Company Quick10K Filing
Merchants Bancorp
Price17.29 EPS2
Shares29 P/E8
MCap497 P/FCF-0
Net Debt-205 EBIT169
TEV292 TEV/EBIT2
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-09
10-Q 2020-06-30 Filed 2020-08-10
10-Q 2020-03-31 Filed 2020-05-04
10-K 2019-12-31 Filed 2020-03-16
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-10
10-K 2018-12-31 Filed 2019-03-15
10-Q 2018-09-30 Filed 2018-11-14
10-Q 2018-06-30 Filed 2018-08-14
10-Q 2018-03-31 Filed 2018-05-15
10-K 2017-12-31 Filed 2018-03-28
10-Q 2017-09-30 Filed 2017-12-07
8-K 2020-11-18
8-K 2020-10-28
8-K 2020-08-20
8-K 2020-07-28
8-K 2020-05-21
8-K 2020-04-23
8-K 2020-02-20
8-K 2020-01-30
8-K 2020-01-22
8-K 2019-12-19
8-K 2019-11-20
8-K 2019-10-30
8-K 2019-08-19
8-K 2019-08-19
8-K 2019-08-12
8-K 2019-07-30
8-K 2019-06-27
8-K 2019-05-16
8-K 2019-04-30
8-K 2019-03-28
8-K 2019-03-21
8-K 2019-03-15
8-K 2019-02-21
8-K 2019-01-30
8-K 2019-01-08
8-K 2018-12-06
8-K 2018-11-14
8-K 2018-10-30
8-K 2018-10-01
8-K 2018-08-16
8-K 2018-07-30
8-K 2018-06-13
8-K 2018-06-05
8-K 2018-04-30
8-K 2018-04-13
8-K 2018-04-13
8-K 2018-02-22
8-K 2018-02-08
8-K 2018-01-02

MBIN 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Note 1: Basis of Presentation
Note 2: Securities Available for Sale
Note 3: Mortgage Loans in Process of Securitization
Note 4: Loans and Allowance for Loan Losses
Note 5: Borrowings
Note 6: Regulatory Matters
Note 7: Derivative Financial Instruments
Note 8: Disclosures About Fair Value of Assets and Liabilities
Note 9: Earnings per Share
Note 10: Share - Based Payment Plans
Note 11: Segment Information
Note 12: Preferred Stock Offerings
Note 13: Recent Accounting Pronouncements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3 Quantitative and Qualitative Disclosures About Market Risk
Item 4 Controls and Procedures
Part II
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 mbin-20200930xex31d1.htm
EX-31.2 mbin-20200930xex31d2.htm
EX-32 mbin-20200930xex32.htm

