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Section 1: 8-K (8-K)

 

 

UNITED STATES

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): February 8, 2018

 

 

Merchants Bancorp

(Exact Name of Registrant as Specified in its Charter)

 

 

Indiana

 

001-38258

 

20-5747400

 

 

 

 

 

(State or Other Jurisdiction
of Incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

11555 North Meridian Street, Suite 400

Carmel, Indiana 46032

(Address of Principal Executive Offices) (Zip Code)

(317) 569-7420

(Registrant’s Telephone Number, Including Area Code)

 

Not Applicable
(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o                 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o                 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o                 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o                 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company                    x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.           o

 



 

Item 2.02. Results of Operations and Financial Condition.

 

On February 8, 2018, Merchants Bancorp issued a press release reporting its financial results for the fourth quarter of 2017. The press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit
No.

 

Description

 

 

 

99.1

 

Press Release dated February 8, 2018 issued by Merchants Bancorp

 



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

MERCHANTS BANCORP

 

 

 

 

 

 

Date: February 8, 2018

By:

/s/ John F. Macke

 

 

Name: John F. Macke

 

 

Title: Chief Financial Officer

 


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

 

PRESS RELEASE

 

Merchants Bancorp Reports Fourth Quarter and Full Year 2017 Results

 

For Release February 8, 2018

 

·                 Full year 2017 record net income of $54.7 million, and $20.3 million for the fourth quarter

 

·                 Full year 2017 earnings per common share reached $2.28, and $0.73 for the fourth quarter

 

·                 Total assets at December 31, 2017 grew by $676.7 million, or 25% compared to 2016

 

·                 Return on average assets of 1.84% for twelve months ended December 31, 2017

 

·                 Record multi-family mortgage closings of $1.7 billion for full year 2017

 

·                 Successfully completed initial public offering, raising $115 million in new capital

 

CARMEL, Indiana – (PR Newswire) - Merchants Bancorp (the “Company” or “Merchants”) (Nasdaq: MBIN), parent company of Merchants Bank of Indiana, today reported fourth quarter 2017 net income of $20.3 million, or $0.73 per common share.  This compared with $8.8 million, or $0.38 per common share, in the fourth quarter of 2016.  Fourth quarter 2017 results included a one-time $6.9 million tax benefit associated with changes to the Company’s deferred tax liability, under the recent federal income tax reform legislation.

 

The Company also reported net income of $54.7 million for the twelve months ended December 31, 2017.  This represented a $21.6 million, or 65% increase, compared with $33.1 million in the comparable period of 2016.  Earnings per common share of $2.28 for the twelve months ended December 31, 2017 increased by 55%, compared with $1.47 in the comparable period of 2016.

 

Each of the Company’s business segments’ net income increased in 2017, compared with 2016.  Multi-family Mortgage Banking income increased by 205%, Mortgage Warehousing increased by 8%, and Banking increased by 20%.

 



 

“2017 was another record year for Merchants Bancorp.  We achieved record assets, loans, deposits, and net income, while maintaining well capitalized capital ratios that were increased by the proceeds of our initial public offering,” said Michael Petrie, Chairman and CEO of Merchants.  “We look forward to building on our success during 2018, which will be enhanced with the continued integration of RICHMAC Funding, and a more favorable tax environment. The additional equity from the IPO and the benefit of a lower tax rate will provide us with the capital needed to support additional growth in all of our segments.”

 

Total Assets

Total assets increased $676.7 million, or 25%, to $3.4 billion at December 31, 2017, compared with $2.7 billion at December 31, 2016. The increase was due primarily to increases in loans, loans held for sale, and available for sale securities.  Return on average assets was 1.84% for the full year 2017, compared with 1.24% in 2016.

 

Total loans receivable before allowance for loan losses increased $432.9 million, or 46%, to $1.4 billion at December 31, 2017, compared with $941.8 million at December 31, 2016. This increase was primarily due to growth in multi-family and healthcare financing, as well as commercial and commercial real estate loans.

