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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): October 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 October 30, 2018, Merchants Bancorp issued a press release reporting its financial results for the third 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 October 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: October 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 Third Quarter 2018 Results

 

For Release October 30, 2018

 

·                  Net income of $16.7 million increased by 60% compared with September 30, 2017

·                  Earnings of $0.55 per common share increased by 22% compared with September 30, 2017

·                  Loans Receivable of $1.9 billion increased by 39% compared with December 31, 2017

·                  Total assets of $3.8 billion, increased by $413.8 million, or 12%, compared with December 31, 2017

·                  Return on average assets of 1.75% and 1.74% for three and nine months ended September 30, 2018, respectively

·                  Closed on its acquisition of Farmers-Merchants Bank of Paxton, Illinois on October 1, 2018

 

CARMEL, Indiana — (PR Newswire) - Merchants Bancorp (the “Company” or “Merchants”) (Nasdaq: MBIN), parent company of Merchants Bank of Indiana, today reported third quarter 2018 net income of $16.7 million, or $0.55 per common share, compared with $10.5 million, or $0.45 per common share in the third quarter of 2017.

 

The Company also reported net income of $47.5 million for the nine months ended September 30, 2018, a 38% increase compared with $34.4 million in the comparable period of 2017.  Earnings per common share of $1.57 for the nine months ended September 30, 2018 compared with $1.50 per common share, on a 7.5 million lower share count, in the comparable period of 2017.

 

“Our third quarter results continued to demonstrate our commitment to delivering sustainable growth that sets us apart in the marketplace,” said Michael Petrie, Chairman and CEO of Merchants. “As we navigate a higher interest rate environment, we also remain confident in our ability to deliver products and services that will reinforce the success of our differentiated business model,” added Petrie.

 


 

Total Assets

 

Total assets increased $413.8 million, or 12%, to $3.8 billion at September 30, 2018, compared with $3.4 billion at December 31, 2017. The increase was due primarily to loan growth.  Return on average assets was 1.75% for the three months ended September 30, 2018, compared with 1.32% for the three months ended September 30, 2017.

 

Total loans receivable before allowance for loan losses increased $542.4 million, or 39%, to $1.9 billion at September 30, 2018, compared with $1.4 billion at December 31, 2017. This increase was primarily a result of growth in multi-family and healthcare financing, as well as mortgage warehouse lines of credit.

 

Asset Quality

 

The allowance for loan losses increased by $2.9 million, to $11.2 million, at September 30, 2018, compared with $8.3 million at December 31, 2017, reflecting growth in loans held for investment.  Non-performing loans were just $1.9 million, or 0.10% of total loans at September 30, 2018, compared with $3.1 million, or 0.23% of total loans at December 31, 2017.

 

Total Deposits

 

Total deposits increased $358.8 million, or 12%, to $3.3 billion at September 30, 2018, compared with $2.9 billion at December 31, 2017. The increase was due primarily to growth in demand deposits and certificates of deposit and during the quarter.   Total brokered deposits decreased by 10%, to $843.7 million, or 26% of total deposits at September 30, 2018, compared with 32% at December 31, 2017.

 

Interest Income

 

Interest income increased $11.6 million, or 44%, to $37.6 million for the three months ended September 30, 2018, compared with $26.0 million for the three months ended September 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 September 30, 2018, increased by $577.4 million, or 27%, to $2.7 billion, compared with $2.1 billion for the three months ended September 30, 2017.  The average yield on loans increased 59 basis points, to 4.75%, for the three months ended September 30, 2018, compared with 4.16% for the three months ended September 30, 2017.

 


 

Interest Expense

 

Total interest expense increased $6.5 million, or 85%, to $14.1 million for the three months ended September 30, 2018, compared with the three months ended September 30, 2017. Interest expense on deposits increased $6.0 million, or 106%, to $11.7 million for the three months ended September 30, 2018, compared with the three months ended September 30, 2017. The increase in the cost of deposits was due primarily to the overall increase in interest rates since last year, but also the higher volume of certificates of deposits. There was a 75 basis point increase in the average cost of interest-bearing deposits, to 1.80%, for the three months ended September 30, 2018, compared with 1.05% for the same period in 2017, and an increase in the average balance of interest-bearing deposits of $444.6 million, or 21%, to $2.6 billion for the three months ended September 30, 2018.

 

Net Interest Income

 

Net interest income increased $5.1 million, or 28%, to $23.5 million for the three months ended September 30, 2018 compared to the three months ended September 30, 2017.  The increase was primarily due to the growth in loans and loans held for sale, partially offset by a 4 basis point decrease in our interest rate spread, to 1.94%, for the three months ended September 30, 2018, from 1.98% for the three months ended September 30, 2017.   The net interest margin increased 15 basis points to 2.53% for the three months ended September 30, 2018, from 2.38% for the three months ended September 30, 2017.

 

Noninterest Income

 

Noninterest income increased by $3.9 million, or 48%, to $11.9 million for the three months ended September 30, 2018, compared with the three months ended September 30, 2017. The increase was primarily due to a $1.9 million increase in loan servicing fees that was positively impacted by a $500,000 fair market value adjustment in mortgage servicing rights.  Gain on sale of loans increased $1.6 million, primarily associated with multi-family loan sales in the secondary market.

 

Noninterest Expense

 

Noninterest expense increased $3.5 million, or 39%, to $12.4 million for the three months ended September 30, 2018, compared with $8.9 million for the three months ended September 30, 2017.  The increase was due primarily to a $2.5 million, or 47%, 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 business growth, higher commissions related to higher multi-family volume, and additional hiring associated with becoming a publicly traded company.  Despite the increase in

 


 

salaries and benefits, the efficiency ratio remained relatively stable, at 35.2% in the third quarter of 2018, compared with 33.8% for the third quarter of 2017.

 

Income Taxes

 

Income tax expense decreased $861,000 million, or 13%, to $5.6 million for the three months ended September 30, 2018, compared with the three months ended September 30, 2017.  The decrease was due primarily to the lower tax rates under the recent federal income tax reform legislation, partially offset by a 32% increase in pre-tax income over the same period.  The effective tax rate was 25.0% for the three months ended September 30, 2018 compared with 38.1% for the three months ended September 30, 2017.

 

Segments

 

For the three months ended September 30, 2018, net income increased by 113% for Banking, 95% for Multi-family Mortgage Banking, and 2% for Mortgage Warehousing, compared with the third 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 $3.3 billion in deposits as of September 30, 2018, conducts its business through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp. (formally known as P/R Mortgage and Investment Corp. prior to October 1, 2018), Farmers-Merchants Bank of Illinois (formerly known as Joy State Bank prior to October 22, 2018), 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 and other periodic filings with the Securities and Exchange Commission.  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)

 

 

 

September 30,

 

December 31,

 

 

 

2018

 

2017

 

Assets

 

 

 

 

 

Cash and due from banks

 

$

20,069

 

$

18,905

 

Interest-earning demand accounts

 

390,687

 

340,614

 

Cash and cash equivalents

 

410,756

 

359,519

 

Securities purchased under agreements to resell

 

6,913

 

7,043

 

Trading securities

 

74,116

 

140,837

 

Available for sale securities

 

269,709

 

408,371

 

Federal Home Loan Bank (FHLB) stock

 

7,608

 

7,539

 

Loans held for sale (includes $5,888 at fair value for 2018)

 

1,004,402

 

995,319

 

Loans receivable, net of allowance for loan losses of $11,243 and $8,311, respectively

 

1,905,859

 

1,366,349

 

Premises and equipment, net

 

10,846

 

5,354

 

Mortgage servicing rights

 

71,490

 

66,079

 

Interest receivable

 

12,289

 

8,326

 

Goodwill

 

5,302

 

3,902

 

Intangible assets, net

 

1,763

 

1,512

 

Other assets and receivables

 

25,896

 

22,983

 

Total assets

 

$

3,806,949

 

$

3,393,133

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Liabilities

 

 

 

 

 

Deposits

 

 

 

 

 

Noninterest bearing

 

$

336,940

 

$

620,700

 

Interest bearing

 

2,965,429

 

2,322,861

 

Total deposits

 

3,302,369

 

2,943,561

 

Borrowings

 

67,279

 

56,612

 

Deferred and current tax liabilities, net

 

12,859

 

12,422

 

Other liabilities

 

17,096

 

13,064

 

Total liabilities

 

3,399,603

 

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 September 30, 2018 and 28,685,167 shares at December 31, 2017

 

135,021

 

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

 

232,041

 

192,008

 

Accumulated other comprehensive loss

 

(1,297

)

(1,006

)

Total shareholders’ equity

 

407,346

 

367,474

 

Total liabilities and shareholders’ equity

 

$

3,806,949

 

$

3,393,133

 

 


 

Consolidated Statement of Income

(Unaudited)

(In thousands, except share data)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2018

 

2017

 

2018

 

2017

 

Interest Income

 

 

 

 

 

 

 

 

 

Loans

 

$

32,056

 

$

22,016

 

$

85,458

 

$

56,821

 

Investment securities:

 

 

 

 

 

 

 

 

 

Trading

 

1,299

 

1,300

 

3,777

 

4,124

 

Available for sale

 

1,541

 

1,259

 

4,708

 

3,175

 

Federal Home Loan Bank stock

 

87

 

80

 

297

 

240

 

Other

 

2,594

 

1,351

 

6,498

 

3,117

 

Total interest income

 

37,577

 

26,006

 

100,738

 

67,477

 

Interest Expense

 

 

 

 

 

 

 

 

 

Deposits

 

11,670

 

5,659

 

28,427

 

14,170

 

Borrowed funds

 

2,425

 

1,957

 

6,515

 

5,662

 

Total interest expense

 

14,095

 

7,616

 

34,942

 

19,832

 

Net interest income

 

23,482

 

18,390

 

65,796

 

47,645

 

Provision for loan losses

 

617

 

592

 

3,021

 

1,072

 

Net Interest Income After Provision for Loan Losses

 

22,865

 

17,798

 

62,775

 

46,573

 

Noninterest Income

 

 

 

 

 

 

 

 

 

Gain on sale of loans

 

8,825

 

7,204

 

27,548

 

27,813

 

Loan servicing fees, net

 

1,851

 

(83

)

4,084

 

2,301

 

Mortgage warehouse fees

 

778

 

749

 

1,948

 

2,007

 

Other income

 

453

 

186

 

1,270

 

652

 

Total noninterest income

 

11,907

 

8,056

 

34,850

 

32,773

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

7,842

 

5,350

 

21,597

 

14,417

 

Loan expenses

 

1,254

 

1,119

 

3,512

 

3,072

 

Occupancy and equipment

 

736

 

326

 

2,062

 

1,080

 

Professional fees

 

590

 

561

 

1,755

 

1,091

 

Deposit insurance expense

 

269

 

230

 

751

 

704

 

Technology expense

 

412

 

325

 

996

 

831

 

Other expense

 

1,346

 

1,031

 

4,046

 

2,649

 

Total noninterest expense

 

12,449

 

8,942

 

34,719

 

23,844

 

Income Before Income Taxes

 

22,323

 

16,912

 

62,906

 

55,502

 

Provision for income taxes

 

5,584

 

6,445

 

15,454

 

21,147

 

Net Income

 

$

16,739

 

$

10,467

 

$

47,452

 

$

34,355

 

Dividends on preferred stock

 

(833

)

(833

)

(2,498

)

(2,497

)

Net Income Allocated to Common Shareholders

 

15,906

 

9,634

 

44,954

 

31,858

 

Basic Earnings Per Share

 

$

0.55

 

$

0.45

 

$

1.57

 

$

1.50

 

Diluted Earnings Per Share

 

$

0.55

 

$

0.45

 

$

1.57

 

$

1.50

 

Weighted-Average Shares Outstanding

 

 

 

 

 

 

 

 

 

Basic

 

28,694,036

 

21,310,199

 

28,692,591

 

21,180,384

 

Diluted

 

28,727,822

 

21,328,237

 

28,719,740

 

21,193,857

 

Dividends Per Share

 

$

0.06

 

$

0.05

 

$

0.18

 

$

0.15

 

 


 

Key Operating Results

(Unaudited)

($ in thousands)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2018

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense

 

12,449

 

12,000

 

8,942

 

34,719

 

23,844

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income (before provision for losses)

 

23,482

 

22,206

 

18,390

 

65,796

 

47,645

 

Noninterest Income

 

11,907

 

11,630

 

8,056

 

34,850

 

32,773

 

Total Income

 

35,389

 

33,836

 

26,446

 

100,646

 

80,418

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency Ratio

 

35.18

%

35.47

%

33.81

%

34.50

%

29.65

%

 

 

 

 

 

 

 

 

 

 

 

 

Average Assets

 

3,829,172

 

3,684,225

 

3,178,887

 

3,627,861

 

2,895,743

 

Net Income

 

16,739

 

15,652

 

10,467

 

47,452

 

34,355

 

Return on Average Assets before annualizing

 

0.44

%

0.42

%

0.33

%

1.31

%

1.19

%

Annualization factor

 

4.00

 

4.00

 

4.00

 

1.33

 

1.33

 

Return on Average Assets

 

1.75

%

1.70

%

1.32

%

1.74

%

1.58

%

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Tangible Common Equity (1)

 

17.92

%

17.41

%

19.92

%

17.52

%

23.38

%

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Book Value Per Common Share (1)

 

$

12.50

 

$

11.99

 

$

9.03

 

$

12.50

 

$

9.03

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity/Tangible Assets (1)

 

9.44

%

9.11

%

6.01

%

9.44

%

6.01

%

 


(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

 

Nine Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2018

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

16,739

 

15,652

 

10,467

 

47,452

 

34,355

 

Less: Preferred Stock Dividends

 

(833

)

(832

)

(833

)

(2,498

)

(2,497

)

Net Income Available to Common Shareholders

 

15,906

 

14,820

 

9,634

 

44,954

 

31,858

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shareholders Equity

 

403,757

 

389,069

 

237,009

 

389,760

 

223,824

 

Less: Average Goodwill & Intangibles

 

(7,120

)

(7,031

)

(1,981

)

(6,961

)

(1,015

)

Less: Average Preferred stock

 

(41,581

)

(41,581

)

(41,581

)

(41,581

)

(41,581

)

Average Tangible Common Shareholder’s Equity

 

355,056

 

340,457

 

193,447

 

341,218

 

181,228

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualization Factor

 

4.00

 

4.00

 

4.00

 

1.33

 

1.33

 

Return on Average Tangible Common Equity

 

17.92

%

17.41

%

19.92

%

17.52

%

23.38

%

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

407,346

 

392,919

 

243,285

 

407,346

 

243,285

 

Less: Goodwill and Intangibles

 

(7,065

)

(7,208

)

(7,604

)

(7,065

)

(7,604

)

Less: Preferrd Stock

 

(41,581

)

(41,581

)

(41,581

)

(41,581

)

(41,581

)

Tangible Common Equity

 

358,700

 

344,130

 

194,100

 

358,700

 

194,100

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

3,806,949

 

3,786,682

 

3,237,485

 

3,806,949

 

3,237,485

 

Less: Goodwill and Intangibles

 

(7,065

)

(7,208

)

(7,604

)

(7,065

)

(7,604

)

Tangible Assets

 

3,799,884

 

3,779,474

 

3,229,881

 

3,799,884

 

3,229,881

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending common shares

 

28,694,036

 

28,694,036

 

21,497,667

 

28,694,036

 

21,497,667

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Book Value per Common Share

 

$

12.50

 

$

11.99

 

$

9.03

 

$

12.50

 

$

9.03

 

Tangible Common Equity/Tangible Assets

 

9.44

%

9.11

%

6.01

%

9.44

%

6.01

%

 


 

Merchants Bancorp

Average Balance Analysis

($ in thousands)

(Unaudited)

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

 

September 30, 2018

 

June 30, 2018

 

September 30, 2017

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

 

 

Balance

 

Int.

 

Rate

 

Balance

 

Int.

 

Rate

 

Balance

 

Int.