Merchants Bancorp Earnings 2020-09-30

Balance SheetIncome StatementCash Flow

41625416250001629019--12-312020Q3false20818002081800001250001250000.02528706438287456140.990001629019srt:ParentCompanyMember2020-09-300001629019mbin:MerchantsBankOfIndianaMember2020-09-300001629019mbin:JoyStateBankMember2020-09-300001629019mbin:PreferredStock7Memberus-gaap:PreferredStockMember2019-07-012019-09-300001629019us-gaap:CommonStockMember2020-07-012020-09-300001629019us-gaap:CommonStockMember2019-07-012019-09-300001629019us-gaap:CommonStockMember2020-04-012020-06-300001629019us-gaap:CommonStockMember2020-01-012020-03-310001629019us-gaap:CommonStockMember2019-04-012019-06-300001629019us-gaap:CommonStockMember2019-01-012019-03-310001629019mbin:PreferredStock6Memberus-gaap:PreferredStockMember2019-07-012019-09-300001629019mbin:PreferredStock7Memberus-gaap:PreferredStockMember2019-04-012019-06-300001629019mbin:PreferredStock7Memberus-gaap:PreferredStockMember2019-01-012019-03-310001629019mbin:PreferredStock8Memberus-gaap:PrivatePlacementMember2015-01-012016-12-310001629019us-gaap:RetainedEarningsMember2020-09-300001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001629019us-gaap:RetainedEarningsMember2020-06-300001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001629019us-gaap:RetainedEarningsMember2020-03-310001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-3100016290192020-03-310001629019us-gaap:RetainedEarningsMember2019-12-310001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001629019us-gaap:RetainedEarningsMember2019-09-300001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001629019us-gaap:RetainedEarningsMember2019-06-300001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001629019us-gaap:RetainedEarningsMember2019-03-310001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-3100016290192019-03-310001629019us-gaap:RetainedEarningsMember2018-12-310001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001629019mbin:PreferredStock8Memberus-gaap:PreferredStockMember2020-09-300001629019mbin:PreferredStock7Memberus-gaap:PreferredStockMember2020-09-300001629019mbin:PreferredStock6Memberus-gaap:PreferredStockMember2020-09-300001629019us-gaap:CommonStockMember2020-09-300001629019mbin:PreferredStock8Memberus-gaap:PreferredStockMember2020-06-300001629019mbin:PreferredStock7Memberus-gaap:PreferredStockMember2020-06-300001629019mbin:PreferredStock6Memberus-gaap:PreferredStockMember2020-06-300001629019us-gaap:CommonStockMember2020-06-300001629019mbin:PreferredStock8Memberus-gaap:PreferredStockMember2020-03-310001629019mbin:PreferredStock7Memberus-gaap:PreferredStockMember2020-03-310001629019mbin:PreferredStock6Memberus-gaap:PreferredStockMember2020-03-310001629019us-gaap:CommonStockMember2020-03-310001629019mbin:PreferredStock8Memberus-gaap:PreferredStockMember2019-12-310001629019mbin:PreferredStock7Memberus-gaap:PreferredStockMember2019-12-310001629019mbin:PreferredStock6Memberus-gaap:PreferredStockMember2019-12-310001629019us-gaap:CommonStockMember2019-12-310001629019mbin:PreferredStock8Memberus-gaap:PreferredStockMember2019-09-300001629019mbin:PreferredStock7Memberus-gaap:PreferredStockMember2019-09-300001629019mbin:PreferredStock6Memberus-gaap:PreferredStockMember2019-09-300001629019us-gaap:CommonStockMember2019-09-300001629019mbin:PreferredStock8Memberus-gaap:PreferredStockMember2019-06-300001629019mbin:PreferredStock7Memberus-gaap:PreferredStockMember2019-06-300001629019us-gaap:CommonStockMember2019-06-300001629019mbin:PreferredStock8Memberus-gaap:PreferredStockMember2019-03-310001629019mbin:PreferredStock7Memberus-gaap:PreferredStockMember2019-03-310001629019us-gaap:CommonStockMember2019-03-310001629019mbin:PreferredStock8Memberus-gaap:PreferredStockMember2018-12-310001629019us-gaap:CommonStockMember2018-12-310001629019us-gaap:RestrictedStockMembermbin:RestrictedStockPlan2016Member2020-07-012020-09-300001629019mbin:NonExecutiveDirectorMember2020-07-012020-09-300001629019us-gaap:RestrictedStockMembermbin:RestrictedStockPlan2016Member2020-01-012020-09-300001629019mbin:NonExecutiveDirectorMember2020-01-012020-09-300001629019us-gaap:RestrictedStockMembermbin:RestrictedStockPlan2016Member2019-07-012019-09-300001629019mbin:NonExecutiveDirectorMember2019-07-012019-09-300001629019us-gaap:RestrictedStockMembermbin:RestrictedStockPlan2016Member2019-01-012019-09-300001629019mbin:NonExecutiveDirectorMember2019-01-012019-09-300001629019srt:SingleFamilyMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001629019srt:SingleFamilyMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputConstantPrepaymentRateMember2020-09-300001629019srt:SingleFamilyMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputConstantPrepaymentRateMember2020-09-300001629019srt:SingleFamilyMembersrt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputConstantPrepaymentRateMember2020-09-300001629019srt:MultifamilyMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001629019srt:MultifamilyMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputConstantPrepaymentRateMember2020-09-300001629019srt:SingleFamilyMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001629019srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001629019srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputConstantPrepaymentRateMember2020-09-300001629019srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputDiscountRateMember2020-09-300001629019srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputConstantPrepaymentRateMember2020-09-300001629019srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001629019srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputConstantPrepaymentRateMember2019-12-310001629019srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputDiscountRateMember2019-12-310001629019srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMemberus-gaap:MeasurementInputConstantPrepaymentRateMember2019-12-310001629019srt:SingleFamilyMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMember2020-09-300001629019srt:MultifamilyMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMember2020-09-300001629019us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001629019us-gaap:FairValueInputsLevel3Memberus-gaap:ServicingContractsMember2019-12-310001629019us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMember2020-07-012020-09-300001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMember2020-07-012020-09-300001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMember2020-01-012020-09-300001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMember2019-07-012019-09-300001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMember2019-01-012019-09-300001629019mbin:PreferredStock8Member2020-09-300001629019mbin:PreferredStock7Member2020-09-300001629019mbin:PreferredStock8Member2019-12-310001629019mbin:PreferredStock7Member2019-12-310001629019mbin:PreferredStock7Member2019-09-230001629019mbin:PreferredStock6Membermbin:PublicOfferingMember2019-08-190001629019mbin:PreferredStock7Memberus-gaap:PrivatePlacementMember2019-06-270001629019mbin:PreferredStock7Membermbin:PublicOfferingMember2019-03-280001629019mbin:PreferredStock8Memberus-gaap:PrivatePlacementMember2016-12-310001629019mbin:PreferredStock8Memberus-gaap:PrivatePlacementMember2015-12-310001629019mbin:PreferredStock8Member2020-07-012020-09-300001629019mbin:PreferredStock7Member2020-07-012020-09-300001629019mbin:PreferredStock6Member2020-07-012020-09-300001629019mbin:PreferredStock8Member2020-04-012020-06-300001629019mbin:PreferredStock7Member2020-04-012020-06-300001629019mbin:PreferredStock6Member2020-04-012020-06-300001629019mbin:PreferredStock8Member2020-01-012020-09-300001629019mbin:PreferredStock7Member2020-01-012020-09-300001629019mbin:PreferredStock6Member2020-01-012020-09-300001629019mbin:PreferredStock8Member2020-01-012020-03-310001629019mbin:PreferredStock7Member2020-01-012020-03-310001629019mbin:PreferredStock6Member2020-01-012020-03-310001629019mbin:PreferredStock8Member2019-07-012019-09-300001629019mbin:PreferredStock7Member2019-07-012019-09-300001629019mbin:PreferredStock8Member2019-04-012019-06-300001629019mbin:PreferredStock8Member2019-01-012019-12-310001629019mbin:PreferredStock7Member2019-01-012019-12-310001629019mbin:PreferredStock6Member2019-01-012019-12-310001629019mbin:PreferredStock8Member2019-01-012019-03-310001629019mbin:PreferredStock8Memberus-gaap:PrivatePlacementMember2016-01-012016-12-310001629019mbin:PreferredStock8Memberus-gaap:PrivatePlacementMember2015-01-012015-12-310001629019mbin:PreferredStock6Member2019-07-012019-09-300001629019mbin:PreferredStock7Member2019-04-012019-06-300001629019mbin:PreferredStock7Member2019-01-012019-03-310001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001629019us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001629019mbin:PrMortgageInvestmentManagementLlcMember2020-09-300001629019mbin:PrMortgageInvestmentLpPrmiMember2020-09-300001629019mbin:PrmigpLlcMember2020-09-300001629019mbin:MerchantsCapitalInvestmentsLlcMember2020-09-300001629019us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300001629019us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001629019us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001629019us-gaap:FairValueMeasurementsRecurringMember2020-09-300001629019us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001629019us-gaap:FairValueMeasurementsRecurringMember2019-12-310001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMembermbin:Covid19Member2020-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMembermbin:Covid19Member2020-09-300001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMemberus-gaap:SpecialMentionMembermbin:Covid19Member2020-09-300001629019us-gaap:SpecialMentionMembermbin:Covid19Member2020-09-300001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMember2020-09-300001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-09-300001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMember2020-09-300001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SubstandardMember2020-09-300001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-09-300001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2020-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2020-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2020-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2020-09-300001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-09-300001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMemberus-gaap:PassMember2020-09-300001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-09-300001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMemberus-gaap:PassMember2020-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2020-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2020-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMemberus-gaap:PassMember2020-09-300001629019us-gaap:SubstandardMember2020-09-300001629019us-gaap:SpecialMentionMember2020-09-300001629019us-gaap:PassMember2020-09-300001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMember2019-12-310001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2019-12-310001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMember2019-12-310001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SubstandardMember2019-12-310001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SpecialMentionMember2019-12-310001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2019-12-310001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2019-12-310001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2019-12-310001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2019-12-310001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMemberus-gaap:SpecialMentionMember2019-12-310001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMemberus-gaap:PassMember2019-12-310001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMemberus-gaap:SubstandardMember2019-12-310001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMemberus-gaap:PassMember2019-12-310001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2019-12-310001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMemberus-gaap:PassMember2019-12-310001629019us-gaap:SubstandardMember2019-12-310001629019us-gaap:SpecialMentionMember2019-12-310001629019us-gaap:PassMember2019-12-310001629019us-gaap:ResidentialPortfolioSegmentMember2020-06-300001629019us-gaap:ConsumerPortfolioSegmentMember2020-06-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMember2020-06-300001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMember2020-06-300001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMember2020-06-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMember2020-06-3000016290192020-06-300001629019us-gaap:ResidentialPortfolioSegmentMember2019-09-300001629019us-gaap:ConsumerPortfolioSegmentMember2019-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMember2019-09-300001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMember2019-09-300001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMember2019-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMember2019-09-300001629019us-gaap:ResidentialPortfolioSegmentMember2019-06-300001629019us-gaap:ConsumerPortfolioSegmentMember2019-06-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMember2019-06-300001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMember2019-06-300001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMember2019-06-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMember2019-06-3000016290192019-06-300001629019us-gaap:ResidentialPortfolioSegmentMember2018-12-310001629019us-gaap:ConsumerPortfolioSegmentMember2018-12-310001629019us-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMember2018-12-310001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMember2018-12-310001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMember2018-12-310001629019us-gaap:OperatingSegmentsMembermbin:MultiFamilyMortgageBankingMember2020-07-012020-09-300001629019us-gaap:OperatingSegmentsMembermbin:MortgageWarehousingMember2020-07-012020-09-300001629019us-gaap:OperatingSegmentsMembermbin:BankingSegmentMember2020-07-012020-09-300001629019mbin:CorporateReconcilingItemsAndEliminationsMember2020-07-012020-09-300001629019us-gaap:OperatingSegmentsMembermbin:MultiFamilyMortgageBankingMember2020-01-012020-09-300001629019us-gaap:OperatingSegmentsMembermbin:MortgageWarehousingMember2020-01-012020-09-300001629019us-gaap:OperatingSegmentsMembermbin:BankingSegmentMember2020-01-012020-09-300001629019mbin:CorporateReconcilingItemsAndEliminationsMember2020-01-012020-09-300001629019us-gaap:OperatingSegmentsMembermbin:MultiFamilyMortgageBankingMember2019-07-012019-09-300001629019us-gaap:OperatingSegmentsMembermbin:MortgageWarehousingMember2019-07-012019-09-300001629019us-gaap:OperatingSegmentsMembermbin:BankingSegmentMember2019-07-012019-09-300001629019mbin:CorporateReconcilingItemsAndEliminationsMember2019-07-012019-09-300001629019us-gaap:OperatingSegmentsMembermbin:MultiFamilyMortgageBankingMember2019-01-012019-09-300001629019us-gaap:OperatingSegmentsMembermbin:MortgageWarehousingMember2019-01-012019-09-300001629019us-gaap:OperatingSegmentsMembermbin:BankingSegmentMember2019-01-012019-09-300001629019mbin:CorporateReconcilingItemsAndEliminationsMember2019-01-012019-09-300001629019us-gaap:ResidentialPortfolioSegmentMember2020-07-012020-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMember2020-07-012020-09-300001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMember2020-01-012020-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMember2020-01-012020-09-300001629019us-gaap:ConsumerPortfolioSegmentMember2019-07-012019-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMember2019-07-012019-09-300001629019us-gaap:ResidentialPortfolioSegmentMember2019-01-012019-09-300001629019us-gaap:ConsumerPortfolioSegmentMember2019-01-012019-09-300001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-09-300001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-09-300001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300001629019us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-09-300001629019us-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300001629019us-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310001629019us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310001629019us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310001629019us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310001629019us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001629019us-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310001629019us-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310001629019us-gaap:ResidentialPortfolioSegmentMember2020-09-300001629019us-gaap:ConsumerPortfolioSegmentMember2020-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMember2020-09-300001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMember2020-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMember2020-09-300001629019us-gaap:ConsumerPortfolioSegmentMember2019-12-310001629019us-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310001629019mbin:MultiFamilyAndHealthcareFinancingPortfolioSegmentMember2019-12-310001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMember2019-12-310001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMember2019-12-310001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2019-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2019-06-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-07-012020-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-01-012020-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2019-07-012019-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2019-01-012019-09-300001629019us-gaap:AssetsMember2020-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2020-06-300001629019us-gaap:AssetsMember2020-06-300001629019us-gaap:AssetsMember2019-12-310001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-09-300001629019us-gaap:AssetsMember2019-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-06-300001629019us-gaap:AssetsMember2019-06-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2018-12-310001629019us-gaap:AssetsMember2018-12-310001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2020-07-012020-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2020-01-012020-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-07-012019-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-01-012019-09-300001629019us-gaap:InterestRateSwapMember2020-09-300001629019us-gaap:InterestRateLockCommitmentsMember2020-09-300001629019us-gaap:ForwardContractsMember2020-09-300001629019us-gaap:InterestRateSwapMember2019-12-310001629019us-gaap:InterestRateLockCommitmentsMember2019-12-310001629019us-gaap:ForwardContractsMember2019-12-310001629019us-gaap:InterestRateSwapMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-09-300001629019us-gaap:ForwardContractsMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-09-300001629019us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-09-300001629019us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001629019us-gaap:InterestRateSwapMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2019-12-310001629019us-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001629019us-gaap:ForwardContractsMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2019-12-310001629019us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2019-12-310001629019us-gaap:InterestRateSwapMember2020-07-012020-09-300001629019us-gaap:InterestRateSwapMember2020-01-012020-09-300001629019us-gaap:InterestRateLockCommitmentsMember2020-07-012020-09-300001629019us-gaap:ForwardContractsMember2020-07-012020-09-300001629019us-gaap:InterestRateLockCommitmentsMember2020-01-012020-09-300001629019us-gaap:ForwardContractsMember2020-01-012020-09-300001629019us-gaap:InterestRateLockCommitmentsMember2019-07-012019-09-300001629019us-gaap:ForwardContractsMember2019-07-012019-09-300001629019us-gaap:InterestRateLockCommitmentsMember2019-01-012019-09-300001629019us-gaap:ForwardContractsMember2019-01-012019-09-300001629019us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001629019us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001629019us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001629019us-gaap:InterestRateSwapMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2020-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Member2020-09-300001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2020-09-300001629019us-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001629019us-gaap:ForwardContractsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2020-09-300001629019us-gaap:DerivativeFinancialInstrumentsAssetsMember2020-09-300001629019us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001629019us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001629019us-gaap:InterestRateSwapMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-12-310001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Member2019-12-310001629019us-gaap:InterestRateLockCommitmentsMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-12-310001629019us-gaap:DerivativeFinancialInstrumentsAssetsMember2019-12-310001629019srt:WeightedAverageMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputMaturityMember2020-09-300001629019srt:MinimumMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputMaturityMember2020-