NASDAQ$MBIN

Merchants Bancorp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported net income increase driven by loan growth.

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.

Headline financials

Total Revenue

$159M

Previous: $135M+17.7%
EPS (adj)

$1.49

Previous: $1.31+13.7%
Capital Expenditures

-$7.59M

Previous: -$2.94M-157.9%
Free Cash Flow

$68.8M

Previous: $62.4M+10.3%
Net Income

$76.4M

Previous: $65.3M+17.0%
Operating Income

-$59.3M

Previous: -$48.2M-23.0%
Gross Profit

$150M

Previous: $113M+32.4%

Revenue & EPS history

Merchants Bank · Revenue · Quarterly

$159M

Q2 2024+17.7%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Changes in qualitative loss factors to reflect changes in industry conditions.

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 2024

Historical avgQ2 2024

+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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