Merchants Bancorp

For the period ended Dec 31, 2024. Filed Feb 28, 2025.

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FY2024 · Filed Feb 28, 2025

MBIN$53.41+3.2%Stored close · as of Nov 9, 2026

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Contents

Item 6. Selected Financial Data


· · At or for the Year Ended December 31,
· 2024 · 2023 · 2022 · 2021 · 2020
· · (Dollars in thousands, except per share data) ·
Balance Sheet Data:
Total Assets	$18,805,732	$16,952,516	$12,615,227	$11,278,638		$9,645,375
Loans held for investment	10,438,388	10,199,553	7,470,872	5,782,663		5,535,426
Allowance for credit losses (1)	(84,386)	(71,752)	(44,014)	(31,344)		(27,500)
Loans held for sale	3,771,510	3,144,756	2,910,576	3,303,199		3,070,154
Deposits	11,919,976	14,061,460	10,071,345	8,982,613		7,408,066
Total liabilities	16,562,422	15,251,432	11,155,488	10,123,229		8,834,754
Total shareholders' equity	2,243,310	1,701,084	1,459,739	1,155,409		810,621
Tangible common shareholders' equity (non-GAAP)	1,563,102	1,184,889	943,100	775,708		579,847
Statement of Income Data:
Interest Income	$1,302,720	$1,077,798	$480,833	$311,886		$282,790
Interest Expense	780,100	629,727	162,282	33,892		58,644
Net interest income	522,620	448,071	318,551	277,994		224,146
Provision for credit losses	24,278	40,231	17,295	5,012		11,838
Noninterest income	148,112	114,668	125,936	157,333		127,473
Noninterest expense	223,812	174,601	136,050	125,385		96,424
Income before taxes	422,642	347,907	291,142	304,930		243,357
Provision for income taxes	102,256	68,673	71,421	77,826		62,824
Net income	320,386	279,234	219,721	227,104		180,533
Preferred stock dividends	34,909	34,670	25,983	20,873		14,473
Impact of preferred stock redemption	1,823	—	—	—		—
Net income available to common shareholders	$283,654	$244,564	$193,738	$206,231		$166,060
Credit Quality Data:
Nonperforming loans	$279,722	$82,015	$26,683	$761		$6,321
Nonperforming loans to total loans receivable	2.68%	0.80%	0.36%	0.01%		0.11%
Nonperforming assets	$287,931	$82,015	$26,683	$761		$6,321
Nonperforming assets to total assets	1.53%	0.48%	0.21%	0.01%		0.07%
Allowance for credit losses to total loans	0.81%	0.70%	0.59%	0.54%		0.50%
Allowance for credit losses to nonperforming loans	30.17%	87.49%	164.95%	4,118.79%		435.06%
Net charge-offs to average loans and loans held for sale	0.07%	0.08%	0.01%	0.01%		0.00%
Per Share Data (Common Stock):
Diluted earnings per share	$6.30	$5.64	$4.47	$4.76		$3.85
Dividends declared	$0.36	$0.32	$0.28	$0.24		$0.21
Tangible book value (non-GAAP)	$34.15	$27.40	$21.88	$17.96		$13.45
Weighted average shares outstanding
Basic	44,855,100	43,224,042	43,164,477	43,172,078		43,113,741
Diluted	45,004,786	43,345,799	43,316,904	43,325,303		43,167,113
Shares outstanding at period end	45,767,166	43,242,928	43,113,127	43,180,079		43,120,625
Performance Metrics:
Return on average assets	1.79%	1.85%	1.99%	2.23%		2.12%
Return on average equity	16.86%	17.63%	17.21%	22.07%		25.09%
Return on average tangible common equity (non-GAAP)	20.16%	22.92%	22.50%	30.10%		34.02%
Net interest margin	3.03%	3.06%	2.97%	2.79%		2.69%
Efficiency ratio (non-GAAP)	33.37%	31.03%	30.61%	28.80%		27.42%
Loans and loans held for sale to deposits	119.21%	94.90%	103.08%	101.15%		116.17%
Capital Ratios—Merchants Bancorp:
Tangible common equity to tangible assets (non-GAAP)	8.3%	7.0%	7.5%	6.9%		6.0%
Tier 1 common equity to risk-weighted assets	9.3%	7.8%	7.7%	n/a	%	n/a	%
Tier 1 leverage ratio/CBLR	12.1%	10.1%	11.7%	10.4%		8.6%
Tier 1 capital to risk-weighted assets	13.3%	11.1%	11.7%	n/a	%	n/a	%
Total capital to risk-weighted assets	13.9%	11.6%	12.2%	n/a	%	n/a	%
Capital Ratios—Merchants Bank Only:
Tier 1 common equity to risk-weighted assets	12.3%	10.9%	11.3%	n/a	%	n/a	%
Tier 1 capital to average assets	11.2%	10.1%	11.3%	10.3%		8.7%
Tier 1 capital to risk-weighted assets	12.3%	10.9%	11.3%	n/a	%	n/a	%
Total capital to risk-weighted assets	12.9%	11.5%	11.7%	n/a	%	n/a	%

(1)

The Company adopted FASB ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) on January 1, 2022. ASU 2016-13 replaces the allowance for loan losses that used incurred loss impairment methodology in 2021-2020 with an allowance based on expected losses.

