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Merchants Bancorp (MBIN-1.10%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net income to $61.3 million from $81.5 million in the same quarter the previous year. The decrease is attributed to an increase in specific reserves on loans and unfavorable fair market value adjustments to derivatives and servicing rights.
Net interest income for the quarter was $132.8 million, up from $117.4 million in the previous year, reflecting an increase in average balances on loans and loans held for sale.
The company reported a provision for credit losses of $6.9 million for the quarter, up from $4.0 million in the previous year, primarily related to increased specific reserves.
Noninterest income decreased to $16.7 million from $36.1 million, largely due to a decrease in loan servicing fees and other income.
Noninterest expense increased to $61.3 million from $42.9 million, driven by higher salaries, employee benefits, and deposit insurance expenses.
The efficiency ratio was 41.00% compared to 27.97% in the same quarter of the previous year.
Merchants Bancorp's total assets were $18.7 billion as of September 30, 2024, up from $17.0 billion at December 31, 2023.
Loans receivable, net of allowance for credit losses, were $10.3 billion, reflecting a slight increase from $10.1 billion at the end of 2023.
Deposits decreased to $12.9 billion from $14.1 billion, with a noted shift away from brokered deposits.
The company maintains significant liquidity, with $5.1 billion in unused borrowing capacity and $601.9 million in cash and cash equivalents.
Merchants Bancorp's capital ratios remain strong, with a total capital ratio of 12.2% and a Tier 1 capital ratio of 11.6% as of September 30, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Merchants Bancorp quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.