Merchants Bancorp Reports Second Quarter 2025 Results
Merchants Bancorp (NASDAQ: MBIN) reported second quarter 2025 results with net income of $38.0 million, showing a significant 50% decrease from Q2 2024 and 35% decline from Q1 2025. The company's diluted EPS was $0.60, down 60% year-over-year.
The decline was primarily attributed to a $43.1 million increase in provision for credit losses, mainly due to multi-family property value declines and ongoing mortgage fraud investigations. Despite challenges, the company achieved a record-high tangible book value per share of $35.42, up 13% year-over-year.
Notable metrics include total assets of $19.1 billion (up 2% quarterly), core deposits reaching $11.4 billion (90% of total deposits), and completion of a $373.3 million Freddie Mac-sponsored Q-Series securitization. The company maintains strong liquidity with $5.0 billion in unused borrowing capacity.
Merchants Bancorp (NASDAQ: MBIN) ha riportato i risultati del secondo trimestre 2025 con un utile netto di 38,0 milioni di dollari, registrando una significativa diminuzione del 50% rispetto al secondo trimestre 2024 e un calo del 35% rispetto al primo trimestre 2025. L'EPS diluito della societ脿 猫 stato di 0,60 dollari, in calo del 60% su base annua.
Il calo 猫 stato principalmente attribuito a un aumento di 43,1 milioni di dollari nella provision per perdite su crediti, dovuto principalmente alla diminuzione del valore delle propriet脿 multifamiliari e alle indagini in corso su frodi ipotecarie. Nonostante le difficolt脿, la societ脿 ha raggiunto un valore contabile tangibile per azione record di 35,42 dollari, in crescita del 13% su base annua.
Tra i dati pi霉 rilevanti figurano attivit脿 totali per 19,1 miliardi di dollari (in aumento del 2% trimestrale), depositi core che raggiungono 11,4 miliardi di dollari (il 90% del totale dei depositi) e il completamento di una securitizzazione Q-Series sponsorizzata da Freddie Mac per 373,3 milioni di dollari. La societ脿 mantiene una solida liquidit脿 con una capacit脿 di prestito inutilizzata di 5,0 miliardi di dollari.
Merchants Bancorp (NASDAQ: MBIN) report贸 los resultados del segundo trimestre de 2025 con un ingreso neto de 38,0 millones de d贸lares, mostrando una notable disminuci贸n del 50% respecto al segundo trimestre de 2024 y una ca铆da del 35% respecto al primer trimestre de 2025. Las ganancias diluidas por acci贸n (EPS) fueron de 0,60 d贸lares, una reducci贸n del 60% interanual.
La disminuci贸n se atribuy贸 principalmente a un aumento de 43,1 millones de d贸lares en la provisi贸n para p茅rdidas crediticias, debido principalmente a la ca铆da en el valor de propiedades multifamiliares y a investigaciones en curso por fraude hipotecario. A pesar de los desaf铆os, la empresa alcanz贸 un valor contable tangible por acci贸n r茅cord de 35,42 d贸lares, un aumento del 13% interanual.
Entre las m茅tricas destacadas se encuentran activos totales por 19,1 mil millones de d贸lares (un aumento trimestral del 2%), dep贸sitos centrales que alcanzan 11,4 mil millones de d贸lares (el 90% del total de dep贸sitos) y la finalizaci贸n de una securitizaci贸n Q-Series patrocinada por Freddie Mac por 373,3 millones de d贸lares. La empresa mantiene una s贸lida liquidez con una capacidad de endeudamiento no utilizada de 5,0 mil millones de d贸lares.
Merchants Bancorp (NASDAQ: MBIN)電� 2025雲� 2攵勱赴 鞁れ爜鞚� 氚滍憸頃橂┌ 靾滌澊鞚奠澊 3,800毵� 雼煬搿�, 2024雲� 2攵勱赴 雽�牍� 50%, 2025雲� 1攵勱赴 雽�牍� 35% 臧愳唽頄堧嫟瓿� 氚濏様鞀惦媹雼�. 頋劃 欤茧嫻靾滌澊鞚�(EPS)鞚� 0.60雼煬搿� 鞝勲厔 霃欔赴 雽�牍� 60% 頃橂澖頄堨姷雼堧嫟.
鞚� 臧愳唽電� 欤茧 雼り皜甑� 欤柬儩 臧�旃� 頃橂澖瓿� 歆勴枆 欷戩澑 氇赴歆� 靷赴 臁办偓搿� 鞚疙暣 鞁犾毄 靻愳嫟 於╇嫻旮堨澊 4,310毵� 雼煬 歃濌皜頃� 雿� 旮办澑頃╇媹雼�. 鞏措牑鞗�鞐愲弰 攵堦惮頃橁碃 須岇偓電� 鞐瓣皠 旮办 13% 歃濌皜頃� 欤茧嫻 鞙犿槙鞛愳偘 鞛ル秬臧�旃� 35.42雼煬搿� 靷儊 斓滉碃旃橂ゼ 旮半頄堨姷雼堧嫟.
欤检殧 歆�響滊電� 齑� 鞛愳偘 191鞏� 雼煬(攵勱赴氤� 2% 歃濌皜), 齑� 鞓堦笀鞚� 90%鞚� 頃奠嫭 鞓堦笀 114鞏� 雼煬, 攴鸽Μ瓿� Freddie Mac鞚� 頉勳洂頃橂姅 3鞏� 7,330毵� 雼煬 攴滊鞚� Q-Series 歃濌秾頇� 鞕勲臧� 鞛堨姷雼堧嫟. 須岇偓電� 50鞏� 雼煬鞚� 氙胳偓鞖� 彀瀰 頃滊弰搿� 臧曤牓頃� 鞙犽彊靹膘潉 鞙犾頃橁碃 鞛堨姷雼堧嫟.
Merchants Bancorp (NASDAQ: MBIN) a publi茅 ses r茅sultats du deuxi猫me trimestre 2025 avec un b茅n茅fice net de 38,0 millions de dollars, enregistrant une baisse significative de 50 % par rapport au deuxi猫me trimestre 2024 et une diminution de 35 % par rapport au premier trimestre 2025. Le BPA dilu茅 de la soci茅t茅 s'est 茅tabli 脿 0,60 dollar, en baisse de 60 % sur un an.
Cette baisse est principalement due 脿 une augmentation de 43,1 millions de dollars des provisions pour pertes sur cr茅ances, principalement li茅e 脿 la d茅pr茅ciation des biens multifamiliaux et aux enqu锚tes en cours sur la fraude hypoth茅caire. Malgr茅 ces d茅fis, la soci茅t茅 a atteint une valeur comptable tangible par action record de 35,42 dollars, en hausse de 13 % sur un an.
Parmi les indicateurs notables figurent des actifs totaux de 19,1 milliards de dollars (en hausse de 2 % par rapport au trimestre pr茅c茅dent), des d茅p么ts de base atteignant 11,4 milliards de dollars (90 % des d茅p么ts totaux) et la r茅alisation d'une titrisation Q-Series parrain茅e par Freddie Mac d'un montant de 373,3 millions de dollars. La soci茅t茅 maintient une forte liquidit茅 avec une capacit茅 d'emprunt inutilis茅e de 5,0 milliards de dollars.