NON-GAAP FINANCIAL MEASURES

Some of the financial measures included in this report are not measures of financial performance recognized by GAAP. Our management uses these non-GAAP financial measures in its analysis of our performance. These non-GAAP financial measures include presentation of tangible common shareholders’ equity, tangible book value per share, tangible common shareholders’ equity to tangible assets, return on average tangible common equity, and efficiency ratio.

The reconciliation from shareholders’ equity per GAAP to tangible common shareholders’ equity is comprised of goodwill and intangibles.

The reconciliation from consolidated assets per GAAP to tangible assets is comprised solely of consolidated assets less goodwill and intangibles.

The efficiency ratio represents noninterest expense divided by the sum of interest income, less provision for credit losses, and noninterest income.

Tangible book value per common share represents tangible common shareholders’ equity divided by ending common shares.

Return on average tangible common equity represents net income available to common shareholders divided by average shareholders’ equity, less average goodwill, average intangibles, and average preferred stock.

We believe that these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that the non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and these disclosures are not necessarily comparable to non-GAAP financial measures that other companies use.

A reconciliation of GAAP to non-GAAP financial measures is as follows:


· · At December 31,
· 2024 · 2023 · 2022 · 2021 · 2020
· · (Dollars in thousands)
Tangible common shareholders’ equity: · · · · · ·
Shareholders’ equity per GAAP	$2,243,310	$1,701,084	$1,459,739	$1,155,409	$810,621
Less: goodwill & intangibles	(8,073)	(16,587)	(17,031)	(17,552)	(18,128)
Tangible shareholders’ equity	2,235,237	1,684,497	1,442,708	1,137,857	792,493
Less: preferred stock	(672,135)	(499,608)	(499,608)	(362,149)	(212,646)
Tangible common shareholders’ equity	$1,563,102	$1,184,889	$943,100	$775,708	$579,847

Average tangible common shareholders’ equity:
Average shareholders’ equity per GAAP	$1,900,130	$1,583,485	$1,276,443	$1,028,834	$719,630
Less: average goodwill & intangibles	(8,697)	(16,801)	(17,293)	(17,841)	(18,899)
Less: average preferred stock	(484,391)	(499,608)	(398,182)	(325,904)	(212,646)
Average tangible common shareholders’ equity	$1,407,042	$1,067,076	$860,968	$685,089	$488,085

Tangible assets:
Assets per GAAP	$18,805,732	$16,952,516	$12,615,227	$11,278,638	$9,645,375
Less: goodwill & intangibles	(8,073)	(16,587)	(17,031)	(17,552)	(18,128)
Tangible assets	$18,797,659	$16,935,929	$12,598,196	$11,261,086	$9,627,247

Ending Common Shares	45,767,166	43,242,928	43,113,127	43,180,079	43,120,625

Tangible book value per common share	$34.15	$27.40	$21.88	$17.96	$13.45

Return on average tangible common equity	20.16%	22.92%	22.50%	30.10%	34.02%

Tangible common equity to tangible assets	8.3%	7.0%	7.5%	6.9%	6.0%


· · For the Year Ended ·
· · December 31, ·
· 2024 · 2023 · 2022 · 2021 · 2020 ·
Net income as reported per GAAP	$320,386	$279,234	$219,721	$227,104	$180,533
Less: preferred stock dividends	(34,909)	(34,670)	(25,983)	(20,873)	(14,473)
Less: impact of preferred stock redemption	(1,823)	—	—	—	—
Net income available to common shareholders	$283,654	$244,564	$193,738	$206,231	$166,060

Efficiency ratio (based on all GAAP metrics):
Noninterest expense	$223,812	$174,601	$136,050	$125,385	$96,424
Net interest income (before provision for credit losses)	522,620	448,071	318,551	277,994	224,146
Noninterest income	148,112	114,668	125,936	157,333	127,473
Total revenues for efficiency ratio	$670,732	$562,739	$444,487	$435,327	$351,619
Efficiency ratio	33.37%	31.03%	30.61%	28.80%	27.42%

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