UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 30, 2019
Merchants Bancorp
(Exact Name of Registrant as Specified in its Charter)
Indiana |
|
001-38258 |
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20-5747400 |
(State or Other Jurisdiction |
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(Commission |
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(IRS Employer |
11555 North Meridian Street, Suite 400
Carmel, Indiana 46032
(Address of Principal Executive Offices) (Zip Code)
(317) 569-7420
(Registrants Telephone Number, Including Area Code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading |
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Name of each exchange on which registered |
Common Stock, without par value |
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MBIN |
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NASDAQ |
Series A Preferred Stock, without par value |
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MBINP |
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NASDAQ |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On July 30, 2019, Merchants Bancorp issued a press release reporting its financial results for the second quarter of 2019. The press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit |
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Description |
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99.1 |
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Press Release dated July 30, 2019 issued by Merchants Bancorp |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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MERCHANTS BANCORP | |
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Date: July 30, 2019 |
By: |
/s/ John F. Macke |
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Name: John F. Macke |
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Title: Chief Financial Officer |
PRESS RELEASE
Merchants Bancorp Reports Second Quarter 2019 Results
For Release July 30, 2019
· Total assets of $5.3 billion increased $1.4 billion, or 36% compared with December 31, 2018
· Gross loans receivable of $2.4 billion increased 15% compared with December 31, 2018
· Loans held for sale of $1.9 billion increased 130% compared with December 31, 2018
· Return on average assets was 1.41% for three months ended June 30, 2019
· Net interest income after provision for loan losses increased $6.6 million, or 31%, to $27.8 million compared to the three months ended June 30, 2018
· Net income of $16.4 million increased 5% compared to the three months ended June 30, 2018
· Completed private preferred stock offering on June 27, 2019, raising $21.9 million of capital to support the 33% growth in assets since March 31, 2019
CARMEL, Indiana (PR Newswire) - Merchants Bancorp (the Company or Merchants) (Nasdaq: MBIN), parent company of Merchants Bank of Indiana, today reported second quarter 2019 net income of $16.4 million, or $0.51 per common share compared with $15.7 million, or $0.52 per common share in the second quarter of 2018.
We have continued to deliver on our strategy to effectively deploy capital, which resulted in 36% asset growth since the beginning of the year and a 1.41% return on average assets during the second quarter, said Michael Petrie, Chairman and CEO of Merchants. These results demonstrate the success of our unique business model across various interest rate environments, and our team remains focused on providing customers with the innovative products and services that position us well for continued success in the marketplace, added Petrie.
Total Assets
Total assets increased $1.4 billion, or 36%, to $5.3 billion at June 30, 2019 compared with $3.9 billion at December 31, 2018. The increase was due to an increase of $1.4 billion in total net loans receivable and loans held for sale. Return on average assets was 1.41% for the three months ended June 30, 2019 compared with 1.70% for the three months ended June 30, 2018.
Loans receivable before allowance for loan losses increased $302.4 million, or 15%, to $2.4 billion at June 30, 2019 compared with $2.1 billion at December 31, 2018. This increase was primarily a result of growth in mortgage warehouse lines of credit, as well as multi-family and healthcare financing. Loans held for sale increased $1.1 billion, or 130%, to $1.9 billion at June 30, 2019 compared to $832.5 million at December 31, 2018. This increase was due to the significant loan growth generated from the mortgage warehouse business, resulting from lower interest rates that increased the origination volume in the single-family mortgage market.
Asset Quality
The allowance for loan losses of $12.6 million remained relatively unchanged at June 30, 2019 compared with $12.7 million at December 31, 2018, reflecting increases for loan growth that were offset by improvement in loss expectations for the multi-family loan portfolio based on historical loss experience. Non-performing loans were $3.8 million, or 0.16% of total loans at June 30, 2019 compared with $2.4 million, or 0.12% of total loans at December 31, 2018.