Merchants Bancorp (NASDAQ: MBIN) meldete die Ergebnisse f眉r das zweite Quartal 2025 mit einem Nettogewinn von 38,0 Millionen US-Dollar, was einem deutlichen R眉ckgang von 50 % gegen眉ber dem zweiten Quartal 2024 und einem R眉ckgang von 35 % gegen眉ber dem ersten Quartal 2025 entspricht. Das verw盲sserte Ergebnis je Aktie (EPS) lag bei 0,60 US-Dollar, ein R眉ckgang von 60 % im Jahresvergleich.
Der R眉ckgang wurde haupts盲chlich auf einen 43,1 Millionen US-Dollar h枚heren Aufwand f眉r Kreditverluste zur眉ckgef眉hrt, haupts盲chlich aufgrund von Wertminderungen bei Mehrfamilienimmobilien und laufenden Ermittlungen wegen Hypothekenbetrugs. Trotz der Herausforderungen erreichte das Unternehmen einen Rekordwert beim materiellen Buchwert je Aktie von 35,42 US-Dollar, ein Anstieg von 13 % im Jahresvergleich.
Zu den bemerkenswerten Kennzahlen geh枚ren Gesamtverm枚gen von 19,1 Milliarden US-Dollar (ein Anstieg von 2 % gegen眉ber dem Vorquartal), Kern-Einlagen in H枚he von 11,4 Milliarden US-Dollar (90 % der gesamten Einlagen) und der Abschluss einer von Freddie Mac gesponserten Q-Series-Verbriefung in H枚he von 373,3 Millionen US-Dollar. Das Unternehmen verf眉gt 眉ber eine starke Liquidit盲t mit 5,0 Milliarden US-Dollar ungenutzter Kreditkapazit盲t.
- Record-high tangible book value per share of $35.42, up 13% year-over-year
- Core deposits increased by $2.0 billion (22%) to $11.4 billion, reaching highest level since March 2022
- Significant liquidity with $5.0 billion in unused borrowing capacity
- 17% reduction in total delinquencies and 58% decline in special mention loans
- Successful completion of $373.3 million multi-family loan securitization
- Net income declined 50% year-over-year to $38.0 million
- Provision for credit losses increased by $43.1 million due to mortgage fraud issues
- Significant charge-offs of $46.1 million primarily in multi-family loan portfolio
- Non-performing loans at 2.39% of loans receivable
- Substandard loans increased to $417.7 million from $323.6 million in previous quarter
Insights
Merchants Bancorp faces significant headwinds with a 50% drop in quarterly earnings due to mortgage fraud-related credit losses.
Merchants Bancorp's Q2 2025 results reveal serious credit quality challenges primarily tied to multi-family lending. Net income plummeted to
The deterioration in asset quality is evident with
Despite these challenges, there are positive underlying trends. Tangible book value reached a record
The bank maintains strong liquidity with
Noninterest income improved substantially, up
- Second quarter 2025 net income of
$38.0 million $38.4 million $20.3 million $43.1 million $45.3 million - An increase in provision for credit losses was primarily associated with estimated declines on multi-family property values after receiving new appraisals and the ongoing investigation of borrowers involved in mortgage fraud or suspected fraud.
- Second quarter 2025 diluted earnings per common share of
$0.60 60% compared to the second quarter of 2024 and decreased35% compared to the first quarter of 2025. - Tangible book value per common share reached a record-high of
$35.42 13% compared to$31.27 1% compared to$34.90 - As of June 30, 2025, the Company had
$5.0 billion 26% of total assets. - Total assets of
$19.1 billion 2% compared to March 31, 2025 and December 31, 2024. - Loans receivable of
$10.4 billion $88.4 million 1% , compared to March 31, 2025, and increased$78.1 million - Core deposits of
$11.4 billion $744.6 million 7% , compared to March 31, 2025 and increased$2.0 billion 22% , compared to December 31, 2024. Core deposits now represent90% of total deposits, reaching the highest level the Company has reported since March 2022. - Brokered deposits of
$1.3 billion $463.9 million 27% , compared to March 31, 2025, and decreased$1.3 billion 50% , compared to December 31, 2024. - On June 5, 2025, the Company completed a
$373.3 million
"Despite a difficult second quarter, marked by an increase in our provision for credit losses and charge-offs largely associated with mortgage fraud or suspected fraud that has also impacted a number of other multi-family lenders, we are encouraged by the resilience of our underlying earnings, the significant increase in gain on sale of loans, and the continued growth in our tangible book value that reached an all-time high of
Michael J.
Net income of
Net income of
Total Assets
Total assets of
Return on average assets was
Asset Quality
The allowance for credit losses on loans of
The Company recorded charge-offs for 14 customers, primarily in the multi-family loan portfolio, totaling
During the quarter, after months of seeking legal remedies, the Company obtained additional access and information, such as through court appointed receivers, to assess the collateral supporting its challenged loans.听 The evaluation of this information contributed to an increase in loans classified as substandard, bringing the total to
As of June 30, 2025, all substandard loans have been evaluated for impairment and these loans have specific reserves of
Non-performing loans also declined during the quarter, largely attributable to charge-offs.听 As of June 30, 2025, non-performing loans were
The Company has been making additional efforts to reduce its credit risk through loan sale and securitization activities since 2019.听 In 2023 and 2024, the Company strategically executed credit protection arrangements through a credit linked note and credit default swaps. The Company also upsized an existing credit default swap in June 2025. These credit protection arrangements totaled
Total Deposits
Total deposits of
Core deposits of
Total brokered deposits of
Liquidity
Cash balances of
The Company's most liquid assets are in cash, short-term investments, including interest-bearing demand deposits, mortgage loans in process of securitization, loans held for sale, and warehouse lines of credit included in loans receivable. Taken together with its unused borrowing capacity of
This liquidity enhances the Company's ability to effectively manage interest expense and asset levels in the future. Additionally, the Company's business model is designed to continuously sell or securitize a significant portion of its loans, which provides flexibility in managing its liquidity.听
Comparison of Operating Results for the Three Months Ended
June 30, 2025 and 2024
Net Interest Income of
- Net interest margin of
2.83% decreased 16 basis points compared to2.99% . The margin was negatively impacted by a significant shift in business mix, as highly profitable but lower-margin loans held for sale balances, consisting of primarily warehouse loans, grew by$622.7 million 18% , and warehouse repurchase agreements grew by$473.8 million 35% , while other higher-margin loans receivable balances contracted by a net of$964.1 million - Interest rate spread of
2.33% decreased 12 basis points compared to2.45% .