 

Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

510,115

 

$

2,681

 

2.09

%

$

517,594

 

$

2,219

 

1.72

%

$

412,663

 

$

1,431

 

1.38

%

Securities available for sale

 

355,564

 

1,541

 

1.72

%

407,896

 

1,625

 

1.60

%

406,517

 

1,259

 

1.23

%

Trading securities

 

137,351

 

1,299

 

3.75

%

175,876

 

1,489

 

3.40

%

152,799

 

1,300

 

3.38

%

Loans and loans held for sale

 

2,677,449

 

32,056

 

4.75

%

2,451,061

 

28,790

 

4.71

%

2,100,028

 

22,016

 

4.16

%

Total Interest Earning Assets

 

3,680,479

 

37,577

 

4.05

%

3,552,427

 

34,123

 

3.85

%

3,072,007

 

26,006

 

3.36

%

Allowance for loan losses

 

(10,695

)

 

 

 

 

(9,986

)

 

 

 

 

(7,073

)

 

 

 

 

Noninterest earning assets

 

159,388

 

 

 

 

 

141,784

 

 

 

 

 

113,953

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,829,172

 

 

 

 

 

$

3,684,225

 

 

 

 

 

$

3,178,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities/Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing checking

 

838,530

 

4,428

 

2.10

%

783,798

 

3,285

 

1.68

%

623,893

 

1,757

 

1.12

%

Savings deposits

 

148,348

 

109

 

0.29

%

264,343

 

190

 

0.29

%

344,922

 

223

 

0.26

%

Money market

 

856,811

 

4,294

 

1.99

%

796,217

 

3,265

 

1.64

%

866,010

 

2,787

 

1.28

%

Certificates of deposit

 

732,004

 

2,839

 

1.54

%

708,525

 

3,001

 

1.70

%

296,288

 

892

 

1.19

%

Total interest bearing deposits

 

2,575,693

 

11,670

 

1.80

%

2,552,883

 

9,741

 

1.53

%

2,131,113

 

5,659

 

1.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

74,227

 

2,425

 

12.96

%

69,430

 

2,176

 

12.57

%

64,509

 

1,957

 

12.04

%

Total Interest Bearing Liabilities

 

2,649,920

 

14,095

 

2.11

%

2,622,313

 

11,917

 

1.82

%

2,195,622

 

7,616

 

1.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

 

748,312

 

 

 

 

 

643,334

 

 

 

 

 

715,346

 

 

 

 

 

Noninterest bearing liabilities

 

27,183

 

 

 

 

 

29,509

 

 

 

 

 

30,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

3,425,415

 

 

 

 

 

3,295,156

 

 

 

 

 

2,941,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

403,757

 

 

 

 

 

389,069

 

 

 

 

 

237,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

3,829,172

 

 

 

 

 

$

3,684,225

 

 

 

 

 

$

3,178,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

 

 

$

23,482

 

 

 

 

 

$

22,206

 

 

 

 

 

$

18,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Spread

 

 

 

 

 

1.94

%

 

 

 

 

2.03

%

 

 

 

 

1.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Earning Assets

 

$

1,030,559

 

 

 

 

 

$

930,114

 

 

 

 

 

$

876,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

 

 

 

 

2.53

%

 

 

 

 

2.51

%

 

 

 

 

2.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Interest Earning Assets to Average Interest Bearing Liabilities

 

 

 

 

 

138.89

%

 

 

 

 

135.47

%

 

 

 

 

139.92

%

 


 

Segment Results

(Unaudited)

($ in thousands)

 

 

 

Net Income

 

Net Income

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

Total Assets

 

 

 

September 30,

 

September 30,

 

September 30,

 

December 31,

 

 

 

2018

 

2017

 

2018

 

2017

 

2018

 

2017

 

Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family Mortgage Banking

 

$

4,863

 

$

2,490

 

$

15,112

 

$

13,790

 

$

152,035

 

$

134,390

 

Mortgage Warehousing

 

5,654

 

5,546

 

16,058

 

13,964

 

1,624,375

 

1,352,748

 

Banking

 

7,101

 

3,339

 

19,566

 

8,793

 

2,010,485

 

1,889,140

 

Other

 

(879

)

(908

)

(3,284

)

(2,192

)

20,054

 

16,855

 

Total

 

$

16,739

 

$

10,467

 

$

47,452

 

$

34,355

 

$

3,806,949

 

$

3,393,133

 

 


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