MBIN 8-K

Merchants Bancorp (MBIN)

8-K 2023-10-26 For: 2023-10-26

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Added on April 06, 2026

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, without par value	MBIN	NASDAQ
Series A Preferred Stock, without par value	MBINP	NASDAQ
Depositary Shares, each representing a 1/40th interest in a share of Series B Preferred Stock, without par value	MBINO	NASDAQ
Depositary Shares, each representing a 1/40th interest in a share of Series C Preferred Stock, without par value	MBINN	NASDAQ
Depositary Shares, each representing a 1/40th interest in a share of Series D Preferred Stock, without par value	MBINM	NASDAQ

Exhibit No.		Description
99.1		Press Release dated October 26, 2023 issued by Merchants Bancorp.
104		Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document.

	MERCHANTS BANCORP

Date: October 26, 2023	By:	/s/ John F. Macke
		Name: John F. Macke
		Title: Chief Financial Officer

	September 30,			June 30,			March 31,			December 31,			September 30,
	2023			2023			2023			2022			2022
Assets
Cash and due from banks	$	10,633		$	15,390		$	19,002		$	22,170		$	13,796
Interest-earning demand accounts		396,605			361,920			350,584			203,994			310,165
Cash and cash equivalents		407,238			377,310			369,586			226,164			323,961
Securities purchased under agreements to resell		3,385			3,412			3,438			3,464			3,497
Mortgage loans in process of securitization		476,047			298,907			197,074			154,194			137,448
Securities available for sale		624,586			648,003			679,518			323,337			322,069
Securities held to maturity (includes $1,010,745, $1,058,590, $1,106,582, $1,118,966 and $1,005,487 at fair value, respectively)		1,012,801			1,062,017			1,104,835			1,119,078			1,005,487
Federal Home Loan Bank (FHLB) stock		48,219			39,130			39,130			39,130			39,130
Loans held for sale (includes $90,875, $82,931, $85,516, $82,192 and $68,785 at fair value, respectively)		3,477,036			3,058,013			2,855,250			2,910,576			2,844,750
Loans receivable, net of allowance for credit losses on loans of $66,864, $62,986, $51,838, $44,014 and $38,996, respectively		9,910,681			9,854,018			8,575,210			7,426,858			6,919,128
Premises and equipment, net		36,730			36,947			35,793			35,438			35,492
Servicing rights		162,141			147,288			143,867			146,248			144,984
Interest receivable		78,401			70,509			64,282			56,262			40,170
Goodwill		15,845			15,845			15,845			15,845			15,845
Intangible assets, net		831			949			1,068			1,186			1,307
Other assets and receivables		241,295			262,524			156,070			157,447			145,454
Total assets	$	16,495,236		$	15,874,872		$	14,240,966		$	12,615,227		$	11,978,722
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	287,846		$	349,387		$	313,733		$	326,875		$	315,868
Interest-bearing		12,719,492			12,710,477			11,031,498			9,744,470			10,003,611
Total deposits		13,007,338			13,059,864			11,345,231			10,071,345			10,319,479
Borrowings		1,654,075			1,016,836			1,233,762			930,392			97,279
Deferred and current tax liabilities, net		18,006			16,084			32,827			19,613			19,124
Other liabilities		183,102			221,788			123,462			134,138			130,250
Total liabilities		14,862,521			14,314,572			12,735,282			11,155,488			10,566,132
Commitments and Contingencies
Shareholders' Equity
Common stock, without par value
Authorized - 75,000,000 shares
Issued and outstanding - 43,240,212 shares, 43,237,300 shares, 43,233,618 shares, 43,113,127 shares and 43,109,578 shares		139,609			138,853			138,105			137,781			137,226
Preferred stock, without par value - 5,000,000 total shares authorized
7% Series A Preferred stock - $25 per share liquidation preference
Authorized - 3,500,000 shares
Issued and outstanding - 2,081,800 shares		50,221			50,221			50,221			50,221			50,221
6% Series B Preferred stock - $1,000 per share liquidation preference
Authorized - 125,000 shares
Issued and outstanding - 125,000 shares (equivalent to 5,000,000 depositary shares)		120,844			120,844			120,844			120,844			120,844
6% Series C Preferred stock - $1,000 per share liquidation preference
Authorized - 200,000 shares
Issued and outstanding - 196,181 shares (equivalent to 7,847,233 depositary shares)		191,084			191,084			191,084			191,084			191,084
8.25% Series D Preferred stock - $1,000 per share liquidation preference
Authorized - 300,000 shares
Issued and outstanding - 142,500 shares (equivalent to 5,700,000 depositary shares)		137,459			137,459			137,459			137,459			137,371
Retained earnings		998,252			928,875			875,700			832,871			787,530
Accumulated other comprehensive loss		(4,754	)		(7,036	)		(7,729	)		(10,521	)		(11,686	)
Total shareholders' equity		1,632,715			1,560,300			1,505,684			1,459,739			1,412,590
Total liabilities and shareholders' equity	$	16,495,236		$	15,874,872		$	14,240,966		$	12,615,227		$	11,978,722

