses thereto, on the Company's operations and personnel, and on activity and demand across its businesses, and other 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 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)



























March 31,



December 31,



September 30,



June 30,



March 31,





2020



2019



2019



2019



2019

Assets





















Cash and due from banks



$                8,168



$              13,909



$              15,614



$              15,176



$              19,554

Interest-earning demand accounts



559,914



492,800



349,362



445,713



293,897

Cash and cash equivalents



568,082



506,709



364,976



460,889



313,451

Securities purchased under agreements to resell



6,685



6,723



6,760



6,798



6,838

Trading Securities



465,157



269,891



227,914



101,514



129,914

Available for sale securities



339,053



290,243



308,673



261,485



296,669

Federal Home Loan Bank (FHLB) stock



46,156



20,369



18,808



18,820



18,880

Loans held for sale (includes $18,938, $19,592, $23,357,

$9,592, and $6,307, respectively, at fair value)



2,796,008



2,093,789



2,498,538



1,918,118



882,071

Loans receivable, net of allowance for loan losses of

$18,883, $15,842, $13,705, $12,604, and $13,356, respectively



3,501,770



3,012,468



2,742,088



2,347,906



2,168,256

Premises and equipment, net



29,415



29,274



29,211



26,580



21,078

Mortgage servicing rights



69,978



74,387



71,989



74,550



76,249

Interest receivable



18,139



18,359



18,780



17,415



14,365

Goodwill 



15,845



15,845



15,574



15,574



17,144

Intangible assets, net



3,419



3,799



4,182



4,567



3,381

Other assets and receivables



48,691



30,072



29,693



33,174



28,429

Total assets



$         7,908,398



$         6,371,928



$         6,337,186



$         5,287,390



$         3,976,725

Liabilities and Shareholders' Equity





















  Liabilities





















Deposits





















Noninterest-bearing



$            327,805



$            272,037



$            198,843



$            192,521



$            128,029

Interest-bearing



6,394,900



5,206,038



5,300,806



4,463,469



2,992,998

Total deposits



6,722,705



5,478,075



5,499,649



4,655,990



3,121,027

Borrowings 



444,567



181,439



159,673



62,225



338,031























Other liabilities



68,157



58,686



48,425



54,162



39,836

Total liabilities



7,235,429



5,718,200



5,707,747



4,772,377



3,498,894

Commitments and  Contingencies





















Shareholders' Equity





















Common stock, without par value





















Authorized - 50,000,000 shares





















Issued and outstanding - 28,742,484 shares, 28,706,438 shares,

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



135,746



135,640



135,507



135,374



135,190

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,

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



50,221



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



120,844



120,863





Retained earnings



323,651



304,984



280,551



265,323



252,637

Accumulated other comprehensive income



926



458



692



640



154

Total shareholders' equity



672,969



653,728



629,439



515,013



477,831

Total liabilities and shareholders' equity



$         7,908,398



$         6,371,928



$         6,337,186



$         5,287,390



$         3,976,725

 

 

Consolidated Statement of Income

(Unaudited)

(In thousands, except share data)

























Three Months Ended





March 31,



December 31,



March 31,





2020



2019



2019

Interest Income

















Loans



$

53,564



$

56,829



$

34,455

Investment securities:



















   Trading





2,796





2,256





1,045

Available for sale - taxable





1,322





1,576





1,551

Available for sale - tax exempt





37





55





96

Federal Home Loan Bank stock





239





190





223

Other





2,459





2,893





2,304

Total interest income





60,417





63,799





39,674

Interest Expense



















Deposits





20,630





25,051





14,227

Borrowed funds





1,434





1,127





1,316

Total interest expense





22,064





26,178





15,543

Net Interest Income





38,353





37,621





24,131

Provision for loan losses





2,998





1,993





649

Net Interest Income After Provision for Loan Losses





35,355





35,628





23,482

Noninterest Income



















Gain on sale of loans





21,166





15,352





2,643

Loan servicing fees, net





(5,824)





2,200





(347)

Mortgage warehouse fees





2,746





2,555





753

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









352





127

Other income





1,814





2,244





488

Total noninterest income





19,902





22,703





3,664

Noninterest Expense



















Salaries and employee benefits





14,240





10,422





8,567

Loan expenses





1,164





1,007





934

Occupancy and equipment





1,492





1,793





876

Professional fees





569





826





539

Deposit insurance expense





1,786





1,393





277

Technology expense





610





848





472

Other expense





2,432





2,547





1,370

Total noninterest expense





22,293





18,836





13,035

Income Before Income Taxes





32,964





39,495





14,111

Provision for income taxes (2)





8,381





9,434





3,541

Net Income



$

24,583



$

30,061



$

10,570

   Dividends on preferred stock





(3,618)





(3,618)





(833)

Net Income Allocated to Common Shareholders





20,965





26,443





9,737

Basic Earnings Per Share



$

0.73



$

0.92



$

0.34

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



$

0.73



$

0.92



$

0.34

Weighted-Average Shares Outstanding



















Basic





28,734,632





28,706,438





28,702,250

Diluted





28,759,412





28,754,078





28,737,439





















(1)Includes $0, $352, and $127, respectively, related to accumulated other comprehensive earnings reclassifications.

(2) Includes $0, $(86), and $(32), respectively, related to income tax (expense)/benefit for reclassification items.