09-300001629019srt:MaximumMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputMaturityMember2020-09-300001629019srt:MinimumMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputMaturityMember2019-12-310001629019srt:MaximumMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputMaturityMember2019-12-310001629019mbin:FederalReserveDiscountWindowBorrowingsMembermbin:LoansInAccordanceWithCRESActMember2020-09-300001629019mbin:FederalReserveDiscountWindowBorrowingsMember2020-09-300001629019us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300001629019us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-3100016290192018-12-310001629019us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-09-300001629019us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-09-300001629019us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-09-300001629019us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2020-09-300001629019us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2020-09-300001629019us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-09-300001629019us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-09-300001629019us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-09-300001629019us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310001629019us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-12-310001629019us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310001629019us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2019-12-310001629019us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2019-12-310001629019us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310001629019us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-12-310001629019us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310001629019us-gaap:USTreasuryNotesSecuritiesMember2020-09-300001629019us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-09-300001629019us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-09-300001629019mbin:MunicipalSecuritiesMember2020-09-300001629019us-gaap:USTreasuryNotesSecuritiesMember2019-12-310001629019us-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-12-310001629019us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310001629019mbin:MunicipalSecuritiesMember2019-12-310001629019us-gaap:OperatingSegmentsMembermbin:MultiFamilyMortgageBankingMember2020-09-300001629019us-gaap:OperatingSegmentsMembermbin:MortgageWarehousingMember2020-09-300001629019us-gaap:OperatingSegmentsMembermbin:BankingSegmentMember2020-09-300001629019mbin:CorporateReconcilingItemsAndEliminationsMember2020-09-300001629019us-gaap:OperatingSegmentsMembermbin:MultiFamilyMortgageBankingMember2019-09-300001629019us-gaap:OperatingSegmentsMembermbin:MortgageWarehousingMember2019-09-300001629019us-gaap:OperatingSegmentsMembermbin:BankingSegmentMember2019-09-300001629019mbin:CorporateReconcilingItemsAndEliminationsMember2019-09-3000016290192019-09-300001629019us-gaap:ConsumerPortfolioSegmentMember2020-07-012020-09-300001629019us-gaap:ConsumerPortfolioSegmentMember2020-01-012020-09-300001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMember2019-07-012019-09-300001629019mbin:MortgageWarehouseLinesOfCreditPortfolioSegmentMember2019-01-012019-09-300001629019mbin:FederalReserveDiscountWindowBorrowingsMember2020-07-012020-09-300001629019mbin:NonExecutiveDirectorMember2018-01-012018-12-310001629019us-gaap:ResidentialPortfolioSegmentMember2019-12-310001629019mbin:PreferredStock7Member2019-09-232019-09-230001629019mbin:PreferredStock7Memberus-gaap:PrivatePlacementMember2019-06-272019-06-270001629019mbin:PreferredStock7Membermbin:PublicOfferingMember2019-03-282019-03-280001629019mbin:PreferredStock6Member2020-09-300001629019mbin:PreferredStock6Member2019-12-310001629019mbin:PreferredStock7Membermbin:PublicOfferingMember2019-04-122019-04-1200016290192020-09-3000016290192019-12-310001629019us-gaap:ResidentialPortfolioSegmentMember2020-01-012020-09-300001629019us-gaap:ResidentialPortfolioSegmentMember2019-01-012019-12-310001629019us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001629019us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001629019us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001629019srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Membermbin:CollateralDependentImpairedLoansMember2020-09-300001629019srt:MinimumMemberus-gaap:FairValueInputsLevel3Membermbin:CollateralDependentImpairedLoansMember2020-09-300001629019srt:MinimumMemberus-gaap:FairValueInputsLevel3Membermbin:CollateralDependentImpairedLoansMember2019-12-310001629019srt:MaximumMemberus-gaap:FairValueInputsLevel3Membermbin:CollateralDependentImpairedLoansMember2019-12-310001629019us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300001629019us-gaap:FairValueInputsLevel3Membermbin:CollateralDependentImpairedLoansMember2020-09-300001629019us-gaap:FairValueMeasurementsNonrecurringMember2020-09-300001629019us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001629019us-gaap:FairValueInputsLevel3Membermbin:CollateralDependentImpairedLoansMember2019-12-310001629019us-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001629019us-gaap:ResidentialPortfolioSegmentMember2019-07-012019-09-300001629019mbin:LoansInAccordanceWithCRESActMember2020-09-300001629019us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300001629019us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300001629019us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-09-300001629019us-gaap:AssetsMember2020-07-012020-09-300001629019us-gaap:AssetsMember2020-01-012020-09-300001629019us-gaap:AssetsMember2019-07-012019-09-300001629019us-gaap:AssetsMember2019-01-012019-09-300001629019us-gaap:RetainedEarningsMember2019-01-012019-03-3100016290192019-01-012019-03-310001629019us-gaap:RetainedEarningsMember2019-04-012019-06-3000016290192019-04-012019-06-300001629019us-gaap:RetainedEarningsMember2020-07-012020-09-300001629019us-gaap:RetainedEarningsMember2020-04-012020-06-3000016290192020-04-012020-06-300001629019us-gaap:RetainedEarningsMember2020-01-012020-03-3100016290192020-01-012020-03-310001629019us-gaap:RetainedEarningsMember2019-07-012019-09-300001629019mbin:PreferredStock6Membermbin:PublicOfferingMember2019-08-192019-08-190001629019srt:ParentCompanyMember2019-12-310001629019mbin:MerchantsBankOfIndianaMember2019-12-310001629019mbin:JoyStateBankMember2019-12-310001629019us-gaap:CommercialRealEstatePortfolioSegmentMember2020-07-012020-09-3000016290192020-07-012020-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMember2020-01-012020-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMember2019-07-012019-09-3000016290192019-07-012019-09-300001629019us-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-09-300001629019mbin:AgriculturalProductionAndRealEstatePortfolioSegmentMember2019-01-012019-09-3000016290192019-01-012019-09-300001629019us-gaap:SeriesAPreferredStockMember2020-01-012020-09-300001629019us-gaap:CommonClassAMember2020-01-012020-09-300001629019mbin:DepositarySharesMember2020-01-012020-09-3000016290192020-11-0200016290192020-01-012020-09-30xbrli:sharesiso4217:USDxbrli:purembin:loaniso4217:USDxbrli:sharesmbin:item

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

September 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _______________

Commission File No. 001-38258

MERCHANTS BANCORP

(Exact name of registrant as specified in its charter)

Indiana

    

20-5747400

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification Number)

410 Monon Blvd. Carmel, Indiana

46032

(Address of principal executive office)

(Zip Code)

(317) 569-7420

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes    No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.).
Yes
    No 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, without par value

MBIN

NASDAQ

Series A Preferred Stock, without par value

MBINP

NASDAQ

Depositary Shares, each representing a 1/40th interest in a share of Series B Preferred Stock, without par value

MBINO

NASDAQ

As of November 2, 2020, the latest practicable date, 28,745,614 shares of the registrant’s common stock, without par value, were issued and outstanding.

Table of Contents

Merchants Bancorp

Index to Quarterly Report on Form 10-Q

PART I – FINANCIAL INFORMATION

Item 1 Interim Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019

3

Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2020 and 2019

4

Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2020 and 2019

5

Condensed Consolidated Statements of Shareholders’ Equity for the Nine Months Ended September 30, 2020 and 2019

6

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2020 and 2019

8

Notes to Condensed Consolidated Financial Statements

9

Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations

38

Item 3 Quantitative and Qualitative Disclosures About Market Risk

58

Item 4 Controls and Procedures

58

PART II – OTHER INFORMATION

59

Item 1 Legal Proceedings

59

Item 1A Risk Factors

59

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds

59

Item 3 Defaults Upon Senior Securities

59

Item 4 Mine Safety Disclosures

59

Item 5 Other Information

59

Item 6 Exhibits

60

SIGNATURES

61

2

Table of Contents

Part I – Financial Information

Item 1. Financial Statements

Merchants Bancorp

Condensed Consolidated Balance Sheets

September 30, 2020 (Unaudited) and December 31, 2019

(In thousands, except share data)

September 30, 

December 31, 

    

2020

    

2019

Assets

 

  

 

  

Cash and due from banks

$

9,276

$

13,909

Interest-earning demand accounts

 

419,926

 

492,800

Cash and cash equivalents

 

429,202

 

506,709

Securities purchased under agreements to resell

 

6,616

 

6,723

Mortgage loans in process of securitization

 

374,721

 

269,891

Available for sale securities

 

278,861

 

290,243

Federal Home Loan Bank (FHLB) stock

 

70,656

 

20,369

Loans held for sale (includes $41,418 and $19,592, respectively at fair value)

