Company: Merchants Bancorp
Symbol: MBIN
Description: They are a diversified bank holding company headquartered in Carmel, Indiana and registered under the Bank Holding Company Act of 1956, as amended.
Shares: 5.55 million
Price Range: $17.00-$19.00
Trade Date: 10/27
Underwriter(s): Sandler O’Neill + Partners, Stephens Inc., Raymond James
Co-Manager: SunTrust Robinson
Business: They currently operate multiple lines of business with a focus on Federal Housing Administration (“FHA”) multi-family housing and healthcare facility financing and servicing, mortgage warehouse financing, retail and correspondent residential mortgage banking, agricultural lending and traditional community banking. As of June 30, 2017, they had $3.1 billion in assets, $2.8 billion of deposits and $226.5 million of shareholders’ equity.
FINANCIALS:
Since December 31, 2012, they have seen significant growth in their total assets, total gross loans and total deposits. Between December 31, 2012 and June 30, 2017, their total assets have grown at a compound annual growth rate of 30.4%, from $936 million to $3.1 billion, and they increased total gross loans (including loans held for investment and loans held for sale) at a compound annual growth rate of 32.3%, from $583 million to $2.1 billion. They have funded their growth during this period, in large part, through a substantial increase in deposits, which they have increased from $815 million to $2.8 billion, a compound annual growth rate of 31.3%.
Their net income was $43.01 million, $38.9 million, $3.8 million, $28.4 million and $33.1 million in 2012, 2013, 2014, 2015 and 2016, respectively. The reduction in net income in 2014 reflected $30.1 million in income tax provision due to their conversion from a Subchapter S corporation to a regular C corporation.
Dividend: It has been their policy to pay quarterly dividends to holders of their common stock, and they intend to generally maintain their current dividend levels. Their dividend policy and practice may change in the future, however, and their board of directors may change or eliminate the payment of future dividends at its discretion, without notice to their shareholders.
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