 

 

Key Operating Results

(Unaudited)

($ in thousands)

























Three Months Ended









March 31,



December 31,



March 31,









2020



2019



2019





















Noninterest expense





22,293



18,836



13,035





















Net interest income (before provision for losses)





38,353



37,621



24,131



Noninterest income





19,902



22,703



3,664



Total income





58,255



60,324



27,795





















Efficiency ratio





38.27%



31.22%



46.90%







































Average assets





6,604,394



6,639,736



3,697,945



Net income





24,583



30,061



10,570



Return on average assets before annualizing





0.37%



0.45%



0.29%



Annualization factor





4.00



4.00



4.00



Return on average assets





1.49%



1.81%



1.14%





















Return on average tangible common shareholders' equity (1)





19.19%



25.65%



10.67%





















Tangible book value per common share (1)





$             15.35



$               14.68



$             12.80





















Tangible common shareholders' equity/tangible assets (1)





5.59%



6.63%



9.29%





















(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









March 31,



December 31,



March 31,









2020



2019



2019





















Net income





24,583



30,061



10,570



Less: preferred stock dividends  





(3,618)



(3,618)



(833)



Net income available to common shareholders





20,965



26,443



9,737





















Average shareholders' equity





669,169



644,588



429,230



Less: average goodwill & intangibles





(19,483)



(19,607)



(20,982)



Less: average preferred stock





(212,646)



(212,675)



(43,190)



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

437,040



412,306



365,058





















Annualization factor





4.00



4.00



4.00



Return on average tangible common shareholders' equity





19.19%



25.65%



10.67%







































Total equity





672,969



653,728



477,831



Less: goodwill and intangibles





(19,264)



(19,644)



(20,525)



Less: preferred stock





(212,646)



(212,646)



(89,850)



Tangible common shareholders' equity





441,059



421,438



367,456





















Assets





7,908,398



6,371,928



3,976,725



Less: goodwill and intangibles





(19,264)



(19,644)



(20,525)



Tangible assets





7,889,134



6,352,284



3,956,200





















Ending common shares





28,742,484



28,706,438



28,704,163





















Tangible book value per common share





$             15.35



$               14.68



$             12.80



Tangible common shareholders' equity/tangible assets





5.59%



6.63%



9.29%



 

 

Merchants Bancorp

Average Balance Analysis

($ in thousands)

(Unaudited)



























Three Months Ended



Three Months Ended



Three Months Ended



March 31, 2020



December 31, 2019



March 31, 2019



Average



Yield/



Average



Yield/



Average



Yield/



Balance

Interest

Rate 



Balance

Interest

Rate 



Balance

Interest

Rate 

Assets:















































Interest-bearing deposits, and other

$       777,820

$    2,698

1.40%



$      702,706

$     3,083

1.74%



$        369,736

$     2,527

2.77%

Securities available for sale - taxable

293,964

1,322

1.81%



288,935

1,576

2.16%



292,500

1,551

2.15%

Securities available for sale - tax exempt

5,305

37

2.81%



7,527

55

2.90%



12,460

96

3.12%

Trading securities

349,746

2,796

3.22%



286,712

2,256

3.12%



109,423

1,045

3.87%

Loans and loans held for sale

5,012,324

53,564

4.30%



5,182,530

56,829

4.35%



2,746,562

34,455

5.09%

     Total interest-earning assets

6,439,159

60,417

3.77%



6,468,410

63,799

3.91%



3,530,681

39,674

4.56%

Allowance for loan losses

(15,841)







(14,126)







(12,704)





Noninterest-earning assets

181,076







185,452







179,968





























Total assets

$    6,604,394







$    6,639,736







$     3,697,945





















































Liabilities & Shareholders' Equity:















































Interest-bearing checking

2,064,967

6,891

1.34%



1,971,710

7,652

1.54%



1,314,733

6,434

1.98%

Savings deposits

163,154

58

0.14%



154,997

76

0.19%



147,534

80

0.22%

Money market 

1,143,249

4,575

1.61%



1,000,971

4,339

1.72%



892,806

4,208

1.91%

Certificates of deposit

1,964,622

9,106

1.86%



2,453,211

12,984

2.10%



618,646

3,505

2.30%

    Total interest-bearing deposits

5,335,992

20,630

1.55%



5,580,889

25,051

1.78%



2,973,719

14,227

1.94%

























Borrowings

289,263

1,434

1.99%



69,556

1,127

6.43%



88,353

1,316

6.04%

    Total interest-bearing liabilities

5,625,255

22,064

1.58%



5,650,445

26,178

1.84%



3,062,072

15,543

2.06%

























Noninterest-bearing deposits

235,020







278,447







155,218





Noninterest-bearing liabilities

74,950







66,256







51,425





























    Total liabilities

5,935,225







5,995,148







3,268,715





























    Shareholders' equity

669,169







644,588







429,230





























Total liabilities and shareholders' equity

$    6,604,394







$    6,639,736







$     3,697,945





























Net interest income



$  38,353







$   37,621







$   24,131



























Net interest spread





2.19%







2.07%







2.50%

























Net interest-earning assets

$       813,904







$      817,965







$        468,609





























Net interest margin





2.40%







2.31%







2.77%

























Average interest-earning assets to average

interest-bearing liabilities





114.47%







114.48%







115.30%

 

 

Segment Results

(Unaudited)

($ in thousands)





































































Net Income













Three Months Ended



Total Assets









March 31,



December 31,



March 31,



March 31,



December 31,



March 31,









2020



2019



2019



2020



2019



2019

Segment





























Multi-family Mortgage Banking



$             5,399



$          10,217



$              (712)



$         180,772



$       188,866



$        160,609

Mortgage Warehousing



12,437



13,690



3,832



4,362,423



3,124,684



1,554,233

Banking







7,950



7,028



8,769



3,323,750



3,018,568



2,223,890

Other







(1,203)



(874)



(1,319)



41,453



39,810



37,993

Total







$           24,583



$          30,061



$           10,570



$      7,908,398



$    6,371,928



$     3,976,725

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/merchants-bancorp-reports-first-quarter-2020-results-301046302.html

SOURCE Merchants Bancorp

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