- Third quarter 2022 net income of $58.5
million was equal to the third quarter of 2021 and increased
8% compared to the second quarter of 2022
- Third quarter 2022 diluted earnings per common share of
$1.22 was equal to the third quarter
of 2021 and increased 10% compared to the second quarter of
2022
- Total assets of $12.0 billion
increased 8% compared to June 30,
2022, and increased 6% compared to December 31, 2021
- Return on average assets was 2.05% in the third quarter of 2022
compared to 2.29% in the third quarter of 2021 and 2.20% in the
second quarter of 2022
- Net interest margin was 3.05% in the third quarter of 2022
compared to 2.73% in the third quarter of 2021 and 3.03% in the
second quarter of 2022
- Tangible book value per common share of $20.78 increased 23% compared to $16.91 in the third quarter of 2021 and increased
5% compared to $19.70 in the second
quarter of 2022
- Completed 8.25% Series D preferred stock offering in
September 2022, raising approximately
$137.4 million of new capital, net of
$5.1 million in offering costs
- Sold $1.2 billion of multi-family
bridge loans into a private securitization via a real estate
mortgage investment conduit (REMIC). As part of the transaction,
purchased a $1.0 billion senior
investment security that is expected to be held to maturity.
CARMEL,
Ind., Oct. 27, 2022 /PRNewswire/ --
Merchants Bancorp (the "Company" or "Merchants") (Nasdaq: MBIN),
parent company of Merchants Bank of Indiana, today reported third quarter 2022 net
income of $58.5 million, or diluted
earnings per common share of $1.22.
This compared to $58.5 million, or
diluted earnings per common share of $1.22 in the third quarter of 2021, and compared
to $53.9 million, or diluted earnings
per common share of $1.11 in the
second quarter of 2022.
"We thrived during the third quarter, as our business model
allowed us to quickly adapt to the changing interest rate landscape
and we prepared ourselves with the additional capital and resources
to continue our trajectory of profitable growth. With a tangible
book value of $20.78 per share, an
industry-leading return on average assets of 2.05% and efficiency
ratio of 30.5% in the quarter, our momentum remains strong, and we
are optimistic about the remainder of 2022 and beyond," said
Michael F. Petrie, Chairman and CEO
of Merchants.
Michael J. Dunlap, President and
Chief Operating Officer of Merchants, added, "As our company has
continued to expand, we have made it a priority to ensure our team
has the necessary tools and freedom to execute effectively for our
customers. Their efforts have been the backbone of our
company and their creativity and dedication will continue to be a
leading factor in our ongoing success."
Net income of $58.5 million for
the third quarter 2022 was equal to the third quarter of 2021, but
reflected a $16.5 million, or 24%,
increase in net interest income that was offset by an $11.1 million, or 28%, decrease in noninterest
income and a $5.5 million, or 19%,
increase in noninterest expenses.
Net income for the third quarter 2022 increased by $4.6 million, or 8%, compared to the second
quarter of 2022, primarily driven by a $13.4
million, or 19%, increase in net interest income that was
partially offset by a $10.0 million,
or 25%, decrease in noninterest income and a $2.0 million, or 6%, increase in noninterest
expense.
Total Assets
Total assets of $12.0 billion at September
30, 2022 increased 8%, compared to June 30, 2022, and increased 6%, compared to
December 31, 2021. Increases
compared to both periods were primarily due to significant growth
in the multi-family loan portfolio, some of which were sold during
the quarter. On September 22,
2022, $1.2 billion in loans
were sold as part of a securitization transaction that was
partially offset by the purchase of a $1.0
billion held to maturity senior investment security that was
established as part of the securitization transaction.
Return on average assets was 2.05% for the third quarter of 2022
compared to 2.29% for the third quarter of 2021 and 2.20% for the
second quarter of 2022.
Asset Quality
The allowance for credit losses on loans
of $39.0 million at September 30, 2022 increased $1.5 million compared to June 30, 2022 and increased $7.7 million compared to December 31, 2021. The increase compared to
June 30, 2022 was primarily due to
growth in the multi-family, commercial, residential, and healthcare
loan portfolios, partially offset by the decrease in the
multi-family portfolio associated with the $1.2 billion loan sale and securitization.
As of September 30, 2022, the
Company had one loan remaining in a COVID-19 payment deferral
arrangement, with an unpaid balance of $36.8
million.
Non-performing loans were $26.6
million, or 0.38%, of loans receivable at September 30, 2022, compared to 0.07% at
June 30, 2022 and 0.01% at
December 31, 2021. The increase
compared to both periods was primarily due to the delinquency of
one healthcare customer that is fully collateralized and full
payment is expected.
Total Deposits
Total deposits of $10.3 billion at September
30, 2022 increased $2.0
billion, or 24%, compared to June 30,
2022, and increased $1.3
billion, or 15%, compared to December
31, 2021. The increase compared to both periods was
primarily due to an increase in certificates of deposit and demand
accounts.
Total brokered deposits of $2.2
billion at September 30, 2022
increased $994.0 million, or 81%,
from June 30, 2022 and increased
$58.9 million, or 3%, from
December 31, 2021. Brokered deposits
represented 22% of total deposits at September 30, 2022 compared to 15% of total
deposits at June 30, 2022 and 24% of
total deposits at December 31, 2021.
As of September 30, 2022, brokered
certificates of deposit had a weighted average remaining duration
of 84 days, with none exceeding 180 days.
The Company continues to offer new products, such as
adjustable-rate certificates of deposits, to minimize interest rate
risks by aligning the rate and duration characteristics of its
deposit and loan portfolios.