Total Deposits
Total deposits increased 44%, to $4.7 billion at June 30, 2019 compared with $3.2 billion at December 31, 2018. The increase was primarily due to higher brokered certificates of deposits to support the significant growth in loans and to match their expected duration. Total brokered deposits increased $1.0 billion, to $2.0 billion at June 30, 2019 from $988.2 million at December 31, 2018, representing 43% of total deposits at June 30, 2019 compared with 31% at December 31, 2018.
Net Interest Income
Net interest income increased $5.7 million, or 26%, to $27.9 million for the three months ended June 30, 2019 compared to the three months ended June 30, 2018. The increase was primarily due to the growth in loans and loans held for sale and a 19 basis point increase in the interest rate spread, to 2.22%, for the three months ended June 30, 2019, from 2.03% for the three months ended June 30, 2018. The net interest margin decreased 2 basis points to 2.49% for the three months ended June 30, 2019, from 2.51% for the three months ended June 30, 2018.
Interest Income
Interest income increased $14.6 million, or 43%, to $48.8 million for the three months ended June 30, 2019 compared with $34.1 million for the three months ended June 30, 2018. This increase was primarily due to loan growth. The average balance of loans, including loans held for sale, during the three months ended June 30, 2019, increased by $1.1 billion, or 46%, to $3.6 billion compared with $2.5
billion for the three months ended June 30, 2018. The average yield on loans increased 4 basis points, to 4.75%, for the three months ended June 30, 2019 compared with 4.71% for the three months ended June 30, 2018.
Interest Expense
Total interest expense increased $8.9 million, or 75%, to $20.8 million for the three months ended June 30, 2019 compared with the three months ended June 30, 2018. Interest expense on deposits increased $9.6 million, or 99%, to $19.3 million for the three months ended June 30, 2019 compared with the three months ended June 30, 2018. The increase in the cost of deposits was primarily due to the higher volume of interest-bearing checking and certificates of deposits, as well as the overall increase in interest rates since last year. There was a 51 basis point increase in the average cost of interest-bearing deposits, to 2.04%, for the three months ended June 30, 2019 compared with 1.53% for the same period in 2018, and an increase in the average balance of interest-bearing deposits of $1.3 billion, or 49%, to $3.8 billion for the three months ended June 30, 2019.
Noninterest Income
Noninterest income decreased $1.8 million, or 15%, to $9.9 million for the three months ended June 30, 2019 compared with the three months ended June 30, 2018. The decrease was due to a $4.1 million decrease in loan servicing fees, which reflected a $2.9 million negative fair market value adjustment in mortgage servicing rights during the three months ended June 30, 2019 compared with a $1.8 million positive fair market adjustment in mortgage servicing rights for the same period in 2018. At June 30, 2019, the mortgage servicing rights asset was valued at $74.6 million, a decrease of 4% compared to December 31, 2018 and a decrease of 2% compared to March 31, 2019.
Noninterest Expense
Noninterest expense increased $3.9 million, or 33%, to $15.9 million for the three months ended June 30, 2019 compared with $12.0 million for the three months ended June 30, 2018. The increase was due primarily to a $2.7 million, or 37%, increase in salaries and employee benefits. The increase in salaries and employee benefits was due primarily to an increase in the number of employees resulting from business growth and acquisitions during the fourth quarter of 2018. The efficiency ratio was 42.1% in the second quarter of 2019 compared with 35.5% for the second quarter of 2018.
Income Taxes
Income tax expense increased $142,000, or 3%, to $5.3 million for the three months ended June 30, 2019 compared with the three months ended June 30, 2018. The increase was due primarily to a 4%
increase in pre-tax income over the same period. The effective tax rate was 24.5% for the three months ended June 30, 2019 compared with 24.9% for the three months ended June 30, 2018.
Segments
For the three months ended June 30, 2019, net income increased 30% for Banking, increased 9% for Mortgage Warehousing, and decreased 47% for Multi-family Mortgage Banking compared with the three months ended June 30, 2018.
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 $5.3 billion in assets and $4.7 billion in deposits as of June 30, 2019, conducts its business through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp., Farmers-Merchants Bank of Illinois, Merchants Capital Servicing, LLC, and Merchants Mortgage, a division of Merchants Bank of Indiana. For more information and financial data, please visit Merchants Investor Relations page at investors.merchantsbankofindiana.com.
Forward-Looking Statements
This press release contains forward-looking statements which reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as may, might, should, could, predict, potential, believe, expect, continue, will, anticipate, seek, estimate, intend, plan, projection, goal, target, outlook, aim, would, annualized and outlook, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, managements beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements,
including those factors identified in Risk Factors or Managements Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
MEDIA CONTACT: REBECCA MARSH
Merchants Bancorp
Phone: (317) 805-4356
Email: rmarsh@merchantsbankofindiana.com
INVESTOR CONTACT: JOHN MACKE
Merchants Bancorp
Phone: (317) 536-7421
Email: jmacke@merchantsbankofindiana.com
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
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June 30, |
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December 31, |
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2019 |
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2018 |
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Assets |
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Cash and due from banks |
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$ |
15,176 |
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$ |
25,855 |
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Interest-earning demand accounts |
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445,713 |
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310,669 |
| ||
Cash and cash equivalents |
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460,889 |
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336,524 |
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Securities purchased under agreements to resell |
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6,798 |
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6,875 |
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Trading securities |
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101,514 |
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163,419 |
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Available for sale securities |
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261,485 |
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331,071 |
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Federal Home Loan Bank (FHLB) stock |
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18,820 |
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7,974 |
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Loans held for sale (includes $9,592 and $11,886, respectively at fair value) |
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1,918,118 |
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832,455 |
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Loans receivable, net of allowance for loan losses of $12,604 and $12,704, respectively |
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2,347,906 |
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2,045,423 |
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Premises and equipment, net |
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26,580 |
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15,136 |
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Mortgage servicing rights |
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74,550 |
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77,844 |
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Interest receivable |
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17,415 |
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13,827 |
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Goodwill |
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15,574 |
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17,477 |
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Intangible assets, net |
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4,567 |
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3,542 |
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Other assets and receivables |
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33,174 |
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32,596 |
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Total assets |
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$ |
5,287,390 |
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$ |
3,884,163 |
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Liabilities and Shareholders Equity |
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Liabilities |
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Deposits |
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|
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Noninterest-bearing |
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$ |
192,521 |
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$ |
182,879 |
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Interest-bearing |
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4,463,469 |
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3,048,207 |
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Total deposits |