 

3,319,619

 

2,093,789

Loans receivable, net of allowance for loan losses of $23,436 and $15,842, respectively

 

4,857,554

 

3,012,468

Premises and equipment, net

 

29,261

 

29,274

Mortgage servicing rights

 

75,772

 

74,387

Interest receivable

 

19,130

 

18,359

Goodwill

 

15,845

 

15,845

Intangible assets, net

 

2,657

 

3,799

Other assets and receivables

 

50,581

 

30,072

Total assets

$

9,530,475

$

6,371,928

Liabilities and Shareholders' Equity

 

 

Liabilities

 

  

 

  

Deposits

 

  

 

  

Noninterest-bearing

$

666,081

$

272,037

Interest-bearing

 

6,418,566

 

5,206,038

Total deposits

 

7,084,647

 

5,478,075

Borrowings

 

1,618,201

 

181,439

Other liabilities

 

70,492

 

58,686

Total liabilities

 

8,773,340

 

5,718,200

Commitments and Contingencies

 

  

 

  

Shareholders' Equity

 

  

 

  

Common stock, without par value

 

  

 

  

Authorized - 50,000,000 shares

 

  

 

  

Issued and outstanding - 28,745,614 shares at September 30, 2020 and 28,706,438 shares at December 31, 2019

 

136,103

 

135,640

Preferred stock, without par value - 5,000,000 total shares authorized

8% Preferred stock - $1,000 per share liquidation preference

 

 

Authorized - 50,000 shares

 

 

Issued and outstanding - 41,625 shares

 

41,581

 

41,581

7% Series A Preferred stock - $25 per share liquidation preference

 

 

Authorized - 3,500,000 shares

 

 

Issued and outstanding - 2,081,800 shares

 

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

Retained earnings

 

407,979

 

304,984

Accumulated other comprehensive income

 

407

 

458

Total shareholders' equity

 

757,135

 

653,728

Total liabilities and shareholders' equity

$

9,530,475

$

6,371,928

See notes to condensed consolidated financial statements.

3

Table of Contents

Merchants Bancorp

Condensed Consolidated Statements of Income (Unaudited)

For the Three and Nine Months Ended September 30, 2020 and 2019

(In thousands, except share data)

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2020

    

2019

    

2020

    

2019

    

Interest Income

 

  

 

  

 

  

Loans

$

71,857

$

52,779

$

189,400

$

129,599

Mortgage loans in process of securitization

 

3,250

 

1,422

 

8,580

 

4,434

Investment securities:

 

 

 

  

 

  

Available for sale - taxable

 

431

 

1,604

 

2,725

 

4,632

Available for sale - tax exempt

37

68

112

217

Federal Home Loan Bank stock

 

531

 

262

 

1,217

 

742

Other

 

152

 

3,626

 

2,845

 

8,572

Total interest income

 

76,258

 

59,761

 

204,879

 

148,196

Interest Expense

 

  

 

  

 

  

 

  

Deposits

 

9,104

 

26,039

 

45,132

 

59,610

Borrowed funds

 

1,832

 

1,098

 

4,838

 

3,909

Total interest expense

 

10,936

 

27,137

 

49,970

 

63,519

Net Interest Income

 

65,322

 

32,624

 

154,909

 

84,677

Provision for loan losses

 

2,981

 

1,193

 

7,724

 

1,947

Net Interest Income After Provision for Loan Losses

 

62,341

 

31,431

 

147,185

 

82,730

Noninterest Income

 

  

 

  

 

  

 

  

Gain on sale of loans

 

29,498

 

8,312

 

67,748

 

20,059

Loan servicing fees, net

 

(643)

 

(1,410)

 

(4,870)

 

(3,318)

Mortgage warehouse fees

 

6,833

 

2,699

 

15,054

 

4,590

Gains on sale of investments available for sale (includes $441, $0, $441, and $124, respectively, related to accumulated other comprehensive earnings reclassifications)

 

441

 

 

441

 

124

Other income

 

2,528

 

1,251

 

6,374

 

2,931

Total noninterest income

 

38,657

 

10,852

 

84,747

 

24,386

Noninterest Expense

 

  

 

  

 

  

 

  

Salaries and employee benefits

 

16,567

 

9,139

 

42,635

 

27,671

Loan expenses

 

2,944

 

1,248

 

6,147

 

3,527

Occupancy and equipment

 

1,420

 

994

 

4,295

 

2,816

Professional fees

 

712

 

508

 

2,007

 

1,500

Deposit insurance expense

 

1,404

 

859

 

5,041

 

1,354

Technology expense

 

903

 

674

 

2,229

 

1,775

Other expense

 

2,434

 

2,100

 

6,605

 

5,834

Total noninterest expense

 

26,384

 

15,522

 

68,959

 

44,477

Income Before Income Taxes

 

74,614

 

26,761

 

162,973

 

62,639

Provision for income taxes (includes $(97), $0, $(97), and $(31), respectively, related to income tax (expense)/benefit for reclassification items)

 

19,612

 

6,502

 

42,226

 

15,371

Net Income

$

55,002

$

20,259

$

120,747

$

47,268

Dividends on preferred stock

(3,618)

(3,022)

(10,855)

(5,598)

Net Income Allocated to Common Shareholders

51,384

17,237

109,892

41,670

Basic Earnings Per Share

$

1.79

$

0.60

$

3.82

$

1.45

Diluted Earnings Per Share

$

1.79

$

0.60

$

3.82

$

1.45

Weighted-Average Shares Outstanding

 

  

 

  

 

  

 

  

Basic

 

28,745,614

 

28,706,438

 

28,741,395

 

28,704,682

Diluted

 

28,778,462

 

28,744,953

 

28,766,756

 

28,742,911

See notes to condensed consolidated financial statements.

4

Table of Contents

Merchants Bancorp

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

For the Three and Nine Months Ended September 30, 2020 and 2019

(In thousands)

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2020

    

2019

    

2020

    

2019

    

Net Income

$

55,002

$

20,259

$

120,747

$

47,268

Other Comprehensive Income (Loss):

 

  

 

 

  

 

  

Net change in unrealized gains/(losses) on investment securities available for sale, net of tax (expense)/benefits of $(22), $(7), $(91), and $(352), respectively

 

43

 

52

 

293

 

1,095

Less: Reclassification adjustment for gains included in net income, net of tax (expense) of $(97), $0, $(97), and $(31), respectively

 

344

 

 

344

 

93

Other comprehensive income (loss) for the period

 

(301)

 

52

 

(51)

 

1,002

Comprehensive Income

$

54,701

$

20,311

$

120,696

$

48,270

See notes to condensed consolidated financial statements.

5

Table of Contents

Merchants Bancorp

Condensed Consolidated Statement of Shareholders’ Equity (Unaudited)

For the Nine Months Ended September 30, 2020

Accumulated

Other

Common Stock

8% Preferred Stock

7% Preferred Stock

6% Preferred Stock

Retained

Comprehensive

    

Shares

    

Amount

    

Shares

    

Amount

    

Shares

    

Amount

    

Shares

    

Amount

    

Earnings

    

Income

    

Total

Balance, January 1, 2020

 

28,706,438

$

135,640

 

41,625

$

41,581

 

2,081,800

$

50,221

125,000

$

120,844

$

304,984

$

458

$

653,728

Net income

 

 

 

 

 

 

 

 

24,583

 

 

24,583

Shares issued for stock compensation plans, net of taxes withheld to satisfy employee tax obligations

 

36,046

 

106

 

 

 

 

 

 

 

 

106

Dividends on 8% preferred stock, $80.00 per share, annually

 

 

 

 

 

 

 

 

(833)

 

 

(833)

Dividends on 7% preferred stock, $1.75 per share, annually

 

 

 

 

 

 

 

 

(910)

 

 

(910)

Dividends on 6% preferred stock, $60.00 per share, annually

 

 

 

 

 

 

 

 

(1,875)

 

 

(1,875)

Dividends on common stock, $0.32 per share, annually

 

 

 

 

 

 

 

 

(2,298)

 

 

(2,298)

Other comprehensive income

 

 

 

 

 

 

 

 

 

468

 

468

Balance, March 31, 2020

 

28,742,484

$

135,746

 

41,625

$

41,581

 

2,081,800

$

50,221

125,000

$

120,844

$

323,651

$

926

$

672,969

Net income

 

 

 

 

 

 

 

 

41,162

 

 

41,162

Shares issued for stock compensation plans

 

3,130

 

203

 

 

 

 

 

 

 

 

203

Dividends on 8% preferred stock, $80.00 per share, annually

 

 

 

 

 

 

 

 

(833)

 

 

(833)

Dividends on 7% preferred stock, $1.75 per share, annually

 

 

 

 

 

 

 

 

(911)

 

 

(911)

Dividends on 6% preferred stock, $60.00 per share, annually

 

 

 

 

 

 

 

(1,875)

 

 

(1,875)

Dividends on common stock, $0.32 per share, annually

 

 

 

 

 

 

 

 

(2,299)

 

 

(2,299)

Other comprehensive income

 

 

 

 

 

 

 

 

 

(218)

 

(218)

Balance, June 30, 2020

 

28,745,614

$

135,949

 

41,625

$

41,581

 

2,081,800

$

50,221

125,000

$

120,844

$

358,895

$

708

$

708,198

Net income

 

 

 

 

 

 

 

 

55,002

 

 

55,002

Shares issued for stock compensation plans

 

 

154

 

 

 

 

 

 

 

 

154

Dividends on