Liquidity
Cash balances of $324.0 million at September 30, 2022 increased by $65.8 million compared to June 30, 2022 and decreased by $708.7 million compared to December 31, 2021. The Company continues to have
significant borrowing capacity, with unused lines of credit
totaling $2.8 billion at September 30, 2022 compared to $1.7 billion at June 30,
2022 and $2.4 billion at
December 31, 2021. This
liquidity enhances the ability to effectively manage interest
expense and asset levels in the future. Additionally, the Company's
business model is designed to continuously sell a significant
portion of its loans, which provides flexibility in managing its
liquidity.
Comparison of Operating Results for the Three Months Ended
September 30, 2022 and 2021
Net Interest Income of $85.4
million increased $16.5
million, or 24% compared to $68.9
million, reflecting higher yields and average balances on
loans and loans held for sale that were partially offset by higher
interest rates and average balances of deposits and
borrowings.
- Interest rate spread of 2.77% increased 10 basis points
compared to 2.67%.
- Net interest margin of 3.05% increased 32 basis points compared
to 2.73%.
Interest Income of $134.1
million increased 73% compared to $77.3 million, reflecting an increase in both
yields and average balances of loans and loans held for
sale.
- Average balances of $10.2 billion
for loans and loans held for sale increased 18% compared to
$8.7 billion.
- Average yield on loans and loans held for sale of 5.00%
increased 167 basis points compared to 3.33%.
Interest Expense of $48.7
million increased $40.3
million, or 478%, compared to $8.4
million. Interest expense on deposits of $45.0 million increased $38.0 million, or 545%, compared $7.0 million, primarily reflecting higher rates
on interest bearing checking, money market, and certificates of
deposit accounts.
- Average balances of $9.0 billion
for interest-bearing deposits increased 15% compared to
$7.8 billion.
- Average interest rates of 1.98% for interest-bearing deposits
increased 163 basis points compared to 0.35%.
Noninterest Income of $29.2
million decreased $11.1
million, or 28%, compared to $40.3
million, primarily due to a $15.7
million decrease in gain on sale of loans, partially offset
by a $2.9 million increase in loan
servicing rights, which included adjustments for higher values of
servicing rights.
- The decrease in gain on sale of loans was associated with a
business mix shift in multi-family lending, from volumes sold in
the secondary market towards those maintained on the balance
sheet.
- Loan servicing fees included a $4.6
million positive fair market value adjustment to mortgage
servicing rights, of which $0.9
million was in the Banking segment and $3.7 million was in the Multi-family Mortgage
Banking segment. This compared to a $3.0 million positive fair market value
adjustment to mortgage servicing rights, of which $2.3 million was in the Banking segment and
$0.7 million was in the Multi-family
Mortgage Banking segment.
- Syndication and asset management fees of $3.1 million increased 378% and are becoming a
meaningful source of noninterest income growth.
Noninterest Expense of $35.0
million increased $5.5
million, or 19%, compared to $29.5
million, primarily due to increases in salaries and employee
benefits to support business growth.
- The efficiency ratio of 30.51% increased 351 basis points
compared to 27.00%.
Comparison of Operating Results for the Three Months Ended
September 30, 2022 and June 30, 2022
Net Interest Income of $85.4
million increased $13.4
million, or 19% compared to $72.0
million, reflecting higher yields and average balances on
loans and loans held for sale that were partially offset by higher
interest rates on deposits and borrowings.
- Interest rate spread of 2.77% decreased 13 basis points
compared to 2.90%.
- Net interest margin of 3.05% increased 2 basis points compared
to 3.03%.
Interest Income of $134.1
million increased $44.8
million, or 50%, compared to $89.3
million, reflecting an increase in yields and average
balances of loans and loans held for sale.
- Average balances of $10.2 billion
for loans and loans held for sale increased $1.6 billion, or 19%, compared to $8.6 billion.
- Average yield on loans and loans held for sale of 5.00%
increased 101 basis points compared to 3.99%.
Interest Expense of $48.7
million increased $31.5
million, or 183%, compared to $17.2
million. Interest expense on deposits of $45.0 million increased $30.2 million, or 205%, compared to $14.8 million, reflecting higher interest rates
on interest bearing checking, money market, and certificates of
deposit accounts.
- Average balances of $9.0 billion
for interest-bearing deposits increased $1.6
billion, or 22%, compared to $7.4
billion.
- Average interest rates of 1.98% for interest-bearing deposits
increased 117 basis points compared to 0.81%.
Noninterest Income of $29.2
million decreased $10.0
million, or 25%, compared $39.2
million, primarily due to a $8.2
million, or 38%, decrease in gain on sale of
loans.
- The decrease in gain on sale of loans was associated with lower
volume in the multi-family loan portfolios.
- Loan servicing fees included a $4.6
million positive fair market value adjustment to servicing
rights, of which $0.9 million was in
the Banking segment and $3.7 million
was in the Multi-family Mortgage Banking segment. This compared to
a $7.7 million positive fair market
value adjustment to servicing rights, of which $1.1 million was in the Banking segment and
$6.6 million was in the Multi-family
Mortgage Banking segment.
- Syndication and asset management fees of $3.1 million nearly doubled and are becoming a
meaningful source of noninterest income growth.
Noninterest Expense of $35.0
million increased $2.0
million, or 6%, compared to $33.0
million, primarily due to increases in professional fees as
well as salaries and employee benefits to support business
growth.
- The efficiency ratio of 30.51% increased 87 basis points
compared to 29.64%.
About Merchants Bancorp
Ranked as a top performing U.S. public bank by S&P Global
Market Intelligence, Merchants Bancorp is a diversified bank
holding company headquartered in Carmel,
Indiana operating multiple lines of business, including
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 $12.0 billion in assets and $10.3 billion in deposits as of September 30, 2022, conducts its business
primarily through its direct and indirect subsidiaries, Merchants
Bank of Indiana, Merchants Capital
Corp., Merchants Capital Investments, LLC, Merchants Capital
Servicing, LLC, Merchants Asset Management, LLC, Farmers-Merchants
Bank of Illinois, and Merchants
Mortgage, a division of Merchants Bank of Indiana. For more information and financial
data, please visit Merchants' Investor Relations page
at investors.merchantsbancorp.com.
Forward-Looking Statements
This press release contains forward-looking statements which
reflect management's current views with respect to, among other
things, future events and financial performance. These statements
are often, but not always, made through the use of words or phrases
such as "may," "might," "should," "could," "predict," "potential,"
"believe," "expect," "continue," "will," "anticipate," "seek,"
"estimate," "intend," "plan," "projection," "goal," "target,"
"outlook," "aim," "would," "annualized" and "outlook," or the
negative version of those words or other comparable words or
phrases of a future or forward-looking nature. These
forward-looking statements are not historical facts, and are based
on current expectations, estimates and projections about the
industry, management's beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond our control, 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 the Company does not undertake any obligation to
update or revise any forward-looking statements to reflect changes
in assumptions, the occurrence of unanticipated events, or
otherwise.
Consolidated Balance
Sheets
|
(Unaudited)
|
(In thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30
|
|
March
31
|
|
December
31,
|
|
September
30,
|
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
13,796
|
|
$
10,714
|
|
$
9,853
|
|
$
14,030
|
|
$
14,352
|
Interest-earning demand
accounts
|
|
310,165
|
|
247,432
|
|
401,668
|
|
1,018,584
|
|
788,224
|
Cash and cash
equivalents
|
|
323,961
|
|
258,146
|
|
411,521
|
|
1,032,614
|
|
802,576
|
Securities purchased
under agreements to resell
|
|
3,497
|
|
3,520
|
|
4,798
|
|
5,888
|
|
5,923
|
Mortgage loans in
process of securitization
|
|
137,448
|
|
323,046
|
|
324,280
|
|
569,239
|
|
634,027
|
Available for sale
securities
|
|
322,069
|
|
336,814
|
|
314,266
|
|
310,629
|
|
301,119
|
Held to maturity
securities
|
|
1,005,487
|
|
—
|
|
—
|
|
—
|
|
—
|
Federal Home Loan Bank
(FHLB) stock
|
|
39,130
|
|
39,130
|
|
28,804
|
|
29,588
|
|
70,767
|
Loans held for sale
(includes $68,785, $41,991, $14,567,
$48,583 and $26,296, respectively, at fair value)
|
|
2,844,750
|
|
2,759,116
|
|
2,289,094
|
|
3,303,199
|
|
3,453,279
|
Loans receivable, net
of allowance for credit losses on loans of
$38,996, $37,474, $32,102, $31,344 and $29,134,
respectively
|
|
6,919,128
|
|
7,033,203
|
|
5,976,960
|
|
5,751,319
|
|
5,431,227
|
Premises and equipment,
net
|
|
35,492
|
|
35,085
|
|
34,559
|
|
31,212
|
|
31,423
|
Servicing
rights
|
|
144,984
|
|
130,710
|
|
121,036
|
|
110,348
|
|
105,473
|
Interest
receivable
|
|
40,170
|
|
26,184
|
|
23,499
|
|
24,103
|
|
21,894
|
Goodwill
|
|
15,845
|
|
15,845
|
|
15,845
|
|
15,845
|
|
15,845
|
Intangible assets,
net
|
|
1,307
|
|
1,441
|
|
1,574
|
|
1,707
|
|
1,843
|
Other assets and
receivables
|
|
145,454
|
|
123,815
|
|
104,356
|
|
92,947
|
|
76,637
|
Total assets
|
|
$
11,978,722
|
|
$
11,086,055
|
|
$
9,650,592
|
|
$
11,278,638
|
|
$
10,952,033
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
315,868
|
|
$
444,461
|
|
$
461,193
|
|
$
641,442
|
|
$
824,118
|
Interest-bearing
|
|
10,003,611
|
|
7,855,277
|
|
7,014,628
|
|
8,341,171
|
|
8,123,201
|
Total
deposits
|
|
10,319,479
|
|
8,299,738
|
|
7,475,821
|
|
8,982,613
|
|
8,947,319
|
Borrowings
|
|
97,279
|
|
1,440,904
|
|
879,929
|
|
1,033,954
|
|
809,136
|
Deferred and current
tax liabilities, net
|
|
19,124
|
|
19,414
|
|
30,695
|
|
19,170
|
|
21,681
|
Other
liabilities
|
|
130,250
|
|
97,460
|
|
75,644
|
|
87,492
|
|
64,019
|
Total
liabilities
|
|
10,566,132
|
|
9,857,516
|
|
8,462,089
|
|
10,123,229
|
|
9,842,155
|
Commitments
and Contingencies
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
Common stock, without
par value
|
|
|
|
|
|
|
|
|
|
|
Authorized - 75,000,000
shares, 75,000,000 shares,
50,000,000 shares, 50,000,000 shares and 50,000,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and
outstanding - 43,109,578 shares, 43,106,505 shares,
43,267,776 shares, 43,180,079 shares and 43,178,061
shares
|
|
137,226
|
|
136,671
|
|
137,882
|
|
137,565
|
|
137,200
|
Preferred stock,
without par value - 5,000,000 total shares
authorized
|
|
|
|
|
|
|
|
|
|
|
7% Series A Preferred
stock - $25 per share liquidation
preference
|
|
|
|
|
|
|
|
|
|
|
Authorized - 3,500,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding
- 2,081,800 shares
|
|
50,221
|
|
50,221
|
|
50,221
|
|
50,221
|
|
50,221
|
6% Series B Preferred
stock - $1,000 per share liquidation
preference
|
|
|
|
|
|
|
|
|
|
|
Authorized - 125,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding
- 125,000 shares (equivalent to
5,000,000 depositary shares)
|
|
120,844
|
|
120,844
|
|
120,844
|
|
120,844
|
|
120,844
|
6% Series C Preferred
stock - $1,000 per share liquidation
preference
|
|
|
|
|
|
|
|
|
|
|
Authorized - 200,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding
- 196,181 shares (equivalent to
7,847,233 depositary shares)
|
|
191,084
|
|
191,084
|
|
191,084
|
|
191,084
|
|
191,084
|
8.25% Series D
Preferred stock - $1,000 per share liquidation
preference
|
|
|
|
|
|
|
|
|
|
|
Authorized - 300,000
shares
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding
- 142,500 shares (equivalent to
5,700,000 depositary shares)
|
|
137,371
|
|
—
|
|
—
|
|
—
|
|
—
|
Retained
earnings
|
|
787,530
|
|
737,789
|
|
694,776
|
|
657,149
|
|
610,267
|
Accumulated other
comprehensive income (loss)
|
|
(11,686)
|
|
(8,070)
|
|
(6,304)
|
|
(1,454)
|
|
262
|
Total shareholders'
equity
|
|
1,412,590
|
|
1,228,539
|
|
1,188,503
|
|
1,155,409
|
|
1,109,878
|
Total liabilities and
shareholders' equity
|
|
$
11,978,722
|
|
$
11,086,055
|
|
$
9,650,592
|
|
$
11,278,638
|
|
$
10,952,033
|
Consolidated
Statement of Income
|
(Unaudited)
|
(In thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Change
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
3Q22
|
|
3Q22
|
|
|
2022
|
|
2022
|
|
2021
|
|
vs.