Interest Income of
- Average yields on loans and loans held for sale of
6.92% decreased 105 basis points compared to7.97% . - Average balances of
$14.8 billion $479.0 million 3% compared to$14.3 billion
Interest Expense of
- Average interest rates on total interest-bearing liabilities of
4.35% decreased by 87 basis points compared to5.22% . - Average balances of
$3.1 billion $3.4 billion 53% , compared to$6.5 billion - Average interest rates of
4.59% for certificates of deposit decreased by 84 basis points compared to5.43% . - Average balances of
$3.5 billion 235% , compared to$1.0 billion - Average interest rates of
5.15% for borrowings decreased by 285 basis points compared to8.00% .
Noninterest Income of
- Gain on sale of loans increased
$12.2 million 109% , reflecting higher volume in the multi-family loan portfolio, including a securitization through a Freddie Mac-sponsored Q-Series transaction. - Other income included a
$4.3 million $215,000 - Loan servicing fees included a
$258,000 $487,000 $745,000 $5.1 million $551,000 $4.5 million
Noninterest Expense听辞蹿
Comparison of Operating Results for the Three Months Ended
June 30, 2025 and March 31, 2025
Net Interest Income of
- Net interest margin of
2.83% decreased 6 basis points compared to2.89% . The margin was negatively impacted by a shift in business mix, as highly profitable but lower-margin loans held for sale balances, consisting of primarily warehouse loans, grew by$122.3 million 3% , and warehouse repurchase agreements grew by$435.5 million 31% , while higher-margin loans receivable balances contracted by a net of$338.7 million - Interest rate spread of
2.33% decreased 5 basis points compared to2.38% .
Interest Income of
- Average balances of
$14.8 billion 8% , compared to$13.8 billion - Average yields on loans and loans held for sale of
6.92% decreased 14 basis points compared to7.06% .
Interest Expense of
- Average balances of
$6.2 billion 20% , compared to$5.1 billion - Average interest rates of
3.96% on interest-bearing checking accounts decreased 5 basis points compared to4.01% . - Average balances of
$3.5 billion $328.0 million 10% , compared to$3.1 billion - Average interest rates of
5.15% borrowings decreased 18 basis points compared to5.33% .
Noninterest Income of
- Gain on sale of loans increased
$11.7 million - Other income included a
$4.3 million $2.3 million - Loan servicing fees included a
$258,000 $487,000 $745,000 $754,000 $1.2 million $449,000
Noninterest Expense听辞蹿
About Merchants Bancorp
Ranked as a top performing
Forward-Looking Statements听
This press release contains forward-looking statements which reflect management's current views with respect to, among other things, future events and financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, management cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.听 A number of important factors could cause actual results to differ materially from those indicated in these forward-looking statements, including the impacts of factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission.听 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) | ||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||
2025 | 2025 | 2024 | 2024 | 2024 | ||||||
Assets | ||||||||||
Cash and due from banks | $听听听听听听听听听听听听听 15,419 | $听听听听听听听听听听听听听 15,609 | $听听听听听听听听听听听听听 10,989 | $听听听听听听听听听听听听听 12,214 | $听听听听听听听听听听听听听 10,242 | |||||
Interest-earning demand accounts | 631,746 | 505,687 | 465,621 | 589,692 | 530,640 | |||||
Cash and cash equivalents | 647,165 | 521,296 | 476,610 | 601,906 | 540,882 | |||||
Securities purchased under agreements to resell | 1,539 | 1,550 | 1,559 | 3,279 | 3,304 | |||||
Mortgage loans in process of securitization | 402,427 | 389,797 | 428,206 | 430,966 | 209,244 | |||||
Securities available for sale ( | 936,343 | 961,183 | 980,050 | 953,063 | 1,017,019 | |||||
Securities held to maturity ( | 1,548,211 | 1,606,286 | 1,664,686 | 1,755,047 | 1,291,110 | |||||
Federal Home Loan Bank (FHLB) stock and other equity securities | 217,850 | 217,850 | 217,804 | 184,050 | 67,499 | |||||
Loans held for sale (includes | 4,105,765 | 3,983,452 | 3,771,510 | 3,808,234 | 3,483,076 | |||||
Loans receivable, net of allowance for credit losses on loans | 10,432,117 | 10,343,724 | 10,354,002 | 10,261,890 | 10,933,189 | |||||
Premises and equipment, net | 71,050 | 67,787 | 58,617 | 53,161 | 46,833 | |||||
Servicing rights | 193,037 | 189,711 | 189,935 | 177,327 | 178,776 | |||||
Interest receivable | 82,391 | 82,811 | 83,409 | 86,612 | 90,360 | |||||
骋辞辞诲飞颈濒濒听 | 8,014 | 8,014 | 8,014 | 8,014 | 8,014 | |||||
Other assets and receivables听 | 495,295 | 424,339 | 571,330 | 329,427 | 343,116 | |||||
Total assets | $听听听听听听 19,141,204 | $听听听听听听 18,797,800 | $听听听听听听 18,805,732 | $听听听听听听 18,652,976 | $听听听听听听 18,212,422 | |||||
Liabilities and Shareholders' Equity | ||||||||||
听 Liabilities | ||||||||||
Deposits | ||||||||||
Noninterest-bearing | $听听听听听听听听听听听 315,523 | $听听听听听听听听听听听 313,296 | $听听听听听听听听听听听 239,005 | $听听听听听听听听听听听 311,386 | $听听听听听听听听听听听 383,260 | |||||
Interest-bearing | 12,371,312 | 12,092,869 | 11,680,971 | 12,580,501 | 14,533,807 | |||||
Total deposits | 12,686,835 | 12,406,165 | 11,919,976 | 12,891,887 | 14,917,067 | |||||
叠辞谤谤辞飞颈苍驳蝉听 | 4,009,474 | 4,001,744 | 4,386,122 | 3,568,721 | 1,159,206 | |||||
Deferred tax liabilities | 29,228 | 35,740 | 25,289 | 19,530 | 25,098 | |||||
Other liabilities | 231,035 | 193,416 | 231,035 | 233,731 | 222,904 | |||||
