NASDAQ$MBIN

Merchants Bancorp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported record-setting level of net income, driven by growth in mortgage warehouse loans and increased gain on sale of loans.

Merchants Bancorp reported a significant increase in net income for Q3 2020, driven by growth in mortgage warehouse loans and increased gain on sale of loans. The company's net income reached $55.0 million, or $1.79 per common share, compared to $20.3 million, or $0.60 per common share, in Q3 2019.

  • Net income increased by 171% compared to Q3 2019, driven by a 100% increase in net interest income and a 255% increase in gain on sale of loans.
  • Earnings per share grew by 198% and asset growth of 50% compared to the prior year’s quarter.
  • Return on average assets was 2.34%, return on average tangible shareholders’ equity was 41.0%, and the efficiency ratio was 25.4%.
  • Total assets reached $9.5 billion, a 50% increase compared to December 31, 2019.

Headline financials

Total Revenue

$104M

Previous: $43.5M+139.2%
EPS (adj)

$1.19

Previous: $0.40+197.5%
Return on average assets

2.3%

Previous: 1.4%+73.3%
Efficiency ratio

25.4%

Previous: 35.7%-28.9%
Capital Expenditures

-$1.43M

Previous: -$12.3M+88.3%
Free Cash Flow

$53.6M

Previous: $7.99M+570.8%
Net Income

$55M

Previous: $20.3M+171.5%
Operating Income

$71.1M

Previous: $1.23M+5677.4%
Gross Profit

$88M

Previous: $31.8M+176.7%
Cash & Equivalents

$429M

Previous: $365M+17.6%
Total Assets

$9.53B

Previous: $6.34B+50.4%

Revenue & EPS history

Merchants Bank · Revenue · Quarterly

$104M

Q3 2020+139.2%vs Q3 2019
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

This press release contains forward-looking statements which reflect management’s current views with respect to, among other things, future events and financial performance.

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 Q3 2020

Historical avgQ3 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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