EX-99.1 2 a19-16255_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

 

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

 

2


 

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%

 

3


 

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, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements,

 

4


 

including those factors identified in “Risk Factors” or “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission.  Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

 

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

 

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Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)

 

 

 

June 30,

 

December 31,

 

 

 

2019

 

2018

 

Assets

 

 

 

 

 

Cash and due from banks

 

$

15,176

 

$

25,855

 

Interest-earning demand accounts

 

445,713

 

310,669

 

Cash and cash equivalents

 

460,889

 

336,524

 

Securities purchased under agreements to resell

 

6,798

 

6,875

 

Trading securities

 

101,514

 

163,419

 

Available for sale securities

 

261,485

 

331,071

 

Federal Home Loan Bank (FHLB) stock

 

18,820

 

7,974

 

Loans held for sale (includes $9,592 and $11,886, respectively at fair value)

 

1,918,118

 

832,455

 

Loans receivable, net of allowance for loan losses of $12,604 and $12,704, respectively

 

2,347,906

 

2,045,423

 

Premises and equipment, net

 

26,580

 

15,136

 

Mortgage servicing rights

 

74,550

 

77,844

 

Interest receivable

 

17,415

 

13,827

 

Goodwill

 

15,574

 

17,477

 

Intangible assets, net

 

4,567

 

3,542

 

Other assets and receivables

 

33,174

 

32,596

 

Total assets

 

$

5,287,390

 

$

3,884,163

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Liabilities

 

 

 

 

 

Deposits

 

 

 

 

 

Noninterest-bearing

 

$

192,521

 

$

182,879

 

Interest-bearing

 

4,463,469

 

3,048,207

 

Total deposits

 

4,655,990

 

3,231,086

 

Borrowings

 

62,225

 

195,453

 

Other liabilities

 

54,162

 

36,387

 

Total liabilities

 

4,772,377

 

3,462,926

 

Commitments and Contingencies

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

Common stock, without par value

 

 

 

 

 

Authorized - 50,000,000 shares

 

 

 

 

 

Issued and outstanding - 28,706,438 shares at June 30, 2018 and 28,694,036 shares at December 31, 2018

 

135,374

 

135,057

 

Preferred stock, without par value - 5,000,000 total shares authorized

 

 

 

 

 

8% Preferred stock - $1,000 per share liquidation preference

 

 

 

 

 

Authorized - 50,000 shares

 

 

 

 

 

Issued and outstanding - 41,625 shares

 

41,581

 

41,581

 

7% Series A Preferred stock - $25 per share liquidation preference

 

 

 

 

 

Authorized - 3,500,000 shares

 

 

 

 

 

Issued and outstanding - 2,955,800 shares

 

72,095

 

 

Retained earnings

 

265,323

 

244,909

 

Accumulated other comprehensive income (loss)

 

640

 

(310

)

Total shareholders’ equity

 

515,013

 

421,237

 

Total liabilities and shareholders’ equity

 

$

5,287,390

 

$

3,884,163

 

 


 

Consolidated Statement of Income

(Unaudited)

(In thousands, except share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2019

 

2018

 

2019

 

2018

 

Interest Income

 

 

 

 

 

 

 

 

 

Loans

 

$

42,365

 

$

28,790

 

$

76,820

 

$

53,402

 

Investment securities:

 

 

 

 

 

 

 

 

 

Trading

 

1,967

 

1,489

 

3,012

 

2,478

 

Available for sale - taxable

 

1,477

 

1,625

 

3,028

 

3,167

 

Available for sale - tax exempt

 

53

 

 

149

 

 

Federal Home Loan Bank stock

 

257

 

81

 

480

 

210

 

Other

 

2,642

 

2,138

 

4,946

 

3,904

 

Total interest income

 

48,761

 

34,123

 

88,435

 

63,161

 

Interest Expense

 

 

 

 

 

 

 

 

 

Deposits

 

19,344

 

9,741

 

33,571

 

16,757

 

Borrowed funds

 

1,495

 

2,176

 

2,811

 

4,090

 

Total interest expense

 

20,839

 

11,917

 

36,382

 

20,847

 

Net Interest Income

 

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

 

27,817

 

21,208

 

51,299

 

39,910

 

Noninterest Income

 

 

 

 

 

 

 

 

 

Gain on sale of loans

 

9,104

 

7,831

 

11,747

 

18,723

 

Loan servicing fees, net

 

(1,561

)

2,555

 

(1,908

)

2,233

 

Mortgage warehouse fees

 

1,138

 

684

 

1,891

 

1,170

 

Gains/(losses) on sale of investments available for sale (includes $(3), $0, $124, and $0, respectively, related to accumulated other comprehensive earnings reclassifications)

 

(3

)

 

124

 

 

Other income

 

1,192

 

560

 

1,680

 

817

 

Total noninterest income

 

9,870

 

11,630

 

13,534

 

22,943

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

9,965

 

7,268

 

18,532

 

13,755

 

Loan expenses

 

1,345

 

1,302

 

2,279

 

2,258

 

Occupancy and equipment

 

946

 

761

 

1,822

 

1,326

 

Professional fees

 

453

 

677

 

992

 

1,165

 

Deposit insurance expense

 

218

 

236

 

495

 

482

 

Technology expense

 

629

 

293

 

1,101

 

584

 

Other expense

 

2,364

 

1,463

 

3,734

 

2,700

 

Total noninterest expense

 

15,920

 

12,000

 

28,955

 

22,270

 

Income Before Income Taxes

 

21,767

 

20,838

 

35,878

 

40,583

 

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

 

Diluted

 

28,746,297

 

28,720,805

 

28,741,877

 

28,715,687

 

 


 

Key Operating Results

(Unaudited)

($ in thousands)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

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 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

 

Six Months Ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

 

2019

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

June 30, 2019

 

March 31, 2019

 

June 30, 2018

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

 

Balance

 

Int.

 

Rate

 

Balance

 

Int.

 

Rate

 

Balance

 

Int.

 

Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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