	Three Months Ended									Change
	September 30,			June 30,			September 30,			3Q23			3Q23
	2023			2023			2022			vs. 2Q23			vs. 3Q22
Interest Income
Loans	$	266,561		$	228,732		$	129,101			17	%		106	%
Mortgage loans in process of securitization		2,583			3,127			2,162			-17	%		19	%
Investment securities:
Available for sale - taxable		6,182			5,564			485			11	%		1175	%
Held to maturity		17,427			17,311			970			1	%		1697	%
Federal Home Loan Bank stock		572			471			379			21	%		51	%
Other		3,351			2,864			1,015			17	%		230	%
Total interest income		296,676			258,069			134,112			15	%		121	%
Interest Expense
Deposits		162,906			137,801			45,002			18	%		262	%
Borrowed funds		16,334			14,651			3,725			11	%		338	%
Total interest expense		179,240			152,452			48,727			18	%		268	%
Net Interest Income		117,436			105,617			85,385			11	%		38	%
Provision for credit losses		4,014			22,603			2,225			-82	%		80	%
Net Interest Income After Provision for Credit Losses		113,422			83,014			83,160			37	%		36	%
Noninterest Income
Gain on sale of loans		10,758			11,350			13,354			-5	%		-19	%
Loan servicing fees, net		17,384			8,616			8,169			102	%		113	%
Mortgage warehouse fees		1,858			2,865			1,105			-35	%		68	%
Syndication and asset management fees		2,368			3,896			3,073			-39	%		-23	%
Other income		3,700			3,155			3,485			17	%		6	%
Total noninterest income		36,068			29,882			29,186			21	%		24	%
Noninterest Expense
Salaries and employee benefits		27,052			25,724			23,027			5	%		17	%
Loan expenses		1,038			907			1,226			14	%		-15	%
Occupancy and equipment		2,196			2,456			1,967			-11	%		12	%
Professional fees		2,555			3,723			2,429			-31	%		5	%
Deposit insurance expense		3,568			3,806			755			-6	%		373	%
Technology expense		1,609			1,571			1,325			2	%		21	%
Other expense		4,912			6,133			4,222			-20	%		16	%
Total noninterest expense		42,930			44,320			34,951			-3	%		23	%
Income Before Income Taxes		106,560			68,576			77,395			55	%		38	%
Provision for income taxes		25,056			3,274			18,907			665	%		33	%
Net Income	$	81,504		$	65,302		$	58,488			25	%		39	%
Dividends on preferred stock		(8,668	)		(8,668	)		(5,729	)		—			51	%
Net Income Allocated to Common Shareholders	$	72,836		$	56,634		$	52,759			29	%		38	%
Basic Earnings Per Share	$	1.68		$	1.31		$	1.22			28	%		38	%
Diluted Earnings Per Share	$	1.68		$	1.31		$	1.22			28	%		38	%
Weighted-Average Shares Outstanding
Basic		43,238,724			43,235,398			43,107,975
Diluted		43,351,208			43,309,393			43,258,925

