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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): July 30, 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 July 30, 2018, Merchants Bancorp issued a press release reporting its financial results for the second quarter of 2018. 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 July 30, 2018 issued by Merchants Bancorp

 

2



 

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: July 30, 2018

By:

/s/ John F. Macke

 

 

 

Name: John F. Macke

 

 

 

Title: Chief Financial Officer

 

3


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Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

 

PRESS RELEASE

 

Merchants Bancorp Reports Second Quarter 2018 Results

 

For Release July 30, 2018

 

·                  Net income of $15.7 million, or $0.52 per common share, increased by 6% compared with June 30, 2017

 

·                  Total assets of $3.8 billion, increased by $393.5 million, or 12% compared to December 31, 2017

 

·                  Return on average assets of 1.70% for three months ended June 30, 2018

 

·                  Announced on June 13, 2018, its plans to acquire Farmers-Merchants Bank of Paxton, Illinois

 

CARMEL, Indiana — (PR Newswire) - Merchants Bancorp (the “Company” or “Merchants”) (Nasdaq: MBIN), parent company of Merchants Bank of Indiana, today reported second quarter 2018 net income of $15.7 million, or $0.52 per common share, based on 28.7 million shares.  This compared with $14.8 million, or $0.66 per common share, based on 21.1 million shares in the second quarter of 2017.  The decrease in earnings per common share reflected the additional common shares associated with the Company’s initial public offering in October of 2017.

 

The Company also reported net income of $30.7 million for the six months ended June 30, 2018, a $6.8 million, or 29% increase, compared with $23.9 million in the comparable period of 2017.  Earnings per common share of $1.01 for the six months ended June 30, 2018 compared with $1.05 on a lower share count in the comparable period of 2017.

 

“The second quarter built on our momentum from the first quarter as we continue to record strong returns on our asset base.  We are pleased with our loan and deposit growth through the second quarter, as we build a pipeline for future growth throughout 2018 and beyond.  Our asset quality also remains strong and stable, as we continue to attract new customers by delivering the products and services that are valued in our select markets,” said Michael Petrie, Chairman and CEO of Merchants.

 



 

Total Assets

 

Total assets increased $393.5 million, or 12%, to $3.8 billion at June 30, 2018, compared with $3.4 billion at December 31, 2017. The increase was due primarily to increases in loans.  Return on average assets was 1.70% for the three months ended June 30, 2018, compared with 2.06% for the three months ended June 30, 2017.

 

Total loans receivable before allowance for loan losses increased $459.6 million, or 33%, to $1.8 billion at June 30, 2018, compared with $1.4 billion at December 31, 2017. This increase was primarily due to growth in multi-family and healthcare financing, as well as mortgage warehouse lines of credit.

 

Asset Quality

 

The allowance for loan losses increased by $2.3 million, to $10.6 million, at June 30, 2018, compared with $8.3 million at December 31, 2017.  The increase reflected a higher amount of loans held for investment, as non-performing loans increased to $4.3 million, or 0.24% of total loans at June 30, 2018, compared with $3.1 million, or .23% of total loans, at December 31, 2017.

 

Total Deposits

 

Total deposits increased $232.8 million, or 8%, to $3.2 billion at June 30, 2018, compared with $2.9 billion at December 31, 2017. The increase was due primarily to growth in certificates of deposit and demand deposits during the quarter.  Total brokered deposits increased to $1.1 billion, or 33% of total deposits at June 30, 2018, compared with 32% at December 31, 2017.

 

Interest Income

 

Interest income increased $11.7 million, or 52%, to $34.1 million for the three months ended June 30, 2018, compared with $22.5 million for the three months ended June 30, 2017. This increase was due to both loan growth and higher loan yields.  The average balance of loans, including loans held for sale, during the three months ended June 30, 2018, increased by $601.0 million, or 33%, to $2.5 billion, compared with $1.9 billion for the three months ended June 30, 2017.  The average yield on loans increased 59 basis points, to 4.71%, for the three months ended June 30, 2018, compared with 4.12% for the three months ended June 30, 2017.

 



 

Interest Expense

 

Total interest expense increased $5.2 million, or 77%, to $11.9 million for the three months ended June 30, 2018, compared with the three months ended June 30, 2017. Interest expense on deposits increased $5.0 million, or 106%, to $9.7 million for the three months ended June 30, 2018, compared with the three months ended June 30, 2017. The increase in the cost of deposits was due primarily to the higher volume of certificates of deposits, but also to the overall increase in interest rates since last year. There was a 47 basis point increase in the average cost of interest-bearing deposits, to 1.53%, for the three months ended June 30, 2018, compared with 1.06% for the same period in 2017, and an increase in the average balance of interest-bearing deposits of $762.7 million, or 43%, to $2.6 billion for the three months ended June 30, 2018.

 

Net Interest Income

 

Net interest income increased $6.5 million, or 41%, to $22.2 million for the three months ended June 30, 2018 compared to the three months ended June 30, 2017.  The increase was due to the overall growth in interest-earning assets, particularly in loans and loans held for sale, coupled with a 24 basis point increase in our interest rate spread, to 2.03%, for the three months ended June 30, 2018, from 1.79% for the three months ended June 30, 2017.  The net interest margin increased 23 basis points to 2.51% for the three months ended June 30, 2018, from 2.28% for the three months ended June 30, 2017.

 

Noninterest Income

 

Noninterest income decreased by $5.0 million, or 30%, to $11.6 million for the three months ended June 30, 2018, compared with the three months ended June 30, 2017. The decrease was due to a decrease of $7.4 million, or 48%, in the gain on sale of loans, primarily associated with lower volume of multi-family loan sales in the secondary market. These decreases were partially offset by a $2.2 million increase in loan servicing fees that were positively impacted by a $1.8 million fair market value adjustment in mortgage servicing rights.

 

Noninterest Expense

 

Noninterest expense increased $3.7 million, or 45%, to $12.0 million for the three months ended June 30, 2018, compared with $8.3 million for the three months ended June 30, 2017.  The increase was due primarily to a $2.1 million, or 40%, increase in salaries and employee benefits.  The increase in salaries and employee benefits was due primarily to an increase in the number of employees resulting from acquisitions, business growth, and additional hiring associated with becoming a

 



 

publicly traded company.  The higher salary costs, along with lower noninterest income, contributed to an increase in the efficiency ratio, to 35.5% in the second quarter of 2018, compared with 25.5% for the second quarter of 2017.

 

Income Taxes

 

Income tax expense decreased $3.9 million, or 43%, to $5.2 million for the three months ended June 30, 2018, compared with the three months ended June 30, 2017.  The decrease was due primarily to the lower tax rates under the recent federal income tax reform legislation, and by a 13% decrease in pre-tax income over the same period.  The effective tax rate was 24.9% for the three months ended June 30, 2018 compared with 38.1% for the three months ended June 30, 2017.

 

Segments

 

Banking income increased by 113% in the second quarter, Mortgage Warehousing income increased by 25%, and Multi-family Mortgage Banking income decreased by 39%, compared with the second quarter of 2017, as the Company continues to diversify its business mix.

 

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 $3.8 billion in assets and $3.2 billion in deposits as of June 30, 2018, conducts its business through its direct and indirect subsidiaries, Merchants Bank of Indiana, P/R Mortgage and Investment Corp., Joy State Bank, 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 Annual Report on Form 10-K.  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)

 

 

 

June 30,

 

December 31,

 

 

 

2018

 

2017

 

Assets

 

 

 

 

 

Cash and due from banks

 

$

18,347

 

$

18,905

 

Interest-earning demand accounts

 

334,056

 

340,614

 

Cash and cash equivalents

 

352,403

 

359,519

 

Securities purchased under agreements to resell

 

6,954

 

7,043

 

Trading securities

 

135,075

 

140,837

 

Available for sale securities

 

385,925

 

408,371

 

Federal Home Loan Bank (FHLB) stock

 

7,723

 

7,539

 

Loans held for sale (includes $51,768 at fair value for 2018)

 

953,150

 

995,319

 

Loans receivable, net of allowance for loan losses of $10,588 and $8,311, respectively

 

1,823,691

 

1,366,349

 

Premises and equipment, net

 

8,584

 

5,354

 

Mortgage servicing rights

 

70,085

 

66,079

 

Interest receivable

 

10,306

 

8,326

 

Goodwill

 

5,369

 

3,902

 

Intangible assets, net

 

1,839

 

1,512

 

Other assets and receivables

 

25,578

 

22,983

 

Total assets

 

$

3,786,682

 

$

3,393,133

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Liabilities

 

 

 

 

 

Deposits

 

 

 

 

 

Noninterest bearing

 

$

585,464

 

$

620,700

 

Interest bearing

 

2,590,886

 

2,322,861

 

Total deposits

 

3,176,350

 

2,943,561

 

Borrowings

 

189,515

 

56,612

 

Deferred and current tax liabilities, net

 

12,563

 

12,422

 

Other liabilities

 

15,335

 

13,064

 

Total liabilities

 

3,393,763

 

3,025,659

 

Commitments and Contingencies

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

Common stock, without par value Authorized - 50,000,000 shares Issued and outstanding - 28,694,036 shares at June 30, 2018 and 28,685,167 shares at December 31, 2017

 

134,952

 

134,891

 

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

 

217,856

 

192,008

 

Accumulated other comprehensive loss

 

(1,470

)

(1,006

)

Total shareholders’ equity

 

392,919

 

367,474

 

Total liabilities and shareholders’ equity

 

$

3,786,682

 

$

3,393,133

 

 



 

Consolidated Statement of Income

(Unaudited)

(In thousands, except share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30, 

 

June 30, 

 

 

 

2018

 

2017

 

2018

 

2017

 

Interest Income

 

 

 

 

 

 

 

 

 

Loans

 

$

28,790

 

$

19,022

 

$

53,402

 

$

34,805

 

Investment securities:

 

 

 

 

 

 

 

 

 

Trading

 

1,489

 

1,448

 

2,478

 

2,824

 

Available for sale

 

1,625

 

1,022

 

3,167

 

1,916

 

Federal Home Loan Bank stock

 

81

 

79

 

210

 

160

 

Other

 

2,138

 

893

 

3,904

 

1,766

 

Total interest income

 

34,123

 

22,464

 

63,161

 

41,471

 

Interest Expense

 

 

 

 

 

 

 

 

 

Deposits

 

9,741

 

4,740

 

16,757

 

8,511

 

Borrowed funds

 

2,176

 

2,000

 

4,090

 

3,705

 

Total interest expense

 

11,917

 

6,740

 

20,847

 

12,216

 

Net interest income

 

22,206

 

15,724

 

42,314

 

29,255

 

Provision for loan losses

 

998

 

240

 

2,404

 

480

 

Net Interest Income After Provision for Loan Losses

 

21,208

 

15,484

 

39,910

 

28,775

 

Noninterest Income

 

 

 

 

 

 

 

 

 

Gain on sale of loans

 

7,831

 

15,167

 

18,723

 

20,609

 

Loan servicing fees, net

 

2,555

 

395

 

2,233

 

2,384

 

Mortgage warehouse fees

 

684

 

662

 

1,170

 

1,258

 

Other income

 

560

 

402

 

817

 

466

 

Total noninterest income

 

11,630

 

16,626

 

22,943

 

24,717

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

7,268

 

5,175

 

13,755

 

9,067

 

Loan expenses

 

1,302

 

1,069

 

2,258

 

1,953

 

Occupancy and equipment

 

761

 

398

 

1,326

 

754

 

Professional fees

 

677

 

315

 

1,165

 

530

 

Deposit insurance expense

 

236

 

210

 

482

 

474

 

Technology expense

 

293

 

261

 

584

 

506

 

Other expense

 

1,463

 

833

 

2,700

 

1,618

 

Total noninterest expense

 

12,000

 

8,261

 

22,270

 

14,902

 

Income Before Income Taxes

 

20,838

 

23,849

 

40,583

 

38,590

 

Provision for Income Taxes

 

5,186

 

9,091

 

9,870

 

14,702

 

Net Income

 

$

15,652

 

$

14,758

 

$

30,713

 

$

23,888

 

Dividends on Preferred Stock

 

(832

)

(832

)

(1,665

)

(1,664

)

Net Income allocated to Common Shareholders

 

14,820

 

13,926

 

29,048

 

22,224

 

Basic earnings per share

 

$

0.52

 

$

0.66

 

$

1.01

 

$

1.05

 

Diluted earnings per share

 

$

0.52

 

$

0.66

 

$

1.01

 

$

1.05

 

Weighted-average shares outstanding

 

 

 

 

 

 

 

 

 

Basic

 

28,692,749

 

21,114,400

 

28,691,857

 