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4,655,990 |
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3,231,086 |
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Borrowings |
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62,225 |
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195,453 |
| ||
Other liabilities |
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54,162 |
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36,387 |
| ||
Total liabilities |
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4,772,377 |
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3,462,926 |
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Commitments and Contingencies |
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|
|
|
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Shareholders Equity |
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Common stock, without par value |
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Authorized - 50,000,000 shares |
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Issued and outstanding - 28,706,438 shares at June 30, 2018 and 28,694,036 shares at December 31, 2018 |
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135,374 |
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135,057 |
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Preferred stock, without par value - 5,000,000 total shares authorized |
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8% Preferred stock - $1,000 per share liquidation preference |
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Authorized - 50,000 shares |
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|
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Issued and outstanding - 41,625 shares |
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41,581 |
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41,581 |
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7% Series A Preferred stock - $25 per share liquidation preference |
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Authorized - 3,500,000 shares |
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|
|
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Issued and outstanding - 2,955,800 shares |
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72,095 |
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|
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Retained earnings |
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265,323 |
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244,909 |
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Accumulated other comprehensive income (loss) |
|
640 |
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(310 |
) | ||
Total shareholders equity |
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515,013 |
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421,237 |
| ||
Total liabilities and shareholders equity |
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$ |
5,287,390 |
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$ |
3,884,163 |
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Consolidated Statement of Income
(Unaudited)
(In thousands, except share data)
|
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2019 |
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2018 |
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2019 |
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2018 |
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Interest Income |
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|
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Loans |
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$ |
42,365 |
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$ |
28,790 |
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$ |
76,820 |
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$ |
53,402 |
|
Investment securities: |
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|
|
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|
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Trading |
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1,967 |
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1,489 |
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3,012 |
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2,478 |
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Available for sale - taxable |
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1,477 |
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1,625 |
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3,028 |
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3,167 |
| ||||
Available for sale - tax exempt |
|
53 |
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|
149 |
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Federal Home Loan Bank stock |
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257 |
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81 |
|
480 |
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210 |
| ||||
Other |
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2,642 |
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2,138 |
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4,946 |