2Q22
|
|
vs.
3Q21
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
129,101
|
|
$
|
85,994
|
|
$
|
72,924
|
|
50 %
|
|
77 %
|
Mortgage loans in
process of securitization
|
|
|
2,162
|
|
|
1,449
|
|
|
2,868
|
|
49 %
|
|
-25 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale -
taxable
|
|
|
485
|
|
|
917
|
|
|
1,115
|
|
-47 %
|
|
-57 %
|
Available for sale -
tax exempt
|
|
|
—
|
|
|
—
|
|
|
12
|
|
—
|
|
-100 %
|
Held to
maturity
|
|
|
970
|
|
|
—
|
|
|
—
|
|
100 %
|
|
100 %
|
Federal Home Loan Bank
stock
|
|
|
379
|
|
|
284
|
|
|
190
|
|
33 %
|
|
99 %
|
Other
|
|
|
1,015
|
|
|
626
|
|
|
205
|
|
62 %
|
|
395 %
|
Total interest
income
|
|
|
134,112
|
|
|
89,270
|
|
|
77,314
|
|
50 %
|
|
73 %
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
45,002
|
|
|
14,768
|
|
|
6,981
|
|
205 %
|
|
545 %
|
Borrowed
funds
|
|
|
3,725
|
|
|
2,471
|
|
|
1,452
|
|
51 %
|
|
157 %
|
Total interest
expense
|
|
|
48,727
|
|
|
17,239
|
|
|
8,433
|
|
183 %
|
|
478 %
|
Net Interest
Income
|
|
|
85,385
|
|
|
72,031
|
|
|
68,881
|
|
19 %
|
|
24 %
|
Provision for credit
losses
|
|
|
2,225
|
|
|
6,212
|
|
|
1,079
|
|
-64 %
|
|
106 %
|
Net Interest Income
After Provision for Credit Losses
|
|
|
83,160
|
|
|
65,819
|
|
|
67,802
|
|
26 %
|
|
23 %
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
loans
|
|
|
13,354
|
|
|
21,564
|
|
|
29,013
|
|
-38 %
|
|
-54 %
|
Loan servicing fees,
net
|
|
|
8,169
|
|
|
9,607
|
|
|
5,313
|
|
-15 %
|
|
54 %
|
Mortgage warehouse
fees
|
|
|
1,105
|
|
|
1,350
|
|
|
2,732
|
|
-18 %
|
|
-60 %
|
Syndication and asset
management fees
|
|
|
3,073
|
|
|
1,599
|
|
|
643
|
|
92 %
|
|
378 %
|
Other income
|
|
|
3,485
|
|
|
5,051
|
|
|
2,570
|
|
-31 %
|
|
36 %
|
Total noninterest
income
|
|
|
29,186
|
|
|
39,171
|
|
|
40,271
|
|
-25 %
|
|
-28 %
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
23,027
|
|
|
22,475
|
|
|
20,197
|
|
2 %
|
|
14 %
|
Loan
expenses
|
|
|
1,226
|
|
|
1,184
|
|
|
1,734
|
|
4 %
|
|
-29 %
|
Occupancy and
equipment
|
|
|
1,967
|
|
|
2,011
|
|
|
1,861
|
|
-2 %
|
|
6 %
|
Professional
fees
|
|
|
2,429
|
|
|
1,594
|
|
|
901
|
|
52 %
|
|
170 %
|
Deposit insurance
expense
|
|
|
755
|
|
|
670
|
|
|
664
|
|
13 %
|
|
14 %
|
Technology
expense
|
|
|
1,325
|
|
|
1,304
|
|
|
1,169
|
|
2 %
|
|
13 %
|
Other
expense
|
|
|
4,222
|
|
|
3,719
|
|
|
2,946
|
|
14 %
|
|
43 %
|
Total noninterest
expense
|
|
|
34,951
|
|
|
32,957
|
|
|
29,472
|
|
6 %
|
|
19 %
|
Income Before Income
Taxes
|
|
|
77,395
|
|
|
72,033
|
|
|
78,601
|
|
7 %
|
|
-2 %
|
Provision for income
taxes
|
|
|
18,907
|
|
|
18,098
|
|
|
20,098
|
|
4 %
|
|
-6 %
|
Net
Income
|
|
$
|
58,488
|
|
$
|
53,935
|
|
$
|
58,503
|
|
8 %
|
|
—
|
Dividends
on preferred stock
|
|
|
(5,729)
|
|
|
(5,729)
|
|
|
(5,729)
|
|
—
|
|
—
|
Net Income Allocated
to Common Shareholders
|
|
$
|
52,759
|
|
$
|
48,206
|
|
$
|
52,774
|
|
9 %
|
|
—
|
Basic Earnings Per
Share
|
|
$
|
1.22
|
|
$
|
1.12
|
|
$
|
1.22
|
|
9 %
|
|
—
|
Diluted Earnings Per
Share
|
|
$
|
1.22
|
|
$
|
1.11
|
|
$
|
1.22
|
|
10 %
|
|
—