 

Asset Quality

The allowance for loan losses increased by $2.1 million, to $8.3 million, reflecting higher loans for investment, compared with December 31, 2016, while non-performing loans 90 days or more past due were $3.1 million, or 0.23% of total loans.

 

Total Deposits

Total deposits increased $514.9 million, or 21%, to $2.9 billion at December 31, 2017, compared with $2.4 billion at December 31, 2016. The increase was due primarily to growth in certificates of deposit and demand deposits during the year.

 

Interest Income

Interest income increased $6.2 million, or 30%, to $26.9 million for the three months ended December 31, 2017, compared with $20.7 million for the three months ended December 31, 2016. This increase was due to both growth in loans and an increase in loan yields.  The average balance of loans, including loans held for sale, during the three months ended December 31, 2017, increased by $217.3 million, or 11%, to $2.1 billion, compared with $1.9 billion for the three months ended December 31, 2016.  The average yield on loans also increased 63 basis points, to 4.34%, for the

 



 

three months ended December 31, 2017, compared with 3.71% for the three months ended December 31, 2016.  Net interest margin increased to 2.43% for the three months ended December 31, 2017, compared with 2.11% for the three months ended December 31, 2016.

 

Interest Expense

Total interest expense increased $2.4 million, or 44%, to $8.0 million for the three months ended December 31, 2017, compared with the three months ended December 31, 2016. Interest expense on deposits increased $2.1 million, or 58%, to $5.8 million for the three months ended December 31, 2017, compared with the three months ended December 31, 2016. The increase was primarily due to a 30 basis point increase in the average cost of interest-bearing deposits, to 1.13%, for the three months ended December 31, 2017, compared with 0.83% for the same period in 2016, and an increase in the average balance of interest-bearing deposits of $276.9 million, or 16%, to $2.0 billion for the three months ended December 31, 2017. The increase in deposits was primarily due to growth in savings account deposits, as well as custodial accounts of existing warehouse customers. The increase in the cost of deposits was due to the overall increase in interest rates since last year.

 

Noninterest Income

Noninterest income increased by $8.0 million, or 115%, to $14.9 million for the three months ended December 31, 2017, compared with the three months ended December 31, 2016. The increase was primarily due to an increase of $5.9 million in loan servicing fees and an increase of $2.3 million in gain on sale of loans. The increase in loan servicing fees was positively impacted by a $3.7 million fair market value adjustment in mortgage servicing rights. The 30% increase in gain on sale of loans was due primarily to an increase in the volume of multi-family loan sales in the secondary market.

 

Noninterest Expense

Noninterest expense increased $3.4 million, or 46%, to $10.8 million for the three months ended December 31, 2017, compared with $7.4 million for the three months ended December 31, 2016.  The increase was due primarily to a $2.8 million, or 66%, increase in salaries and employee benefits.  The increase in salaries and employee benefits was due primarily to an increase in the number of employees that reflected organic growth, the RICHMAC acquisition, and additional hiring associated with becoming a publicly traded companyDespite the increase in salaries and benefits, the efficiency ratio declined by 150 basis points, to 31.9% in the fourth quarter of 2017, compared with the fourth quarter of 2016.

 



 

About Merchants Bancorp

Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple lines of business with a focus on Federal Housing Administration (“FHA”) multi-family housing and healthcare facility financing and servicing, mortgage warehouse financing, retail and correspondent residential mortgage banking, agricultural lending and traditional community banking.  Merchants Bancorp, with $3.4 billion in assets and $2.9 billion in deposits as of December 31, 2017, conducts its business through its direct and indirect subsidiaries, Merchants Bank of Indiana, P/R Mortgage and Investment Corp., RICHMAC Funding LLC and Merchants Mortgage, a division of Merchants Bank of Indiana. For more information and financial data, please visit Merchants’ Investor Relations page at investors.merchantsbankofindiana.com.