	Nine Months Ended
	September 30,			September 30,
	2023			2022			Change
Interest Income
Loans	$	684,743		$	287,291			138	%
Mortgage loans in process of securitization		7,358			5,856			26	%
Investment securities:
Available for sale - taxable		14,012			2,103			566	%
Held to maturity		50,492			970			5105	%
Federal Home Loan Bank stock		1,470			932			58	%
Other		7,964			2,242			255	%
Total interest income		766,039			299,394			156	%
Interest Expense
Deposits		405,149			68,583			491	%
Borrowed funds		37,144			7,670			384	%
Total interest expense		442,293			76,253			480	%
Net Interest Income		323,746			223,141			45	%
Provision for credit losses		33,484			10,888			208	%
Net Interest Income After Provision for Credit Losses		290,262			212,253			37	%
Noninterest Income
Gain on sale of loans		28,841			52,883			-45	%
Loan servicing fees, net		28,360			27,507			3	%
Mortgage warehouse fees		5,751			4,313			33	%
Syndication and asset management fees		7,476			5,286			41	%
Other income		9,786			12,965			-25	%
Total noninterest income		80,214			102,954			-22	%
Noninterest Expense
Salaries and employee benefits		74,922			66,795			12	%
Loan expenses		2,749			3,621			-24	%
Occupancy and equipment		6,884			5,792			19	%
Professional fees		8,547			5,326			60	%
Deposit insurance expense		9,552			2,184			337	%
Technology expense		4,757			3,865			23	%
Other expense		14,611			11,358			29	%
Total noninterest expense		122,022			98,941			23	%
Income Before Income Taxes		248,454			216,266			15	%
Provision for income taxes		46,693			53,701			-13	%
Net Income	$	201,761		$	162,565			24	%
Dividends on preferred stock		(26,003	)		(17,186	)		51	%
Net Income Allocated to Common Shareholders	$	175,758		$	145,379			21	%
Basic Earnings Per Share	$	4.07		$	3.37			21	%
Diluted Earnings Per Share	$	4.06		$	3.36			21	%
Weighted-Average Shares Outstanding
Basic		43,218,125			43,182,380
Diluted		43,317,343			43,331,148

	Three Months Ended									Change
	September 30,			June 30,			September 30,			3Q23			3Q23
	2023			2023			2022			vs. 2Q23			vs. 3Q22
Noninterest expense	$	42,930		$	44,320		$	34,951			-3	%		23	%

Net interest income (before provision for credit losses)		117,436			105,617			85,385			11	%		38	%
Noninterest income		36,068			29,882			29,186			21	%		24	%
Total income	$	153,504		$	135,499		$	114,571			13	%		34	%

Efficiency ratio		27.97	%		32.71	%		30.51	%		(474	)bps		(254	)bps


Average assets	$	16,031,015		$	14,673,257		$	11,437,805			9	%		40	%
Net income		81,504			65,302			58,488			25	%		39	%
Return on average assets before annualizing		0.51	%		0.45	%		0.51	%
Annualization factor		4.00			4.00			4.00
Return on average assets		2.03	%		1.78	%		2.05	%		25	bps		(2	)bps

Return on average tangible common shareholders' equity (1)		26.69	%		22.03	%		23.92	%		466	bps		277	bps

Tangible book value per common share (1)	$	25.82		$	24.14		$	20.78			7	%		24	%

Tangible common shareholders' equity/tangible assets (1)		6.78	%		6.58	%		7.49	%		20	bps		(71	)bps

Consolidated ratios
Total capital/risk-weighted assets⁽²⁾		11.4	%		11.3	%		12.5	%
Tier I capital/risk-weighted assets⁽²⁾		10.9	%		10.8	%		12.1	%
Common Equity Tier I capital/risk-weighted assets⁽²⁾		7.5	%		7.3	%		7.8	%
Tier I capital/average assets⁽²⁾		10.1	%		10.6	%		12.3	%

	Loans Receivable and Loans Held for Sale
	September 30,		June 30,		December 31,
	2023		2023		2022
Mortgage warehouse lines of credit	$	1,022,692	$	1,201,932	$	464,785
Residential real estate		1,358,908		1,342,586		1,178,401
Multi-family financing		3,709,320		3,746,333		3,135,535
Healthcare financing		2,218,559		2,128,378		1,604,341
Commercial and commercial real estate (1)(2)		1,560,031		1,394,256		978,661
Agricultural production and real estate		96,490		91,599		95,651
Consumer and margin loans		11,545		11,920		13,498
		9,977,545		9,917,004		7,470,872
Less: Allowance for credit losses on loans		66,864		62,986		44,014
Loans receivable	$	9,910,681	$	9,854,018	$	7,426,858

Loans held for sale		3,477,036		3,058,013		2,910,576
Total loans, net of allowance	$	13,387,717	$	12,912,031	$	10,337,434