Merchants Bancorp Reports Third Quarter 2024 Results
Third quarter 2024 net income of $61.3 million, decreased 25% compared to third quarter of 2023 and decreased 20% compared to the second quarter 2024, reflecting unfavorable fair market value adjustments to derivatives and servicing rights, and an increase in specific reserves on loans as part of the allowance for credit losses.
Third quarter 2024 diluted earnings per common share of $1.17 decreased 30% compared to the third quarter of 2023 and decreased 21% compared to the second quarter of 2024.
Unfavorable fair market value adjustments to interest rate floor derivatives on loans and servicing rights of $7.7 million and $6.7 million, respectively, negatively impacted results during the third quarter of 2024 by approximately $0.24 per diluted common share.
Total assets of $18.7 billion surpassed any level previously reported by the Company, increasing 2% compared to June 30, 2024, and increasing 10% compared to December 31, 2023.
Tangible book value per common share reached a record-high of $32.38 and increased 25% compared to $25.82 in the third quarter of 2023 and increased 4% compared to $31.27 in the second quarter of 2024.
As of September 30, 2024, the Company had $5.1 billion in unused borrowing capacity with the Federal Home Loan Bank and the Federal Reserve Discount window, representing 27% of total assets.
The Company's most liquid assets are in unrestricted cash, short-term investments, including interest-earning demand deposits, mortgage loans in process of securitization, loans held for sale, and warehouse repurchase agreements included in loans receivable. Taken together, with unused borrowing capacity, these totaled $11.1 billion, or 59%, of the $18.7 billion in total assets as of September 30, 2024.
Loans receivable of $10.3 billion, net of allowance for credit losses on loans, decreased $671.3 million, or 6%, compared to June 30, 2024, and increased $134.1 million, or 1%, compared to December 31, 2023.
In September 2024 the Company sold $629 million of healthcare bridge loans into a private securitization via a real estate mortgage investment conduit (REMIC). As part of the transaction, the Company purchased a $535 million senior investment security that is classified as held to maturity and carries an 80% lower capital requirement than bridge loans.
CARMEL, Ind., Oct. 28, 2024 /PRNewswire/ -- Merchants Bancorp (the "Company" or "Merchants") (NASDAQ:MBIN), parent company of Merchants Bank, today reported third quarter 2024 net income of $61.3 million, or diluted earnings per common share of $1.17. This compared to $81.5 million, or diluted earnings per common share of $1.68 in the third quarter of 2023, and compared to $76.4 million, or diluted earnings per common share of $1.49 in the second quarter of 2024.
"Despite a few isolated credit issues and unfavorable fair market value adjustments related to derivatives and servicing rights, our quarterly results underscore the robust, underlying strength of our core businesses. We surpassed several previous records, reaching $18.7 billion in assets and increasing our tangible book value to $32.38, a 25% rise from the prior year. The declining interest rate environment also positions us well to capitalize on promising growth opportunities across various aspects of our operations," said Michael F. Petrie, Chairman and CEO of Merchants.
Michael J. Dunlap, President and Chief Operating Officer of Merchants, added, "We remain at the forefront of effective capital management, successfully executing another credit risk transfer transaction this quarter through the securitization of $629 million in healthcare loans. This strategy not only protects us from potential credit losses, but also enables us to efficiently deploy capital for our future growth initiatives."
Net income of $61.3 million for the third quarter 2024 decreased by $20.2 million, or 25%, compared to the third quarter of 2023, primarily driven by:
a $15.4 million, or 13%, increase in net interest income,
a $6.0 million, or 56%, increase in gain on sale of loans,
a $5.0 million, or 20%, decrease in provision for income taxes,
an $18.9 million, or 109%, decrease in loan servicing fees, primarily due to negative fair market value adjustments to servicing rights,
an $18.4 million, or 43%, increase in noninterest expense, primarily driven by salaries and employee benefits that reflected higher commissions on higher production volume, increases in deposit insurance expenses, and ongoing premium expense associated with the credit default swap,
a $5.6 million decrease in other income, reflecting negative fair market value adjustments to derivatives, and
a $2.9 million, or 72%, increase in the provision for credit losses primarily related to increased specific reserves.
Net income of $61.3 million for the third quarter 2024 decreased by $15.1 million, or 20%, compared to the second quarter of 2024, primarily driven by:
a $5.6 million, or 50%, increase in gain on sale of loans,
a $4.7 million, or 4%, increase in net interest income,
a $3.1 million, or 31%, decrease in the provision for credit losses,
a $2.7 million, or 12%, decrease in provision for income taxes,
a $12.3 million, or 114%, decrease in loan servicing fees, primarily due to negative fair market value adjustments to servicing rights,
a $10.9 million, or 22%, increase in noninterest expense, primarily driven by salaries and employee benefits that reflected higher commissions on higher production volume and increases in deposit insurance expenses, and
a $6.5 million decrease in other income, reflecting negative fair market value adjustments to derivatives.
Total AssetsTotal assets of $18.7 billion at September 30, 2024 increased $440.6 million, or 2%, compared to June 30, 2024, and increased $1.7 billion, or 10%, compared to December 31, 2023. The increase compared to December 31, 2023 was primarily due to growth in loans held for sale and in the warehouse, and multi-family loan portfolios. There was also an increase in securities held to maturity compared to December 31, 2023, primarily due to the purchase of a security representing healthcare loans sold into a securitization in the third quarter of 2024 that was offset by a decline in loans in the healthcare portfolio that were sold into the securitization.
Return on average assets was 1.34% for the third quarter of 2024 compared to 2.03% for the third quarter of 2023 and 1.72% for the second quarter of 2024.
Asset QualityThe allowance for credit losses on loans of $84.5 million, as of September 30, 2024, increased $3.5 million, or 4%, compared to June 30, 2024, and increased $12.8 million, or 18%, compared to December 31, 2023. The increase compared to June 30, 2024 was primarily due to an $8.0 million increase in specific reserves, primarily related to two customers, that was partially offset by lower loan balances due to the securitization of healthcare loans, which reduced the allowance by approximately $4.4 million.
The $84.5 million allowance for credit losses on loans as of September 30, 2024, compared to the net charge-offs of $6.7 million over the last twelve months ended September 30, 2024, could absorb 13 years of losses if recent loss levels continued into the future.
The Company recorded charge-offs for three customers, primarily in the multi-family loan portfolio, for $2.1 million, and recorded $7,000 of recoveries during the third quarter 2024. This compares to $21,000 in charge-offs and $31,000 in recoveries during the third quarter of 2023 and to $3.5 million in charge-offs and $15,000 of recoveries in the second quarter of 2024.
As of September 30, 2024, non-performing loans were $210.9 million, or 2.04% of gross loans receivable, compared to $143.5 million, or 1.30%, as of June 30, 2024, and $82.0 million, or 0.80%, as of December 31, 2023. The increase in non-performing loans compared to both periods was primarily driven by multi-family and healthcare customers with delinquent payments on variable rate loans that have required higher payments largely due to elevated interest rates. The increase was also attributable to the financial deterioration of a few sponsors. Credit quality is expected to improve with recent reductions in interest rates. After six months of consecutive loan performance, the loans are placed back on accrual status.
All substandard loans as of September 30, 2024 have been evaluated for impairment and these loans have specific reserves of $19.2 million, including $8.0 million added during the third quarter of 2024. Although there has been an increase in adversely classified loans, asset values remain strong overall and loans are well-collateralized.
In addition to elevated reserves for credit losses on loans, the Company has been making additional efforts to minimize its credit risk through loan sale and securitization activities since 2019. In April 2023 and March 2024, the Company strategically entered into credit protection arrangements through a credit linked note and credit default swap, respectively, for $1.7 billion in loans to reduce our risk of losses with incremental coverage of approximately 14% on those covered loans. The balance of loans in those covered portfolios as of September 30, 2024 was $1.3 billion.
Securities Available for SaleTotal securities available for sale of $953.1 million as of September 30, 2024 decreased $64.0 million, or 6%, compared to June 30, 2024, and decreased $160.6 million, or 14%, compared to December 31, 2023. The decreases were primarily due to maturities, sales, and repayments, as well as fair value adjustments that were partially offset by purchases. As of September 30, 2024, Accumulated Other Comprehensive Income ("AOCI") of $0.1 million, related to securities available for sale, increased $0.6 million, or 119%, compared to June 30, 2024, and increased $2.6 million, or 104%, compared to December 31, 2023.
Securities Held to MaturityTotal securities held to maturity of $1.8 billion as of September 30, 2024 increased $463.9 million, or 36%, compared to June 30, 2024, and increased $550.8 million, or 46%, compared to December 31, 2023. The increases were primarily due to purchases of senior investment securities backed by residential and healthcare loans purchased as part of credit risk transfer securitization transactions originated by the Company.
Total DepositsTotal deposits of $12.9 billion at September 30, 2024 decreased $2.0 billion, or 14%, compared to June 30, 2024, and decreased $1.2 billion, or 8%, compared to December 31, 2023. The change compared to both periods was driven by decreases in certificates of deposit accounts. The changes reflected decreases in brokered deposits that were partially offset by growth in core deposits.
Core deposits of $10.1 billion at September 30, 2024 increased $1.3 billion, or 15%, from June 30, 2024 and increased $2.0 billion, or 25%, from December 31, 2023. Core deposits represented 78% of total deposits at September 30, 2024, 59% of total deposits at June 30, 2024, and 58% of total deposits at December 31, 2023.
Total brokered deposits of $2.8 billion at September 30, 2024 decreased $3.3 billion, or 54%, from June 30, 2024 and decreased $3.2 billion, or 53%, from December 31, 2023. As of September 30, 2024, brokered certificates of deposit had a weighted average remaining duration of 56 days.
LiquidityCash balances of $601.9 million as of September 30, 2024 increased by $61.0 million compared to June 30, 2024 and increased by $17.5 million compared to December 31, 2023. The Company continues to have significant borrowing capacity, with unused lines of credit totaling $5.1 billion as of September 30, 2024 compared to $7.0 billion at June 30, 2024 and $6.0 billion at December 31, 2023. Furthermore, its $3.2 billion line of credit with the Federal Reserve Bank of Chicago alone could fund 120% of its uninsured deposits, which represented approximately 20% of total deposits as of September 30, 2024.
This liquidity enhances the ability to effectively manage interest expense and asset levels in the future. Additionally, the Company's business model is designed to continuously sell or securitize a significant portion of its loans, which provides flexibility in managing its liquidity.
Comparison of Operating Results for the Three Months EndedSeptember 30, 2024 and 2023
Net Interest Income of $132.8 million increased $15.4 million, or 13%, compared to $117.4 million, primarily reflecting an increase in average balances on loans and loans held for sale, which were partially offset by higher average balances on borrowings.
Net interest margin of 2.99% remained unchanged. The margin was negatively impacted by 6 basis points in the third quarter of 2024 from the net reversal of $2.9 million in accrued interest income associated with the movement of loans into nonaccrual status.
Interest rate spread of 2.43% decreased 1 basis point compared to 2.44%.
Interest Income of $338.9 million increased $42.3 million, or 14%, primarily reflecting an increase in average balances of loans and loans held for sale, as well as increased average yields and balances on securities available for sale.
Average balances of $14.6 billion for loans and loans held for sale increased 9% compared to $13.4 billion.
Average yields on securities available for sale of 5.84% increased 210 basis points compared to 3.74%.
Average balances of $1.0 billion for securities available for sale increased $354.6 million, or 54%, compared to $656.6 million.
Interest Expense of $206.1 million increased $26.9 million, or 15%, compared to $179.2 million. The increase reflected higher average balances on borrowings and interest-bearing checking accounts, partially offset by lower average rates on borrowings and lower average balances on certificates of deposit.
Average balances of $2.5 billion for borrowings increased $1.8 billion, or 254%, compared to $711.9 million.
Average balances of $5.3 billion for interest-bearing checking increased 9% compared to $4.9 billion.
Average interest rates of 6.39% for borrowings decreased 271 basis points compared to 9.10%.
Average interest rates of 5.47% for certificates of deposit increased 13 basis points compared to 5.34%.
Noninterest Income of $16.7 million decreased $19.3 million, or 54%, compared to $36.1 million, primarily due to a $18.9 million, or 109%, decrease in net loan servicing fees and a $5.6 million, or 152%, decrease in other income, partially offset by a $6.0 million, or 56%, increase in gain on sale of loans.