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,107,975
|
|
|
43,209,824
|
|
|
43,176,296
|
|
|
|
|
Diluted
|
|
|
43,258,925
|
|
|
43,335,211
|
|
|
43,314,755
|
|
|
|
|
Consolidated
Statement of Income
|
(Unaudited)
|
(In thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2022
|
|
2021
|
|
Change
|
Interest
Income
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
287,291
|
|
$
|
216,717
|
|
33 %
|
Mortgage loans in
process of securitization
|
|
|
5,856
|
|
|
8,728
|
|
-33 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
Available for sale -
taxable
|
|
|
2,103
|
|
|
2,302
|
|
-9 %
|
Available for sale -
tax exempt
|
|
|
—
|
|
|
32
|
|
-100 %
|
Held to
maturity
|
|
|
970
|
|
|
—
|
|
100 %
|
Federal Home Loan Bank
stock
|
|
|
932
|
|
|
966
|
|
-4 %
|
Other
|
|
|
2,242
|
|
|
556
|
|
303 %
|
Total interest
income
|
|
|
299,394
|
|
|
229,301
|
|
31 %
|
Interest
Expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
68,583
|
|
|
19,764
|
|
247 %
|
Borrowed
funds
|
|
|
7,670
|
|
|
4,286
|
|
79 %
|
Total interest
expense
|
|
|
76,253
|
|
|
24,050
|
|
217 %
|
Net Interest
Income
|
|
|
223,141
|
|
|
205,251
|
|
9 %
|
Provision for credit
losses
|
|
|
10,888
|
|
|
2,427
|
|
349 %
|
Net Interest Income
After Provision for Credit Losses
|
|
|
212,253
|
|
|
202,824
|
|
5 %
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
Gain on sale of
loans
|
|
|
52,883
|
|
|
82,755
|
|
-36 %
|
Loan servicing fees,
net
|
|
|
27,507
|
|
|
14,991
|
|
83 %
|
Mortgage warehouse
fees
|
|
|
4,313
|
|
|
9,927
|
|
-57 %
|
Syndication and asset
management fees
|
|
|
5,286
|
|
|
1,178
|
|
349 %
|
Other income
|
|
|
12,965
|
|
|
8,211
|
|
58 %
|
Total noninterest
income
|
|
|
102,954
|
|
|
117,062
|
|
-12 %
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
66,795
|
|
|
60,340
|
|
11 %
|
Loan
expenses
|
|
|
3,621
|
|
|
6,178
|
|
-41 %
|
Occupancy and
equipment
|
|
|
5,792
|
|
|
5,296
|
|
9 %
|
Professional
fees
|
|
|
5,326
|
|
|
2,102
|
|
153 %
|
Deposit insurance
expense
|
|
|
2,184
|
|
|
1,986
|
|
10 %
|
Technology
expense
|
|
|
3,865
|
|
|
3,077
|
|
26 %
|
Other
expense
|
|
|
11,358
|
|
|
8,760
|
|
30 %
|
Total noninterest
expense
|
|
|
98,941
|
|
|
87,739
|
|
13 %
|
Income Before Income
Taxes
|
|
|
216,266
|
|
|
232,147
|
|
-7 %
|
Provision for income
taxes
|
|
|
53,701
|
|
|
60,244
|
|
-11 %
|
Net
Income
|
|
$
|
162,565
|
|
$
|
171,903
|
|
-5 %
|
Dividends
on preferred stock
|
|
|
(17,186)
|
|
|
(15,145)
|
|
13 %
|
Net Income Allocated
to Common Shareholders
|
|
$
|
145,379
|
|
$
|
156,758
|
|
-7 %
|
Basic Earnings Per
Share
|
|
$
|
3.37
|
|
$
|
3.63
|
|
-7 %
|
Diluted Earnings Per
Share
|
|
$
|
3.36
|
|
$
|
3.62
|
|
-7 %
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,182,380
|
|
|
43,169,618
|
|
|
Diluted
|
|
|
43,331,148
|
|
|
43,300,688
|
|
|
Key Operating
Results
|
(Unaudited)
|
($ in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Change
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
3Q22
|
|
3Q22
|
|
|
|
|
2022
|
|
2022
|
|
2021
|
|
vs.
2Q22
|
|
vs.
3Q21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
$
34,951
|
|
$
32,957
|
|
$
29,472
|
|
6 %
|
|
19 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(before provision for credit losses)
|
|
|
85,385
|
|
72,031
|
|
68,881
|
|
19 %
|
|
24 %
|
|
Noninterest
income
|
|
|
29,186
|
|
39,171
|
|
40,271
|
|
-25 %
|
|
-28 %
|
|
Total income
|
|
|
$
114,571
|
|
$
111,202
|
|
$
109,152
|
|
3 %
|
|
5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
30.51 %
|
|
29.64 %
|
|
27.00 %
|
|
87
|
bps
|
351
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
$
11,437,805
|
|
$ 9,820,878
|
|
$
10,236,491
|
|
16 %
|
|
12 %
|
|
Net income
|
|
|
$
58,488
|
|
$
53,935
|
|
$
58,503
|
|
8 %
|
|
—
|
|
Return on average
assets before annualizing
|
|
|
0.51 %
|
|
0.55 %
|
|
0.57 %
|
|
|
|
|
|
Annualization
factor
|
|
|
4.00
|
|
4.00
|
|
4.00
|
|
|
|
|
|
Return on average
assets
|
|
|
2.05 %
|
|
2.20 %
|
|
2.29 %
|
|
(15)
|
bps
|
(24)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common shareholders' equity (1)
|
|
|
23.92 %
|
|
23.05 %
|
|
29.83 %
|
|
87
|
bps
|
(591)
|
bps
|
Tangible book value
per common share (1)
|
|
|
$
20.78
|
|
$
19.70
|
|
$
16.91
|
|
5 %
|
|
23 %
|
|
Tangible common
shareholders' equity/tangible assets (1)
|
|
|
7.49 %
|
|
7.67 %
|
|
6.68 %
|
|
(18)
|
bps
|
81
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial
measure - see "Reconciliation of Non-GAAP Measures"
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain non-GAAP
financial measures provide useful information to management and
investors that is supplementary to the company's financial
condition, results of operations and cash flows computed in
accordance with GAAP; however, they do have a number of
limitations. As such,
the reader should not view these disclosures as a substitute for
results determined in accordance with GAAP, and they are not
necessarily comparable to
non-GAAP financial measures that other companies use. A
reconciliation of GAAP to non-GAAP financial measures is
below. Net Income Available
to Common Shareholders excludes preferred stock. Tangible
common equity is calculated by excluding the balance of goodwill
and other intangible
assets and preferred stock from the calculation of total
assets. Tangible Assets is calculated by excluding the
balance of goodwill and intangible
assets. Tangible book value per share is calculated by
dividing tangible common equity by the number of shares
outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Change
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
3Q22
|
|
3Q22
|
|
|
|
|
2022
|
|
2022
|
|
2021
|
|
vs.
2Q22
|
|
vs.
3Q21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
58,488
|
|
$
53,935
|
|
$
58,503
|
|
8 %
|
|
—
|
|
Less: preferred stock
dividends
|
|
|
(5,729)
|
|
(5,729)
|
|
(5,729)
|
|
—
|
|
—
|
|
Net income available to
common shareholders
|
|
|
$
52,759
|
|
$
48,206
|
|
$
52,774
|
|
9 %
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
$ 1,267,160
|
|
$ 1,215,891
|
|
$ 1,087,675
|
|
4 %
|
|
17 %
|
|
Less: average goodwill
& intangibles
|
|
|
(17,228)
|
|
(17,361)
|
|
(17,770)
|
|
-1 %
|
|
-3 %
|
|
Less: average preferred
stock
|
|
|
(367,726)
|
|
(362,149)
|
|
(362,149)
|
|
2 %
|
|
2 %
|
|
Tangible common
shareholders' equity
|
|
|
$
882,206
|
|
$
836,381
|
|
$
707,756
|
|
5 %
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualization
factor
|
|
|
4.00
|
|
4.00
|
|
4.00
|
|
|
|
|
|
Return on average
tangible common shareholders' equity
|
|
|
23.92 %
|
|
23.05 %
|
|
29.83 %
|
|
87
|
bps
|
(590)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
$ 1,412,590
|
|
$ 1,228,539
|
|
$ 1,109,878
|
|
15 %
|
|
27 %
|
|
Less: goodwill and
intangibles
|
|
|
(17,152)
|
|
(17,286)
|
|
(17,688)
|
|
-1 %
|
|
-3 %
|
|
Less: preferred
stock
|
|
|
(499,520)
|
|
(362,149)
|
|
(362,149)
|
|
38 %
|
|
38 %
|
|
Tangible common
shareholders' equity
|
|
|
$
895,918
|
|
$
849,104
|
|
$
730,041
|
|
6 %
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
$
11,978,722
|
|
$
11,086,055
|
|
$
10,952,033
|
|
8 %
|
|
9 %
|
|
Less: goodwill and
intangibles
|
|
|
(17,152)
|
|
(17,286)
|
|
(17,688)
|
|
-1 %
|
|
-3 %
|
|
Tangible
assets
|
|
|
$
11,961,570
|
|
$
11,068,769
|
|
$
10,934,345
|
|
8 %
|
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending common
shares
|
|
|
43,109,578
|
|
43,106,505
|
|
43,178,061
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
|
$
20.78
|
|
$
19.70
|
|
$
16.91
|
|
5 %
|
|
23 %
|
|
Tangible common
shareholders' equity/tangible assets
|
|
|
7.49 %
|
|
7.67 %
|
|
6.68 %
|
|
(18)
|
bps
|
81
|
bps
|
Key Operating
Results
|
(Unaudited)
|
($ in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
$
98,941
|
|
$
87,739
|
|
13 %
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(before provision for credit losses)
|
|
|
223,141
|
|
205,251
|
|
9 %
|
|
Noninterest
income
|
|
|
102,954
|
|
117,062
|
|
-12 %
|
|
Total income
|
|
|
$
326,095
|
|
$
322,313
|
|
1 %
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
30.34 %
|
|
27.22 %
|
|
312
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
|
|
$
10,568,712
|
|
$ 9,934,157
|
|
6 %
|
|
Net income
|
|
|
$
162,565
|
|
$
171,903
|
|
-5 %
|
|
Return on average
assets before annualizing
|
|
|
1.54 %
|
|
1.73 %
|
|
|
|
Annualization
factor
|
|
|
1.33
|
|
1.33
|
|
|
|
Return on average
assets
|
|
|
2.05 %
|
|
2.30 %
|
|
(25)
|
bps
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common shareholders' equity (1)
|
|
|
23.08 %
|
|
31.60 %
|
|
(852)
|
bps
|
Tangible book value
per common share (1)
|
|
|
$
20.78
|
|
$
16.91
|
|
23 %
|
|
Tangible common
shareholders' equity/tangible assets (1)
|
|
|
7.49 %
|
|
6.68 %
|
|
81
|
bps
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial
measure - see "Reconciliation of Non-GAAP Measures"
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain non-GAAP
financial measures provide useful information to management and
investors that is supplementary to the
company's financial condition, results of operations and cash flows
computed in accordance with GAAP; however, they do have a
number of limitations. As such, the reader should not view
these disclosures as a substitute for results determined in
accordance
with GAAP, and they are not necessarily comparable to
non-GAAP financial measures that other companies use. A
reconciliation
of GAAP to non-GAAP financial measures is below. Net Income
Available to Common Shareholders excludes preferred
stock.