Total liabilities | 16,956,572 | 16,637,065 | 16,562,422 | 16,713,869 | 16,324,275 | |||||
Commitments and听 Contingencies | ||||||||||
Shareholders' Equity | ||||||||||
Common stock, without par value | ||||||||||
Authorized - 75,000,000 shares | ||||||||||
Issued and outstanding听 - 45,885,458 shares, 45,881,706 | 241,452 | 240,512 | 240,313 | 239,448 | 238,492 | |||||
Preferred stock, without par value - 5,000,000 total shares | ||||||||||
| ||||||||||
Authorized - no shares at June 30, 2025 and March 31, | ||||||||||
Issued and outstanding - no shares at June 30, 2025 and | 鈥� | 鈥� | 120,844 | 120,844 | 120,844 | |||||
| ||||||||||
Authorized - 200,000 shares | ||||||||||
Issued and outstanding - 196,181 shares (equivalent to | 191,084 | 191,084 | 191,084 | 191,084 | 191,084 | |||||
| ||||||||||
Authorized - 300,000 shares | ||||||||||
Issued and outstanding - 142,500 shares (equivalent to | 137,459 | 137,459 | 137,459 | 137,459 | 137,459 | |||||
| ||||||||||
Authorized - 230,000 shares | ||||||||||
Issued and outstanding - 230,000 shares (equivalent to | 222,748 | 222,748 | 222,748 | 鈥� | 鈥� | |||||
Retained earnings | 1,392,136 | 1,369,009 | 1,330,995 | 1,250,176 | 1,200,778 | |||||
Accumulated other comprehensive (loss) income | (247) | (77) | (133) | 96 | (510) | |||||
Total shareholders' equity | 2,184,632 | 2,160,735 | 2,243,310 | 1,939,107 | 1,888,147 | |||||
Total liabilities and shareholders' equity | $听听听听听听 19,141,204 | $听听听听听听 18,797,800 | $听听听听听听 18,805,732 | $听听听听听听 18,652,976 | $听听听听听听 18,212,422 | |||||
听
Consolidated Statement of Income | |||||||||||||
(Unaudited) | |||||||||||||
(In thousands, except share data) | |||||||||||||
Three Months Ended | Change | ||||||||||||
June 30, | March 31, | June 30, | 2Q25 | 2Q25 | |||||||||
2025 | 2025 | 2024 | vs. 1Q25 | vs. 2Q24 | |||||||||
Interest Income | |||||||||||||
Loans | $ | 255,641 | $ | 239,280 | $ | 284,421 | 7听% | -10听% | |||||
Mortgage loans in process of securitization | 5,304 | 3,743 | 3,044 | 42听% | 74听% | ||||||||
Investment securities: | |||||||||||||
Available for sale | 12,095 | 12,358 | 14,784 | -2听% | -18听% | ||||||||
Held to maturity | 23,166 | 24,358 | 19,799 | -5听% | 17听% | ||||||||
FHLB stock and other equity securities (dividends) | 4,641 | 4,372 | 1,277 | 6听% | 263听% | ||||||||
Other | 3,552 | 3,093 | 4,948 | 15听% | -28听% | ||||||||
Total interest income | 304,399 | 287,204 | 328,273 | 6听% | -7听% | ||||||||
Interest Expense | |||||||||||||
Deposits | 131,375 | 123,941 | 179,651 | 6听% | -27听% | ||||||||
Short-term borrowings | 36,981 | 33,364 | 11,612 | 11听% | 218听% | ||||||||
Long-term borrowings | 7,324 | 7,703 | 8,891 | -5听% | -18听% | ||||||||
Total interest expense | 175,680 | 165,008 | 200,154 | 6听% | -12听% | ||||||||
Net Interest Income | 128,719 | 122,196 | 128,119 | 5听% | 鈥� | ||||||||
Provision for credit losses | 53,027 | 7,727 | 9,965 | 586听% | 432听% | ||||||||
Net Interest Income After Provision for Credit | 75,692 | 114,469 | 118,154 | -34听% | -36听% | ||||||||
Noninterest Income | |||||||||||||
Gain on sale of loans | 23,342 | 11,619 | 11,168 | 101听% | 109听% | ||||||||
Loan servicing fees, net | 6,138 | 4,010 | 10,827 | 53听% | -43听% | ||||||||
Mortgage warehouse fees | 2,039 | 1,513 | 1,524 | 35听% | 34听% | ||||||||
Syndication and asset management fees | 9,707 | 3,389 | 3,233 | 186听% | 200听% | ||||||||
Other income | 9,254 | 3,162 | 4,599 | 193听% | 101听% | ||||||||
Total noninterest income | 50,480 | 23,693 | 31,351 | 113听% | 61听% | ||||||||
Noninterest Expense | |||||||||||||
Salaries and employee benefits | 43,566 | 36,419 | 28,373 | 20听% | 54听% | ||||||||
Loan expense | 1,142 | 798 | 993 | 43听% | 15听% | ||||||||
Occupancy and equipment | 2,494 | 2,351 | 2,239 | 6听% | 11听% | ||||||||
Professional fees | 3,159 | 2,894 | 3,556 | 9听% | -11听% | ||||||||
Deposit insurance expense | 7,152 | 7,228 | 5,579 | -1听% | 28听% | ||||||||
Technology expense | 2,446 | 2,374 | 1,859 | 3听% | 32听% | ||||||||
Credit risk transfer premium expense | 4,767 | 3,862 | 2,294 | 23听% | 108听% | ||||||||
Other expense | 12,611 | 5,738 | 5,487 | 120听% | 130听% | ||||||||
Total noninterest expense | 77,337 | 61,664 | 50,380 | 25听% | 54听% | ||||||||
Income Before Income Taxes | 48,835 | 76,498 | 99,125 | -36听% | -51听% | ||||||||
Provision for income taxes | 10,854 | 18,259 | 22,732 | -41听% | -52听% | ||||||||
Net Income | $ | 37,981 | $ | 58,239 | $ | 76,393 | -35听% | -50听% | |||||
听听 Dividends on preferred stock | (10,266) | (10,265) | (7,757) | 鈥� | 32听% | ||||||||
听听 Impact of preferred stock redemption | 鈥� | (5,371) | (1,823) | -100听% | -100听% | ||||||||
Net Income Available to Common | $ | 27,715 | $ | 42,603 | $ | 66,813 | -35听% | -59听% | |||||
Basic Earnings Per Share | $ | 0.60 | $ | 0.93 | $ | 1.50 | -35听% | -60听% | |||||
Diluted Earnings Per Share | $ | 0.60 | $ | 0.93 | $ | 1.49 | -35听% | -60听% | |||||
Weighted-Average Shares Outstanding | |||||||||||||
Basic | 45,883,644 | 45,824,022 | 44,569,345 | ||||||||||
Diluted | 45,929,563 | 45,914,083 | 44,698,324 | ||||||||||
听
Consolidated Statement of Income | ||||||||
(Unaudited) | ||||||||
(In thousands, except share data) | ||||||||
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2025 | 2024 | Change | ||||||
Interest Income | ||||||||
Loans | $ | 494,921 | $ | 556,419 | -11听% | |||
Mortgage loans in process of securitization | 9,047 | 4,764 | 90听% | |||||
Investment securities: | ||||||||
Available for sale | 24,453 | 29,172 | -16听% | |||||
