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Jun 30, 2024
Merchants Bank Q2 2024 Earnings Report
Reported net income increase driven by loan growth.
Key Takeaways
Merchants Bancorp reported a strong second quarter in 2024, marked by a record $18.2 billion in assets and a record-high tangible book value of $31.27 per share. Net income for the quarter was $76.4 million, or $1.49 per diluted share, compared to $65.3 million, or $1.31 per diluted share, for the same period last year.
Net income for Q2 2024 was $76.4 million, an increase of 17% compared to Q2 2023.
Total assets reached a new record of $18.2 billion as of June 30, 2024.
Tangible book value reached a record high of $31.27 per share, a 30% increase year-over-year.
Total deposits increased to $14.9 billion as of June 30, 2024.
Revenue by Segment
Forward Guidance
The company's priorities remain unchanged. Effectively managing capital to execute strategies for future growth by issuing common stock, entering into credit risk transfer transactions, and participating in securitizations.
Positive Outlook
- Originate-to-sell business model minimizes interest rate risk.
- Focus on effectively managing capital.
- Issuance of common stock to support growth.
- Entering into credit risk transfer transactions.
- Participation in securitizations.
Challenges Ahead
- Elevated interest rates may continue to impact variable rate loans.
- Increases in deposit insurance expenses.
- Ongoing premium expense for the credit default swap.
- Potential for loan charge-offs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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