NASDAQ$MBIN
Merchants Bancorp · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Merchants Bancorp's financial performance demonstrated strength, marked by profitable loan growth and diversified noninterest income.
Merchants Bancorp reported a strong second quarter in 2023, with a net income of $65.3 million and diluted earnings per share of $1.31. The company saw significant growth in total assets and deposits, driven by increases in mortgage warehouse, multi-family, and healthcare loan portfolios. The company effectively managed expenses and capital, maintaining a solid expense ratio and return on average assets.
- Net income for the second quarter of 2023 increased by $11.4 million, or 21%, compared to the second quarter of 2022.
- Total assets reached $15.9 billion as of June 30, 2023, an 11% increase compared to March 31, 2023.
- Unused borrowing capacity increased to $5.3 billion during the quarter, enhancing the ability to execute plans for future growth.
- Total deposits increased to $13.1 billion, a 15% increase compared to March 31, 2023.
Headline financials
Revenue & EPS history
Merchants Bank · Revenue · Quarterly
$135M
Forward guidance
The advisory letter provided guidance related to the methodology used to determine and source the receipts in the state of Indiana for the Company’s mortgage origination and warehousing service lines. In effect, the guidance provided the Company the ability to revise its state income tax apportionment calculation to reduce its Indiana tax and related deferred tax liabilities. Additionally, the change in methodology is expected to result in a 1.0% to 1.5% reduction in the Company’s overall effective tax rate in the future.
Tailwinds
- Ability to revise state income tax apportionment calculation
- Expected reduction in Indiana tax liabilities
- Expected refunds from amended state returns
- Projected 1.0% to 1.5% reduction in overall effective tax rate
- Improved tax efficiency due to new state tax apportionment provisions
Headwinds
- Uncertainty in predicting the exact financial impact of the tax changes
- Potential for adjustments based on future interpretations of the tax code
- Dependence on the State of Indiana's continued adherence to the advisory letter
- Complexity in implementing the revised tax apportionment methodology
- Possible need for ongoing monitoring to ensure compliance with changing regulations
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 2023
+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
| Quarter | Report date | Reaction (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% |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro