CARMEL, Ind., Dec. 7, 2017 /PRNewswire/ — Merchants Bancorp (the “Company” or “Merchants”) (Nasdaq: MBIN), parent company of Merchants Bank of Indiana, today reported third quarter 2017 net income of $10.5 million, or $0.45 per share. This compared with $11.6 million, or $0.51 per share, in the third quarter of 2016.
The Company also reported net income of $34.4 million for the nine months ended September 30, 2017. This represented a $10.0 million, or 41% increase, compared with $24.4 million in the comparable period of 2016. Earnings per share of $1.50 for the nine months ended September 30, 2017 increased by 36%, compared with $1.10 in the comparable period of 2016.
Each of the Company’s business segments has grown net income in the first nine months of 2017, compared with the same period of 2016. Multi-family Mortgage Banking income increased by 83%, Mortgage Warehousing increased by 18%, and Banking increased by 25%.
“Our results through the third quarter of 2017 reflected continued momentum in providing our customers with the banking services they value. We are pleased with the growth we’ve seen this year in all of our segments. Clearly, our multi-family business is having a strong year and mortgage warehousing net income is up 18% when mortgage originations are down nationally,” said Michael Petrie, Chairman and CEO of Merchants. “We’re also excited to add the RICHMAC team because it gives us new affordable multi-family housing products and an experienced presence in attractive new markets through offices in New York City and Minneapolis-Saint Paul.”
Total assets increased $519.0 million, or 19%, to $3.2 billion at September 30, 2017, compared with $2.7 billion at December 31, 2016. The increase was due primarily to increases in loans, including loans held for sale, of $299.7 million, cash and cash equivalents of $121.1 million, and available for sale securities of $104.7 million.
Interest income increased $6.2 million, or 31%, to $26.0 million for the three months ended September 30, 2017, compared with $19.8 million for the three months ended September 30, 2016. This increase was due to both growth in loans and an increase in the yield on those loans. The average balance of loans, including loans held for sale, during the three months ended September 30, 2017, increased by $268.9 million, or 15%, to $2.1 billion, compared with $1.8 billion for the three months ended September 30, 2016.