21,114,400

 

Diluted

 

28,720,805

 

21,127,923

 

28,715,687

 

21,125,590

 

Dividends per share

 

$

0.06

 

$

0.05

 

$

0.12

 

$

0.10

 

 



 

Key Operating Results

(Unaudited)

($ in thousands)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

 

2018

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense

 

12,000

 

10,270

 

8,261

 

22,270

 

14,902

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income (before provision for losses)

 

22,206

 

20,108

 

15,724

 

42,314

 

29,255

 

Noninterest Income

 

11,630

 

11,313

 

16,626

 

22,943

 

24,717

 

Total Income

 

33,836

 

31,421

 

32,350

 

65,257

 

53,972

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency Ratio

 

35.47

%

32.69

%

25.54

%

34.13

%

27.61

%

 

 

 

 

 

 

 

 

 

 

 

 

Average Assets

 

3,684,225

 

3,364,165

 

2,872,200

 

3,525,080

 

2,751,823

 

Net Income

 

15,652

 

15,061

 

14,758

 

30,713

 

23,888

 

Return on Average Assets before annualizing

 

0.42

%

0.45

%

0.51

%

0.87

%

0.87

%

Annualization factor

 

4.00

 

4.00

 

4.00

 

2.00

 

2.00

 

Return on Average Assets

 

1.70

%

1.79

%

2.06

%

1.74

%

1.74

%

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Tangible Common Equity (1)

 

17.41

%

17.38

%

31.00

%

17.41

%

25.40

%

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (1)

 

$

11.99

 

$

11.54

 

$

8.73

 

$

11.99

 

$

8.73

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity/Tangible Assets (1)

 

9.11

%

9.02

%

5.97

%

9.11

%

5.97

%

 


(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

 

Six Months Ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

 

2018

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

15,652

 

15,061

 

14,758

 

30,713

 

23,888

 

Less: Preferred Stock Dividends

 

(832

)

(833

)

(832

)

(1,665

)

(1,664

)

Net Income Available to Common Shareholders

 

14,820

 

14,228

 

13,926

 

29,048

 

22,224

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shareholders Equity

 

389,069

 

375,687

 

221,777

 

382,415

 

217,122

 

Less: Average Goodwill & Intangibles

 

(7,031

)

(6,616

)

(523

)

(7,128

)

(523

)

Less: Average Preferred stock

 

(41,581

)

(41,581

)

(41,581

)

(41,581

)

(41,581

)

Average Tangible Common Shareholder’s Equity

 

340,457

 

327,490

 

179,673

 

333,706

 

175,018

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualization Factor

 

4.00

 

4.00

 

4.00

 

2.00

 

2.00

 

Return on Average Tangible Common Equity

 

17.41

%

17.38

%

31.00

%

17.41

%

25.40

%

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

392,919

 

379,713

 

226,513

 

392,919

 

226,513

 

Less: Goodwill and Intangibles

 

(7,208

)

(7,054

)

(523

)

(7,208

)

(523

)

Less: Preferrd Stock

 

(41,581

)

(41,581

)

(41,581

)

(41,581

)

(41,581

)

Tangible Common Equity

 

344,130

 

331,078

 

184,409

 

344,130

 

184,409

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

3,786,682

 

3,675,849

 

3,091,500

 

3,786,682

 

3,091,500

 

Less: Goodwill and Intangibles

 

(7,208

)

(7,054

)

(523

)

(7,208

)

(523

)

Tangible Assets

 

3,779,474

 

3,668,795

 

3,090,977

 

3,779,474

 

3,090,977

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending common shares

 

28,694,036

 

28,692,206

 

21,114,400

 

28,694,036

 

21,114,400

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Book Value per Common Share

 

$

11.99

 

$

11.54

 

$

8.73

 

$

11.99

 

$

8.73

 

Tangible Common Equity/Tangible Assets

 

9.11

%

9.02

%

5.97

%

9.11

%

5.97

%

 



 

Merchants Bancorp

Average Balance Analysis

($ in thousands)

(Unaudited)

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

 

June 30, 2018

 

March 31, 2018

 

June 30, 2017

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

 

Balance

 

Int.

 

Rate

 

Balance

 

Int.

 

Rate

 

Balance

 

Int.