Tangible common equity is calculated by excluding the balance of
goodwill and other intangible assets and preferred stock from
the
calculation of total assets. Tangible Assets is calculated by
excluding the balance of goodwill and intangible assets.
Tangible book
value per share is calculated by dividing tangible common equity by
the number of shares
outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
162,565
|
|
$
171,903
|
|
-5 %
|
|
Less: preferred stock
dividends
|
|
|
(17,186)
|
|
(15,145)
|
|
13 %
|
|
Net income available to
common shareholders
|
|
|
$
145,379
|
|
$
156,758
|
|
-7 %
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
|
$ 1,219,305
|
|
$
991,467
|
|
23 %
|
|
Less: average goodwill
& intangibles
|
|
|
(17,360)
|
|
(17,913)
|
|
-3 %
|
|
Less: average preferred
stock
|
|
|
(364,028)
|
|
(313,689)
|
|
16 %
|
|
Tangible common
shareholders' equity
|
|
|
$
837,917
|
|
$
659,865
|
|
27 %
|
|
|
|
|
|
|
|
|
|
|
Annualization
factor
|
|
|
1.33
|
|
1.33
|
|
|
|
Return on average
tangible common shareholders' equity
|
|
|
23.08 %
|
|
31.60 %
|
|
(852)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
$ 1,412,590
|
|
$ 1,109,878
|
|
27 %
|
|
Less: goodwill and
intangibles
|
|
|
(17,152)
|
|
(17,688)
|
|
-3 %
|
|
Less: preferred
stock
|
|
|
(499,520)
|
|
(362,149)
|
|
38 %
|
|
Tangible common
shareholders' equity
|
|
|
$
895,918
|
|
$
730,041
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
$
11,978,722
|
|
$
10,952,033
|
|
9 %
|
|
Less: goodwill and
intangibles
|
|
|
(17,152)
|
|
(17,688)
|
|
-3 %
|
|
Tangible
assets
|
|
|
$
11,961,570
|
|
$
10,934,345
|
|
9 %
|
|
|
|
|
|
|
|
|
|
|
Ending common
shares
|
|
|
43,109,578
|
|
43,178,061
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
|
|
$
20.78
|
|
$
16.91
|
|
23 %
|
|
Tangible common
shareholders' equity/tangible assets
|
|
|
7.49 %
|
|
6.68 %
|
|
81
|
bps
|
|
Merchants
Bancorp
|
|
Average Balance
Analysis
|
|
($ in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2022
|
|
June 30,
2022
|
|
September 30,
2021
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits, and other
|
$
211,653
|
$
1,394
|
2.61 %
|
|
$ 367,540
|
$ 910
|
0.99 %
|
|
$
580,397
|
$ 395
|
0.27 %
|
|
Securities available
for sale - taxable
|
331,796
|
485
|
0.58 %
|
|
330,759
|
917
|
1.11 %
|
|
308,476
|
1,115
|
1.43 %
|
|
Securities available
for sale - tax exempt
|
—
|
—
|
|
|
—
|
—
|
|
|
1,361
|
12
|
3.50 %
|
|
Held to maturity
securities
|
98,363
|
970
|
3.91 %
|
|
—
|
—
|
|
|
—
|
—
|
|
|
Mortgage loans in
process of securitization
|
235,230
|
2,162
|
3.65 %
|
|
198,349
|
1,449
|
2.93 %
|
|
437,601
|
2,868
|
2.60 %
|
|
Loans and loans held
for sale
|
10,245,294
|
129,101
|
5.00 %
|
|
8,643,276
|
85,994
|
3.99 %
|
|
8,689,144
|
72,924
|
3.33 %
|
|
Total interest-earning
assets
|
11,122,336
|
134,112
|
4.78 %
|
|
9,539,924
|
89,270
|
3.75 %
|
|
10,016,979
|
77,314
|
3.06 %
|
|
Allowance for credit
losses on loans
|
(39,325)
|
|
|
|
(33,401)
|
|
|
|
(28,679)
|
|
|
|
Noninterest-earning
assets
|
354,794
|
|
|
|
314,355
|
|
|
|
248,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
11,437,805
|
|
|
|
$
9,820,878
|
|
|
|
$
10,236,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
checking
|
4,207,217
|
21,980
|
2.07 %
|
|
3,849,876
|
6,945
|
0.72 %
|
|
4,754,633
|
1,561
|
0.13 %
|
|
Savings
deposits
|
239,262
|
162
|
0.27 %
|
#
|
238,944
|
62
|
0.10 %
|
|
211,494
|
39
|
0.07 %
|
|
Money
market
|
2,523,315
|
13,094
|
2.06 %
|
#
|
2,626,973
|
6,567
|
1.00 %
|
|
2,259,786
|
4,394
|
0.77 %
|
|
Certificates of
deposit
|
2,030,152
|
9,766
|
1.91 %
|
#
|
639,556
|
1,194
|
0.75 %
|
|
591,093
|
987
|
0.66 %
|
|
Total interest-bearing deposits
|
8,999,946
|
45,002
|
1.98 %
|
|
7,355,349
|
14,768
|
0.81 %
|
|
7,817,006
|
6,981
|
0.35 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
588,582
|
3,725
|
2.51 %
|
|
749,628
|
2,471
|
1.32 %
|
|
677,201
|
1,452
|
0.85 %
|
|
Total interest-bearing liabilities
|
9,588,528
|
48,727
|
2.02 %
|