Held to maturity | 47,524 | 40,321 | 18听% | |||||
FHLB stock and other equity securities (dividends) | 9,013 | 2,121 | 325听% | |||||
Other | 6,645 | 9,649 | -31听% | |||||
Total interest income | 591,603 | 642,446 | -8听% | |||||
Interest Expense | ||||||||
Deposits | 255,316 | 350,673 | -27听% | |||||
Short-term borrowings | 70,345 | 18,834 | 274听% | |||||
Long-term borrowings | 15,027 | 17,764 | -15听% | |||||
Total interest expense | 340,688 | 387,271 | -12听% | |||||
Net Interest Income | 250,915 | 255,175 | -2听% | |||||
Provision for credit losses | 60,754 | 14,691 | 314听% | |||||
Net Interest Income After Provision for Credit Losses | 190,161 | 240,484 | -21听% | |||||
Noninterest Income | ||||||||
Gain on sale of loans | 34,961 | 20,524 | 70听% | |||||
Loan servicing fees, net | 10,148 | 30,229 | -66听% | |||||
Mortgage warehouse fees | 3,552 | 2,506 | 42听% | |||||
Loss on sale of investments available for sale (1) | 鈥� | (108) | 100听% | |||||
Syndication and asset management fees | 13,096 | 8,536 | 53听% | |||||
Other income | 12,416 | 10,538 | 18听% | |||||
Total noninterest income | 74,173 | 72,225 | 3听% | |||||
Noninterest Expense | ||||||||
Salaries and employee benefits | 79,985 | 57,969 | 38听% | |||||
Loan expense | 1,940 | 1,949 | 鈥� | |||||
Occupancy and equipment | 4,845 | 4,476 | 8听% | |||||
Professional fees | 6,053 | 7,655 | -21听% | |||||
Deposit insurance expense | 14,380 | 10,704 | 34听% | |||||
Technology expense | 4,820 | 3,713 | 30听% | |||||
Credit risk transfer premium expense | 8,629 | 2,294 | 276听% | |||||
Other expense | 18,349 | 10,532 | 74听% | |||||
Total noninterest expense | 139,001 | 99,292 | 40听% | |||||
Income Before Income Taxes | 125,333 | 213,417 | -41听% | |||||
Provision for income taxes (2) | 29,113 | 49,970 | -42听% | |||||
Net Income | $ | 96,220 | $ | 163,447 | -41听% | |||
听听 Dividends on preferred stock | (20,531) | (16,424) | 25听% | |||||
听听 Impact of preferred stock redemption | (5,371) | (1,823) | 195听% | |||||
Net Income Available to Common Shareholders | $ | 70,318 | $ | 145,200 | -52听% | |||
Basic Earnings Per Share | $ | 1.53 | $ | 3.30 | -54听% | |||
Diluted Earnings Per Share | $ | 1.53 | $ | 3.29 | -53听% | |||
Weighted-Average Shares Outstanding | ||||||||
Basic | 45,853,998 | 43,937,665 | ||||||
Diluted | 45,921,988 | 44,082,485 | ||||||
(1) Includes | ||||||||
(2) Includes | ||||||||
听
Key Operating Results | ||||||||||||
(Unaudited) | ||||||||||||
($ in thousands, except share data) | ||||||||||||
Three Months Ended | Change | |||||||||||
June 30, | March 31, | June 30, | 2Q25 | 2Q25 | ||||||||
2025 | 2025 | 2024 | vs. 1Q25 | vs. 2Q24 | ||||||||
Noninterest expense | $听听听听听听听听听听听听听听听听听 77,337 | $听听听听听听听听听听听听听听听听听听听 61,664 | $听听听听听听听听听听 50,380 | 25听% | 54听% | |||||||
Net interest income (before provision for credit losses) | 128,719 | 122,196 | 128,119 | 5听% | 鈥� | |||||||
Noninterest income | 50,480 | 23,693 | 31,351 | 113听% | 61听% | |||||||
Total income | $听听听听听听听听听听听听听听听 179,199 | $听听听听听听听听听听听听听听听听听 145,889 | $听听听听听听听听 159,470 | 23听% | 12听% | |||||||
Efficiency ratio | 43.16听% | 42.27听% | 31.59听% | 89 | bps | 1,157 | bps | |||||
Average assets | $听听听听听听听听听听 18,984,925 | $听听听听听听听听听听听听 17,831,950 | $听听听 17,814,191 | 6听% | 7听% | |||||||
Net income | 37,981 | 58,239 | 76,393 | -35听% | -50听% | |||||||
Return on average assets before annualizing | 0.20听% | 0.33听% | 0.43听% | |||||||||
Annualization factor | 4.00 | 4.00 | 4.00 | |||||||||
Return on average assets | 0.80听% | 1.31听% | 1.72听% | (51) | bps | (92) | bps | |||||
Return on average tangible common shareholders' equity (1) | 6.75听% | 10.65听% | 19.55听% | (390) | bps | (1,280) | bps | |||||
Tangible book value per common share (1) | $听听听听听听听听听听听听听听听听听听听 35.42 | $听听听听听听听听听听听听听听听听听听听听听 34.90 | $听听听听听听听听听听听听 31.27 | 1听% | 13听% | |||||||
Tangible common shareholders' equity/tangible assets (1) | 8.49听% | 8.52听% | 7.86听% | (3) | bps | 63 | bps | |||||
Consolidated ratios | ||||||||||||
Total capital/risk-weighted assets(2) | 13.4 | % | 13.0 | % | 12.0 | % | ||||||
Tier听I capital/risk-weighted assets(2) | 12.8 | % | 12.4 | % | 11.4 | % | ||||||
Common Equity Tier听I capital/risk-weighted assets(2) | 9.5 | % | 9.2 | % | 8.7 | % | ||||||
Tier听I capital/average assets(2) | 11.5 | % | 12.1 | % | 10.6 | % | ||||||
(1) Non-GAAP financial measure - see "Reconciliation of Non-GAAP Measures" below: | ||||||||||||
(2) As defined by regulatory agencies; June 30, 2025 shown as estimates and prior periods shown as reported.听听 | ||||||||||||
Certain non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company's听financial condition, results of operations and cash flows computed in accordance with GAAP; however, they do have a number of听limitations.听 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听 to non-GAAP financial measures that other companies use.听 A reconciliation of GAAP to non-GAAP financial measures is below.听 Net Income Available to Common Shareholders excludes preferred stock dividends.听 Tangible common shareholders' equity is calculated by excluding the balance of goodwill and other intangible assets and preferred stock from the calculation听辞蹿 total equity.听 Tangible Assets is calculated by excluding the balance of goodwill and intangible assets.听 Tangible book value per share is calculated by dividing tangible common shareholders' equity by the number of shares outstanding.听听听听听 | ||||||||||||
Three Months Ended | Change | |||||||||||