 

Forward-Looking Statements

This press release contains forward-looking statements which reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook,” “aim,” “would,” “annualized” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements, including those factors identified in “Risk Factors” or “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our prospectus dated October 26, 2017 that was filed with the Securities and Exchange Commissions (the “SEC”) on October 30, 2017 in connection with our initial public offering and in our subsequent filings with the SEC.  Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

 



 

Media Contact: Rebecca Marsh

Merchants Bancorp

Phone: (317) 805-4356

Email: rmarsh@merchantsbankofindiana.com

 

Investor Contact: John Macke

Merchants Bancorp

Phone: (317) 536-7421

Email: jmacke@merchantsbankofindiana.com

 



 

Consolidated Balance Sheets

 

(Unaudited)

 

(In thousands, except share data)

 

 

 

December 31,

 

December 31,

 

 

 

2017

 

2016

 

Assets

 

 

 

 

 

Cash and due from banks

 

$

18,905

 

$

10,036

 

Interest-earning demand accounts

 

340,614

 

435,665

 

Cash and cash equivalents

 

359,519

 

445,701

 

 

 

 

 

 

 

Securities purchased under agreements to resell

 

7,043

 

5,392

 

Trading securities

 

140,837

 

137,675

 

Available for sale securities

 

408,371

 

325,874

 

Federal Home Loan Bank (FHLB) stock

 

7,539

 

7,539

 

Loans held for sale

 

995,319

 

764,503

 

Loans receivable, net of allowance for loan losses of $8,311 and $6,250, respectively

 

1,366,349

 

935,546

 

Premises and equipment, net

 

5,354

 

4,851

 

Mortgage servicing rights

 

66,079

 

53,670

 

Interest receivable

 

8,326

 

5,368

 

Goodwill

 

6,030

 

523

 

Intangible Assets

 

1,512

 

-

 

Other assets and receivables

 

22,983

 

31,870

 

 

 

 

 

 

 

Total assets

 

$

3,395,261

 

$

2,718,512

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Deposits

 

 

 

 

 

Noninterest bearing

 

$

620,700

 

$

566,631

 

Interest bearing

 

2,322,861

 

1,861,990

 

Total deposits

 

2,943,561

 

2,428,621

 

Borrowings

 

56,612

 

57,006

 

Interest payable

 

2,153

 

1,791

 

Deferred and current tax liabilities, net

 

14,550

 

17,363

 

Other liabilities

 

10,911

 

7,443

 

Total liabilities

 

3,027,787

 

2,512,224

 

 

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

Common stock, without par value

 

 

 

 

 

Authorized - 50,000,000 shares

 

 

 

 

 

Issued and outstanding - 28,685,167 shares at December 31, 2017 and 21,111,200 shares at December 31, 2016

 

134,891

 

20,061

 

Preferred stock - $1,000 per share, without par value

 

 

 

 

 

Authorized - 5,000,000 shares

 

 

 

 

 

Issued and outstanding - 41,625 shares

 

41,581

 

41,581

 

Retained earnings

 

192,008

 

145,274

 

Accumulated other comprehensive loss

 

(1,006)

 

(628)

 

Total shareholders’ equity

 

367,474

 

206,288

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

3,395,261

 

$

2,718,512

 

 


 

Consolidated Statement of Income

(Unaudited)

(In thousands, except share data)

 

 

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

 

 

2017

 

2016

 

2017

 

2016

 

Interest Income

 

 

 

 

 

 

 

 

 

Loans

 

$

23,101

 

$

17,693

 

$

79,922

 

$

62,563

 

Investment securities:

 

 

 

 

 

 

 

 

 

Trading

 

1,063

 

1,501

 

5,187

 

4,516

 

Available for sale

 

1,356

 

856

 

4,531

 

3,249

 

Federal Home Loan Bank stock

 

81

 

80

 

321

 

320

 

Other

 

1,309

 

561

 