Loan servicing fees included a $6.7 million negative fair market value adjustment to servicing rights, with a $1.6 million negative adjustment in the Banking segment and a $5.1 million negative adjustment in the Multi-family Mortgage Banking segment. This compared to a $11.6 million positive fair market value adjustment to servicing rights in the prior period with a $1.2 million positive adjustment in the Banking segment and a $10.4 million positive adjustment in the Multi-family Mortgage Banking segment. The value of servicing rights generally increases in rising interest rate environments and declines in falling interest rate environments due to expected prepayments and earning rates on escrow deposits.
Other income included a $7.7 million negative fair market value adjustment to derivatives that didn't occur in the prior comparative period.
Gain on sale of loans increased $6.0 million, reflecting higher volume in the multi-family loan portfolio.
Noninterest Expense of $61.3 million increased $18.4 million, or 43%, compared to $42.9 million, primarily due to increases in salaries and employee benefits that reflected higher commissions on higher production volume, as well as a $5.4 million, or 152%, increase in deposit insurance expenses. The higher noninterest expense also reflected a $3.4 million increase in other expenses primarily associated with ongoing premium expense for the credit default swap that was executed in March 2024.
The efficiency ratio of 41.00% increased 1,303 basis points compared to 27.97%.
Comparison of Operating Results for the Three Months EndedSeptember 30, 2024 and June 30, 2024
Net Interest Income of $132.8 million increased $4.7 million, or 4%, compared to $128.1 million, primarily due to higher average balances on borrowings at lower average interest rates that were partially offset by lower average balances on certificates of deposit at higher average interest rates. Higher average balances on loans and loans held for sale also contributed to the higher net interest income.
Net interest margin of 2.99% remain unchanged. The margin was negatively impacted by 6 basis points in the third quarter of 2024 from the net reversal of $2.9 million in accrued interest income associated with the movement of loans into nonaccrual status. This compared to 6 basis points, or $2.5 million in accrued interest income in the second quarter of 2024.
Interest rate spread of 2.43% decreased 2 basis points compared to 2.45%.
Interest Income of $338.9 million increased $10.7 million, or 3%, reflecting an increase in average balances on loans and loans held for sale and securities held to maturity, as well as increased average yields in interest earning deposits and other interest or dividends.
Average balances of $14.6 billion for loans and loans held for sale increased 2% compared to $14.3 billion.
Average balances of $1.3 billion for securities held to maturity increased 11% compared to $1.2 billion.
Average yields on interest earning deposits and other interest or dividends of 6.30% increased 59 basis points compared to 5.71%.
Interest Expense of $206.1 million increased 3% compared to $200.2 million. The increase was primarily driven by higher average balances on borrowings at lower average rates, as well as higher average balances of interest-bearing checking accounts. These were partially offset by lower average balances on certificates of deposits.
Average balances of $2.5 billion for borrowings increased $1.5 billion, or 144%, compared to $1.0 billion.
Average interest rates of 6.39% for borrowings decreased 161 basis points compared to 8.00%.
Average balances of $5.3 billion for interest-bearing checking accounts increased $363.8 million, or 7%, compared to $4.9 billion.
Average balances of $5.0 billion for certificate of deposit accounts decreased $1.5 billion, or 23%, compared to $6.5 billion.
Noninterest Income of $16.7 million decreased 47%, compared $31.4 million, primarily due to a $12.3 million, or 114%, decrease in net loan servicing fees, a $6.5 million, or 142%, decrease in other income that was partially offset by an increase of $5.6 million in gain on sale of loans.
Loan servicing fees included a $6.7 million negative fair market value adjustment to servicing rights, with a $1.6 million negative adjustment in the Banking segment and a $5.1 million negative adjustment in the Multi-family Mortgage Banking segment. This compared to a $5.1 million positive fair market value adjustment to servicing rights in the prior period, with a $0.6 million positive adjustment in the Banking segment and a $4.5 million positive adjustment in the Multi-family Mortgage Banking segment. The value of servicing rights generally increases in rising interest rate environments and declines in falling interest rate environments due to expected prepayments and earning rates on escrow deposits.
Other income included a $7.7 million negative fair market value adjustment to derivatives compared to a $0.2 million positive fair market value adjustment to derivatives in the second quarter of 2024.
Gain on sale of loans increased $5.6 million reflecting higher volume in the multi-family loan portfolio.
Noninterest Expense of $61.3 million increased $10.9 million, or 22%, compared to $50.4 million, primarily driven by a $6.8 million, or 24%, increase in salaries and employee benefits reflecting higher commissions on higher production volume, and a $3.4 million increase in deposit insurance expenses.
The efficiency ratio of 41.00% increased 941 basis points compared to 31.59%.
About Merchants BancorpRanked as a top performing U.S. public bank by S&P Global Market Intelligence, Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple segments, including Multi-family Mortgage Banking that primarily offers multi-family housing and healthcare facility financing and servicing (through this segment it also serves as a syndicator of low-income housing tax credit and debt funds); Mortgage Warehousing that offers mortgage warehouse financing, commercial loans, and deposit services; and Banking that offers retail and correspondent residential mortgage banking, agricultural lending, and traditional community banking. Merchants Bancorp, with $18.7 billion in assets and $12.9 billion in deposits as of September 30, 2024, conducts its business primarily through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp., Merchants Capital Investments, LLC, Merchants Capital Servicing, LLC, Merchants Asset Management, 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.merchantsbancorp.com.
Forward-Looking Statements This press release contains forward-looking statements which reflect management's current views with respect to, among other things, future events and 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 the industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, management cautions 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 the Company believes 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 actual results to differ materially from those indicated in these forward-looking statements, including the impacts of factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 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 the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
September 30,
June 30,
March 31,
December 31,
September 30,
2024
2024
2024
2023
2023
Assets
Cash and due from banks
$ 12,214
$ 10,242
$ 17,924
$ 15,592
$ 10,633
Interest-earning demand accounts
589,692
530,640
490,831
568,830
396,605
Cash and cash equivalents
601,906
540,882
508,755
584,422
407,238
Securities purchased under agreements to resell
3,279
3,304
3,329
3,349
3,385
Mortgage loans in process of securitization
430,966
209,244
142,629
110,599
476,047
Securities available for sale ($682,975, $682,774, $700,640 and $722,497 utilizing fair value option at September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023)
953,063
1,017,019
1,061,288
1,113,687
624,586
Securities held to maturity ($1,756,203, $1,291,960, $1,176,178, $1,203,535 and $1,010,745 at fair value, respectively)
1,755,047
1,291,110
1,175,167
1,204,217
1,012,801
Federal Home Loan Bank (FHLB) stock and other equity securities
184,050
67,499
64,215
48,578
48,219
Loans held for sale (includes $91,084, $102,873, $84,513, $86,663 and $90,875 at fair value, respectively)
3,808,234
3,483,076
3,503,131
3,144,756
3,477,036
Loans receivable, net of allowance for credit losses on loans of $84,549, $81,028, $75,712, $71,752 and $66,864, respectively
10,261,890
10,933,189
10,690,513
10,127,801
9,910,681
Premises and equipment, net
53,161
46,833
42,450
42,342
36,730
Servicing rights
177,327
178,776
172,200
158,457
162,141
Interest receivable
86,612
90,360
90,303
91,346
78,401
Goodwill
8,014
8,014
8,014
15,845
15,845
Other assets and receivables
329,427
343,116
360,582
307,117
242,126
Total assets
$ 18,652,976
$ 18,212,422
$ 17,822,576
$ 16,952,516
$ 16,495,236
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest-bearing
$ 311,386
$ 383,260
$ 319,872
$ 520,070