 

Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

517,594

 

$

2,219

 

1.72

%

$

457,235

 

$

1,895

 

1.68

%

$

374,780

 

$

972

 

1.04

%

Securities available for sale

 

407,896

 

1,625

 

1.60

%

416,266

 

1,542

 

1.50

%

356,375

 

1,022

 

1.15

%

Trading securities

 

175,876

 

1,489

 

3.40

%

121,029

 

989

 

3.31

%

187,978

 

1,448

 

3.09

%

Loans and loans held for sale

 

2,451,061

 

28,790

 

4.71

%

2,247,890

 

24,612

 

4.44

%

1,850,018

 

19,022

 

4.12

%

Total Interest Earning Assets

 

3,552,427

 

34,123

 

3.85

%

3,242,420

 

29,038

 

3.63

%

2,769,151

 

22,464

 

3.25

%

Allowance for loan losses

 

(9,986

)

 

 

 

 

(9,071

)

 

 

 

 

(6,759

)

 

 

 

 

Noninterest-earning assets

 

141,784

 

 

 

 

 

130,816

 

 

 

 

 

109,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,684,225

 

 

 

 

 

$

3,364,165

 

 

 

 

 

$

2,872,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities/Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing checking

 

783,798

 

3,285

 

1.68

%

645,339

 

2,425

 

1.52

%

365,133

 

1,447

 

1.59

%

Savings deposits

 

264,343

 

190

 

0.29

%

381,749

 

215

 

0.23

%

325,436

 

211

 

0.26

%

Money market

 

796,217

 

3,265

 

1.64

%

816,707

 

2,887

 

1.43

%

873,581

 

2,552

 

1.17

%

Certificates of deposit

 

708,525

 

3,001

 

1.70

%

398,992

 

1,489

 

1.51

%

226,030

 

530

 

0.94

%

Total interest bearing deposits

 

2,552,883

 

9,741

 

1.53

%

2,242,787

 

7,016

 

1.27

%

1,790,180

 

4,740

 

1.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

69,430

 

2,176

 

12.57

%

65,635

 

1,914

 

11.83

%

56,756

 

2,000

 

14.13

%

Total Interest Bearing Liabilities

 

2,622,313

 

11,917

 

1.82

%

2,308,422

 

8,930

 

1.57

%

1,846,936

 

6,740

 

1.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

 

643,334

 

 

 

 

 

656,284

 

 

 

 

 

771,273

 

 

 

 

 

Noninterest-bearing liabilities

 

29,509

 

 

 

 

 

23,772

 

 

 

 

 

32,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

3,295,156

 

 

 

 

 

2,988,478

 

 

 

 

 

2,650,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

389,069

 

 

 

 

 

375,687

 

 

 

 

 

221,777

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

3,684,225

 

 

 

 

 

$

3,364,165

 

 

 

 

 

$

2,872,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

 

 

$

22,206

 

 

 

 

 

$

20,108

 

 

 

 

 

$

15,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Spread

 

 

 

 

 

2.03

%

 

 

 

 

2.06

%

 

 

 

 

1.79

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest-Earning Assets

 

$

930,114

 

 

 

 

 

$

933,998

 

 

 

 

 

$

922,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

 

 

 

 

2.51

%

 

 

 

 

2.52

%

 

 

 

 

2.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Interest Earning Assets to Average Interest Bearing Liabilities

 

 

 

 

 

135.47

%

 

 

 

 

140.46

%

 

 

 

 

149.93

%

 



 

Segment Results

(Unaudited)

($ in thousands)

 

 

 

Net Income

 

Net Income

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

Total Assets

 

 

 

June 30,

 

June 30,

 

June 30,

 

December 31,

 

 

 

2018

 

2017

 

2018

 

2017

 

2018

 

2017

 

Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family Mortgage Banking

 

$

4,765

 

7,783

 

$

10,249

 

11,300

 

$

146,262

 

$

134,390

 

Mortgage Warehousing

 

5,774

 

4,623

 

10,404

 

8,418

 

1,550,255

 

1,352,748

 

Banking

 

6,485

 

3,041

 

12,465

 

5,454

 

2,071,022

 

1,889,140

 

Other

 

(1,372

)

(689

)

(2,405

)

(1,284

)

19,143

 

16,855

 

Total

 

$

15,652

 

$

14,758

 

$

30,713

 

$

23,888

 

$

3,786,682

 

$

3,393,133

 

 


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