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3,904 |
| ||||
Total interest income |
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48,761 |
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34,123 |
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88,435 |
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63,161 |
| ||||
Interest Expense |
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|
|
|
|
|
|
|
| ||||
Deposits |
|
19,344 |
|
9,741 |
|
33,571 |
|
16,757 |
| ||||
Borrowed funds |
|
1,495 |
|
2,176 |
|
2,811 |
|
4,090 |
| ||||
Total interest expense |
|
20,839 |
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11,917 |
|
36,382 |
|
20,847 |
| ||||
Net Interest Income |
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27,922 |
|
22,206 |
|
52,053 |
|
42,314 |
| ||||
Provision for loan losses |
|
105 |
|
998 |
|
754 |
|
2,404 |
| ||||
Net Interest Income After Provision for Loan Losses |
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27,817 |
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21,208 |
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51,299 |
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39,910 |
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Noninterest Income |
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|
|
|
|
|
|
|
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Gain on sale of loans |
|
9,104 |
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7,831 |
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11,747 |
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18,723 |
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Loan servicing fees, net |
|
(1,561 |
) |
2,555 |
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(1,908 |
) |
2,233 |
| ||||
Mortgage warehouse fees |
|
1,138 |
|
684 |
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1,891 |
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1,170 |
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Gains/(losses) on sale of investments available for sale (includes $(3), $0, $124, and $0, respectively, related to accumulated other comprehensive earnings reclassifications) |
|
(3 |
) |
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|
124 |
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|
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Other income |
|
1,192 |
|
560 |
|
1,680 |
|
817 |
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Total noninterest income |
|
9,870 |
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11,630 |
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13,534 |
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22,943 |
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Noninterest Expense |
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|
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|
|
|
|
|
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Salaries and employee benefits |
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9,965 |
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7,268 |
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18,532 |
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13,755 |
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Loan expenses |
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1,345 |
|
1,302 |
|
2,279 |
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2,258 |
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Occupancy and equipment |
|
946 |
|
761 |
|
1,822 |
|
1,326 |
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Professional fees |
|
453 |
|
677 |
|
992 |
|
1,165 |
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Deposit insurance expense |
|
218 |
|
236 |
|
495 |
|
482 |
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Technology expense |
|
629 |
|
293 |
|
1,101 |
|
584 |
| ||||
Other expense |
|
2,364 |
|
1,463 |
|
3,734 |
|
2,700 |
| ||||
Total noninterest expense |
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15,920 |
|
12,000 |
|
28,955 |
|
22,270 |
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Income Before Income Taxes |
|
21,767 |
|
20,838 |
|
35,878 |
|
40,583 |
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Provision for income taxes (includes $1, $0, $(31) and $0, respectively, related to income tax (expense)/benefit for reclassification items) |
|
5,328 |
|
5,186 |
|
8,869 |
|
9,870 |
| ||||
Net Income |
|
$ |
16,439 |
|
$ |
15,652 |
|
$ |
27,009 |
|
$ |
30,713 |
|
Dividends on preferred stock |
|
(1,743 |
) |
(832 |
) |
(2,576 |
) |
(1,665 |
) | ||||
Net Income Allocated to Common Shareholders |
|
14,696 |
|
14,820 |
|
24,433 |
|
29,048 |
| ||||
Basic Earnings Per Share |
|
$ |
0.51 |
|
$ |
0.52 |
|
$ |
0.85 |
|
$ |
1.01 |
|
Diluted Earnings Per Share |
|
$ |
0.51 |
|
$ |
0.52 |
|
$ |
0.85 |
|
$ |
1.01 |
|
Weighted-Average Shares Outstanding |
|
|
|
|
|
|
|
|
| ||||
Basic |
|
28,705,313 |
|
28,692,749 |
|
28,703,790 |
|
28,691,857 |
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Diluted |
|
28,746,297 |
|
28,720,805 |
|
28,741,877 |
|
28,715,687 |
|
Key Operating Results
(Unaudited)
($ in thousands)
|
|
Three Months Ended |
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Six Months Ended |
| |||||||||||
