Carmel-based Merchants Bancorp reports record profit for 2017

Carmel-based Merchants Bancorp on Thursday reported record profit in 2017, boosted in part by growth in its multifamily mortgage segment. 

The company earned $54.7 million, or $2.28 per share, in 2017, an increase of 65 percent over its 2016 profit of $33.1 million, or $1.47 per share.

Merchants Bancorp is the parent of a multipronged company that includes multifamily mortgage lender and servicer P/R Mortgage; Merchants Bank of Indiana; and Warehouse Lending, which extends credit to loan originators for residential mortgages.

Each of those three segments saw profit increase last year. The largest growth came from multifamily mortgage banking, for which profit for the year totaled $28.7 million—up 205 percent from a year earlier.

 “We achieved record assets, loans, deposits and net income, while maintaining well-capitalized capital ratios that were increased by the proceeds of our initial public offering,” CEO Michael Petrie said in a prepared statement.

Merchants Bancorp went public in October with a $115 million initial public offering. The IPO price for those shares was $16.

Shares were trading at $20.08 on Friday morning, up 9 cents from Thursday’s closing price. 

Full-year net interest income—the amount the bank earned on interest minus the amount it paid out on customer accounts—totaled $66.6 million, up from $54.0 million the previous year. 

Noninterest income, earned from things like loan servicing fees and proceeds from loan sales, totaled $47.7 million, up from $28.5 million in 2016.

Noninterest expenses totaled $34.6 million, up from $26.7 million a year earlier.

For just the fourth quarter, Merchants Bancorp booked profit of $20.3 million, or 73 cents per share, up from $8.8 million, or 38 cents per share, during the same period in 2016.

The bank said its fourth-quarter results included a one-time $6.9 million tax benefit related to federal tax reform. That benefit came from a revaluation of the bank’s deferred tax liability under the new lower corporate tax rate.
 

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