4,426

 

2,291

 

Total interest income

 

26,910

 

20,691

 

94,387

 

72,939

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

 

 

Deposits

 

5,833

 

3,687

 

20,003

 

11,663

 

Borrowed funds

 

2,125

 

1,822

 

7,787

 

7,305

 

Total interest expense

 

7,958

 

5,509

 

27,790

 

18,968

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

18,952

 

15,182

 

66,597

 

53,971

 

Provision for loan losses

 

1,400

 

240

 

2,472

 

960

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income After Provision for Loan Losses

 

17,552

 

14,942

 

64,125

 

53,011

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income

 

 

 

 

 

 

 

 

 

Gain on sale of loans

 

9,977

 

7,646

 

37,790

 

24,755

 

Loan servicing fees (costs), net

 

3,972

 

(1,927)

 

6,273

 

280

 

Mortgage warehouse fees

 

601

 

947

 

2,608

 

3,015

 

Gains on sale of investments available for sale (includes $0, $0, $0 and $24, respectively, related to accumulated other comprehensive earnings reclassifications)

 

-

 

-

 

-

 

24

 

Other income

 

357

 

258

 

1,009

 

430

 

Total noninterest income

 

14,907

 

6,924

 

47,680

 

28,504

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

7,055

 

4,244

 

21,472

 

14,313

 

Loan expenses

 

1,025

 

1,174

 

4,097

 

4,251

 

Occupancy and equipment

 

522

 

341

 

1,602

 

1,344

 

Professional fees

 

425

 

355

 

1,516

 

1,298

 

Deposit insurance expense

 

226

 

235

 

930

 

1,149

 

Technology expense

 

340

 

288

 

1,171

 

985

 

Other expense

 

1,207

 

747

 

3,856

 

3,380

 

Total noninterest expense

 

10,800

 

7,384

 

34,644

 

26,720

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

21,659

 

14,482

 

77,161

 

54,795

 

 

 

 

 

 

 

 

 

 

 

Provision for Income Taxes (includes $0, $10, $0 and $10, respectively, related to income tax expense for reclassification items)

 

1,330

 

5,728

 

22,477

 

21,668

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

20,329

 

$

8,754

 

$

54,684

 

$

33,127

 

 

 

 

 

 

 

 

 

 

 

Dividends on preferred stock

 

$

(833)

 

$

(833)

 

$

(3,330)

 

$

(2,002)

 

 

 

 

 

 

 

 

 

 

 

Net income allocated to common shareholders

 

$

19,496

 

$

7,921

 

$

51,354

 

$

31,125

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.73

 

$

0.38

 

$

2.28

 

$

1.47

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

0.73

 

$

0.38

 

$

2.28

 

$

1.47

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

Basic

 

26,619,950

 

21,111,235

 

22,551,452

 

21,111,208

 

 

 

 

 

 

 

 

 

-

 

Diluted

 

26,637,452

 

21,111,818

 

22,569,472

 

21,113,435

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

$

0.05

 

$

0.05

 

$

0.20

 

$

0.20

 

 



 

Key Operating Results

(Unaudited)

($ in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

Dec. 31,

 

Sept, 30

 

Dec. 31,

 

Dec. 31,

 

Dec. 31,

 

 

2017

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense

 

10,800

 

8,942

 

7,384

 

34,644

 

26,720

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income (before provision for losses)

 

18,952

 

18,390

 

15,182

 

66,597

 

53,971

Noninterest Income

 

14,907

 

8,056

 

6,924

 

47,680

 

28,504

Total Interest Income

 

33,859

 

26,446

 

22,106

 

114,277

 

82,475

 

 

 

 

 

 

 

 

 

 

 

Efficiency Ratio

 

31.90%

 

33.81%

 

33.40%

 

30.32%

 

32.40%

 

 

 

 

 

 

 

 

 

 

 

Average Assets

 

3,204,660

 

3,178,887

 

2,965,044

 