|
|
June 30, |
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March 31, |
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June 30, |
|
June 30, |
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June 30, |
| |||||
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| |||||
Noninterest expense |
|
15,920 |
|
13,035 |
|
12,000 |
|
28,955 |
|
22,270 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest income (before provision for losses) |
|
27,922 |
|
24,131 |
|
22,206 |
|
52,053 |
|
42,314 |
| |||||
Noninterest income |
|
9,870 |
|
3,664 |
|
11,630 |
|
13,534 |
|
22,943 |
| |||||
Total income |
|
37,792 |
|
27,795 |
|
33,836 |
|
65,587 |
|
65,257 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Efficiency ratio |
|
42.13 |
% |
46.90 |
% |
35.47 |
% |
44.15 |
% |
34.13 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average assets |
|
4,661,138 |
|
3,697,945 |
|
3,684,225 |
|
4,182,203 |
|
3,525,080 |
| |||||
Net income |
|
16,439 |
|
10,570 |
|
15,652 |
|
27,009 |
|
30,713 |
| |||||
Return on average assets before annualizing |
|
0.35 |
% |
0.29 |
% |
0.42 |
% |
0.65 |
% |
0.87 |
% | |||||
Annualization factor |
|
4.00 |
|
4.00 |
|
4.00 |
|
2.00 |
|
2.00 |
| |||||
Return on average assets |
|
1.41 |
% |
1.14 |
% |
1.70 |
% |
1.29 |
% |
1.74 |
% | |||||
Return on average tangible common shareholders equity (1) |
|
15.38 |
% |
10.67 |
% |
17.41 |
% |
13.08 |
% |
17.41 |
% | |||||
Tangible book value per common share (1) |
|
$ |
13.28 |
|
$ |
12.80 |
|
$ |
11.99 |
|
$ |
13.28 |
|
$ |
11.99 |
|
Tangible common shareholders equity/tangible assets (1) |
|
7.24 |
% |
9.29 |
% |
9.11 |
% |
7.24 |
% |
9.11 |
% | |||||
(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 companys 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.
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Three Months Ended |
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Six Months Ended |
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June 30, |
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March 31, |
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June 30, |
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June 30, |
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June 30, |
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2019 |
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2019 |
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2018 |
|
2019 |
|
2018 |
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|
|
|
|
|
|
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| |||||
Net income |
|
16,439 |
|
10,570 |
|
15,652 |
|
27,009 |
|
30,713 |
| |||||
Less: preferred stock dividends |
|
(1,743 |
) |
(833 |
) |
(832 |
) |
(2,576 |
) |
(1,665 |
) | |||||
Net income available to common shareholders |
|
14,696 |
|
9,737 |
|
14,820 |
|
24,433 |
|
29,048 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average shareholders equity |
|
495,789 |
|
429,230 |
|
389,069 |
|
462,694 |
|
382,415 |
| |||||
Less: average goodwill & intangibles |
|
(20,396 |
) |
(20,982 |
) |
(7,031 |
) |
(20,688 |
) |
(7,128 |
) | |||||
Less: average preferred stock |
|
(93,108 |
) |
(43,190 |
) |
(41,581 |
) |
(68,287 |
) |
(41,581 |
) | |||||
Average tangible common shareholders equity |
|
382,285 |
|
365,058 |
|
340,457 |
|
373,719 |
|
333,706 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Annualization factor |
|
4.00 |
|
4.00 |
|
4.00 |
|
2.00 |
|
2.00 |
| |||||
Return on average tangible common shareholders equity |
|
15.38 |
% |
10.67 |
% |
17.41 |
% |
13.08 |
% |
17.41 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total equity |
|
515,013 |
|
477,831 |
|
392,919 |
|
515,013 |
|
392,919 |
| |||||
Less: goodwill and intangibles |
|
(20,141 |
) |
(20,525 |
) |
(7,208 |
) |
(20,141 |
) |
(7,208 |
) | |||||
Less: preferred stock |
|
(113,676 |
) |
(89,850 |
) |
(41,581 |
) |
(113,676 |
) |
(41,581 |
) | |||||
Tangible common shareholders equity |
|
381,196 |
|
367,456 |
|
344,130 |
|
381,196 |
|
344,130 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Assets |
|
5,287,390 |
|
3,976,725 |
|
3,786,682 |
|
5,287,390 |
|
3,786,682 |
| |||||
Less: goodwill and intangibles |
|
(20,141 |
) |
(20,525 |
) |
(7,208 |
) |
(20,141 |
) |
(7,208 |
) | |||||
Tangible assets |
|
5,267,249 |
|
3,956,200 |
|
3,779,474 |
|
5,267,249 |
|
3,779,474 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ending common shares |
|
28,706,438 |
|
28,704,163 |
|
28,694,036 |
|
28,706,438 |
|
28,694,036 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Tangible book value per common share |
|
$ |
13.28 |
|
$ |
12.80 |
|
$ |
11.99 |
|
$ |
13.28 |
|
$ |
11.99 |
|
Tangible common shareholders equity/tangible assets |
|
7.24 |
% |
9.29 |
% |
9.11 |
% |
7.24 |
% |
9.11 |
% | |||||
Merchants Bancorp
Average Balance Analysis
($ in thousands)
(Unaudited)
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
| ||||||||||||||||||
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|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
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Average |
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|
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Yield/ |
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Average |