June 30, | March 31, | June 30, | 2Q25 | 2Q25 | ||||||||
2025 | 2025 | 2024 | vs. 1Q25 | vs. 2Q24 | ||||||||
Net income | $听听听听听听听听听听听听听听听听听 37,981 | $听听听听听听听听听听听听听听听听听听听 58,239 | $听听听听听听听听听听 76,393 | -35听% | -50听% | |||||||
Less: preferred stock dividends听听 | (10,266) | (10,265) | (7,757) | 鈥� | 32听% | |||||||
Less: impact of preferred stock redemption | - | (5,371) | (1,823) | -100听% | -100听% | |||||||
Net income available to common shareholders | $听听听听听听听听听听听听听听听听听 27,715 | $听听听听听听听听听听听听听听听听听听听 42,603 | $听听听听听听听听听听 66,813 | -35听% | -59听% | |||||||
Average shareholders' equity | $听听听听听听听听听听听听 2,201,836 | $听听听听听听听听听听听听听听 2,160,169 | $听听听听听 1,824,730 | 2听% | 21听% | |||||||
Less: average goodwill & intangibles | (8,065) | (8,070) | (8,140) | 鈥� | -1听% | |||||||
Less: average preferred stock | (551,290) | (552,633) | (449,387) | 鈥� | 23听% | |||||||
Average tangible common shareholders' equity | $听听听听听听听听听听听听 1,642,481 | $听听听听听听听听听听听听听听 1,599,466 | $听听听听听 1,367,203 | 3听% | 20听% | |||||||
Annualization factor | 4.00 | 4.00 | 4.00 | |||||||||
Return on average tangible common shareholders' equity | 6.75听% | 10.65听% | 19.55听% | (390) | bps | (1,280) | bps | |||||
Total equity | $听听听听听听听听听听听听 2,184,632 | $听听听听听听听听听听听听听听 2,160,735 | $听听听听听 1,888,147 | 1听% | 16听% | |||||||
Less: goodwill and intangibles | (8,062) | (8,068) | (8,108) | 鈥� | -1听% | |||||||
Less: preferred stock | (551,291) | (551,291) | (449,387) | 鈥� | 23听% | |||||||
Tangible common shareholders' equity | $听听听听听听听听听听听听 1,625,279 | $听听听听听听听听听听听听听听 1,601,376 | $听听听听听 1,430,652 | 1听% | 14听% | |||||||
Assets | $听听听听听听听听听听 19,141,204 | $听听听听听听听听听听听听 18,797,800 | $听听听 18,212,422 | 2听% | 5听% | |||||||
Less: goodwill and intangibles | (8,062) | (8,068) | (8,108) | 鈥� | -1听% | |||||||
Tangible assets | $听听听听听听听听听听 19,133,142 | $听听听听听听听听听听听听 18,789,732 | $听听听 18,204,314 | 2听% | 5听% | |||||||
Ending common shares | 45,885,458 | 45,881,706 | 45,757,567 | |||||||||
Tangible book value per common share | $听听听听听听听听听听听听听听听听听听听 35.42 | $听听听听听听听听听听听听听听听听听听听听听 34.90 | $听听听听听听听听听听听听 31.27 | 1听% | 13听% | |||||||
Tangible common shareholders' equity/tangible assets | 8.49听% | 8.52听% | 7.86听% | (3) | bps | 63 | bps | |||||
听
Key Operating Results | ||||||||
(Unaudited) | ||||||||
($ in thousands, except share data) | ||||||||
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2025 | 2024 | Change | ||||||
Noninterest expense | $听听听听听听听听 139,001 | $听听听听听听听听听 99,292 | 40听% | |||||
Net interest income (before provision for credit losses) | 250,915 | 255,175 | -2听% | |||||
Noninterest income | 74,173 | 72,225 | 3听% | |||||
Total income | $听听听听听听听听 325,088 | $听听听听听听听 327,400 | -1听% | |||||
Efficiency ratio | 42.76听% | 30.33听% | 1,243 | bps | ||||
Average assets | $听听听 18,411,623 | $听听 17,303,632 | 6听% | |||||
Net income | 96,220 | 163,447 | -41听% | |||||
Return on average assets before annualizing | 0.52听% | 0.94听% | ||||||
Annualization factor | 2.00 | 2.00 | ||||||
Return on average assets | 1.05听% | 1.89听% | (84) | bps | ||||
Return on average tangible common shareholders' equity (1) | 8.68听% | 22.30听% | (1,362) | bps | ||||
Tangible book value per common share (1) | $听听听听听听听听听听听听 35.42 | $听听听听听听听听听听听 31.27 | 13听% | |||||
Tangible common shareholders' equity/tangible assets (1) | 8.49听% | 7.86听% | 63 | 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.听 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听 to non-GAAP financial measures that other companies use.听 A reconciliation of GAAP to non-GAAP financial measures is below.听 Net Income Available to Common Shareholders excludes preferred stock dividends.听 Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets and preferred stock from the calculation of total assets.听 Tangible Assets is calculated by excluding the balance of goodwill and intangible assets.听 Tangible book value per share is calculated by dividing tangible common equity by the number of shares outstanding.听听听听听 | ||||||||
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2025 | 2024 | Change | ||||||
Net income | $听听听听听听听听听听 96,220 | $听听听听听听听 163,447 | -41听% | |||||
Less: preferred stock dividends听听 | (20,531) | (16,424) | 25听% | |||||
Less: impact of preferred stock redemption | (5,371) | (1,823) | 195听% | |||||
Net income available to common shareholders | $听听听听听听听听听听 70,318 | $听听听听听听听 145,200 | -52听% | |||||
Average shareholders' equity | $听听听听听 2,181,117 | $听听听听 1,786,195 | 22听% | |||||
Less: average goodwill & intangibles | (8,067) | (9,317) | -13听% | |||||
Less: average preferred stock | (551,958) | (474,497) | 16听% | |||||
Average tangible common shareholders' equity | $听听听听听 1,621,092 | $听听听听 1,302,381 | 24听% | |||||
Annualization factor | 2.00 | 2.00 | ||||||
Return on average tangible common shareholders' equity | 8.68听% | 22.30听% | (1,362) | bps | ||||
Total equity | $听听听听听 2,184,632 | $听听听听 1,888,147 | 16听% | |||||
Less: goodwill and intangibles | (8,062) | (8,108) | -1听% | |||||
Less: preferred stock | (551,291) | (449,387) | 23听% | |||||
Tangible common shareholders' equity | $听听听听听 1,625,279 | $听听听听 1,430,652 | 14听% | |||||
Assets | $听听听 19,141,204 | $听听 18,212,422 | 5听% | |||||
Less: goodwill and intangibles | (8,062) | (8,108) | -1听% | |||||
Tangible assets | $听听听 19,133,142 | $听听 18,204,314 | 5听% | |||||
Ending common shares | 45,885,458 | 45,757,567 | ||||||
Tangible book value per common share | $听听听听听听听听听听听听 35.42 | $听听听听听听听听听听听 31.27 | 13听% | |||||
Tangible common shareholders' equity/tangible assets | 8.49听% | 7.86听% | 63 | bps | ||||
