Merchants Bancorp reports Q3 EPS $1.17, consensus $1.42

Unfavorable fair market value adjustments to interest rate floor derivatives on loans and servicing rights of $7.7M and $6.7M, respectively, negatively impacted results during the third quarter of 2024 by approximately 24c per diluted common share. “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 Petrie, Chairman and CEO of Merchants.