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|
Yield/ |
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Average |
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Yield/ |
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Balance |
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Int. |
|
Rate |
|
Balance |
|
Int. |
|
Rate |
|
Balance |
|
Int. |
|
Rate |
| ||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
| ||||||
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|
|
|
|
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|
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| ||||||
Interest-bearing deposits, and other |
|
$ |
440,502 |
|
$ |
2,899 |
|
2.64 |
% |
$ |
369,736 |
|
$ |
2,527 |
|
2.77 |
% |
$ |
517,594 |
|
$ |
2,219 |
|
1.72 |
% |
Securities available for sale - taxable |
|
266,950 |
|
1,477 |
|
2.22 |
% |
292,500 |
|
1,551 |
|
2.15 |
% |
407,896 |
|
1,625 |
|
1.60 |
% | ||||||
Securities available for sale - tax exempt |
|
9,052 |
|
53 |
|
2.35 |
% |
12,460 |
|
96 |
|
3.12 |
% |
|
|
|
|
|
| ||||||
Trading securities |
|
194,411 |
|
1,967 |
|
4.06 |
% |
109,423 |
|
1,045 |
|
3.87 |
% |
175,876 |
|
1,489 |
|
3.40 |
% | ||||||
Loans and loans held for sale |
|
3,580,620 |
|
42,365 |
|
4.75 |
% |
2,746,562 |
|
34,455 |
|
5.09 |
% |
2,451,061 |
|
28,790 |
|
4.71 |
% | ||||||
Total interest-earning assets |
|
4,491,535 |
|
48,761 |
|
4.35 |
% |
3,530,681 |
|
39,674 |
|
4.56 |
% |
3,552,427 |
|
34,123 |
|
3.85 |
% | ||||||
Allowance for loan losses |
|
(13,466 |
) |
|
|
|
|
(12,704 |
) |
|
|
|
|
(9,986 |
) |
|
|
|
| ||||||
Noninterest-earning assets |
|
183,069 |
|
|
|
|
|
179,968 |
|
|
|
|
|
141,784 |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total assets |
|
$ |
4,661,138 |
|
|
|
|
|
$ |
3,697,945 |
|
|
|
|
|
$ |
3,684,225 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Liabilities & Shareholders Equity: |
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|
|
|
|
|
|
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|
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-bearing checking |
|
1,527,971 |
|
7,567 |
|
1.99 |
% |
1,314,733 |
|
6,434 |
|
1.98 |
% |
783,798 |
|
3,285 |
|
1.68 |
% | ||||||
Savings deposits |
|
144,315 |
|
81 |
|
0.23 |
% |
147,534 |
|
80 |
|
0.22 |
% |
264,343 |
|
190 |
|
0.29 |
% | ||||||
Money market |
|
959,296 |
|
4,725 |
|
1.98 |
% |
892,806 |
|
4,208 |
|
1.91 |
% |
796,217 |
|
3,265 |
|
1.64 |
% | ||||||
Certificates of deposit |
|
1,174,106 |
|
6,971 |
|
2.38 |
% |
618,646 |
|
3,505 |
|
2.30 |
% |
708,525 |
|
3,001 |
|
1.70 |
% | ||||||
Total interest-bearing deposits |
|
3,805,688 |
|
19,344 |
|
2.04 |
% |
2,973,719 |
|
14,227 |
|
1.94 |
% |
2,552,883 |
|
9,741 |
|
1.53 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Borrowings |
|
117,647 |
|
1,495 |
|
5.10 |
% |
88,353 |
|
1,316 |
|
6.04 |
% |
69,430 |
|
2,176 |
|
12.57 |
% | ||||||
Total interest-bearing liabilities |
|
3,923,335 |
|
20,839 |
|
2.13 |
% |
3,062,072 |
|
15,543 |
|
2.06 |
% |
2,622,313 |
|
11,917 |
|
1.82 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Noninterest-bearing deposits |
|
194,530 |
|
|
|
|
|
155,218 |
|
|
|
|
|
643,334 |
|
|
|
|
| ||||||
Noninterest-bearing liabilities |
|
47,484 |
|
|
|
|
|
51,425 |
|
|
|
|
|
29,509 |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total liabilities |
|
4,165,349 |
|
|
|
|
|
3,268,715 |
|
|
|
|
|
3,295,156 |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Shareholders equity |
|
495,789 |
|
|
|
|
|
429,230 |
|
|
|
|
|
389,069 |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total liabilities and shareholders equity |
|
$ |
4,661,138 |
|
|
|
|
|
$ |
3,697,945 |
|
|
|
|
|
$ |
3,684,225 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net interest income |
|
|
|
$ |
27,922 |
|
|
|
|
|
$ |
24,131 |
|
|
|
|
|
$ |
22,206 |
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net interest spread |
|
|
|
|
|
2.22 |
% |
|
|
|
|
2.50 |
% |
|
|
|
|
2.03 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net interest-earning assets |
|
$ |
568,200 |
|
|
|
|
|
$ |
468,609 |
|
|
|
|
|
$ |
930,114 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net interest margin |
|
|
|
|
|
2.49 |
% |
|
|
|
|
2.77 |
% |
|
|
|
|
2.51 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Average interest-earning assets to average interest-bearing liabilities |
|
|
|
|
|
114.48 |
% |
|
|
|
|
115.30 |
% |
|
|
|
|
135.47 |
% |
Segment Results
(Unaudited)
($ in thousands)
|
|
Net Income |
|
Net Income |
|
|
| ||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|
Total Assets |
| ||||||||||||
|
|
June 30, |
|
June 30, |
|
June 30, |
|
December 31, |
| ||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| ||||||
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Multi-family Mortgage Banking |
|
$ |
2,517 |
|
$ |
4,765 |
|
$ |
1,805 |
|
$ |
10,249 |
|
$ |
164,990 |
|
$ |
166,102 |
|
Mortgage Warehousing |
|
6,320 |
|
5,774 |
|
10,152 |
|
10,404 |
|
2,661,836 |
|
1,430,776 |
| ||||||
Banking |
|
8,408 |
|
6,485 |
|
17,177 |
|
12,465 |
|
2,412,026 |
|
2,256,687 |
| ||||||
Other |
|
(806 |
) |
(1,372 |
) |
(2,125 |
) |
(2,405 |
) |
48,538 |
|
30,598 |
| ||||||
Total |
|
$ |
16,439 |
|
$ |
15,652 |
|
$ |
27,009 |
|
$ |
30,713 |
|
$ |
5,287,390 |
|
$ |
3,884,163 |
|