NASDAQ$MBIN

Merchants Bancorp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Merchants Bancorp reported record results, driven by growth in net interest income and gain on sale of loans.

Merchants Bancorp reported a record second quarter with net income of $41.2 million, or $1.31 per common share, driven by significant growth in mortgage warehouse loans and single-family mortgages.

  • Net income increased by 150% compared to Q2 2019, driven by an 83% increase in net interest income and an 88% increase in gain on sale of loans.
  • Total assets reached $9.4 billion, a 48% increase compared to December 31, 2019.
  • Total loans and loans held for sale increased by 57% since the end of December 2019.
  • Return on average assets was 1.89% for the second quarter of 2020, compared to 1.41% for the second quarter of 2019.

Headline financials

Total Revenue

$77.4M

Previous: $37.8M+104.9%
EPS (adj)

$0.87

Previous: $0.34+155.9%
Return on average assets

1.9%

Previous: 1.4%+34.0%
Efficiency ratio

26.2%

No prior period
Capital Expenditures

-$1.04M

Previous: -$9.65M+89.3%
Free Cash Flow

$40.1M

Previous: $6.79M+490.9%
Net Income

$41.2M

Previous: $16.4M+150.4%
Operating Income

$44.4M

Previous: $9.42M+371.3%
Gross Profit

$66.2M

Previous: $31.1M+112.9%
Cash & Equivalents

$403M

Previous: $461M-12.5%
Total Assets

$9.44B

Previous: $5.29B+78.5%

Revenue & EPS history

Merchants Bank · Revenue · Quarterly

$77.4M

Q2 2020+104.9%vs Q2 2019
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

The company continues to monitor the situation and may need to adjust future expectations as developments occur throughout the remainder of 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.6%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.5%

Avg return

30 days after

56%

23 / 41 earnings

Positive

+15.8%

Q4 2025

Best reaction

-16.1%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-7.5%-5.0%
Q4 2025+15.8%+20.3%+21.0%
Q3 2025+1.4%+0.9%+9.2%
Q1 2025-8.6%-6.8%-2.5%
Q4 2024+6.5%+2.7%+2.4%
Q3 2024-16.1%-15.5%-3.8%
Q2 2024-15.8%-22.4%-13.9%
Q1 2024+3.3%+17.5%+1.4%
Q4 2023+5.4%-5.4%-4.6%
Q3 2023+11.0%+13.2%+27.6%
Q2 2023+2.4%+5.5%-3.4%
Q1 2023-1.9%-2.8%-1.0%
Q4 2022+11.0%+18.8%+17.6%
Q3 2022-0.1%-0.5%+4.7%
Q2 2022+4.6%+8.1%+9.1%
Q1 2022-4.2%-3.1%+1.5%
Q4 2021+4.9%+7.7%-0.9%
Q3 2021+4.3%+9.1%+8.5%
Q2 2021-2.5%-9.7%-7.3%
Q1 2021+5.3%+7.9%+7.7%
Q4 2020-0.7%+7.8%+13.3%
Q3 2020+0.2%+3.2%+26.6%
Q2 2020+10.0%+6.9%+17.7%
Q1 2020+6.1%+14.9%+26.0%
Q4 2019+9.8%+11.5%+0.5%
Q3 2019-0.7%+8.1%+9.2%
Q2 2019+6.4%+6.5%-4.9%
Q1 2019-9.7%-7.6%-27.5%
Q4 2018-7.6%-6.3%-3.1%
Q3 2018+3.8%+0.2%+6.4%
Q2 2018-8.6%-2.9%-3.9%
Q1 2017+5.6%+7.9%+20.4%
Q1 2018+6.5%+9.8%+24.5%
Q4 2015-5.2%-4.1%-8.0%
Q4 2016-5.2%-4.1%-8.0%
Q1 2016-5.2%-4.1%-8.0%
Q2 2016-5.2%-4.1%-8.0%
Q2 2017-5.2%-4.1%-8.0%
Q4 2017-1.6%-1.4%+10.5%
Q3 2017+2.2%+6.8%+0.3%
Q3 2016+2.2%+6.8%+0.3%

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