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Merchants Bancorp Reports Fourth Quarter 2024 Results

Merchants Bancorp has announced impressive financial results for the fourth quarter of 2024, reflecting a remarkable growth trajectory. The company reported a record net income of $320.4 million for the full year 2024, marking a 15% increase compared to 2023. Additionally, the diluted earnings per share reached $6.30, showcasing a 12% gain over the previous year.

Fourth Quarter Highlights

In the fourth quarter, Merchants Bancorp achieved a net income of $95.7 million, which represents a 23% increase compared to the same quarter in 2023 and a staggering 56% increase over the preceding quarter of 2024. The diluted earnings per share for the fourth quarter stood at $1.85, up by 17% year-over-year and 58% compared to the third quarter of 2024.

This remarkable performance was significantly attributed to a $42.4 million increase in noninterest income, representing a 253% rise, alongside a solid $10.3 million increase in net interest income, accompanied by a 20% increase in noninterest expenses.

Key positive factors impacting the results included favorable fair market value adjustments on servicing rights on loans of $10.4 million and interest-rate floor derivatives amounting to $2.6 million, which positively influenced the company’s results during the fourth quarter, accounting for approximately $0.21 per diluted common share. This was a significant reversal from the negative adjustments seen in the third quarter, which impacted results by $0.24 per share.

Record Asset Growth

As of December 31, 2024, Merchants Bancorp reported total assets of $18.8 billion, surpassing all previous levels and marking an 11% increase compared to the end of 2023. The tangible book value per common share surged to a record $34.15, reflecting a 25% increase from $27.40 in the previous year.

Moreover, the company’s unused borrowing capacity as of year-end 2024 totaled $4.3 billion, highlighting strong liquidity and financial flexibility. The loan receivables reached $10.4 billion, net of allowances for credit losses on loans, indicating a growth of 2% compared to the previous year-end.

Executive Insights

Michael F. Petrie, Chairman and CEO of Merchants, stated, "Our record-breaking performance in 2024 reinforces that our robust business model allows for sustained growth and increased earnings, regardless of market conditions. We are dedicated to capital management and delivering substantial value to our shareholders."

Meanwhile, Michael J. Dunlap, President and Chief Operating Officer, remarked on the company’s strategic initiatives, mentioning their ongoing focus on leveraging financial flexibility for sustainable growth. He emphasized improvements in delinquency rates and minimal charge-off levels despite increasing nonperforming loans.

Dunlap expressed confidence in the company's potential for profitable growth in the upcoming years based on recent credit risk transfer transactions and the success of common and preferred stock offerings that have strengthened their capital foundation.

Conclusion

Merchants Bancorp's phenomenal performance in the fourth quarter of 2024 lays a solid groundwork for continued success in the financial sector. With its record achievements in income, assets, and operational strategies, the company is positioned to effectively navigate future challenges while providing enhanced value to shareholders and stakeholders alike. Investors and market analysts alike are keenly focused on the bank’s constant pursuit of excellence and profitable growth strategies as they continue to monitor its performance in the upcoming quarters.