听
Merchants Bancorp | |||||||||||
Average Balance Analysis | |||||||||||
($ in thousands) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | |||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||
Balance | Interest | Rate听 | Balance | Interest | Rate听 | Balance | Interest | Rate听 | |||
Assets: | |||||||||||
Interest-earning deposits, and other interest or | $听听听听听听 539,357 | $听听听听 8,193 | 6.09听% | $听听听听听 511,077 | $听听听听 7,465 | 5.92听% | $听听听听听听听 438,445 | $听听听听 6,225 | 5.71听% | ||
Securities available for sale | 955,186 | 12,095 | 5.08听% | 961,065 | 12,358 | 5.21听% | 1,039,388 | 14,784 | 5.72听% | ||
Securities held to maturity | 1,572,186 | 23,166 | 5.91听% | 1,643,703 | 24,358 | 6.01听% | 1,160,170 | 19,799 | 6.86听% | ||
Mortgage loans in process of securitization | 376,904 | 5,304 | 5.64听% | 277,426 | 3,743 | 5.47听% | 234,706 | 3,044 | 5.22听% | ||
Loans and loans held for sale | 14,826,151 | 255,641 | 6.92听% | 13,751,197 | 239,280 | 7.06听% | 14,347,165 | 284,421 | 7.97听% | ||
听听听听 Total interest-earning assets | 18,269,784 | 304,399 | 6.68听% | 17,144,468 | 287,204 | 6.79听% | 17,219,874 | 328,273 | 7.67听% | ||
Allowance for credit losses on loans | (90,860) | (86,711) | (76,456) | ||||||||
Noninterest-earning assets | 806,001 | 774,193 | 670,773 | ||||||||
Total assets | $听 18,984,925 | $听 17,831,950 | $听听听 17,814,191 | ||||||||
Liabilities & Shareholders' Equity: | |||||||||||
Interest-bearing checking | $听听听 6,161,736 | 60,845 | 3.96听% | $听听听 5,121,343 | 50,609 | 4.01听% | 4,935,123 | 58,128 | 4.74听% | ||
Savings deposits | 145,162 | 8 | 0.02听% | 146,359 | 15 | 0.04听% | 145,262 | 19 | 0.05听% | ||
Money market听 | 3,354,820 | 35,137 | 4.20听% | 3,398,469 | 34,506 | 4.12听% | 2,788,335 | 33,207 | 4.79听% | ||
Certificates of deposit | 3,090,250 | 35,385 | 4.59听% | 3,369,269 | 38,811 | 4.67听% | 6,535,651 | 88,297 | 5.43听% | ||
听听听 Total interest-bearing deposits | 12,751,968 | 131,375 | 4.13听% | 12,035,440 | 123,941 | 4.18听% | 14,404,371 | 179,651 | 5.02听% | ||
Borrowings | 3,453,960 | 44,305 | 5.15听% | 3,125,935 | 41,067 | 5.33听% | 1,031,180 | 20,503 | 8.00听% | ||
听听听 Total interest-bearing liabilities | 16,205,928 | 175,680 | 4.35听% | 15,161,375 | 165,008 | 4.41听% | 15,435,551 | 200,154 | 5.22听% | ||
Noninterest-bearing deposits | 376,217 | 294,248 | 331,246 | ||||||||
Noninterest-bearing liabilities | 200,944 | 216,158 | 222,664 | ||||||||
听听听 Total liabilities | 16,783,089 | 15,671,781 | 15,989,461 | ||||||||
听听听 Shareholders' equity | 2,201,836 | 2,160,169 | 1,824,730 | ||||||||
Total liabilities and shareholders' equity | $听 18,984,925 | $听 17,831,950 | $听听听 17,814,191 | ||||||||
Net interest income | $听 128,719 | ||||||||||
Net interest spread | 2.33听% | 2.38听% | 2.45听% | ||||||||
Net interest-earning assets | $听听听 2,063,856 | $听听听 1,983,093 | $听听听听 1,784,323 | ||||||||
Net interest margin | 2.83听% | 2.89听% | 2.99听% | ||||||||
Average interest-earning assets to | 112.74听% | 113.08听% | 111.56听% | ||||||||
听
Supplemental Results | ||||||||||||||||
(Unaudited) | ||||||||||||||||
($ in thousands) | ||||||||||||||||
Net Income | Net Income | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||
Segment | ||||||||||||||||
Multi-family Mortgage Banking | $听听听听听听听听听听听听听 9,269 | $听听听听听听听听听听听 3,413 | $听听听听听听听听听听听听听听 9,037 | $听听听听听听听听 12,682 | $听听听听听听听听 25,646 | |||||||||||
Mortgage Warehousing | 22,986 | 15,398 | 22,270 | 38,384 | 42,460 | |||||||||||
Banking | 14,574 | 47,107 | 52,378 | 61,681 | 108,803 | |||||||||||
Other | (8,848) | (7,679) | (7,292) | (16,527) | (13,462) | |||||||||||
Total | $听听听听听听听听听听听 37,981 | $听听听听听听听听听 58,239 | $听听听听听听听听听听听听 76,393 | $听听听听听听听听 96,220 | $听听听听听听 163,447 | |||||||||||
Total Assets | ||||||||||||||||
June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||
Segment | ||||||||||||||||
Multi-family Mortgage Banking | $听听听听听听听听听 487,853 | 2听% | $听听听听听听听 460,441 | 3听% | $听听听听听听听听听听 479,099 | 2听% | ||||||||||
Mortgage Warehousing | 6,999,701 | 37听% | 5,902,165 | 31听% | 6,000,624 | 32听% | ||||||||||
Banking | 11,404,488 | 60听% | 12,002,564 | 64听% | 11,761,202 | 63听% | ||||||||||
Other | 249,162 | 1听% | 432,630 | 2听% | 564,807 | 3听% | ||||||||||
Total | $听听听听 19,141,204 | 100听% | $听听 18,797,800 | 100听% | $听听听听听 18,805,732 | 100听% | ||||||||||
Gain on Sale of Loans | Gain on Sale of Loans | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||
Loan Type | ||||||||||||||||
Multi-family | $听听听听听听听听听听听 19,815 | $听听听听听听听听听 10,125 | $听听听听听听听听听听听听听听 9,083 | $听听听听听听听听 29,940 | $听听听听听听听听 17,506 | |||||||||||
Single-family | 2,428 | 206 | 524 | 2,634 | 804 | |||||||||||
Small Business Association (SBA) | 1,099 | 1,288 | 1,561 | 2,387 | 2,214 | |||||||||||
Total | $听听听听听听听听听听听 23,342 | $听听听听听听听听听 11,619 | $听听听听听听听听听听听听 11,168 | $听听听听听听听听 34,961 | $听听听听听听听听 20,524 | |||||||||||
Servicing Rights | Servicing Rights | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||
Balance, beginning of period | $听听听听听听听听听 189,711 | $听听听听听听听 189,935 | $听听听听听听听听听听 172,200 | $听听听听听听 189,935 | $听听听听听听 158,457 | |||||||||||
Additions | ||||||||||||||||
Purchased servicing | 70 | - | - | 70 | - | |||||||||||
Originated servicing | 5,244 | 3,338 | 3,761 | 8,582 | 5,927 | |||||||||||
Subtractions | ||||||||||||||||
Paydowns | (2,246) | (2,808) | (2,252) | (5,054) | (4,639) | |||||||||||
Changes in fair value | 258 | (754) | 5,067 | (496) | 19,031 | |||||||||||
Balance, end of period | $听听听听听听听听听 193,037 | $听听听听听听听 189,711 | $听听听听听听听听听听 178,776 | $听听听听听听 193,037 | $听听听听听听 178,776 | |||||||||||