$ 287,846
Interest-bearing
12,580,501
14,533,807
13,655,789
13,541,390
12,719,492
Total deposits
12,891,887
14,917,067
13,975,661
14,061,460
13,007,338
Borrowings
3,568,721
1,159,206
1,835,985
964,127
1,654,075
Deferred and current tax liabilities, net
19,530
25,098
43,935
19,923
18,006
Other liabilities
233,731
222,904
190,527
205,922
183,102
Total liabilities
16,713,869
16,324,275
16,046,108
15,251,432
14,862,521
Commitments and Contingencies
Shareholders' Equity
Common stock, without par value
Authorized - 75,000,000 shares
Issued and outstanding - 45,764,023 shares, 45,757,567 shares, 43,354,718 shares, 43,242,928 shares and 43,240,212 shares
239,448
238,492
139,950
140,365
139,609
Preferred stock, without par value - 5,000,000 total shares authorized
7% Series A Preferred stock - $25 per share liquidation preference
Authorized - no shares at September 30, 2024 or June 30, 2024 and 3,500,000 shares at March 31, 2024 and all prior periods presented
Issued and outstanding - no shares at September 30, 2024 or June 30, 2024 and 2,081,800 shares at March 31, 2024 and all prior periods presented
—
—
50,221
50,221
50,221
6% Series B Preferred stock - $1,000 per share liquidation preference
Authorized - 125,000 shares
Issued and outstanding - 125,000 shares (equivalent to 5,000,000 depositary shares)
120,844
120,844
120,844
120,844
120,844
6% Series C Preferred stock - $1,000 per share liquidation preference
Authorized - 200,000 shares
Issued and outstanding - 196,181 shares (equivalent to 7,847,233 depositary shares)
191,084
191,084
191,084
191,084
191,084
8.25% Series D Preferred stock - $1,000 per share liquidation preference
Authorized - 300,000 shares
Issued and outstanding - 142,500 shares (equivalent to 5,700,000 depositary shares)
137,459
137,459
137,459
137,459
137,459
Retained earnings
1,250,176
1,200,778
1,138,083
1,063,599
998,252
Accumulated other comprehensive income (loss)
96
(510)
(1,173)
(2,488)
(4,754)
Total shareholders' equity
1,939,107
1,888,147
1,776,468
1,701,084
1,632,715
Total liabilities and shareholders' equity
$ 18,652,976
$ 18,212,422
$ 17,822,576
$ 16,952,516
$ 16,495,236
Consolidated Statement of Income
(Unaudited)
(In thousands, except share data)
Three Months Ended
Change
September 30,
June 30,
September 30,
3Q24
3Q24
2024
2024
2023
vs. 2Q24
vs. 3Q23
Interest Income
Loans
$
290,259
$
284,421
$
266,561
2 %
9 %
Mortgage loans in process of securitization
4,062
3,044
2,583
33 %
57 %
Investment securities:
Available for sale
14,855
14,784
6,182
—
140 %
Held to maturity
22,081
19,799
17,427
12 %
27 %
FHLB stock and other equity securities (dividends)
3,128
1,277
572
145 %
447 %
Other
4,543
4,948
3,351
-8 %
36 %
Total interest income
338,928
328,273
296,676
3 %
14 %
Interest Expense
Deposits
165,675
179,651
162,906
-8 %
2 %
Borrowed funds
40,432
20,503
16,334
97 %
148 %
Total interest expense
206,107
200,154
179,240
3 %
15 %
Net Interest Income
132,821
128,119
117,436
4 %
13 %
Provision for credit losses
6,898
9,965
4,014
-31 %
72 %
Net Interest Income After Provision for Credit Losses
125,923
118,154
113,422
7 %
11 %
Noninterest Income
Gain on sale of loans
16,731
11,168
10,758
50 %
56 %
Loan servicing fees, net
(1,509)
10,827
17,384
-114 %
-109 %
Mortgage warehouse fees
1,620
1,524
1,858
6 %
-13 %
Syndication and asset management fees
1,834
3,233
2,368
-43 %
-23 %
Other income
(1,934)
4,599
3,700
-142 %
-152 %
Total noninterest income
16,742
31,351
36,068
-47 %
-54 %
Noninterest Expense
Salaries and employee benefits
35,218
28,373
27,052
24 %
30 %
Loan expense
1,114
993
1,038
12 %
7 %
Occupancy and equipment
2,231
2,239
2,196
—
2 %
Professional fees
3,439
3,556
2,555
-3 %
35 %
Deposit insurance expense
8,981
5,579
3,568
61 %
152 %
Technology expense
2,068
1,859
1,609
11 %
29 %
Other expense
8,267
7,781
4,912
6 %
68 %
Total noninterest expense
61,318
50,380
42,930
22 %
43 %
Income Before Income Taxes
81,347
99,125
106,560
-18 %
-24 %
Provision for income taxes
20,074
22,732
25,056
-12 %
-20 %