|
8,104,977
|
17,239
|
0.85 %
|
|
8,494,207
|
8,433
|
0.39 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
474,925
|
|
|
|
402,328
|
|
|
|
586,981
|
|
|
|
Noninterest-bearing
liabilities
|
107,192
|
|
|
|
97,682
|
|
|
|
67,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
10,170,645
|
|
|
|
8,604,987
|
|
|
|
9,148,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
1,267,160
|
|
|
|
1,215,891
|
|
|
|
1,087,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
11,437,805
|
|
|
|
$
9,820,878
|
|
|
|
$
10,236,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
85,385
|
|
|
|
$
72,031
|
|
|
|
$
68,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
2.77 %
|
|
|
|
2.90 %
|
|
|
|
2.67 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets
|
$
1,533,808
|
|
|
|
$
1,434,947
|
|
|
|
$ 1,522,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.05 %
|
|
|
|
3.03 %
|
|
|
|
2.73 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to average
interest-bearing liabilities
|
|
|
116.00 %
|
|
|
|
117.70 %
|
|
|
|
117.93 %
|
Supplemental
Results
|
(Unaudited)
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
Net
Income
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family Mortgage
Banking
|
|
|
|
$
13,366
|
|
$
19,556
|
|
$
14,448
|
|
$
44,414
|
|
$
37,380
|
|
Mortgage
Warehousing
|
|
|
|
11,801
|
|
11,868
|
|
23,217
|
|
36,828
|
|
73,848
|
|
Banking
|
|
|
|
39,344
|
|
25,932
|
|
23,463
|
|
94,040
|
|
68,229
|
|
Other
|
|
|
|
(6,023)
|
|
(3,421)
|
|
(2,625)
|
|
(12,717)
|
|
(7,554)
|
|
Total
|
|
|
|
$
58,488
|
|
$
53,935
|
|
$
58,503
|
|
$
162,565
|
|
$
171,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2022
|
|
2022
|
|
2021
|
|
|
|
|
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family Mortgage
Banking
|
|
|
|
$
343,443
|
|
$
330,676
|
|
$
296,129
|
|
|
|
|
|
Mortgage
Warehousing
|
|
|
|
2,735,278
|
|
2,836,998
|
|
3,977,537
|
|
|
|
|
|
Banking
|
|
|
|
8,760,416
|
|
7,835,152
|
|
6,929,565
|
|
|
|
|
|
Other
|
|
|
|
139,585
|
|
83,229
|
|
75,407
|
|
|
|
|
|
Total
|
|
|
|
$ 11,978,722
|
|
$
11,086,055
|
|
$ 11,278,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Sale of
Loans
|
|
Gain on Sale of
Loans
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Loan
Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
|
12,002
|
|
$
19,623
|
|
$
24,309
|
|
$
46,578
|
|
$
68,553
|
|
Single-family
|
|
|
|
138
|
|
406
|
|
1,592
|
|
1,001
|
|
7,677
|
|
Small Business
Association (SBA)
|
|
|
|
1,214
|
|
1,535
|
|
3,112
|
|
5,304
|
|
6,525
|
|
Total
|
|
|
|
$
13,354
|
|
$
21,564
|
|
$
29,013
|
|
$
52,883
|
|
$
82,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable and
Loans Held for Sale
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2022
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage warehouse
lines of credit
|
|
|
|
$
815,084
|
|
$
900,585
|
|
$
781,437
|
|
|
|
|
|
Residential real
estate
|
|
|
|
1,030,075
|
|
876,652
|
|
843,101
|
|
|
|
|
|
Multi-family
financing
|
|
|
|
2,766,950
|
|
3,236,917
|
|
2,702,042
|
|
|
|
|
|
Healthcare
financing
|
|
|
|
1,429,675
|
|
1,262,424
|
|
826,157
|
|
|
|
|
|
Commercial and
commercial real estate
|
|
|
|
810,731
|
|
695,158
|
|
520,199
|
|
|
|
|
|
Agricultural production
and real estate
|
|
|
|
91,913
|
|
90,070
|
|
97,060
|
|
|
|
|
|
Consumer and margin
loans
|
|
|
|
13,696
|
|
8,871
|
|
12,667
|
|
|
|
|
|
|
|
|
|
6,958,124
|
|
7,070,677
|
|
5,782,663
|
|
|
|
|
|
Less: Allowance for credit losses on loans
|
|
|
38,996
|
|
37,474
|
|
31,344
|
|
|
|
|
|
Loans
receivable
|
|
|
|
$
6,919,128
|
|
$ 7,033,203
|
|
$
5,751,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
|
|
|
2,844,750
|
|
2,759,116
|
|
3,303,199
|
|
|
|
|
|
Total loans, net of
allowance
|
|
|
|
$
9,763,878
|
|
$ 9,792,319
|
|
$
9,054,518
|
|
|
|
|
|
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multimedia:https://www.prnewswire.com/news-releases/merchants-bancorp-reports-third-quarter-2022-results-301661606.html
SOURCE Merchants Bancorp