Company: MBINL
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001558370-25-007170
Chunk: 8

Company: Merchants Bancorp
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2M
Chunk 8
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis of the financial condition at March 31, 2025 and results of operations for the three months ended March 31, 2025 and 2024, is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto, appearing in Part I, Item 1 of this Form   10-Q.

The words “the Company,” “we,” “our,” and “us” refer to Merchants Bancorp and its consolidated subsidiaries, unless we indicate otherwise.

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Financial Highlights for the Three Months Ended March 31, 2025   

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●Net income of $58.2 million decreased $28.8 million compared to the three months ended March 31, 2024. 

●Diluted earnings per share of $0.93 decreased 48% compared to the three months ended March 31, 2024.

●The $28.8 million decrease in net income compared to the three months ended March 31, 2024, reflecting market uncertainty that delayed origination closings and permanent loan conversions in a growing pipeline, which negatively impacted the recognition of gain on sale and net interest margin more than expected. The decrease in net income was primarily driven by a $17.2 million, or 42%, decrease in noninterest income, a $12.8 million, or 26%, increase in noninterest expense, a $4.9 million, or 4%, decrease in net interest income and a $3.0 million, or 63% increase in provision for credit losses. Of the $28.8 million decrease in net income, $19.3 million, or $0.34 per diluted common share, was attributable to changes in valuation adjustments.

●Tangible book value per common share of $34.90 increased 19% compared to $29.26 for the three months ended March 31, 2024. See Non-GAAP Financial Measures section at the end of Item 2. 

●As of March 31, 2025, the Company had $4.7 billion in unused borrowing capacity with the Federal Home Loan Bank and the Federal Reserve Discount window based on available collateral, compared to $4.3 billion at December 31, 2024.

●Total assets of $18.