Merchants Bancorp (MBIN) Q4 2024 earnings summary

Executive summary

• Full year 2024 net income reached a record $320.4 million, up 15% year-over-year; diluted EPS was $6.30, up 12% and also a record high.

• Fourth quarter 2024 net income was $95.7 million, up 23% from Q4 2023 and 56% sequentially; diluted EPS was $1.85, up 17% year-over-year and 58% sequentially.

• Total assets at year-end were $18.8 billion, up 11% from December 31, 2023, and the highest in company history.

• Tangible book value per common share rose 25% year-over-year to $34.15.

• Strategic initiatives included a $1.2 billion credit default swap to reduce risk and a $222.7 million Series E Preferred Stock offering.

Financial highlights

• Net interest income for Q4 2024 was $134.6 million, up 8% year-over-year and 1% sequentially.

• Noninterest income for Q4 2024 was $59.1 million, up 72% year-over-year and 253% sequentially, driven by higher loan servicing fees, gain on sale of loans, and asset management fees.

• Efficiency ratio improved to 32.62% in Q4 2024 from 33.11% in Q4 2023 and 41.00% in Q3 2024.

• Return on average assets for Q4 2024 was 2.07%, up from 1.86% in Q4 2023 and 1.34% in Q3 2024.

• Full year 2024 net interest income was $522.6 million, up 17% year-over-year; noninterest income was $148.1 million, up 29%.

Outlook and guidance

• Management remains focused on leveraging financial flexibility for sustainable growth, citing strong capital and liquidity positions.

• Despite higher nonperforming loans, delinquencies have declined and charge-offs remain minimal; risk mitigation strategies are in place.