NASDAQ$MBIN

Merchants Bancorp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported record full year and fourth quarter results.

Merchants Bancorp reported a significant increase in net income for Q4 2019, driven by growth in net interest income and gain on sale of loans. Total assets and deposits also saw substantial increases compared to the previous year.

  • Net income increased by 95% compared to Q4 2018, reaching $30.1 million, or $0.92 per common share.
  • Net interest income increased by 56% due to growth in mortgage warehouse loans.
  • Gain on sale of loans increased by 31% due to higher growth in multi-family loans.
  • Total assets grew by 64% compared to December 31, 2018, reaching $6.4 billion.

Headline financials

Total Revenue

$60.3M

Previous: $38.9M+55.0%
EPS (adj)

$0.61

Previous: $0.34+79.4%
Return on average assets

1.8%

Previous: 1.6%+12.4%
Efficiency ratio

31.2%

Previous: 41.6%-25.0%
Non-performing loans to total loans

0.1%

Previous: 0.1%+25.0%
Interest rate spread

2.1%

Previous: 2.3%-9.2%
Net interest margin

2.3%

Previous: 2.6%-11.2%
Capital Expenditures

$1.71M

Previous: $3.76M-54.5%
Free Cash Flow

$406M

Previous: $95.1M+327.4%
Net Income

$30.1M

Previous: $14.6M+106.3%
Operating Income

$33.9M

No prior period
Cash & Equivalents

$318M

Previous: $337M-5.6%
Total Assets

$6.4B

Previous: $3.88B+64.8%

Revenue & EPS history

Merchants Bank · Revenue · Quarterly

$60.3M

Q4 2019+55%vs Q4 2018
Beat estimate in 8 of 12 quarters(67%)
ActualEstimate

Revenue by segment

Merchants Bank · $65M total across 3 segments · Q4 2019

  • Mortgage Warehousing
    $45.8M
  • Banking
    $13.5M
  • Multi-family Mortgage Banking
    $5.7M

Forward guidance

The Company did not provide specific forward guidance but expressed optimism about meeting customer and community needs, achieving growth and profit goals, and providing enhanced shareholder value in 2020.

Tailwinds

  • Business model allows profitable operation across various interest rate environments.
  • Top-notch team in place.
  • Model will continue to meet customer and community needs.
  • Commitment to achieve growth and profit goals.
  • Aims to provide enhanced shareholder value.

Headwinds

  • No specific negative factors were mentioned in the provided text.
  • Forward-looking statements are subject to risks, assumptions, estimates and uncertainties.
  • Actual results may differ materially from expectations.
  • Factors identified in "Risk Factors" in the Annual Report on Form 10-K could cause actual results to differ.
  • No obligation to update or revise any forward-looking statements.

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 Q4 2019

Historical avgQ4 2019

+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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