2,973,607

 

2,679,671

Net Income

 

20,329

 

10,467

 

8,754

 

54,684

 

33,127

Return on Average Assets before annualizing

 

0.63%

 

0.33%

 

0.30%

 

1.84%

 

1.24%

Annualization factor

 

4.00

 

4.00

 

4.00

 

1.00

 

1.00

Return on Average Assets

 

2.54%

 

1.32%

 

1.18%

 

1.84%

 

1.24%

 

 

 

 

 

 

 

 

 

 

 

Return on Average Tangible Common Equity (1)

 

28.60%

 

19.92%

 

19.29%

 

25.14%

 

20.50%

 

 

 

 

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (1)

 

$

11.10

 

$

9.03

 

$

7.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity/Tangible Assets (1)

 

9.40%

 

6.01%

 

6.04%

 

 

 

 

 

(1) Non-GAAP financial measure - see “Reconciliation of Non-GAAP Measures”

 

(1) Reconciliation of Non-GAAP Financial Measures

 

Certain non-GAAP financial measures provide useful information to management and investors that is supplementary to the company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, they do have a number of limitations.  As such, the reader should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable  to non-GAAP financial measures that other companies use.  A reconciliation of GAAP to non-GAAP financial measures is below.  Net Income Available to Common Shareholders excludes preferred stock.  Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets and preferred stock from the calculation of total assets.  Tangible Assets is calculated by excluding the balance of goodwill and intangible assets.  Tangible book value per share is calculated by dividing tangible common equity by the number of shares outstanding.

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

Dec. 31,

 

Sept, 30

 

Dec. 31,

 

Dec. 31,

 

Dec. 31,

 

 

2017

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

20,329

 

10,467

 

8,754

 

54,684

 

33,127

Less: Preferred Stock Dividends

 

(833)

 

(833)

 

(833)

 

(3,330)

 

(2,002)

Net Income Available to Common Shareholders

 

19,496

 

9,634

 

7,921

 

51,354

 

31,125

 

 

 

 

 

 

 

 

 

 

 

Average Shareholders Equity

 

321,785

 

237,009

 

206,339

 

248,515

 

177,370

Less: Average Goodwill & Intangibles

 

(7,552)

 

(1,981)

 

(523)

 

(2,662)

 

(523)

Less: Average Preferred stock

 

(41,581)

 

(41,581)

 

(41,581)

 

(41,581)

 

(25,038)

Average Tangible Common Shareholder’s Equity

 

272,652

 

193,447

 

164,235

 

204,272

 

151,809

 

 

 

 

 

 

 

 

 

 

 

Annualization Factor

 

4.00

 

4.00

 

4.00

 

1.00

 

1.00

Return on Average Tangible Common Equity

 

28.60%

 

19.92%

 

19.29%

 

25.14%

 

20.50%

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

367,474

 

243,285

 

206,288

 

 

 

 

Less: Goodwill and Intangibles

 

(7,542)

 

(7,604)

 

(523)

 

 

 

 

Less: Preferred Stock

 

(41,581)

 

(41,581)

 

(41,581)

 

 

 

 

Tangible Common Equity

 

318,351

 

194,100

 

164,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

3,395,261

 

3,237,485

 

2,718,512

 

 

 

 

Less: Goodwill and Intangibles

 

(7,542)

 

(7,604)

 

(523)

 

 

 

 

Tangible Assets

 

3,387,719

 

3,229,881

 

2,717,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending common shares

 

28,685,167

 

21,497,667

 

21,111,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Book Value per Common Share

 

$

11.10

 

$

9.03

 

$

7.78

 

 

 

 

Tangible Common Equity/Tangible Assets

 

9.40%

 

6.01%

 

6.04%

 

 

 

 

 


 


 

Merchants Bancorp

Average Balance Analysis

($ in thousands)

(Unaudited)

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

December 31, 2017

 

September 30, 2017

 

December 31, 2016

 

 

Average

 

Yield/

 

Average

 

Yield/

 

Average

 

Yield/

 

 

Balance

Int.