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Supplemental Results | |||||||||||
(Unaudited) | |||||||||||
($ in thousands) | |||||||||||
Loans Receivable and Loans Held for Sale | |||||||||||
June 30, | March 31,听 | December 31, | |||||||||
2025 | 2025 | 2024 | |||||||||
Mortgage warehouse repurchase agreements | $听听听听听听 1,843,742 | $听听听听 1,408,239 | $听听听听听听听 1,446,068 | ||||||||
Residential real estate (1) | 988,783 | 1,332,601 | 1,322,853 | ||||||||
Multi-family financing | 4,833,548 | 4,600,117 | 4,624,299 | ||||||||
Healthcare financing | 1,442,095 | 1,583,290 | 1,484,483 | ||||||||
Commercial and commercial real estate (2)(3) | 1,328,765 | 1,418,741 | 1,476,211 | ||||||||
Agricultural production and real estate | 82,425 | 79,190 | 77,631 | ||||||||
Consumer and margin loans | 4,570 | 4,959 | 6,843 | ||||||||
Loans receivable | 10,523,928 | 10,427,137 | 10,438,388 | ||||||||
听听听 Less: Allowance for credit losses on loans | 91,811 | 83,413 | 84,386 | ||||||||
Loans receivable, net | $听听听听 10,432,117 | $听听 10,343,724 | $听听听听听 10,354,002 | ||||||||
Loans held for sale | 4,105,765 | 3,983,452 | 3,771,510 | ||||||||
Total loans, net of allowance | $听听听听 14,537,882 | $听听 14,327,176 | $听听听听听 14,125,512 | ||||||||
(1)听听听听 Includes | |||||||||||
(2)听听听 Includes | |||||||||||
(3)听听听听 Includes only | |||||||||||
Loan Credit Risk Profile | |||||||||||
June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||
Amount | % | Amount | % | Amount | % | ||||||
Pass听 | $听听听听听听 9,934,759 | 94.4听% | $听听听听 9,695,595 | 93.0听% | $听听听听听听听 9,741,087 | 93.3听% | |||||
Special mention | 171,512 | 1.6听% | 407,895 | 3.9听% | 379,969 | 3.6听% | |||||
Substandard | 417,657 | 4.0听% | 323,647 | 3.1听% | 317,332 | 3.0听% | |||||
Doubtful | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | |||||
Loans receivable | $听听听听 10,523,928 | 100.0听% | $听听 10,427,137 | 100.0听% | $听听听听听 10,438,388 | 100.0听% | |||||
Charge-offs (year-to-date) | $听听听听听听听听听听听 56,570 | $听听听听听听听听听 10,507 | $听听听听听听听听听听听听 10,587 | ||||||||
Recoveries (year-to-date) | $听听听听听听听听听听听听听听听听听听 28 | $听听听听听听听听听听听听听听听听 28 | $听听听听听听听听听听听听听听听听听 136 | ||||||||
Nonperforming Loans | |||||||||||
June 30, | March 31, | December 31, | |||||||||
2025 | 2025 | 2024 | |||||||||
Nonaccrual loans | $听听听听听听听听听 250,818 | $听听听听听听听 284,019 | $听听听听听听听听听听 279,716 | ||||||||
90 days past due and still accruing | 714 | 585 | 6 | ||||||||
Total nonperforming loans | $听听听听听听听听听 251,532 | $听听听听听听听 284,604 | $听听听听听听听听听听 279,722 | ||||||||
Other real estate owned | $听听听听听听听听听听听听听 7,049 | $听听听听听听听听听听听 7,049 | $听听听听听听听听听听听听听听 8,209 | ||||||||
Total nonperforming assets | $听听听听听听听听听 258,581 | $听听听听听听听 291,653 | $听听听听听听听听听听 287,931 | ||||||||
Nonperforming loans to total loans receivable | 2.39听% | 2.73听% | 2.68听% | ||||||||
Nonperforming assets to total assets | 1.35听% | 1.55听% | 1.53听% | ||||||||
Delinquent Loans | |||||||||||
June 30, | March 31, | December 31, | |||||||||
2025 | 2025 | 2024 | |||||||||
Delinquent loans:听 | |||||||||||
听听听 Loans receivable | $听听听听听听听听听 279,009 | $听听听听听听听 304,560 | $听听听听听听听听听听 292,263 | ||||||||
听听听 Loans held for sale | - | 30,103 | 32,343 | ||||||||
Total delinquent loans | $听听听听听听听听听 279,009 | $听听听听听听听 334,663 | $听听听听听听听听听听 324,606 | ||||||||
Total loans receivable and loans held for sale | $听听听听 14,629,693 | $听听 14,410,589 | $听听听听听 14,209,898 | ||||||||
听听 Delinquent loans to total loans听 | 1.91听% | 2.32听% | 2.28听% | ||||||||
听
Supplemental Results | ||||||||||
(Unaudited) | ||||||||||
($ in thousands) | ||||||||||
Deposits | ||||||||||
June 30, | March 31,听 | December 31, | ||||||||
2025 | 2025 | 2024 | ||||||||
Noninterest-bearing deposits | ||||||||||
听听 Core demand deposits | $听听听听听听听听听听 315,523 | $听听听听听听听听听听 313,296 | $听听听听听听听听听听 239,005 | |||||||
Interest-bearing deposits | ||||||||||
听听 Demand deposits: | ||||||||||
听听听听听 Core demand deposits | $听听听听听听听 6,066,933 | $听听听听听听听 5,432,133 | $听听听听听听听 4,319,512 | |||||||
听听听听听 Brokered demand deposits | 250,000 | - | - | |||||||
听听听听听听听 Total interest-bearing demand deposits | 6,316,933 | 5,432,133 | 4,319,512 | |||||||
听听 Savings deposits: | ||||||||||
听听听听听 Core savings deposits | 3,703,270 | 3,618,210 | 3,442,111 | |||||||
听听听听听 Brokered savings deposits | 358 | 353 | 859 | |||||||
听听听听听听听 Total savings deposits | 3,703,628 | 3,618,563 | 3,442,970 | |||||||
听听 Certificates of deposit: | ||||||||||
听听听听听 Core certificates of deposits | 1,346,630 | 1,324,126 | 1,385,270 | |||||||
听听听听听 Brokered certificates of deposits | 1,004,121 | 1,718,047 | 2,533,219 | |||||||
听听听听听听听听 Total certificates of deposits | 2,350,751 | 3,042,173 | 3,918,489 | |||||||
听听 Total interest-bearing deposits | 12,371,312 | 12,092,869 | 11,680,971 | |||||||
Total deposits | $听听听听听 12,686,835 | $听听听听听 12,406,165 | $听听听听听 11,919,976 | |||||||
Total core deposits | $听听听听听 11,432,356 | $听听听听听 10,687,765 | $听听听听听听听 9,385,898 | |||||||
Total brokered deposits | $听听听听听听听 1,254,479 | $听听听听听听听 1,718,400 | $听听听听听听听 2,534,078 | |||||||
Total deposits | $听听听听听 12,686,835 | $听听听听听 12,406,165 | $听听听听听 11,919,976 | |||||||
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SOURCE Merchants Bancorp
FAQ
What caused MBIN's earnings decline in Q2 2025?
How much was Merchants Bancorp's Q2 2025 net income?
What is MBIN's current liquidity position?
How did MBIN's core deposits perform in Q2 2025?
What is the status of MBIN's asset quality in Q2 2025?