Rate

 

Balance

Int.

Rate

 

Balance

Int.

Rate

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

442,789

$

1,390

1.25%

 

$

412,663

$

1,431

1.38%

 

$

457,985

$

641

0.56%

Securities available for sale

 

414,895

1,356

1.30%

 

406,517

1,259

1.23%

 

322,968

856

1.05%

Trading securities

 

119,429

1,063

3.53%

 

152,799

1,300

3.38%

 

191,491

1,501

3.12%

Loans and loans held for sale

 

2,114,048

23,101

4.34%

 

2,100,028

22,016

4.16%

 

1,896,729

17,693

3.71%

Total Interest Earning Assets

 

3,091,161

26,910

3.45%

 

3,072,007

26,006

3.36%

 

2,869,173

20,691

2.87%

Allowance for loan losses

 

(7,551)

 

 

 

(7,073)

 

 

 

(6,152)

 

 

Noninterest-earning assets

 

121,050

 

 

 

113,953

 

 

 

102,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,204,660

 

 

 

$

3,178,887

 

 

 

$

2,965,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities/Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing checking

 

612,674

2,153

1.39%

 

623,893

1,757

1.12%

 

407,466

1,284

1.25%

Savings deposits

 

357,363

143

0.16%

 

344,922

223

0.26%

 

290,813

104

0.14%

Money market

 

778,837

2,582

1.32%

 

866,010

2,787

1.28%

 

767,333

1,840

0.95%

Certificates of deposit

 

292,142

955

1.30%

 

296,288

892

1.19%

 

298,514

459

0.61%

Total interest bearing deposits

 

2,041,016

5,833

1.13%

 

2,131,113

5,659

1.05%

 

1,764,126

3,687

0.83%

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

76,505

2,125

11.02%

 

64,509

1,957

12.04%

 

59,188

1,822

12.25%

Total Interest Bearing Liabilities

 

2,117,521

7,958

1.49%

 

2,195,622

7,616

1.38%

 

1,823,314

5,509

1.20%

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

 

730,936

 

 

 

715,346

 

 

 

903,425

 

 

Noninterest-bearing liabilities

 

34,418

 

 

 

30,910

 

 

 

31,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

2,882,875

 

 

 

2,941,878

 

 

 

2,758,705

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

321,785

 

 

 

237,009

 

 

 

206,339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

3,204,660

 

 

 

$

3,178,887

 

 

 

$

2,965,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

 

$

18,952

 

 

 

$

18,390

 

 

 

$

15,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Spread

 

 

 

1.96%

 

 

 

1.98%

 

 

 

1.67%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest-earning assets

 

$

973,640

 

 

 

$

876,385

 

 

 

$

1,045,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

 

 

2.43%

 

 

 

2.38%

 

 

 

2.11%

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Interest Earning Assets to Average Interest Bearing Liabilities

 

 

 

145.98%

 

 

 

139.92%

 

 

 

157.36%

 



 

Segment Results

(Unaudited)

($ in thousands)

 

 

 

 

Net Income

 

Total Assets

 

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

December 31,

 

December 31,

 

 

 

2017

 

2016

 

2017

 

2016

 

2017

 

2016

 

Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family Mortgage Banking

 

14,871

 

1,885

 

28,661

 

9,408

 

136,518

 

98,553

 

Mortgage Warehousing

 

4,277

 

4,985

 

18,241

 

16,839

 

1,352,748

 

1,060,723

 

Banking

 

2,617

 

2,458

 

11,410

 

9,492

 

1,889,140

 

1,545,783

 

 Other

 

(1,436)

 

(574)

 

(3,628)

 

(2,612)

 

16,855

 

13,453

 

Total

 

20,329

 

8,754

 

54,684

 

33,127

 

3,395,261

 

2,718,512

 

 


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